Cabot (COG) Releases Revised Guidance For Q419 And 2020
Zacks Investment Research | Feb 04, 2020 10:23PM ET
Cabot Oil & Gas Corporation (NYSE:COG) recently provided an update on its guidance for fourth-quarter 2019 operational results and also revised its 2020 outlook.
Management stated that its fourth-quarter production is estimated to be higher than the upper end of its earlier guided range. The company’s previous fourth-quarter output guidance was in the range of 2,375-2,425 million cubic feet of oil equivalent per day (Mmcfe/d) while its revised production is anticipated to be 2,457 Mmcfe/d.
Further, Cabot expects its realized natural gas price (including the impact of derivates) for the fourth quarter to be $2.15 per thousand cubic feet (Mcf) whereas its capital spending is forecast in the $160-$170 bracket.
2020 Guidance Update
With natural gas prices plunging to multi-year lows and Cabot being one of the most gas-weighted upstream players, the company's performance remains under pressure. So, with this revised outlook, Cabot trimmed its 2020 capital expenses by 27% year over year to $575 million from its earlier projection of $700-$725 million, which included non-drilling and completion capital.
Also, the company adjusted its production prediction to 2.4 billion cubic feet (Bcf) per day for the year from the earlier provided view of 2.1 Bcf.
Meanwhile, Cabot plans to generate free cash flow between $275 and $300 million, assuming an average price of $2.25 per MMBtu. Return on capital employed is expected to be 11-12%.
Cabot Oil & Gas Corporation Price
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