Jefferies 2016 Energy Conference November 29, 2016
CABOT OIL & GAS OVERVIEW 2015 Year-End Proved Reserves: 8.2 Tcfe 2016E Net D&C Activity: 40 wells drilled / 80 wells completed 2016E Production Growth: 3% - 4% 2017E Net D&C Activity: 70 wells drilled / 75 wells completed 2017E…
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…
INDUSTRY-LEADING COST STRUCTURE ALLOWS CABOT TO SUCCESSFULLY NAVIGATE THROUGH ALL COMMODITY CYCLES Operating Transportation Taxes O/T Income Cash G&A Financing Exploration 2.00 1.88 1.74 1.50 Cash Unit Costs (/Mcfe) 1.31…
2017 CAPITAL BUDGET AND OPERATING PLAN INCLUDES INCREMENTAL CAPITAL FOR THE IMPLEMENTATION OF THE 4TH GENERATION COMPLETION DESIGN ACROSS THE ENTIRE MARCELLUS PROGRAM Total Program Spending 2017E Production Growth: 5% - 10% E&P…
RETURNS-FOCUSED GROWTH WITHIN CASH FLOW 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…
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…
CABOTS STRONG 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…
EAGLE FORD SHALE
IMPLEMENTATION OF DIVERSION TECHNOLOGY IN RECENT EAGLE FORD COMPLETIONS HAS GENERATED PROMISING RESULTS 100 With Diversion Technology Without Diversion Technology 20% uplift in cumulative oil 80 production Cumulative Oil…
CABOTS EAGLE FORD DRILLING EFFICIENCIES Continual BHA optimization, effective geosteering, Drilling costs per lateral foot have decreased 64% 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 Lease Operating Expense By Category Subsurface Miscellaneous Power & Fuel 9.49 Maintenance 9% Expense 3% 25% Labor 8%…
MARCELLUS SHALE
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…
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 156 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…
MARKETING & INFRASTRUCTURE
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 2016…
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…
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%…
KEY INVESTMENT HIGHLIGHTS Extensive Inventory of Low-Risk, High-Quality Drilling Opportunities Disciplined, Returns-Focused Capital Allocation Driving Production and Reserve Growth Low Cost Structure Potential to Double…
APPENDIX
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…
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)…
NET INCOME (LOSS) EXCLUDING SELECTED ITEMS AND DISCRETIONARY CASH FLOW RECONCILIATIONS 27
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