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Is Cabot Oil and Gas’s Stock up Post-2Q16 Earnings?

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Cabot Oil and Gas’s stock performance

Following Cabot Oil and Gas’s (COG) 2Q16 earnings release on July 29, its stock increased by ~3.4%. YoY (year-over-year), COG has fallen ~11%. In this part of the series, we’ll analyze Cabot Oil and Gas’s stock performance with respect to movements in the broader industry and the broader market.

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Peer comparison

Meanwhile, EQT (EQT) and Chesapeake Energy (CHK) have seen their stock prices fall by ~6.2% and 41%, respectively, on a YoY basis.

As the graph above shows, Cabot Oil and Gas’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL) and natural gas prices (UNG). These have also been driving the broader industry Energy Select Sector SPDR ETF (XLE).

From July 18 to August 1, Cabot Oil and Gas’s stock was underperforming the Energy Select Sector SPDR ETF (XLE). Towards the end of the period, it ended up giving lower returns compared to XLE. Cabot Oil and Gas’s stock fell ~6.4% during this period while XLE fell by ~5.7%.

Both XLE and Cabot Oil and Gas’s stock underperformed the SPDR S&P 500 ETF (SPY), which increased 0.2% during this period. The outperformer in the period under discussion was natural gas, which had risen 1.8% at the end of the period.

Cabot Oil and Gas’s stock rose ~3.4% on July 29, which means markets reacted positively to the company’s 2Q16 earnings. Read the first part of this series to learn more about Cabot Oil and Gas’s 2Q16 performance.

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