The Trends in Cabot Oil & Gas’s Leverage
Cabot Oil & Gas’s leverage
Since 2Q15, Cabot Oil & Gas’s (COG) total debt has fallen ~31.0%. In 2Q17, its total debt was ~$1.52 billion compared to ~$2.0 billion in 2Q15 and $1.54 billion in 2Q16.
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As we saw in the previous part, COG’s debt levels fell between 4Q15 and 1Q16 and have stayed at those levels since then.
Its total debt-to-equity ratio fell from ~93.0% in 2Q15 to ~57.5% in 2Q17. Usually, the higher the debt-to-equity ratio, the riskier the company is perceived.
Given COG’s debt levels of $1.5 billion and its market capitalization of $12.0 billion, investors might consider it a good addition to their portfolio to ride out the volatile energy prices.
Next, we’ll look at COG’s financial position in more detail.