Bank of America Merrill Lynch 2015 Global Energy Conference November 10, 2015
CABOT OIL & GAS ASSET OVERVIEW 2014 Year-End Proved Reserves: 7.4 Tcfe 2015E Drilling Activity: 130 net wells 2015E Production Growth: 12% - 14% 2016E Drilling Activity: 60 net wells 2016E Production Growth: 2% - 10% Eagle Ford…
WELL POSITIONED TO NAVIGATE A CHALLENGING MARKET 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 Marcellus:…
UPDATED 2015 AND PRELIMINARY 2016 OPERATING PLAN CONTINUED FOCUS ON CAPITAL EFFICIENCY 2015E Capital Program: 2016E Capital Program: Net Wells Drilled 850 mm (excludes 35 mm 615 mm (excludes 150 mm 130 of equity method investments)…
PROVEN TRACK RECORD OF PRODUCTION AND RESERVE GROWTH Annual Production (Bcfe) 700 600 531.8 2016 500 413.6 2015 Guidance: 2% - 10% Bcfe 400 Guidance: 28.6% 12% - 14% 267.7 Liquids 300 187.5 200 130.6 54.5% Gas 42.8%…
WHILE MAINTAINING A CONSERVATIVE BALANCE SHEET Net Debt to EBITDAX1 2.0x 1.5x 1.4x 1.3x 1.2x 0.9x 2010 2011 2012 2013 2014 LTM Q3 2015 1EBITDAX is a non-GAAP measure defined as net income plus interest expense, income…
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…
MARCELLUS SHALE
CABOTS MARCELLUS SHALE SUMMARY 200,000 net acres Marcellus Planned Lateral Lengths (Ft.) Operated rig count: 3 (reducing to 2 by year-end 2015) 6,700 2015E activity: 80 net wells drilled / 60 net wells completed 5,300 2016E…
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…
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…
CABOTS MARCELLUS DRILLING AND COMPLETION COST SAVINGS Marcellus AFE Well Costs By Component YTD Marcellus Well Cost Savings By Category % Reduction Due to Efficiency Gains % Reduction Due to Pricing Tangibles 7%…
CABOTS MARCELLUS DRILLING EFFICIENCIES Marcellus Drilling Days (Spud to TD)1 16.9 14.3 13.6 12.8 12.4 10.5 9.4 6.9 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Record 1 Normalized to a 5,000 lateral…
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 / Other Access to more…
SUPPLY GROWTH IS WANING DECREASED ACTIVITY AND FLATTENING PRODUCTION IN THE MARCELLUS Marcellus Region Natural Gas Production (Bcf/d)1 18 16 Bcf/d 14 12 10 Marcellus Horizontal Rig Count2 NE PA SW / Central PA WV…
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…
EAGLE FORD SHALE
CABOTS EAGLE FORD SHALE SUMMARY 89,000 net acres Eagle Ford Planned Lateral Lengths (Ft.) Buckhorn: 78,000 net acres 9,500 Presidio: 11,000 net acres 7,700 Operated rig count: 1 2015E activity: 50 net wells drilled / 40 net…
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 7%…
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 8.2 6.2 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Record Eagle Ford Drilling Costs ( / Lateral…
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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