Energy

Cabot Oil & Gas Posts Mixed Results

Paul Ausick

Published: February 19, 2016 8:35 am

Last Updated: January 13, 2020 1:00 pm

Cabot Oil & Gas Corp. (NYSE: COG) reported fourth-quarter and full-year 2015 results before markets opened Friday. For the quarter, the independent energy producer posted a quarterly adjusted net loss per share of $0.02 on revenues of $280.79 million. In the same period a year ago, the company reported earnings per share (EPS) of $0.23 on revenues of $618 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.04 on revenues of $334.15 million.

For the full year, Cabot posted adjusted EPS of $0.13 on revenues of $1.36 billion, compared with EPS of $0.97 and revenues of $2.17 billion in 2014. Analysts were looking for EPS of $0.11 on revenues of $1.42 billion.

Including the write-downs and other exclusions, Cabot posted a GAAP net loss of $0.27 per share in the quarter and $0.28 per share for the year.

Cabot took a $72.74 million non-cash impairment charge in the fourth quarter and a loss of $30.67 on derivatives. In the prior year quarter, the company took an impairment charge of $486.67 million that was partially offset by a derivatives gain of $58.56 million and a deferred income tax benefit of $102.49 million.

Average realized prices for natural gas were $1.94 per thousand cubic feet in the quarter and $2.15 per thousand cubic feet for the year. The average realized prices for liquids came in at $37.74 per barrel for the quarter and $45.72 per barrel for the full year. All prices include the impact of derivative (hedging) settlements.

Earlier this month, Cabot said its capital spending budget for 2016 would total $325 million, down from a $774 million capex budget in 2015. Some 70% of capex will be directed to the company’s Marcellus shale assets and the rest is targeted for development in the Eagle Ford shale play. Cabot expects to drill approximately 25 wells in the Marcellus shale and five in the Eagle Ford. In 2015 the company participated in a total of 133 net wells.

CEO Dan Dinges said:

Despite a significant year-over-year reduction in capital spending, Cabot generated double-digit reserve and production growth for the sixth consecutive year while continuing to improve its industry-leading cost structure. Finding costs and operating costs decreased 20 percent and 7 percent per unit, respectively, highlighting our capital efficient, low-cost asset base.

Cabot’s stock closed at $19.55 on Thursday and was inactive in Friday’s premarket. The stock’s 52-week range is $26.01 to $39.46. The consensus price target on the stock from Thomson Reuters is around $34.75.