Fourth Quarter and Full-Year 2016 Earnings Call February 24, 2017 A decade of progress and perseverance in the Marcellus Shale.
2016 Highlights Equivalent production growth of 4 percent Q4 Q4 FY FY year-over-year 2016 2015 2016 2015 Proved reserve growth of 5 percent with Equivalent Production (Mmcfe/d) 1,784 1,642 1,713 1,651 total company all-sources…
Proven Track Record of Production and Reserve Growth Annual Production (Bcfe) 627.1 2018 602.5 531.8 2017 Guidance: Guidance: 15% - 25% 413.6 5% - 10% 2013 2014 2015 2016 2017E 2018E Year-End Proved Reserves (Tcfe) 8.2…
Continued Improvements in Cabots Cost Structure Resulting from Efficiency Gains Drilling Costs per Foot Completion Costs per Stage Direct LOE (/Mcfe) Marcellus 2014 2015 2016 2014 2015 2016 2014 2015 2016 Eagle Ford 2014 2015…
Industry-Leading Cost Structure Continues to Improve Total Company All-Sources Finding & Development Costs (/Mcfe) 1.21 0.87 0.71 0.55 0.57 0.37 2011 2012 2013 2014 2015 2016 Marcellus All-Sources Finding & Development Costs…
Allowing Cabot to Successfully Navigate through All Commodity Prices Cash Operating Expenses (/Mcfe) Operating Transportation Taxes O/T Income Cash G&A Financing Exploration 1.88 1.74 1.31 1.30 1.30 1.16 2011 2012 2013 2014…
Updated 2017 Capital Budget and Operating Plan 2017E Production Growth: 5% - 10% 2017E Oil Production Growth: 15% 2017E Total Program Spending: 720 mm Net D&C Activity (includes 70 mm of equity pipeline investments) 10% Wells Drilled…
Updated 2017 Capital Budget Reconciliation E&P Capital Equity Pipeline Investments 20 mm 85 mm Additional 70 mm (25 mm) 15 mm Equity Pipeline 50 mm Investments Marcellus Additional Additional Based on a Well Cost Marcellus…
Recent Enhancements to Cabots Eagle Ford Completion Design Are Resulting in Outperformance Recent Pad - Well 1 (1,800/Ft. w/ Diverter) Recent Pad - Well 2 (1,607/Ft. w/ Diverter) Recent Pad - Well 3 (1,582/Ft. w/ Diverter)…
Improved Eagle Ford Economics Increased Capital Allocation Return to Oil Growth Eagle Ford BTAX IRR at 50/Bbl Realized Eagle Ford Q4 2016-to-Q4 2017 (Well Costs Include Additional Costs from Oil Production Volume Growth Enhanced…
Cabots Generation 4 Marcellus EURs: 4.4 Bcf/1,000 3.8 Bcf/1,000' Type Curve 4.4 Bcf/1,000' Type Curve COG Generation 4 Wells 1,600 Cumulative Production (Mmcf per 1,000 Lateral Feet) 1,400 1,200 1,000 800 600 Cabots…
Cabots Marcellus Position is the Most Prolific U.S. Onshore Natural Gas Resource Play Estimated Ultimate Recovery (EUR) Bcfe/1,000 Lateral Feet 4.4 Appalachian Gas Play Non-Appalachian Gas Play Source: Current investor…
Increased EURs, Lower Well Costs and Improving Regional Prices are Driving a Significant Improvement in Marcellus Returns Marcellus Well Costs (mm): Marcellus BTAX IRR at 5-Year Leidy Line Strip1 4th Generation 8,000 Lateral 4th…
Cabots Realized Natural Gas Prices Have Been Steadily Increasing Due to Improved Regional Prices 2.51 Excluding Derivatives (/Mcf) Realized Natural Gas Price 2.05 1.85 1.68 1.70 1.66 1.62 1.54 1.55 1.52 1.47 1.23…
2018 is an Inflection Year for Cabot: Cabot Has the Ability to Double Its Marcellus Production Based on Its Future Firm Transport / Firm Sales Additions 350 Mmcf/d (COG transport capacity): 20 years 500 Mmcf/d (COG transport…
New Infrastructure Capacity and Improving Regional Prices Result in Significant Margin Enhancements 100% 5% Power Plant Deals 7% 6% 10% 13% D.C. Market Area 80% 7% 5% Dominion 60% 36% (2.29/Mcf) 29% Columbia 70% of Cabots…
Forecasts Imply Significant Positive Free Cash Flow is on the Horizon, Providing Cabot With Options to Create Shareholder Value Accelerate Production and Cash Flow Growth via Increased Activity in Evaluate New Platforms for Future…
Appendix
Financial Position and Risk Management Profile Debt Maturity Schedule (mm) FY 2017 Natural Gas Price Exposure by Index (Including Weighted Average Coupon Rate) Millennium East Dominion 600 3.7% 5% 5% Columbia 500 6% 400 Fixed…
Cabots Marcellus Infrastructure Update TGP Orion Moxie Freedom Power Plant Lackawanna Power Plant Received FERC certificate on Currently under construction and on Currently under construction and on February 2, 2017 schedule schedule…
2017 Guidance Full-year 2017 total company production growth: FY 2017 Natural Gas Price Exposure By Index 5% - 10% Fixed Price (2.29) 36% Full-year 2017 oil production growth: 15% (increased from 0% growth in the original 2017 Leidy…
EBITDAX and Net Debt Reconciliations 23
Net Income (Loss) Excluding Selected Items and Discretionary Cash Flow Reconciliations 24
A decade of progress and perseverance in the Marcellus Shale.
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