EQT, NBL, COG, and AR: Who Has the Lowest Capex in 2016?



Capex changes in 2015 and guidance for 2016

In this part, we’ll talk about the capex (capital expenditure) changes in the four upstream companies under review in this series: EQT (EQT), Cabot Oil and Gas (COG), Noble Energy (NBL), and Antero Resources (AR).

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Antero Resources and Noble Energy

Antero Resources (AR) recorded the highest capex fall of ~43% in 2015 compared to 2014. In 2016, AR’s capex is expected to be 26% lower than its 2015 capex. It’s interesting to note that contrary to 2015, AR’s 2016 capex decline is not as high as it was in the previous year.

Noble Energy (NBL) also saw a significant decline of 39% in its 2015 capex versus 2014. Its 2016 capex is expected to be 50% lower than the 2015 capex.

Cabot Oil and Gas and EQT

Cabot Oil and Gas (COG) reported a decline of 35% in its 2015 capex versus 2014. Cabot Oil and Gas expects to spend ~58% less in 2016 compared to its 2015 capex.

EQT showed the lowest decrease in its 2015 capex, which was down by 0.71% compared to its 2014 capex. In 2016, however, EQT expects to spend 44.4% less than it did last year.

The capex cuts come amid low energy prices and reduced drilling activities as companies strive to protect cash flows. Other upstream companies that have been reducing their 2016 capex in response to lower energy prices include Whiting Petroleum (WLL) and Anadarko Petroleum (APC).

EQT, NBL, and COG make up ~1.7% of the iShares Global Energy ETF (IXC).


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