Production guidance for 2Q17 and 2017
Cabot Oil & Gas (COG) provided a 2Q17 production guidance of 1,780 MMcf (million cubic feet) per day–1,820 MMcf per day of natural gas. The guidance for crude oil and condensates is 12,000 bpd (barrels per day)–12,500 bpd. For natural gas liquids, the guidance is 1,350 bpd–1,400 bpd.
For 2017, the company expects growth of 8%–12% in its production—compared to the levels in 2016. In 2016, Cabot Oil & Gas reported production of 627.1 Bcfe (billion cubic feet equivalent). From 2013 to 2016, Cabot Oil & Gas’s production grew at a compound annual growth rate of 15%.
Operational and capex expectations for 2017
Cabot Oil & Gas has increased its capital by $125 million–$775 million for “exploratory leasing and testing.” Also, $70 million will be spent on the company’s equity pipeline investments—the Atlantic Sunrise and Constitution Pipeline projects. So far, Cabot Oil & Gas’s 2017 capital program spending is $845 million. Despite increased spending, Cabot Oil & Gas forecasted over $250 million of positive free cash flow for the year based on recent current strip prices.
To learn more about Cabot Oil & Gas, read Marcellus’s Margins, Oil Production Set to Steer Cabot’s 2017 and Has Cabot Oil & Gas Played Its Cards Right? You Decide.