Investor Presentation Barclays CEO Energy-Power Conference New York City September 11, 2013
KEY INVESTMENT HIGHLIGHTS Over 3,000 identified drilling locations in the sweet spot of the Marcellus Shale with Extensive Inventory of rates of return that rival or exceed all of the top U.S. liquids plays at current commodity…
ASSET OVERVIEW 2012 Year-End Proved Reserves: 3.8 Tcfe Q2 2013 Production: 1.046 Bcfe per day 2013E Drilling Activity: 155 165 net wells Marcellus Shale 200,000 net acres Current Rig Count: 6 (as of August 21, 2013) 2013E Drilling…
PROVEN TRACK RECORD OF PRODUCTION GROWTH 400 350 300 267.7 250 2013 Bcfe Guidance: 44% - 54% 200 187.5 (increased from 35%- Liquids (Net) 42.8% 50%) Gas (Net) 150 130.6 43.5% 100 50 0 2010 2011 2012 2013E
PEER LEADING PRODUCTION AND RESERVE GROWTH Production Per Debt-Adjusted Share CAGR (2010 2012) 42% 30% 26% 24% 22% 17% 16% 15% Peer median: 11% 8% 8% 2% (0%) (2%) (3%) (9%) COG Peer A Peer B Peer C Peer D Peer E Peer F Peer G…
DISCIPLINED CAPITAL SPENDING FOCUSED ON THE DRILL-BIT 2012 Capital Program: 979 million 2013 Capital Program: (809 million net of JV and asset sales) 1.1 billion - 1.2 billion Other Other 10% 5% Eagle Ford / Eagle Ford / Marmaton…
EVOLUTION OF CABOTS MARCELLUS PROGRAM 2013 and 2010 2011 2012 beyond 13% HBP 29% HBP 43% HBP Expected to be 60% HBP Reduced stage spacing from Drilling days reduced Implemented 200 ft. stage by year-end 2013 300 ft. to 250 ft.…
CONTINUED PERFORMANCE IMPROVEMENTS IN THE MARCELLUS Horizontal Length Average IP and 30-Day Rate 4.5 4.1 20.0 3.8 16.8 17.4 4.0 3.4 15.1 14.5 3.5 15.0 14.0 Thousand Ft. 3.0 2.7 11.9 Mmcfpd 2.5 2.1 8.7 10.0 2.0 7.4 7.2…
MARCELLUS OPERATING EFFICIENCIES Drilling Days to TD 30 26 20 20 16 Days 14 10 Record of 8 days 0 2010 2011 2012 2013 YTD Completion Cost Per Stage1 200 165 150 000s Per Stage 150 105…
CABOT MARCELLUS ECONOMICS Typical Well IRR Sensitivity 6.5 million D&C 6.0 million D&C 195% 200% 175% 150% BTAX %IRR 170% 150% 125% 115% 130% 100% 80% 100% 75% 70% 50% 3.00 3.50 4.00 4.50 Henry Hub ( / Mmbtu)…
COG MARCELLUS MARKETING STRATEGY Diversifying on Multiple Pipelines to Multiple Geographic Locations Firm Transportation Arrangements Long-Term Sales Agreements (Firm Sales) Investing in New Pipeline Projects Opportunistic…
INTERSTATE PIPELINE MARKETS Canada VT NH Iroquois NY TGP 200 Line Boston Constitution MA Laser RI Millennium CT TGP 300 Line Hartford Susquehanna Springville County Long Island Transco PA New York City NJ Current…
INFRASTRUCTURE UPDATE Maximum Interstate Delivery Capacity Compression, Dehydration & Measurement Capacity Year-end 2013 2.2 Bcf per day Year-end 2014 3.4 Bcf per day Year-end 2015 3.7 Bcf per day Note: Capacity volumes above are…
FIRM TRANSPORTATION AND LONG-TERM SALES CONTRACTS Firm Transportation Contracts 2013 (current) 435 Mmcf per day 2014 (current / target) 435 Mmcf per day / 500 Mmcf per day 2015 (current / target)*** 985 Mmcf per day / 1.1 Bcf per…
2013 MARCELLUS SALES BY INDEX AND UNHEDGED REALIZED PRICING COG 2013 Marcellus Sales By Index % of COG 2013 Index Marcellus Sales NYMEX 65% Dominion Transmission*** 19% Columbia Gas Transmission 11% Other 5% ***Approximately 70% of…
EAGLE FORD SHALE
EAGLE FORD SHALE SUMMARY 62,000 net acres Peak 24-Hour Rate and 30-Day Rate Current operated rig count: 2 1,000 900 Added a second rig in late July that will 750 650 focus solely on multi-well pad development 570 Boepd (3 6…
SIMPLE GROWTH STORY 3,000+ Locations in the Sweet Spot of the Marcellus Shale Implying 25+ Years of Inventory at Current Drilling Levels Currently Producing 1.2 Bcf/d of Gross Marcellus Production From Only 8% of Our Identified…
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