Cabot Oil & Gas Stock Fell 5.0% after 3Q16 Earnings Release



Cabot Oil & Gas stock performance

Following Cabot Oil & Gas’s (COG) 3Q16 earnings release on October 28, 2016, COG stock fell ~5.0%. YoY (year-over-year), COG has fallen ~6.0%. In this part of the series, we’ll analyze COG’s stock performance with respect to movements in the broader industry and the broader market.

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Peer comparison

As you can see in the above graph, Cabot Oil & 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 Energy Select Sector SPDR ETF (XLE), the broader industry ETF.

From October 14–28, 2016, COG stock was underperforming XLE. Toward the end of the period, COG had lower returns than XLE. COG stock fell ~9.0% during this period, while XLE fell ~0.62%.

Cabot Oil & Gas makes up 1.8% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

The SPDR S&P 500 ETF (SPY) fell ~0.30% during the two-week period.

On October 28, 2016, Cabot Oil & Gas stock fell ~5.0%, which means the markets reacted negatively to the company’s 3Q16 earnings. The 12.0% rise in natural gas prices on October 28 seemed to have been ignored. Read the first part of this series to learn more about Cabot Oil & Gas’s 3Q16 performance.


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