Current COG Stock Info

Cabot will present at EnerCom’s The Oil & Gas Conference® 21 on Mon. Aug. 15, 2016 at 10:50 am EST.

Cabot Oil & Gas (ticker: COG) is an exploration and production company headquartered in Houston, Texas. Cabot is primarily a natural gas producer that is focused on developing its acreage positions in the Eagle Ford and Marcellus Shale. As of December 31, 2015, the company had approximately 8.2 Tcfe of proved reserves. In the first quarter of 2016, the company produced 160.3 Bcfe, consisting of 153.1 Bcf of natural gas, 1.1 MMBO of crude oil and condensate, and 92 MBO of natural gas liquids.

Cabot Operations and Assets

COG Asset Map

In Q1 2016, Cabot drilled seven wells in the Marcellus and three wells in the Eagle Ford. Currently, the company is operating one rig in the Marcellus and no rigs in the Eagle Ford.

In the company’s Q1 2016 earnings call, Cabot CEO Dan Dinges spoke to cost reductions achieved in the Marcellus, saying, “The success of these efforts was evident in the first quarter with drilling and completion cost savings of approximately 14% compared to the fourth quarter of 2015.” Lower drilling costs were achieved despite drilling longer laterals in Q1 2016 than in the previous quarter.

Cabot completed the divestiture of a non-core asset in East Texas during the first quarter for approximately $57 million. Proved reserves associated with the properties were 16.7 Bcfe (80% natural gas). Going forward, the company’s focus remains on the two core assets in the Marcellus and Eagle Ford.

Cabot recently announced a 10-year sales agreement reached with Invenergy LLC’s Lackawanna Energy Center, a power plant in Pennsylvania. The company believes this deal will reduce risk for both parties and guarantee Cabot a meaningful return on all gas sold under the contract.

The pricing terms for the natural gas supplied by Cabot to the Lackawanna Energy Center are confidential, but they will be tied to power prices, rather than natural gas prices. When asked by Oil & Gas 360®, COG Treasurer Matt Kerin said the deal offers the company attractive returns by connecting it to end-user demand.

Financial Overview

Cabot realized a net loss in Q1 2016 of $51.2 million ($0.12 per share). Cash flow from operations was $62.1 million in Q1 2016, compared to $267.4 million in Q1 2015. In Q1 2016, the company operated in a commodity price environment with the lowest average NYMEX natural gas price since the first quarter of 1999 ($2.09 per MMBtu).

At the end of Q1 2016, the company held  52 Bcf of natural gas hedges for the period of April to October 2016 at a weighted average price of approximately $2.51 per Mcf. Cabot also held 1.4 MMBO of crude oil derivates for the same period at a weighted average floor and ceiling price of $38.00 per barrel and $47.28 per barrel, respectively.

Cabot Oil & Gas has a $325 million capital budget for the year, which the company expects will allow production growth of 2-7% for 2016. The company anticipates second quarter production of 1,575-1,600 MMcf/d, 11.5-12.3 MBOPD of crude oil production, and 1.4-1.6 MBOPD of NGLs.

EnerCom’s The Oil & Gas Conference® Denver – August 14-18, 2016

Cabot Oil & Gas. (ticker: COG) will be presenting at EnerCom’s The Oil & Gas Conference® 21 in Denver on Monday, August 15, 2016 at 10:50 am EST. Conference information and registration for this year’s EnerCom conference may be accessed here.

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