What’s Cabot Oil & Gas’s Operating Plan for 2017?
Cabot’s 2017 operating plan
In a presentation released in March 2017, Cabot Oil & Gas (COG) provided its key objectives and operating plan for 2017. The company raised its 2017 exploration and production (or E&P) capital budget to $650 million, compared to $575 million in 3Q16.
COG’s 4Q16 earnings release noted that this incremental capital would mainly be used to fund additional drilling and completion activity in the Eagle Ford Shale. Read Could Cabot Oil & Gas Favor Eagle Ford in the Future? for more information.
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$610 million, or 90%, of Cabot’s 2017 E&P capital will be used for drilling and completion (or D&C) expenses. By operating area, 67% of the company’s D&C capital will be allocated to the Marcellus Shale, and the remaining amount will be utilized for development in the Eagle Ford Shale.
Total 2017 capital budget
Including its equity pipeline investments on the Atlantic Sunrise pipeline and other expenses related to additional Marcellus and Eagle Ford activity, Cabot’s total capital budget for 2017 is expected to be $720 million.
Planned D&C activity in 2017
COG plans to drill 60 wells in the Marcellus Shale and 30 wells in the Eagle Ford Shale, resulting in 90 net wells drilled in 2017, compared to 38 in 2016.
Cabot plans to have 90 net wells completed in 2017, compared to 76 in 2016. Fifty-one of these wells will be in the Marcellus Shale, and the remainder will be in the Eagle Ford Shale.