Cabot Oil & Gas (NYSE: COG) reviewed 10-30-2020 (edited 11-02)
Market Cap: $8.5 Billion (USD) Share Price: $17.74 (USD)
Shares outstanding: 477,535,499
Cash & cash equivalents: $117 THOUSAND (USD) as of 30 Sep 2020 (Original article stated 117 Million)
Debt: $1.05 Billion (USD) as of 30 Sep 2020
Insiders: 2% Institutional: 766 hold approx. 98%
Website: cabotog.com
Investor Presentations: https://cabotoilgas.gcs-web.com/static-files/c9575e71-71db-42cf-86be-76d1d52dbfbe
CEO & Chairman: Dan Dinges HQs: Houston, TX, USA
Cabot Oil & Gas is a hydrocarbons exploration company operating across 173,000 net acres in the dry gas window of the Marcellus Shale in northeastern Pennsylvania
The company reported Q3 2020 daily production of 2,406 MM CFE per day with a realized cash price (including hedges) of $1.57 per MCFE vs operating costs of $1.41 per MCFE
Cabot reported revenues of $291.04 M in Q3, down -32.2% Y/Y
Non-GAAP earnings were US$.04 per share, GAAP earnings were a loss of -US$0.10 per share
Free cash flow was negative at -US$0.3 Mil compared with US$$72.4 Mil in the previous year
Cabot’s metrics are difficult to evaluate due to the differential in price in the Marcellus as compared with Henry Hub
It is also distant from what is perceived as “demand strength” along the Gulf Coast with access and cost advantage and where infrastructure is situated to take advantage
Bottom line:
- Balance sheet shows problem with the short-term cash position
- Since early March, there has been a +35+% increase in nat gas NYMEX futures for 2022 to the current levels that are above $3, which would result in a material expansion of net income, free cash flow, and return on capital employed next year
- Entering the Fall and Winter “drawdown” season may help short-term, but longer-term outlooks for nat gas are much more difficult to predict
- An abundance of product, but an absence of pipeline capacity, hurts Cabot
- No position, but have added COG to the study list
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