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Ascent Resources, Llc Announces Utica Shale Bolt-On Acquisition, Extension Of Revolving Credit Facility Maturity And Borrowing Base Increase

Jul 01, 2022•about 3 years ago

Acquiring Company

Ascent Resources, LLC

Acquired Company

UTICA

Oklahoma City

Description

Ascent Resources, LLC (together with its subsidiaries, "Ascent" or the "Company") announced today that it has entered into a Purchase and Sale Agreement with an undisclosed seller to acquire all of its assets in the Utica Shale in Ohio for a total purchase price of $270 million, subject to customary closing purchase price adjustments. Ascent intends to fund the transaction with a combination of cash on hand and borrowings under its revolving credit facility ("Credit Facility"). The Company has also entered into an amended and restated credit agreement with a syndicate of banks to extend the maturity of the Credit Facility to June 2027 while increasing the borrowing base and elected commitment amount to $3.0 billion and $2.0 billion, respectively. The Credit Facility will be governed by the lessor of the borrowing base and the elected commitment amount.

Company Information

Company

Ascent Resources, LLC

Location

3501 NW 63RD STREET

Oklahoma City, Oklahoma, United States

About

Ascent is one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, producing, and operating natural gas and oil properties located in the Utica Shale in southern Ohio. With a continued focus on good corporate citizenship, Ascent is committed to delivering low-cost clean-burning energy to our country and the world, while reducing environmental impacts. For more information, visit www.ascentresources.com. This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements in this press release include, but are not limited to, statements regarding the transaction. These statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties. Actual results may vary materially from those expressed or implied in this press release. These statements are made as of the date of this press release and Ascent undertakes no duty or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

M&A Insights

Based on deal data
Integration timeline
70% of M&A integrations take 12-24 months to complete
Tech stack consolidation
83% of merged companies consolidate technology vendors within first year
Post-acquisition investment
Companies increase IT spending by 23% on average after acquisitions
Success factor
M&A deals with strong technology integration plans are 2.5x more likely to succeed

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