Cabot Oil & Gas
In the first half of 2018, Cabot Oil & Gas (COG) was the lowest-performing energy stock from the Energy Select Sector SPDR ETF (XLE). Cabot Oil & Gas is a natural gas producer with operations in the Marcellus Shale and Eagle Ford Shale. In the first half, COG stock fell from its 2017 close of $28.60 to $23.80—a substantial decrease of ~17.0%.
Cabot Oil & Gas underperformed the Energy Select Sector SPDR ETF (XLE), which represents the energy sector of the S&P 500 Index. In the first half of 2018, XLE was up ~5.0%.
Cabot Oil & Gas underperformed the First Trust Natural Gas ETF (FCG). FCG represents an index of energy stocks that derive the substantial portion of their revenues from the exploration and production of natural gas. FCG was up ~3.0% in the first half of 2018.
Cabot Oil & Gas: Revenues and earnings
In the first quarter, Cabot Oil & Gas reported revenues of ~$477.0 million, which fell ~8.0% when compared with revenues of ~$518.0 million in the first quarter of 2017. In the first quarter, Cabot Oil & Gas increased its profit by ~45.0% to ~$129.0 million from its profit of ~$89.0 million in the first quarter of 2017. Cabot Oil & Gas posted an adjusted profit of $0.28 per share in the first quarter from its profit of $0.19 per share in the first quarter of 2017.
Cabot Oil & Gas’s production contains ~97.0% natural gas in its production mix and derives the majority of its revenues from natural gas sales. In the first half, natural gas (DGAZ) prices fell ~1.0% and underperformed other energy commodities that are impacting COG’s stock price negatively.
Next, we’ll compare the 2018 returns of Cimarex Energy (XEC) with various energy ETFs and energy commodities. We’ll also analyze its recent earnings.