What’s Dragging Down Cabot Oil & Gas Stock?

Cabot Oil & Gas: The fifth-weakest stock in 2018

Year-to-date, Cabot Oil & Gas (COG) has been the fifth-weakest energy stock from the US oil and gas production sector. The natural gas producer operates in the Marcellus Shale and Eagle Ford Shale. This year, COG has fallen ~18% to $23.59 from its 2017 close of $28.60.

What’s Dragging Down Cabot Oil & Gas Stock?Cabot Oil & Gas has underperformed the First Trust Natural Gas ETF (FCG), which has risen ~0.5% this year. It has also underperformed the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which have risen ~6% and ~13%, respectively.

As Cabot Oil & Gas’s production mix contains ~97% natural gas, it derives most of its revenue from natural gas sales. Down ~0.5% this year, natural gas (DGAZ) is underperforming other energy commodities, impacting COG stock.

Cabot Oil & Gas’s revenue and earnings

In the first quarter, Cabot Oil & Gas’s revenue fell ~8% YoY (year-over-year) to ~$477 million from ~$518 million, while its profits rose ~45% YoY to ~$129 million from ~$89 million. Cabot Oil & Gas’s per-share adjusted profit rose to $0.28 from $0.19. Next, we’ll look at hedge funds’ energy stock positions this year.