Can Cabot Oil & Gas Keep Up Its 2016 Momentum?



Cabot Oil & Gas stock

In the two weeks since January 3, 2017, Cabot Oil & Gas (COG) has returned -2.8%, similar to the energy sector. The Energy Select Sector SPDR ETF (XLE) returned -2.8% in the same period. The broader market S&P 500 ETF (SPY) returned ~0.45% in the same period.

COG stock started out 2017 on a positive note. It came on the heels of the December 30, 2016, announcement that the FERC (Federal Energy Regulatory Commission) had issued its final EIS (Environmental Impact Statement) for Williams Partners’ (WPZ) Atlantic Sunrise project.

COG will be a major shipper for the pipeline. You can read more about the project at Why Cabot Awaits the Atlantic and Constitution Pipeline Project.

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COG’s slide

Soon after the announcement, COG started to slide, mirroring natural gas prices. Things started looking up for natural gas prices, and they began rising in the second week of the year. However, COG didn’t rise.

The energy industry at large has weakened, especially in the second week of 2017. As we’ve already seen, XLE had lower returns in the two weeks ended January 17, 2017.

Crude oil and natural gas prices had returns of 0.29% and ~2.6%, respectively, in the two weeks ended January 17, 2017.

Year-over-year, however, Cabot had a return of ~32.0% compared to XLE’s ~38.0%. In fact, COG was one of the best-performing natural gas stocks in 2016. Its strong balance sheet was one of the major reasons for market support. Be sure to watch how things pan out for the company in 2017.

You can read more about Cabot Oil & Gas at Has Cabot Oil & Gas Played Its Cards Right? You Decide.


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