Cabot Oil announced plans to allot 21% of its E& P budget to Eagle Ford in 2017.
Cabot Oil & Gas Corporation is one of the first operators out of the gate to report financial and operating results for the third quarter of 2016.
Executives report a strong financial position with over $500 million cash on hand. Other highlights for the quarter include:
- Equivalent production growth of six percent relative to the prior-year comparable quarter, driven by a nine percent growth in natural gas production;
- Positive free cash flow (cash flow from operating activities less capital expenditures) for the third quarter and year-to-date;
- Cash operating expenses per unit improved by 13 percent relative to the prior-year comparable quarter;
- Approximately $2.2 billion of liquidity and only $1.0 billion of net debt as of quarter-end
Eagle Ford Operations
For 2017, 21% Cabot’s E&P budget for drilling, completion and facility capital will be directed to the Eagle Ford, where they will focus on the following:
- Maintaining lease hold
- Holding oil volumes flat
- Generating a cash-flow-neutral operating program
- Drill approximately 15 net wells in the Eagle Ford Shale
- Complete 25 net wells in the Eagle Ford Shale