What's In The Offing For Cabot Oil & Gas (COG) Q4 Earnings?
Zacks Investment Research | Feb 17, 2020 10:04PM ET
Cabot Oil & Gas Corporation (NYSE:COG) is set to release fourth-quarter 2019 results on Thursday Feb 20, after the closing bell.
The current Zacks Consensus Estimate for the to-be-reported quarter is pegged at earnings of 30 cents per share on expected revenues of $478 million. There has been no change in estimates for the bottom line over the past 30 days.
Let’s delve into the factors that might have impacted the company’s December-quarter performance.
Factors Likely to Impact Q4 Results
Cabot Oil & Gas is focused on high-impact natural gas-driven drilling. As a result, its acreage in the Marcellus shale play is expected to have placed it well for significant output growth in the to-be-reported quarter.
The companyrecently provided an update on its guidance for fourth-quarter operational results. Management stated that its average production for the period under review is estimated to be higher than the upper end of its earlier projected range, which 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, suggesting a rise from the year-ago reported figure of 2,243 Mmcfe/d.
The Zacks Consensus Estimate for fourth-quarter total production is pegged at 223 billion cubic feet (Bcf), indicating an 8.25% increase from 206 Bcf a year ago. Investors should know that the company’s total production comprises 100% natural gas.
However, the Zacks Consensus Estimate for average natural gas price realization (including the impact of its hedging program) for the to-be-reported quarter stands at $2.13 per thousand cubic feet, implying a 31.5% decrease from $3.11 reported a year earlier. Also, this independent gas exploration player expects its realized natural gas price (including the impact of derivates) for the fourth quarter to be $2.15 per thousand cubic feet (Mcf). This bearish outlook might in turn, affect the company’s impending quarterly results.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Cabot Oil & Gas this time around. The right combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.