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What Cabot Expects for Growth in 2017

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Cabot’s 2017 capex plans

Cabot Oil & Gas’s (COG) 2017 exploration and production (or E&P) capital budget is $650 million. Including its equity pipeline investments in the Atlantic Sunrise pipeline and other expenses related to Marcellus and Eagle Ford activity, Cabot’s total capital budget for 2017 is expected to be $720 million.

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D&C capital

Approximately $610 million, or 90%, of Cabot’s 2017 E&P capital will be used for drilling and completion (or D&C) expenses. By operating area, 67% of the company’s D&C capital will be allocated to the Marcellus Shale, and the remaining amount will be utilized for development in the Eagle Ford Shale.

Planned D&C activity in 2017

Cabot plans to drill 60 wells in the Marcellus Shale and 30 wells in the Eagle Ford Shale, resulting in 90 net wells drilled in 2017, compared with 38 in 2016. Cabot plans to have 90 net wells completed in 2017, compared with 76 in 2016. The Marcellus Shale is expected to see 51 of these wells, and the remainder will be in the Eagle Ford Shale.

Cabot’s oil growth expectations

Like Chesapeake Energy (CHK), as we saw in the previous part of this series, Cabot expects to see significant oil (UCO) growth in 2017. Similarly, Cabot’s oil growth in 2017 will be driven by the Eagle Ford. Read What Cabot Oil & Gas Envisions for Its Eagle Ford Operations for more insight on this.

Prominent players in the Eagle Ford are Chesapeake Energy (CHK), Noble Energy (NBL), and Sanchez Energy (SN). Read What to Make of Cabot’s 4Q16 Earnings: The Results Are In to learn how Cabot performed in fiscal 2016 and 4Q16.

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