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Q3 2016 Earnings Call – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Oct 28, 2016 · 16 slides

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Slides

  1. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 1
    Third Quarter 2016 Earnings Call October 28, 2016
  2. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 2
    THIRD QUARTER 2016 FINANCIAL HIGHLIGHTS Equivalent production growth of 6 percent Q3 Q3 year-over-year, driven by 9 percent growth in 2016 2015 natural gas production despite volumes being Equivalent Production (Mmcfe/d) 1,640…
  3. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 3
    CONTINUED IMPROVEMENTS IN CABOTS COST STRUCTURE RESULTING FROM EFFICIENCY GAINS Drilling Costs per Foot Completion Costs per Stage Direct LOE (/Mcfe) Marcellus FY '14 FY '15 Q1 '16 Q2 '16 Q3 '16 FY '14 FY '15 Q1 '16 Q2 '16 Q3 '16…
  4. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 4
    CABOTS 4TH GENERATION MARCELLUS COMPLETION DESIGN IS SIGNIFICANTLY OUTPERFORMING CABOTS ENTIRE 2017 MARCELLUS PROGRAM WILL UTILIZE THE 4TH GENERATION COMPLETION DESIGN Marcellus Pad A Marcellus Pad B Gen 3 Gen 3 Gen 4 Gen 4 0…
  5. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 5
    2017 CAPITAL BUDGET AND OPERATING PLAN INCLUDES INCREMENTAL CAPITAL FOR THE IMPLEMENTATION OF THE 4TH GENERATION COMPLETION DESIGN ACROSS THE ENTIRE MARCELLUS PROGRAM Net Wells Drilled 2017E Production Growth: 5% - 10% 70 2017E…
  6. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 6
    2017 INVESTMENT PROGRAM: FOCUSED ON GENERATING HIGH-RETURN GROWTH BTAX IRR BTAX PV-10 150% 20 120% BTAX PV-10 (mm) 17.0 15 BTAX IRR 100% 10 50% 45% 5 3.0 0% 0 Marcellus Eagle Ford 2/Mmbtu Realized 50/Bbl…
  7. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 7
    FINANCIAL POSITION AND RISK MANAGEMENT PROFILE Debt Maturity Schedule (mm) FY 2017 Natural Gas Price Exposure By Index (Including Weighted Average Coupon Rate) Columbia Other 600 3.7% 4% 3% Millennium East Leidy Line 500 6%…
  8. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 8
    INFRASTRUCTURE UPDATE: 2018 IS AN INFLECTION YEAR FOR CABOT TGP Orion Moxie Freedom Power Plant Lackawanna Power Plant Received Final Environmental Currently under construction Currently under construction Assessment in August…
  9. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 9
    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 150 850 Mmcf/d Mmcf/d 240 165 Mmcf/d 135 Mmcf/d Mmcf/d 3.5 3.4 3.5…
  10. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 10
    NEW INFRASTRUCTURE CAPACITY WILL ALLOW CABOT TO ACCESS MORE FAVORABLE MARKETS, RESULTING IN SIGNIFICANT MARGIN ENHANCEMENTS 12% 30% Power Plant Deals 31% Fixed Price 12% NYMEX / Gulf Coast 3% 6% D.C. Market Area 17%…
  11. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 11
    2016 2018 GUIDANCE OUTLOOK BASED ON CURRENT STRIP PRICES1 AND CURRENT TARGET IN-SERVICE DATES FOR NEW TAKEAWAY PROJECTS 25% Annual Production Growth (%) 15% 10% 4% 5% 3% 2016E 2017E 2018E Free Cash Flow Positive…
  12. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 12
    APPENDIX
  13. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 13
    2016 GUIDANCE Full-year 2016 total company production growth: 3% - 4% Q4 2016 Net Production Guidance Natural Gas (Mmcf/d) 1,650 - 1,725 2016 E&P capital budget: 380 million Oil (Bbls/d) 8,500 - 9,000 Implementation of the…
  14. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 14
    2017 GUIDANCE Full-year 2017 total company production growth: 5% - 10% FY 2017 Natural Gas Price Exposure By Index 2017 total program spending (including equity pipeline Leidy Line 24% investments): 625 million Fixed Price (2.15)…
  15. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 15
    NET INCOME (LOSS) EXCLUDING SELECTED ITEMS AND DISCRETIONARY CASH FLOW RECONCILIATIONS 16
  16. Q3 2016 Earnings Call – Cabot Oil & Gas Corp – slide 16
    EBITDAX AND NET DEBT RECONCILIATIONS 17

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