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Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Mar 3, 2017 · 29 slides

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Slides

  1. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 1
    Simmons & Company 17th Annual Energy Conference March 2-3, 2017 A decade of progress and perseverance in the Marcellus Shale.
  2. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 2
    Cabot Oil & Gas Overview 2016 Production: 627 Bcfe (4% growth) 2016 Year-end proved reserves: 8.6 Tcfe (5% growth) 2017E Net D&C activity: 90 wells drilled / 90 wells completed 2017E Production growth: 5% - 10% MARCELLUS SHALE 3,000…
  3. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 3
    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…
  4. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 4
    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…
  5. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 5
    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…
  6. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 6
    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…
  7. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 7
    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…
  8. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 8
    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…
  9. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 9
  10. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 10
    Cabots Eagle Ford Efficiencies and Cost Savings Drilling Cost vs. Total Measured Depth Eagle Ford Gross Lifting Costs (/Bbl) 2013 2014 2015 2016 0 9.49 Total Measured Depth (Ft.) 5,000 7.29 5.77 10,000…
  11. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 11
    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)…
  12. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 12
    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…
  13. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 13
  14. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 14
    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…
  15. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 15
    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…
  16. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 16
    Cabots Marcellus Drilling Efficiencies Drilling Days vs. Depth - Spud to Rig Release Drilling Cost Per Foot Drilled Days 324 0 5 10 15 20 0 2012 259 Total Measured Depth (Ft.) 2013 233 4,000 2014 200 2015 153…
  17. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 17
    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…
  18. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 18
  19. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 19
    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…
  20. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 20
    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…
  21. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 21
    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…
  22. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 22
    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…
  23. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 23
    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…
  24. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 24
    Appendix
  25. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 25
    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…
  26. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 26
    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…
  27. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 27
    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…
  28. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 28
    EBITDAX and Net Debt Reconciliations 29
  29. Simmons and Company 17th Annual Energy Conference – Cabot Oil & Gas Corp – slide 29
    Net Income (Loss) Excluding Selected Items and Discretionary Cash Flow Reconciliations 30

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