BARCLAYS CEO ENERGY-POWER CONFERENCE September 8, 2016
CABOT OIL & GAS OVERVIEW 2015 Production: 602.5 Bcfe (13% growth) 2015 Year-End Proved Reserves: 8.2 Tcfe (11% growth) 2016E Drilling Activity: 32 net wells 2016E Production Growth: 2% - 7% Marcellus Shale Eagle Ford Shale…
2016 CAPITAL BUDGET AND OPERATING PLAN CONTINUED FOCUS ON CAPITAL EFFICIENCY 2016E Capital Program: Net Wells Drilled 345 mm (excludes 30 - 35 mm 133 of equity method investments) Land Other 2% 4% 32 FY 2015 FY 2016E Net…
PROVEN TRACK RECORD OF PRODUCTION AND RESERVE GROWTH Annual Production (Bcfe) 602.5 531.8 2016 413.6 13.3% Guidance: 2% - 7% 28.6% Liquids Gas 2013 2014 2015 2016E 2017E Year-End Proved Reserves (Tcfe) 8.2 7.4 10.7%…
WHILE MAINTAINING A CONSERVATIVE BALANCE SHEET Net Debt to LTM EBITDAX1 2.5x 1.8x 1.3x 1.2x 0.9x YE 2012 YE 2013 YE 2014 YE 2015 Q2 2016 1EBITDAX is a non-GAAP measure defined as net income plus interest expense,…
TOP-TIER CAPITAL YIELDS DRIVEN BY A LOW COST STRUCTURE AND AN IMPROVING OUTLOOK FOR PRICE REALIZATIONS 2017E Capital Yield (Cash Recycle Ratio) 2018E Capital Yield (Cash Recycle Ratio) COG COG Peer Peer Peer Peer Peer Peer Peer Peer…
EAGLE FORD SHALE
CABOTS EAGLE FORD SHALE SUMMARY Eagle Ford Lateral Lengths (Ft.) 85,500 net acres 9,500 Buckhorn: 75,000 net acres 7,300 7,400 Presidio: 10,500 net acres Current rig count: 1 (3 wells remaining in 2H 2016) 2016E activity:…
CABOTS EAGLE FORD DRILLING EFFICIENCIES Continual BHA optimization, effective geosteering, Drilling costs per lateral foot have decreased 56% use of made-for-purpose rigs, and general process since 2013 improvements have all…
CABOTS EAGLE FORD LEASE OPERATING EXPENSE COST REDUCTIONS Eagle Ford Gross Lifting Costs (/Bbl) Eagle Ford LOE Savings (2016 YTD vs. 2013) 10.00 9.49 8.00 7.29 6.00 5.77 5.02 0% 4.00 (20%) (40%) (29%) (22%) (17%) (36%)…
MARCELLUS SHALE
CABOTS MARCELLUS SHALE SUMMARY 200,000 net acres Marcellus Planned Lateral Lengths (Ft.) 7,000 Current operated rig count: 1 5,900 5,300 Current completion crews: 2 2016E activity: 26 net wells drilled / 55 - 60 net wells…
CABOTS ACREAGE CONTAINS THE THICKEST MARCELLUS SHALE RESERVOIR IN THE APPALACHIAN BASIN 14
CABOTS MARCELLUS GEOSTEERING: TARGETING AND EXECUTION North South North South Fold Marcellus Faults 300 Ft. Fold Fold Fold 24/7 geology and drilling oversight of targets 1400 Ft. and lateral placement using real-time geosteering and 3D…
CABOTS MARCELLUS DRILLING EFFICIENCIES Drilling Days vs. Depth - Spud to Rig Release Drilling Cost Per Foot Drilled Days 324 0 5 10 15 20 25 0 259 Total Measured Depth (Ft.) 233 4,000 2012 200 2013 157 2014 8,000 2015…
CABOTS MARCELLUS COMPLETIONS EFFICIENCIES Marcellus Completion Operations Evolution Normalized Stages per 12 Crew Hours 5.0 4.9 2010: Daylight operations, single well pads 2012 : 24-hour operations, multi-well pads, modified…
CABOT HAS 18 OF THE TOP 20 WELLS DRILLED IN PENNSYLVANIA SINCE 2012 Cumulative Natural Gas Production (Bcf) 17.5 14.7 14.4 14.0 13.3 13.1 12.8 12.2 12.1 11.8 11.4 11.1 11.0 10.8 10.8 10.5 10.4 10.3 10.3 10.3 Source:…
PEER-LEADING EUR AND WELL COSTS IN THE MARCELLUS SHALE EUR / 1,000 of Lateral (Bcf) 3.8 3.0 2.4 2.3 2.2 2.1 Cabot Peer A Peer B Peer C Peer D Well Cost / 1,000 of Lateral (000s) 900 925 944 814 819 Cabot Peer A Peer…
MARCELLUS TYPE CURVE AND WELL ECONOMICS BASED ON THE MARGINAL ECONOMICS FOR NEW WELLS PRODUCED AND SOLD DIRECTLY INTO THE LOCAL NORTHEAST PENNSYLVANIA MARKET (LEIDY LINE) 3.5 Single Well Assumptions Rate (Mmcf/d per 1,000 Lateral)…
CABOT HAS THE ABILITY TO DOUBLE ITS MARCELLUS PRODUCTION OVER TIME BASED ON ITS PREVIOUSLY ANNOUNCED FIRM TRANSPORT AND FIRM SALES ADDITIONS 500 Mmcf/d 240 150 Mmcf/d 165 Mmcf/d 850 135 Mmcf/d Mmcf/d Mmcf/d 3.5 3.5 Based on…
KEY INVESTMENT HIGHLIGHTS Extensive Inventory of Low-Risk, High-Quality Drilling Opportunities Disciplined Capital Spending Driving Production and Reserve Growth Low Cost Structure Focused on Maintaining a Strong…
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