We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cabot (COG) Surpasses Q4 Earnings Estimates on Production
Read MoreHide Full Article
Cabot Oil & Gas Corporation fourth-quarter 2020 net income per share — adjusted for special items — of 26 cents beat the Zacks Consensus Estimate of 20 cents. The bottom line was favored by strong production volumes and a tight leash on costs. Precisely, daily production, at 2,375 million cubic feet equivalent (Mmcfe) outpaced the company’s top-end of the guidance.
However, the bottom line plunged 13.3% from the year-ago quarter’s figure of 30 cents due to decline in natural gas prices.
Quarterly revenues of $456.78 million surpassed the Zacks Consensus Estimate of $410 million. However, the top line fell slightly from the prior-year quarter’s figure of $461 million.
Production, Prices, Costs & Drilling Statistics
In fourth-quarter 2020, Cabot’s overall production summed 218.5 Bcfe, comprising 100% natural gas. However, the figure dropped 3.4% from the prior-year quarter’s volume of 226.1 Bcfe.
Average realized natural gas price (excluding hedges) fell to $1.89 per thousand cubic feet from the year-ago quarter’s $2.05.
Total operating expenses were $293.5 million, down 4.9% from the figure reported in fourth-quarter 2019. The depreciation and amortization costs fell 9.3% year over year to $96.5 million.
Notably, total average unit costs declined to $1.39 per thousand cubic feet equivalent (Mcfe) from the year-ago quarter’s figure of $1.43.
Cabot drilled 19 wells and completed 15 during the quarter.
Cabot Oil Gas Corporation Price, Consensus and EPS Surprise
Operating cash flows were $307.8 million (up 17.1% year over year), while capital expenditures totaled $97.4 million (down 49.1%). As of Dec 31, 2020, the company had cash and cash equivalents worth $140.1 million and total debt of $945.9 million with debt-to-capitalization of 33.9%.
In a separate press release, Cabot’s board of directors approved a regular dividend of 10 cents per share on the company's common stock, payable Feb 4, 2021 to all its shareholders of record as of Jan 21, 2021.
Outlook
For 2021, Cabot retains its initial production guidance of 2,350 Mmcfe a day from an expected capital program of $530-$540 million.
This Houston-based company sets the quarterly production guidance ranging between 2,250 Mmcfe and 2,300 Mmcfe per day for the first quarter of 2021.
Meanwhile, the company disclosed its updated capital return framework, which involves the enforcement of a "base plus supplemental" dividend approach. On this basis, Cabot intends to continue funding its regular quarterly base dividend on the company's common stock and supplement it with annual supplemental cash dividends to attain its minimum capital return target of 50% of annual free cash flow.
Notably, any extra free cash flow generated above the minimum capital return target will be availed to strengthen the company’s balance sheet, additional supplemental dividends, or opportunistic share repurchases, subject to market conditions.
Zacks Rank & Stocks to Consider
Cabot currently has a Zacks Rank #5 (Strong Sell).
Diamondback’s bottom line for 2021 is expected to grow 17.5% year over year.
Oasis’s bottom line for 2021 is expected to surge 757.7% year over year.
Exxon’s bottom line for 2021 is expected to rise 42.4% year over year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Cabot (COG) Surpasses Q4 Earnings Estimates on Production
Cabot Oil & Gas Corporation fourth-quarter 2020 net income per share — adjusted for special items — of 26 cents beat the Zacks Consensus Estimate of 20 cents. The bottom line was favored by strong production volumes and a tight leash on costs. Precisely, daily production, at 2,375 million cubic feet equivalent (Mmcfe) outpaced the company’s top-end of the guidance.
However, the bottom line plunged 13.3% from the year-ago quarter’s figure of 30 cents due to decline in natural gas prices.
Quarterly revenues of $456.78 million surpassed the Zacks Consensus Estimate of $410 million. However, the top line fell slightly from the prior-year quarter’s figure of $461 million.
Production, Prices, Costs & Drilling Statistics
In fourth-quarter 2020, Cabot’s overall production summed 218.5 Bcfe, comprising 100% natural gas. However, the figure dropped 3.4% from the prior-year quarter’s volume of 226.1 Bcfe.
Average realized natural gas price (excluding hedges) fell to $1.89 per thousand cubic feet from the year-ago quarter’s $2.05.
Total operating expenses were $293.5 million, down 4.9% from the figure reported in fourth-quarter 2019. The depreciation and amortization costs fell 9.3% year over year to $96.5 million.
Notably, total average unit costs declined to $1.39 per thousand cubic feet equivalent (Mcfe) from the year-ago quarter’s figure of $1.43.
Cabot drilled 19 wells and completed 15 during the quarter.
Cabot Oil Gas Corporation Price, Consensus and EPS Surprise
Cabot Oil & Gas Corporation price-consensus-eps-surprise-chart | Cabot Oil & Gas Corporation Quote
Financial Position
Operating cash flows were $307.8 million (up 17.1% year over year), while capital expenditures totaled $97.4 million (down 49.1%). As of Dec 31, 2020, the company had cash and cash equivalents worth $140.1 million and total debt of $945.9 million with debt-to-capitalization of 33.9%.
In a separate press release, Cabot’s board of directors approved a regular dividend of 10 cents per share on the company's common stock, payable Feb 4, 2021 to all its shareholders of record as of Jan 21, 2021.
Outlook
For 2021, Cabot retains its initial production guidance of 2,350 Mmcfe a day from an expected capital program of $530-$540 million.
This Houston-based company sets the quarterly production guidance ranging between 2,250 Mmcfe and 2,300 Mmcfe per day for the first quarter of 2021.
Meanwhile, the company disclosed its updated capital return framework, which involves the enforcement of a "base plus supplemental" dividend approach. On this basis, Cabot intends to continue funding its regular quarterly base dividend on the company's common stock and supplement it with annual supplemental cash dividends to attain its minimum capital return target of 50% of annual free cash flow.
Notably, any extra free cash flow generated above the minimum capital return target will be availed to strengthen the company’s balance sheet, additional supplemental dividends, or opportunistic share repurchases, subject to market conditions.
Zacks Rank & Stocks to Consider
Cabot currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked players in the energy space are Diamondback Energy, Inc (FANG - Free Report) , Oasis Midstream Partners LP and Exxon Mobil Corporation (XOM - Free Report) ,each sporting a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diamondback’s bottom line for 2021 is expected to grow 17.5% year over year.
Oasis’s bottom line for 2021 is expected to surge 757.7% year over year.
Exxon’s bottom line for 2021 is expected to rise 42.4% year over year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>