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Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Sep 29, 2015 · 24 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. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 1
    Morgan Stanley Marcellus-Utica Summit September 29, 2015 Pittsburgh, PA
  2. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 2
    CABOT OIL & GAS ASSET OVERVIEW 2014 Year-End Proved Reserves: 7.4 Tcfe 2014 Production: 531.8 Bcfe 2015E Production Growth: 10% - 18% 2015E Drilling Activity: 115 net wells Eagle Ford Shale Marcellus Shale 89,000 net acres 200,000…
  3. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 3
    WELL POSITIONED TO NAVIGATE A CHALLENGING MARKET IN 2015 Best-in-class asset base provides competitive rates-of-return in the current market environment Peer-leading rates of return and EUR per lateral foot in the Marcellus Shale…
  4. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 4
    2015 OPERATING PLAN AND CAPITAL PROGRAM DOUBLE-DIGIT PRODUCTION GROWTH DESPITE A 45% DECLINE IN CAPITAL SPENDING, HIGHLIGHTING COGS CAPITAL EFFICIENCY Net Wells Drilled 2015E Capital Program: 177 900 million (35%) 115 Land…
  5. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 5
    PROVEN TRACK RECORD OF PRODUCTION AND RESERVE GROWTH Annual Production (Bcfe) 700 600 531.8 500 413.6 2015 Bcfe 400 Guidance: 267.7 28.6% 10% - 18% 300 Liquids 187.5 200 130.6 54.5% Gas 42.8% 100 43.5% 0 2010 2011…
  6. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 6
    WHILE MAINTAINING A CONSERVATIVE BALANCE SHEET Net Debt to EBITDAX1 2.0x 1.7x 1.5x 1.5x 1.4x 1.3x 1.2x 1.0x 0.9x 0.5x 0.0x 2010 2011 2012 2013 2014 LTM Q2 2015 1EBITDAX is a non-GAAP measure defined as net income…
  7. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 7
    INDUSTRY-LEADING COST STRUCTURE Operating Transportation Taxes O/T Income Cash G&A Financing 2.00 1.76 1.67 1.50 Cash Unit Costs (/Mcfe) 1.28 1.27 1.26 1.00 0.50 0.00 2011 2012 2013 2014 1H 2015 3-Year F&D…
  8. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 8
    CABOTS LOW-COST STRUCTURE IS DESIGNED TO WEATHER ALL COMMODITY CYCLES 2014 Cash Costs Per Unit vs. Appalachia Peers (/Mcfe)1 2014 Production Per Employee vs. Appalachia Peers (Mmcfe) Operating Costs G&A Interest 1.25 900…
  9. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 9
    MARCELLUS SHALE
  10. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 10
    CABOTS MARCELLUS SHALE SUMMARY Average Gross Daily Marcellus Production 200,000 net acres (Bcf/d) 1.7 1.8 Operated rig count: 3 1.54 2015E drilling activity: 70 net wells 2015E average gross daily production: 1.7 1.8 Bcf/d…
  11. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 11
    CABOT OIL & GAS CONTINUES TO DRILL THE MOST PROLIFIC WELLS IN THE MARCELLUS SHALE Top 100 Marcellus Wells By Operator1 Percentage of Operators Total Wells in Top 100 Peer G Peer H Cabot 26% Peer F 1 1 Peer E 3 Peer I 3 Peer C…
  12. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 12
    CABOTS EUR PER FOOT AND F&D COSTS REMAIN BEST-IN-CLASS IN THE MARCELLUS AND UTICA 4.0 1.20 EUR per 1,000 ft. of lateral (Bcfe) 3.5 1.00 Implied F&D Cost (/Mcfe) 3.0 0.80 2.5 2.0 0.60 1.5 0.40 1.0 0.5…
  13. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 13
    CABOTS MARCELLUS SHALE ECONOMICS 2015 Program Well 2014 Program Well 175% 152% 150% Cabots YTD 2015 125% realized natural BTAX %IRR gas price: 96% 100% 2.32 102% 75% 51% 50% 65% 17% 25% 37% 8% 0% 1.50 2.00 2.50…
  14. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 14
    CABOTS MARCELLUS DRILLING AND COMPLETION COST SAVINGS Marcellus AFE Well Costs By Component YTD Marcellus Well Cost Savings By Category Completion Services Tangibles 7% Drilling Services Completion Facilities Frac…
  15. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 15
    CABOTS MARCELLUS DRILLING EFFICIENCIES Marcellus Drilling Days (Spud to TD)1 16.9 14.3 13.6 12.8 12.4 10.5 6.9 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Record 1 Normalized to a 5,000 lateral length 15
  16. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 16
    CABOTS PRICE REALIZATION OUTLOOK IMPROVES SIGNIFICANTLY WITH THE ADDITION OF NEW TAKEAWAY CAPACITY TO FAVORABLY PRICED MARKETS Gulf Coast / Mid-Atlantic New England / NY / Canada NE PA DTI TCO Fixed Price 100% 4% 6% 90% 20% 9%…
  17. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 17
    SUPPLY GROWTH IS WANING DECREASED ACTIVITY AND FLATTENING PRODUCTION IN THE MARCELLUS Marcellus Region Natural Gas Production (Bcf/d)1 18 16 14 12 Bcf/d 10 8 6 4 2 0 Marcellus Horizontal Rig Count2 NE PA SW /…
  18. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 18
    WHILE DEMAND GROWTH IS ON THE HORIZON APPROXIMATELY 8 BCF PER DAY OF POTENTIAL NEW TAKEAWAY CAPACITY FROM CABOTS NORTHEAST PENNSYLVANIA SUPPLY AREA 8 7 6 5 Bcf/d 4 3 2 1 0 TCO East Side Expansion TGP Niagara…
  19. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 19
    EAGLE FORD SHALE
  20. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 20
    CABOTS EAGLE FORD SHALE SUMMARY 89,000 net acres COG Eagle Ford Shale Acreage Position Buckhorn Buckhorn: 78,000 net acres 78K net acres Presidio: 11,000 net acres Presidio Operated rig count: 1 11K net acres Frio…
  21. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 21
    CABOTS EAGLE FORD SHALE ECONOMICS 2015 Program Well 2014 Program Well 100% 90% 80% 61% BTAX %IRR 60% Cabots YTD 2015 realized oil price: 38% 40% 40% 50.00 27% 18% 17% 20% 7% 0% 45.00 55.00 65.00 75.00 WTI Oil…
  22. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 22
    CABOTS EAGLE FORD DRILLING AND COMPLETION COST SAVINGS Eagle Ford AFE Well Costs By Component YTD Eagle Ford Well Cost Savings By Category % Reduction Due to Efficiency Gains % Reduction Due to Pricing Drilling Rig 6%…
  23. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 23
    CABOTS EAGLE FORD DRILLING EFFICIENCIES Eagle Ford Drilling Days (Spud to TD)1 15.0 12.5 11.4 8.8 8.7 8.8 6.2 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Record Eagle Ford Drilling Costs ( / Lateral Foot) 419…
  24. Morgan Stanley Marcellus Utica Summit – Cabot Oil & Gas Corp – slide 24
    CABOTS EAGLE FORD LEASE OPERATING EXPENSE SAVINGS Eagle Ford Lease Operating Expense By Category YTD Eagle Ford Lease Operating Expense Savings Subsurface Maintenance Misc. 8% Labor Surface Equipment 6% Power & Fuel…

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