Cabot Oil & Gas Reducing Rigs in the Eagle Ford

Cabot Oil & Gas Q3 2015
Cabot Oil & Gas Q3 2015

Cabot Oil & Gas' third quarter results failed to meet expectations, including a slowdown in its Eagle Ford operations.

Related: Cabot Plans to Reduce Eagle Ford Wells to One

Cabot Oil & Gas released its 2015 third quarter earnings last week, reporting revenue of $305.30M, way below the anticipated $354.36M. The company also reported production increases of 7% with a total of 27 new net wells.

For its Eagle Ford operations, Cabot experienced an 8% decline in liquid volumes, resulting from the reduced amount of activity in the play due to lower oil prices. Other Eagle Ford highlights include:

  • Experienced another 15% to 20% reduction in drilling costs over Q2
  • Completed seven wells in the Eagle Ford and placed six wells on production
  • Drilling Eagle Ford wells was 30% to 40% faster than our 2014 average
  • Currently operating one rig in the Eagle Ford
We are currently operating one rig in the Eagle Ford, and we plan to drop that rig by the end of the second quarter of 2016 when the contract expires unless we see a significant uplift in oil prices during the first half of this next year.
— Dan O. Dinges, Chairman, President and CEO

Cabot’s activity in the Eagle Ford is focused on 89,000 net acres in Atascosa and Frio Counties, Texas.