Why Cabot Oil and Gas’s 4Q15 Loss Was Lower than Expected



Cabot Oil and Gas’s 4Q15 revenue

Cabot Oil and Gas (COG) reported its 4Q15 earnings on February 19, 2016. The company announced adjusted revenue of ~$327 million. The consensus Wall Street estimate for revenue was ~$333 million. The 4Q15 revenue was ~48% lower than the 4Q14 revenue of $618 million.

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Cabot Oil and Gas’s 4Q15 earnings

COG’s 4Q15 adjusted loss per share was $0.02. The consensus Wall Street estimate was a ~$0.04 loss per share. In comparison, the 4Q14 earnings per share (or EPS) was $0.23. COG’s 4Q15 loss came in lower than expected on account of its hedges and lower operating costs. 4Q15 operating costs were $440.3 million, ~61% lower than 4Q14 operating costs of ~$1.1 billion.

COG’s peer Gulfport Energy (GPOR) had reported a 4Q15 adjusted net loss per share of $0.01 versus estimates of an ~$0.11 loss per share. Other peers such as Antero Resources (AR) and QEP Resources (QEP) are expected to report 4Q15 earnings per share of $0.14 and -$0.12, respectively. These companies make up ~1% of the Vanguard Energy ETF (VDE).

Cabot Oil and Gas’s 2015 earnings and revenue

For fiscal 2015, COG reported adjusted earnings per share of $0.13. The comparable earnings in 2014 were $0.97 per share. COG’s 2015 revenue came in at ~$1.5 billion. Comparable revenue in 2014 was ~$2.2 billion.

COG’s proved reserves

COG’s proved reserves at the end of 2015 were 8.2 trillion cubic feet equivalent, which was 11% higher than the company’s 2014 year-end proved reserves.


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