We issued an updated research report on Cabot Oil & Gas Corporation on Feb 27.
The upstream energy player’s portfolio is spread between low-risk/long reserve-life properties and large-volume/rapid-payout assets, with further variety from large prospect inventories that have a broad mix of production and payout profiles.
The company's recent deal to offload its non-core Eagle Ford assets bode well. Cash proceeds from this transaction will strengthen the balance sheet of the company, boosting its free cash flow. Further, the streamlining of the portfolio is in sync with the company‘s aim to increase its focus on Marcellus shale, which generates solid returns. Increased focus on the Marcellus shale will help the company deliver double-digit growth per debt-adjusted share from the region.
Cabot’s Marcellus program continues to garner exceptional results. As of now, the company has around 200,000 net acres in the prime Marcellus acreage with an estimated 3,000 remaining undrilled locations. Cabot's high-quality assets in the region helped it drive its overall third-quarter production volumes by 5% year over year.
However, with natural gas prices trading below $3 per MMBtu and Cabot being one of the most gas-weighted exploration and production player, the company's earnings and revenues are under pressure. Other companies exposed to volatility in natural gas price are Chesapeake Energy Corporation (CHK - Free Report) , Southwestern Energy Company (SWN - Free Report) and QEP Resources, Inc. .
Also, Cabot is set to spend $950 million in 2018, higher than the 2017 spending level of around $765 million. This might lower the company's cash flow.
Moreover, grappling with lawsuits and denied a water permit, we expect Cabot’s new pipeline initiative — the Constitution Pipeline Company — to be delayed substantially or get cancelled. This is set to impact the company's earnings outlook.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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We issued an updated research report on Cabot Oil & Gas Corporation on Feb 27.
The upstream energy player’s portfolio is spread between low-risk/long reserve-life properties and large-volume/rapid-payout assets, with further variety from large prospect inventories that have a broad mix of production and payout profiles.
The company's recent deal to offload its non-core Eagle Ford assets bode well. Cash proceeds from this transaction will strengthen the balance sheet of the company, boosting its free cash flow. Further, the streamlining of the portfolio is in sync with the company‘s aim to increase its focus on Marcellus shale, which generates solid returns. Increased focus on the Marcellus shale will help the company deliver double-digit growth per debt-adjusted share from the region.
Cabot’s Marcellus program continues to garner exceptional results. As of now, the company has around 200,000 net acres in the prime Marcellus acreage with an estimated 3,000 remaining undrilled locations. Cabot's high-quality assets in the region helped it drive its overall third-quarter production volumes by 5% year over year.
However, with natural gas prices trading below $3 per MMBtu and Cabot being one of the most gas-weighted exploration and production player, the company's earnings and revenues are under pressure. Other companies exposed to volatility in natural gas price are Chesapeake Energy Corporation (CHK - Free Report) , Southwestern Energy Company (SWN - Free Report) and QEP Resources, Inc. .
Also, Cabot is set to spend $950 million in 2018, higher than the 2017 spending level of around $765 million. This might lower the company's cash flow.
Moreover, grappling with lawsuits and denied a water permit, we expect Cabot’s new pipeline initiative — the Constitution Pipeline Company — to be delayed substantially or get cancelled. This is set to impact the company's earnings outlook.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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