Cabot’s stock performance
In this part of our series on Cabot Oil & Gas (COG), we’ll compare the stock with the broader market, the broader industry, and crude oil and natural gas prices.
In stark contrast to its upstream oil and gas peers, COG stock has risen this year, rising 18.4% year-to-date.
From the above graph, we can see that COG stock has had higher returns compared to the Energy Select Sector SPDR ETF (XLE), which has fallen ~15.5% since the beginning of this year. The fall came on the back of weak energy prices. Crude oil (DBO) (UCO) has fallen 9.3% since the start of 2017, and natural gas prices have fallen 13.0% in the same period.
When compared to the broader market, the S&P 500 ETF (SPY), COG has again overperformed. SPY has returned ~9.5% since January 2017.
The increasing trend in COG stock can be due to its overall strong financial position, which has garnered investor support. The markets have rewarded it with increasing stock prices.
COG’s cash flow from operating activities in 2Q17 was $260.6 million, which was 206.0% higher than the prior year’s corresponding quarter. Also, the company was free-cash-flow-positive for the fifth consecutive quarter (read Part 4 to know more).