Cabot Oil & Gas Earnings and Revenue Rise With Shale Production

Shale oil and gas play Cabot Oil & Gas announced better than expected Q4 earnings Friday. $COG announced a benefit from tax reform and forecast higher cash flow and production growth. The stock closed 2.43% Higher.

Shale oil and gas play Cabot Oil & Gas announced better than expected Q4 earnings Friday. $COG announced a benefit from tax reform and forecast higher cash flow and production growth. The stock closed 2.43% Higher.

Cabot Marcellus

Cabot Oil & Gas Corporation NYSE: COG Earnings Beat Before Open Friday

$3.18 beat $3.10 EPS and $30.59 billion beat forecast in revenue 

Earnings

Cabot Oil & Gas COG reported a profit of $122.3 million, or 28 cents a share, compared with $17.6 million, or 4 cents a share , a year earlier beating analysts 26 cents a share. Revenue rose 41% to $545.2 million ahead of analysts $474.5 million in sales.

Cabot Oil & Gas Corporation NYSE: COG

Market Reaction > Pre-market 21.30 −0.10 (-0.47%)

Highlights

  • Daily equivalent production volume rose 10% from the prior quarter to 2,029 cubic feet equivalent. 
  • Net income of $122.3 million (or $0.28 per share); adjusted net income (non-GAAP) of $108.9 million (or $0.25 per share)
  • Net cash provided by operating activities of $242.2 million; discretionary cash flow (nonGAAP) of $298.8 million
  • Free cash flow (non-GAAP) of $28.6 million 
  • Return on capital employed (ROCE) (nonGAAP) of 10.8 percent for the trailing twelve months
  • Returned $188.5 million of cash to shareholders through dividends and share repurchases
  • Announced a 17 percent dividend increase, the Company’s third dividend increase in the last 18 months
  • Reduced debt by $237.0 million, resulting in annualized interest expense savings of $15.3 million 
  • Improved operating expenses per unit by 18 percent relative to the prior-year comparable quarter Note: 

COG Capex

MARCELLUS SHALE

Since the inception of Cabot’s horizontal drilling program in 2008, the Company’s Marcellus Shale position in northeast Pennsylvania has developed into the cornerstone asset of its portfolio and has been the primary driver of record production and reserve growth during this period.

Cabot has approximately 179,000 net acres in the dry gas window of the Marcellus Shale, primarily in Susquehanna County, Pennsylvania. Cabot’s Marcellus Shale properties accounted for 93% of both the Company’s proved reserves and total net production as of year-end 2016 by the end of 2017 it accounted for 96%.

Marcellus Pad Graphic med

EAGLE FORD SHALE

Cabot’s oil-weighted drilling activity is focused on its 84,000 net acre position in the Eagle Ford Shale, principally located in Atascosa, Frio and La Salle Counties, Texas. Cabot has reaffirmed its 2018 daily production growth guidance of 10 to 15 percent (18 to 23 percent on a divestiture-adjusted basis to reflect the impact of the previously announced Eagle Ford, East Texas, and West Virginia dispositions).

About Cabot Oil and Gas

Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties exclusively in the continental United States. 

Source: Cabot Oil and Gas

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