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Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Jan 8, 2018 · 27 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 1
    Goldman Sachs Global Energy Conference January 8, 2018 A decade of progress and perseverance in the Marcellus Shale.
  2. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 2
    Cabot Oil & Gas Overview 2016 Year-End Proved Reserves: 8.6 Tcfe 2017E Production Growth: 9% - 11% 2017E Capital Expenditures: 845 million 2018E Production Growth: 10% - 15% (18% - 23% pro forma for Eagle Ford, East Texas, and West…
  3. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 3
    Cabot Oil & Gas Strategy and Plans Focused Strategy Disciplined capital allocation focused on full-cycle returns Maintain strong balance sheet and financial flexibility Return capital to shareholders Monetize non-core assets to fund…
  4. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 4
    Proven Track Record of Returns-Focused Production and Reserve Growth Annual Production (Bcfe) 602.5 627.1 2018 531.8 Guidance: 10% - 15% 413.6 2017 Guidance: (18% - 23% 9% - 11% pro forma for announced divestitures) 2013 2014…
  5. Goldman Sachs Global Energy Conference January 2018 – 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. Goldman Sachs Global Energy Conference January 2018 – 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 1.14 1.05 2011 2012…
  7. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 7
    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…
  8. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 8
    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 /…
  9. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 9
    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…
  10. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 10
    Cabots Marcellus Infrastructure Update Atlantic Sunrise Other Projects Construction of the greenfield portion of Tennessee Gas Pipeline (TGP) Orion Project the Atlantic Sunrise project is officially In-service as of December 1, 2017…
  11. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 11
    Cabots Illustrative Marcellus Cash Margin Expansion Cash Margin Operating Expenses Gathering & Transportation Differential (Incl. Derivatives) NYMEX 3.10 3.00 3.00 0.45 0.35 0.75 0.50 2.46 0.70 0.70 0.78 0.70 0.08 0.10…
  12. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 12
    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…
  13. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 13
    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…
  14. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 14
    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…
  15. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 15
    History of High-Grading Cabots Asset Base Divesting Non-Core Assets to Fund Higher-Return Development Divested offshore and South Louisiana assets 2006 2017 Divestiture Program Highlights Divested Canadian assets Over 800 million of…
  16. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 16
    Peer-Leading Free Cash Flow Generation Consensus 2019E Free Cash Flow Yield 4.5% 3.8% 3.6% 3.3% 3.3% 2.8% 2.3% 2.1% 2.1% 2.0% 1.9% 1.6% Peer Average: 1.3% 1.1% 1.0% 0.9% 0.7% 0.5% 0.4% 0.3% (0.3%) (0.7%) (1.5%)…
  17. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 17
    Targeting Improved Returns on Capital Employed Broker 1: 2018E Return on Capital Employed Broker 2: 2018E Return on Capital Employed 17% 13% 6% 4% 5% 3% 2% COG Mid-Cap Small-Cap Large-Cap Average Average Average COG…
  18. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 18
    Appendix
  19. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 19
    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%…
  20. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 20
    2018 Guidance Full-year 2018 total company daily production growth FY 2018 Differential Guidance guidance: 10% - 15% (18% - 23% pro forma for Eagle Ford, Natural Gas (/Mcf) (0.45) (0.50) East Texas, and West Virginia divestitures)…
  21. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 21
    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…
  22. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 22
    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…
  23. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 23
    Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings Per Share 24
  24. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 24
    EBITDAX Calculation and Reconciliation 25
  25. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 25
    Net Debt Reconciliation 26
  26. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 26
    Discretionary Cash Flow and Free Cash Flow Calculation and Reconciliation 27
  27. Goldman Sachs Global Energy Conference January 2018 – Cabot Oil & Gas Corp – slide 27
    A decade of progress and perseverance in the Marcellus Shale.

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