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Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · May 15, 2013 · 23 slides

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Slides

  1. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 1
    Investor Presentation Citi Global Energy and Utilities Conference Boston, MA May 15, 2013
  2. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 2
    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 Low-Risk,…
  3. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 3
    ASSET OVERVIEW 2012 Production: 267.7 Bcfe 2012 Year-End Proved Reserves: 3.8 Tcfe Marcellus Shale 200,000 net acres 2012 Drilling Activity: 69.7 net wells Current Rig Count: 5 Marmaton Penn Lime 70,000 net acres 2012…
  4. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 4
    PROVEN TRACK RECORD OF PRODUCTION GROWTH 400 350 300 267.7 250 2013 Bcfe Guidance: 35% - 50% 200 187.5 Liquids (Net) 42.8% Gas (Net) 150 130.6 43.5% 100 50 0 2010 2011 2012 2013E
  5. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 5
    AND RESERVE GROWTH 4.5 4.0 3.8 3.5 3.0 3.0 2.7 26.7% 2.5 12.3% Tcfe 2.1 Liquids (Net) 2.0 31.1% Gas (Net) 1.5 1.0 0.5 0.0 2009 2010 2011 2012 2013E
  6. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 6
    SUPERIOR RESERVE REPLACEMENT AND FINDING COSTS Reserve Replacement Ratio 700% 603% 600% 500% 443% 417% 390% 400% 300% 255% 200% 100% 0% 2008 2009 2010 2011 2012 All-Sources F&D Costs 4.00 3.42 3.00 2.26 /Mcfe…
  7. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 7
    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…
  8. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 8
    DISCIPLINED CAPITAL SPENDING FOCUSED ON THE DRILL-BIT 2012 Capital Program: 979 million 2013 Capital Program: (809 million net of JV and asset sales) 950 million - 1.025 billion Other Other 10% 5% Eagle Ford / Marmaton / Eagle…
  9. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 9
    INDUSTRY LEADING COST STRUCTURE Operating Transportation Taxes O/T Income G&A Financing 2.47 2.50 0.57 2.12 2.00 0.52 1.76 1.67 0.42 0.38 0.26 1.30 - 1.70 1.50 / Mcfe 0.40 0.20 0.25 0.43 0.25 0.27 0.15 0.20…
  10. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 10
    USE OF PROCEEDS FOR POTENTIAL FREE CASH FLOW IN 2014 Broker 75mm Estimate 17mm Range: Broker Implied 1,361mm Estimate Free Cash Range: Flow 1,894mm 900mm Median: 1,250mm 376mm Median: Median: 1,579mm 1,111mm 2014E…
  11. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 11
  12. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 12
    CABOT MARCELLUS SUMMARY Horizontal Rig Count: 5 Wells Producing: 202 H, 39 V WOPL: 16 wells (297 Stages) Completing: 6 wells (132 Stages) WOC: 15 wells (279 Stages) Cumulative Production Reilly 8+ BCF Pad Zick Pad 7-8…
  13. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 13
    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.…
  14. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 14
    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…
  15. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 15
    MARCELLUS OPERATING EFFICIENCIES Drilling Days to TD 40 32 30 26 Days 20 20 16 10 Record of 10 days 0 2009 2010 2011 2012 Completion Cost Per Stage 200 180 165 150 000s Per Stage 150 105 100 50 0 2009…
  16. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 16
    CABOT MARCELLUS ECONOMICS Typical Well IRR Sensitivity 150% 130% 125% BTAX %IRR 100% 100% 75% 70% 50% 3.00 3.50 4.00 Henry Hub / Mmbtu Typical Well Parameters (Based on 2012 Program) EUR: 14.1 Bcf Total D&C: 6.5…
  17. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 17
    HYPOTHETICAL 10-WELL PAD WITH 160+ POTENTIAL STAGES Current Hypothetical 2-well pad 10-well pad Location & road costs / well 200,000 40,000 Rig mobilization / well 175,000 35,000 Frac mobilization / well 110,000 22,000 Idle move…
  18. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 18
    GROWING CAPACITY IN THE MARCELLUS 2013 program: Right-of-ways and permits essentially complete Compression 2014 program: Right-of-ways essentially complete and permitting on schedule Exit rate gathering / dehydration capacity: and…
  19. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 19
  20. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 20
    TEXAS AND OKLAHOMA OIL INITIATIVES OVERVIEW Eagle Ford Shale Pearsall Shale Marmaton Penn Lime 62,000 net acres 71,000 net acres 70,000 net acres Current operated rig count: 1 Current rig count: 3 Current operated rig count: 1…
  21. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 21
    U.S. NATURAL GAS DEMAND DRIVERS CONTINUE TO LOOK FAVORABLE Over 45 gigawatts of coal-fired generating capacity is estimated to be retired between 2012 and 2016... 25.0 22.4 20.0 Gigawatts 15.0 10.9 10.0 8.2 5.0 1.4 2.7 0.0…
  22. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 22
    RESULTING IN A POSITIVE OUTLOOK FOR LONG-TERM DEMAND New pipeline systems in Mexico could potentially add 5.1 Bcf/d of incremental export capacity by 2016 6.0 5.1 3.7 4.0 2.7 Bcf /d 2.0 0.9 0.0 2013 2014 2015 2016 Source:…
  23. Citi Global Energy and Utilities Conference – Cabot Oil & Gas Corp – slide 23
    INVESTMENT SUMMARY Simple Growth Story 3,000+ Remaining Locations in the Sweet Spot of the Marcellus Shale Transitioning from Acreage Capture to Efficient Pad Development by 2014 Cash Flow Positive Investment Program in…

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