Cabot 2016 Q3 Report
Cabot Oil announced plans to allot 21% of its E& P budget to Eagle Ford in 2017.
Related: Cabot to Reduce Spending in the Eagle Ford
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
“We have allocated $225 million for maintenance capital in the Marcellus and Eagle Ford which is the amount of capital needed to hold our anticipated 2016 exit production flat throughout 2017 and also allows us to meet all our obligatory operating commitments to maintain our lease hold.”