Fourth-Quarter and Full-Year 2017 Results February 23, 2018 A decade of progress and perseverance in the Marcellus Shale.
2017 Highlights Net income of 100.4 million (or 0.22 per 2016 2017 Daily 1,713 1,878 share); adjusted net income (non-GAAP) of Production 244.5 million (or 0.53 per share) (Mmcfe/d) Total company all-sources finding and…
Cabot Oil & Gas Overview 2017 Year-End Proved Reserves: 9.7 Tcfe (13% year-over-year increase) 2017 Production: 1,878 Mmcfe/d (10% year-over-year increase) 2018E Production Growth: 10% - 15% (18% - 23% on a divestiture-adjusted…
Cabot Oil & Gas Strategy Disciplined capital allocation focused on delivering debt-adjusted per share growth, generating positive free cash flow, improving corporate returns on capital employed, increasing return of capital to…
Proven Track Record of Debt-Adjusted per Share Growth Daily Production Per Debt-Adjusted Share 2011 2012 2013 2014 2015 2016 2017 Year-End Proved Reserves Per Debt-Adjusted Share 2011 2012 2013 2014 2015 2016 2017 Note:…
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 0.35 2011 2012 2013 2014 2015 2016 2017 Marcellus All-Sources Finding &…
Resulting in a Continued Reduction in Breakeven Prices All-In Operating Expenses (Including Non-Cash Expenses) (/Mcfe) Operating Transportation Taxes O/T Income G&A Financing Exploration DD&A 4.08 3.69 3.03 2.56 2.37 2.17…
Cabots Balance Sheet is Well-Positioned to Provide Financial Flexibility Through the Commodity Price Cycle Net Debt to LTM EBITDAX Target Leverage Ratio: 1.0x 1.5x 2.5x 1.8x 1.4x 1.4x 1.2x 1.0x 0.9x 2011 2012 2013…
2018 Capital Budget and Operating Plan 2018E Production Growth: 10% - 15% (18% - 23% on a divestiture-adjusted basis) 2018E Total Program Spending: 950 mm Marcellus Net D&C Activity by Quarter (includes 60 mm of equity pipeline…
Cabots Marcellus Position is the Most Prolific U.S. Onshore Natural Gas Resource Play Estimated Ultimate Recovery (EUR) Bcfe/1,000 Lateral Feet Based on 4.4 Based on older Gen 1 / 2 / 3 completion designs Appalachian Gas Play Gen 4…
2018 is an Inflection Year for Cabot 150 1 Bcf/d Mmcf/d 240 165 Mmcf/d Mmcf/d 3.7 350 Mmcf/d (COG transport capacity): 20 years 3.6 Bcf/d 500 Mmcf/d (COG transport capacity): 15 years 2.15 2.6 2.2 2.3 150 Mmcf/d (3rd party…
Cabot is committed to returning capital to shareholders Return of Capital to Shareholders (mm) 225 Dividends Share Repurchases 200 Recently 175 increased share repurchase 150 authorization 124 to 30mm shares 125 (720mm1) 165…
Cabot offers a compelling combination of top-tier yield, free cash flow and growth Current Dividend Yield 3.8% 1.5% 1.3% 1.0% 0.7% 0.6% 0.5% 0.3% 0.2% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Peer A Peer B Peer C COG Peer D…
Three-Year Cabot Oil & Gas Outlook Three-Year Production CAGR: 17% - 21% (20% - 24% on a divestiture-adjusted basis) Adjusted Net Income (mm)1 Discretionary Cash Flow (mm)1 2.75 NYMEX 3.00 NYMEX 3.25 NYMEX 2.75 NYMEX 3.00 NYMEX 3.25…
Cabots Anticipated Corporate Returns And Growth Are Competitive Across the Broader S&P 500 Index COGs ROCE and EPS Growth Outlook vs. Median Estimates By Sector1 Consensus 2018E 2019E EPS Growth 25% 70% ROCE 2018E - 2019E EPS…
Best-in-Class Marcellus Capital Efficiency Cabots expects to reach 3.7 Bcf/d of gross production in 2020 Cabot management expects to grow volumes above this illustrative 3.7 Bcf/d maintenance level by securing incremental firm…
Appendix
2018 Guidance Full-year 2018 total company daily production growth 2018E Differential Guidance (Before the Impact of Derivatives) guidance: 10% - 15% (18% - 23% on a divestiture-adjusted Q1 2018 FY 2018 basis to reflect the impact of…
2018 2019 Hedge Summary 2018 Natural Gas Swaps of Total /Mcf Pricing Index Contracts Mcf/Day Fixed Price Duration LDS NYMEX 26 252,574 2.93 Feb-18 Dec-18 LDS NYMEX 5 48,572 3.10 Feb-18 Oct-18 2018 Natural Gas Basis Swaps of…
Three-Year Outlook Assumptions Three-Year Outlook Assumptions (Slide 15) (0.50) per Mcf weighted-average basis differential in 2018 and (0.35) per Mcf weighted-average basis differential in 2019 and 2020 850 million of annual total…
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings Per Share 23
EBITDAX Calculation and Reconciliation 24
Net Debt Reconciliation 25
Discretionary Cash Flow and Free Cash Flow Calculation and Reconciliation 26
Return on Capital Employed (ROCE) Calculation and Reconciliation 27
A decade of progress and perseverance in the Marcellus Shale.
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