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Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Aug 5, 2013 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 1
    Investor Presentation Tuohy Brothers 4th Annual Energy Conference New York City August 5, 2013
  2. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 2
    KEY INVESTMENT HIGHLIGHTS Extensive Inventory of Over 3,000 identified drilling locations in the sweet spot of the Marcellus Shale with rates of return that rival or exceed all of the top U.S. liquids plays at current Low-Risk,…
  3. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 3
    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 2013E Drilling Activity: 100 net…
  4. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 4
    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
  5. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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) 1.1 billion - 1.2 billion Other Other 10% 5% Eagle Ford / Eagle Ford / Marmaton…
  9. Tuohy Brothers 4th Annual Energy 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 1.50 1.20 - 1.60 / Mcfe 0.40 0.15 0.43 0.25 0.20 0.27 0.15 0.18…
  10. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 11
    MARCELLUS SHALE
  12. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 12
    CABOT MARCELLUS SUMMARY Horizontal Rig Count: 6 Wells Producing: 226 H, 39 V WOPL: 9 wells (207 Stages) Completing: 14 wells (258 Stages) WOC: 14 wells (316 Stages) Cumulative Production Reilly 8+ BCF Pad Zick Pad 7-8…
  13. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy 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. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 18
    COG MARCELLUS MARKETING STRATEGY Diversifying on Multiple Pipelines Firm Transportation Arrangements Long-Term Sales Agreements (Firm Sales) Investing in New Pipeline Projects Opportunistic Hedging Program
  19. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 19
    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 Current…
  20. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 20
    FIRM TRANSPORTATION AND LONG-TERM SALES CONTRACTS Firm Transportation Contracts 2013 (current) 325 Mmcf per day 2014 (current / target) 325 Mmcf per day / 450 Mmcf per day 2015 (current / target)*** 875 Mmcf per day / 1 Bcf per day…
  21. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 21
    INFRASTRUCTURE UPDATE Maximum Interstate Delivery Capacity Compression, Dehydration & Measurement Capacity 2013 2.2 Bcf per day 2014 3.4 Bcf per day 2015 3.7 Bcf per day Note: Capacity volumes above are indicative deliverability…
  22. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 22
    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…
  23. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 23
    EAGLE FORD SHALE
  24. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 24
    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…
  25. Tuohy Brothers 4th Annual Energy Conference – Cabot Oil & Gas Corp – slide 25
    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 Neutral Investment Program in…

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