Bank of America Merrill Lynch 2017 Global Energy Conference November 16, 2017 A decade of progress and perseverance in the Marcellus Shale.
Cabot Oil & Gas Overview 2016 Year-End Proved Reserves: 8.6 Tcfe 2017E Net D&C Activity: 95 wells drilled / 90 wells completed 2017E Production Growth: 9% - 11% 2017E Capital Expenditures: 845 million 2018E Production Growth: 15% - 20%…
Cabot Oil & Gas Strategy and Plans Focused Strategy Disciplined capital allocation focused on full-cycle Maintain strong balance sheet and financial flexibility returns Monetize non-core assets to fund higher-return Return capital to…
Proven Track Record of Returns-Focused Production and Reserve Growth Annual Production (Bcfe) 602.5 627.1 531.8 2018 Guidance: 413.6 2017 15% - 20% Guidance: 9% - 11% 2013 2014 2015 2016 2017E 2018E Year-End Proved Reserves…
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…
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 1.2x 1.3x 1.1x 1.0x 0.9x 2011 2012 2013…
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: 2.16 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…
Three-Year Marcellus Outlook 2.5 billion of cumulative Marcellus pre-tax free cash flow from 2018 to 20201 750 - 850 million of annual Marcellus capital expenditures over this time period Only includes the benefit of COGs future…
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% 12% 4% 3% 3% 2% 2% COG Mid-Cap Small-Cap Large-Cap Average Average Average COG…
Appendix
2017 Guidance Full-year 2017 total company daily production growth guidance: Q4 2017 Net Production Guidance 9% - 11% Natural Gas (Mmcf/d) (reflects Q3 West Virginia sale) 1,775 - 1,850 Full-year 2017 daily oil production growth: 10%…
2018 Guidance Full-year 2018 total company daily production growth FY 2018 Differential Guidance1 guidance: 15% - 20% (17% - 22% pro forma for the West Natural Gas (/Mcf) (0.45) (0.50) Virginia divestiture) Oil (/Bbl) (3.00) (3.50)…
Financial Position and Risk Management Profile Debt Maturity Schedule (mm) Q4 2017 Natural Gas Price Exposure by Index (Including Weighted Average Coupon Rate) Columbia Millennium East 600 3.7% 3% 2% Dominion 500 7% Fixed Price…
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…
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings Per Share 24
EBITDAX Calculation and Reconciliation 25
Net Debt Reconciliation 26
Discretionary Cash Flow and Free Cash Flow Calculation and Reconciliation 27
A decade of progress and perseverance in the Marcellus Shale.
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