Investor Presentation September 19, 2017 A decade of progress and perseverance in the Marcellus Shale.
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: 95 wells drilled / 90 wells completed 2017E Production Growth: 8% - 12% 2017E Total Program…
Cabot Oil & Gas Strategy and Plans Focused 2017 2018+ Strategy Plan / Outcome Plans Disciplined capital Majority of capital allocated Increase capital allocation allocation focused on full- to one of the highest-return to our…
Proven Track Record of Production and Reserve Growth Annual Production (Bcfe) 602.5 627.1 531.8 2017 Guidance: 413.6 8% - 12% 2013 2014 2015 2016 2017E Year-End Proved Reserves (Tcfe) 8.2 8.6 7.4 Proved Undeveloped…
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 1.15 1.12 2011 2012…
Current Leverage Metrics Have Improved to Pre- Downcycle Levels Net Debt to LTM EBITDAX 2.5x 1.8x Average net debt / EBITDAX ratio 1.4x 1.4x prior to the recent downcycle: 1.2x 1.3x 1.2x 1.1x 0.9x 2011 2012 2013 2014…
Operating Highlights
Cabots Drilling Efficiencies Continue to Drive Costs Lower Across Both Operating Areas Marcellus Drilling Costs / Foot Eagle Ford Drilling Costs / Foot 2014 2015 2016 1H 2017 2014 2015 2016 1H 2017 10
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 Peer Average: 2.15 Bcfe /…
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…
Cabots Marcellus Infrastructure Update Atlantic Sunrise Other Projects Construction of the greenfield portion of PennEast Pipeline the Atlantic Sunrise project is officially Received final EIS on April 7, 2017 underway Construction…
Moxie Freedom Generating Station Projected In-Service Date: June 2018 14
Lackawanna Energy Center Projected In-Service Date: June 2018 15
Best-in-Class Marcellus Capital Efficiency Estimated Drilling, Completion and Facility Capital to Hold 3.7 Bcf/d of Gross Marcellus Production Flat (mm) Average Annual Maintenance Capital: 500mm 600 500 400 300 200 100 0 Average…
Cabots Philosophy on its Current Exploration Projects Marcellus Case Study: A Road Map for Funding Successful New Ventures Historical Marcellus Capex / Discretionary Cash Flow and Company-Wide Proceeds from Divestitures Cabots primary…
History of High-Grading Cabots Asset Base Divesting Non-Core Assets to Fund Higher-Return Development Divested offshore and South Louisiana assets 2006 West Virginia Divestiture Highlights Divested Canadian assets 2% of total…
Targeting Improved Returns on Capital Employed Broker 1: 2018E Return on Capital Employed Broker 2: 2018E Return on Capital Employed 13% 10% 6% 4% 4% 4% 3% 3% COG Mid-Cap Small-Cap Large-Cap COG Gassy SMid- Oily…
Appendix
2017 Program Overview 2017E Production Growth: 8% - 12% 2017E Oil Production Growth: 10% - 15% 2017E Total Program Spending: 845 mm Net D&C Activity (includes 70 mm of equity pipeline investments and up to 125 mm of exploratory leasing…
2017 Guidance Full-year 2017 total company production growth guidance: Q3 2017 Net Production Guidance 8% - 12% Natural Gas (Mmcf/d) 1,750 - 1,800 Full-year 2017 oil production growth: 10% - 15% Oil (Bbls/d) 13,000 - 13,750 2017…
Financial Position and Risk Management Profile Debt Maturity Schedule (mm) Q3 2017 Natural Gas Price Exposure by Index (Including Weighted Average Coupon Rate) Dominion Millennium East 600 3.7% 5% 4% Columbia 500 6% 400 Fixed…
2017 Hedge Summary 2017 Natural Gas Swaps of Total /Mcf Pricing Index Contracts Mcf/Day Fixed Price Duration LDS NYMEX 10 97,144 3.12 Jan-17 Dec-17 TCO 5 48,572 3.46 Feb-17 Dec-17 2017 Natural Gas Collars of Total /Mcf Pricing Index…
EBITDAX and Net Debt Reconciliations 27
Net Income (Loss) Excluding Selected Items and Discretionary Cash Flow Reconciliations 28
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