Cabot Oil & Gas' third quarter results failed to meet expectations, including a slowdown in its Eagle Ford operations.
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
Cabot’s activity in the Eagle Ford is focused on 89,000 net acres in Atascosa and Frio Counties, Texas.