Cabot’s 4Q16 Earnings and Revenue Rose but Missed Estimates



Cabot Oil & Gas’s 4Q16 revenue

Cabot Oil & Gas (COG) reported its 4Q16 earnings on February 24. Its 4Q16 revenue was ~$316.5 million compared to analysts’ estimates of $355 million. Revenue in 4Q15 was ~$281 million. In 3Q16 it was $310 million.

Revenue for 2016 was reported at ~$1.2 billion, compared to 2015 revenue of ~$1.4 billion.

Article continues below advertisement

Cabot Oil & Gas’s 4Q16 revenue

Cabot reported adjusted net income of $5.1 million in 4Q16. Adjusted net loss in the corresponding period in 2015 was $6.4 million. The company reported adjusted EPS (earnings per share) of $0.01, which was slightly less than Wall Street analysts’ consensus estimate. Adjusted EPS in 4Q15 had been -$0.02. In 3Q16, it had been -$0.04.

As you can see in the graph above, Cabot Oil & Gas’s earnings and revenues missed analysts’ expectations in 4Q16. While earnings and revenue missed estimates, they came in higher on a year-over-year as well as sequential basis.

Peer comparison

In comparison, upstream peer Rice Energy (RICE) reported a 4Q16 EPS of $0.37. Noble Energy’s (NBL) 4Q16 EPS was -$0.04.

You can read more about Rice Energy and Noble Energy’s 4Q16 performance in Rice Energy’s 4Q16 Results: A Significant Earnings Beat and Noble Energy’s 4Q16 Earnings and Revenues Beat Expectations.

Key management comments in 4Q16

COG’s CEO Dan Dinges noted in a 4Q16 press release, “The Company delivered production and reserves growth while spending within operating cash flow during a year in which we realized record-low natural gas prices, highlighting Cabot’s world-class asset base.”

Cabot Oil & Gas’s (COG) operations focus on two shale plays, the Marcellus and the Eagle Ford. To learn more about COG’s operations, read Why the Marcellus Shale Is Both Boon and Bane for Cabot Oil & Gas.

Cabot’s proved reserves at the end of 2016 were 8.6 trillion cubic feet equivalent (Tcfe), 5% higher than year-end 2015 levels.


More From Market Realist