Cabot Oil & Gas’s 2017 Operating Plan: Marcellus at the Forefront
Cabot Oil & Gas’s 2017 operating plan
In a presentation from August 2017, Cabot Oil & Gas (COG) provided its key objectives and operating plan for 2017. The company’s drilling and completion capital for 2017 is expected to be $610 million.
Interested in COG? Don't miss the next report.
Receive e-mail alerts for new research on COG
The company’s total capital program for 2017 is $845 million, which includes $70 million of equity pipeline investments and $125 million of exploratory leasing and testing capital. Equity pipeline investments of $70 million assume a July 1, 2018, in-service date for the Atlantic Sunrise pipeline project.
$610 million, or 72%, of COG’s 2017 E&P (exploration and production) capital will be allocated towards D&C (or drilling and completion) expenses. Around 67% of COG’s D&C capital will be allocated to the Marcellus Shale, and the remaining amount will be allocated to the Eagle Ford Shale.
2017 planned D&C activity
In the Marcellus Shale, Cabot Oil & Gas is currently operating two rigs. It plans to remain at this level for the remainder of the year. The company plans to maintain one rig in the Eagle Ford Shale for the remainder of 2017 and plans to end its completion activity for the year there in October.
COG plans to drill 60 wells in the Marcellus Shale and 30 in the Eagle Ford Shale. The company plans to complete 51 wells in the Marcellus and 39 in the Eagle Ford.