X
<

Cabot Oil & Gas: Are You Ready for Its 1Q17 Earnings?

PART:
1 2 3 4 5
Part 3
Cabot Oil & Gas: Are You Ready for Its 1Q17 Earnings? PART 3 OF 5

Will Cabot Oil & Gas Stock Get Another Boost from Earnings?

Stock performance

Cabot Oil & Gas (COG) stock started out wobbly at the beginning of 2017. Lately, it has been showing an uptrend for the most part.

Since January 2017, Cabot Oil & Gas stock has risen ~7.4%. Crude oil prices (USO) (UCO) (DBO) have fallen ~3.6% during the same period, while natural gas prices (UNG) (UGAZ) have fallen ~4.3%.

The energy industry, as represented by the Energy Select Sector SPDR ETF (XLE), has fallen ~11% during the same period.

Will Cabot Oil &amp; Gas Stock Get Another Boost from Earnings?

Interested in COG? Don't miss the next report.

Receive e-mail alerts for new research on COG

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

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.

Management’s sentiments

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.

X

Please select a profession that best describes you: