Cabot Oil & Gas Corp. COG, based in Houston, Texas, is an independent oil and gas exploration company with producing properties mainly in the continental U.S. Founded over 100 years ago in Pennsylvania, Cabot originally operated in the Appalachian Mountains of the eastern U.S. before moving the bulk of its activities to the Gulf Coast.
Today, the company has three domestic focus areas: the Appalachian Basin, east Texas, and Rocky Mountains. Cabot mainly concentrates on high-impact natural gas-focused drilling in the Marcellus Shale and supplements it with Eagle Ford-based liquids program in Texas' Eagle Ford play.
Currently, Cabot has a Zacks Rank #3 (Hold) but that could change following its third quarter 2015 earnings report which has just released. The company has missed estimates in 3 of the last four quarters.
We have highlighted some of the key details from the just-released announcement below:
Earnings: Cabot reports loss. Loss per share (excluding special items) came in at 1 cent, underperforming the Zacks Consensus Estimate of breakeven.
Revenue: Revenue below expectations. Revenue of $305.3 million was below the Zacks Consensus Estimate of $354 million.
Key Stats: Cabot’s overall production during the quarter totaled 142.1 billion cubic feet equivalent (Bcfe) – 94% gas – up 7% from the prior year quarter. Natural gas volumes increased 5% year over year to 133.0 Bcf, while liquids output jumped 57% to 1,513 thousand barrels (MBbl). The average realized natural gas price was down 34% from the year-ago quarter to $2.02 per thousand cubic feet, while average oil price realization fell 54% to $43.71 per barrel.
Guidance: Cabot expects to generate production growth of 12–14% for the full-year 2015. The company trimmed its capital expenditure guidance by $50 million to $850 million. For the fourth quarter, Cabot is looking to churn out 1,475-1,600 million cubic feet per day of natural gas and 14,000-15,500 barrels per day of liquids.
Check back later for our full write up on this Cabot earnings report later!
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