Will Cabot Oil & Gas Stock Get Another Boost from Earnings?
Cabot Oil & Gas (COG) stock started out wobbly at the beginning of 2017. Lately, it has been showing an uptrend for the most part.
The energy industry, as represented by the Energy Select Sector SPDR ETF (XLE), has fallen ~11% during the same period.
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As shown in the above graph, Cabot Oil & Gas’ performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (DBO) and natural gas prices (UGAZ). Notably, Cabot Oil & Gas overperformed XLE and the broader industry S&P 500 SPDR ETF (SPY) (SPX-INDEX). SPY has risen 3.6% since January 2017.
In Could Cabot Oil & Gas Favor Eagle Ford in the Future?, we talked about Cabot Oil & Gas moving more of its capital to Eagle Ford if its Marcellus margins don’t improve and oil prices are favorable. While the company’s Marcellus margins are expected to improve, Cabot Oil & Gas could also benefit from Eagle Ford asset returns in an improved oil price environment. To learn more, read What Cabot Oil & Gas Envisions for Its Eagle Ford Operations.
Having said that, the Marcellus definitely seems to be Cabot Oil & Gas’s key focus in 2017. The company’s 2017 drilling and completion capital expenditure has 67% allocated to Marcellus and only 33% allocated to Eagle Ford.