where we stand where we are going EnerComs The Oil & Gas Conference August 20, 2018
Q2 2018 Highlights Daily equivalent production of 1,895 Mmcfe per day Q2 Q1 Q2 2018 2018 2017 Net income of 42.4 million (or 0.09 per share); adjusted net income (non-GAAP) Equivalent Production (Mmcfe/d) 1,895 1,884 1,902 of 57.9…
Cabot High-Graded its Portfolio to Become the Lowest Cost Natural Gas Producer Divested offshore and South Louisiana assets 2006 Divested Canadian assets 2009 Divested Marcellus gathering assets 2010 Divested Rocky Mountain…
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 Cash Operating Expenses (/Mcfe) Operating Transportation Taxes O/T Income Cash G&A Financing Exploration4 1.88 1.74 1.31 1.30 1.30 1.16 1.13 1.06 0.99 2011 2012…
Cabots Balance Sheet is Well-Positioned to Provide Financial Flexibility Through the Commodity Price Cycle Net Debt to LTM EBITDAX Target Leverage Ratio: 2.5x 1.0x 1.5x 1.8x 1.4x 1.4x 1.2x 1.0x 0.9x 0.8x 0.5x…
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…
2018 Capital Budget and Operating Plan 2018E Production Growth: 10% - 12% 2018E Total Program Spending: 960 mm Net Marcellus Wells Placed on Production (includes 70 mm of equity pipeline investments) Due to larger pad sizes in Q1…
Thickest Marcellus Section Across the Trend With Two Distinct, Incremental Reservoirs Separated by the Purcell Limestone Cabot is positioned in the thickest producing Marcellus interval in the basin N 290 470 feet of Marcellus…
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 Remaining capacity 150 associated with Mmcf/d 1.05 Bcf/d Trains 2 & 3 160 165 Mmcf/d Mmcf/d 3.75 3.6 Bcf/d 350 Mmcf/d (COG transport capacity): 20 years 2.22 500 Mmcf/d (COG transport…
Dynamic Market Profile for Cabot in the NE Marcellus Despite an anticipated 35% increase in exit-rate production from 2017 to 2018, Cabot expects to reduce its exposure to in-basin prices from 75% to 30% by YE 2018 However, Cabot…
The Historical Relationship Between the Storage Delta to the Five-Year Average and Price Indicates that the Current Storage Delta Should Correspond with Higher Prices Natural Gas Storage and Pricing 1,500 Polar Vortex Warm Winter Cold…
Specific to the East Region, Injection Levels for the Rest of the Season Would Need to Be Close to the High Levels Seen in 2014 to Finish the Injection Season Above the Five-Year Low East Natural Gas Storage Level Scenarios 5-Year…
2019 Will Be a Major Inflection Point for U.S. Natural Gas Demand Growth, Primarily Driven by Exports 2019E U.S. Natural Gas Demand Growth +0.5 Bcf/d +1.1 Bcf/d +1.4 +4.7 Bcf/d Bcf/d 4.2 3.1 +1.7 1.7 Bcf/d…
Cabot Offers a Compelling Combination of Top-Tier Yield, Free Cash Flow and Growth Current Dividend Yield Peer Median: 0.2% 3.1% 1.2% 1.0% 1.0% 0.7% 0.7% 0.5% 0.5% 0.2% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Peer A Peer B…
Cabot is Committed to Returning Capital to Shareholders Return of Capital to Shareholders (mm) 700 Dividends Share Repurchases Remaining share repurchase authorization of 30mm shares1 600 500 481 400 Year-to- Date (as of 300…
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…
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 level by securing incremental firm transport capacity…
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 25% 70% ROCE 2018E - 2019E EPS Growth Consensus 2018E 2019E 60%…
A Different Class of Investors Are Currently Focused on Energy Driven by a Shift in the S&P Sector Weightings Energy Sector Weighting in Referenced Index S&P 500 S&P 500 Growth S&P 500 Value 13.3% 23.3% 13.1% 6.2%…
Appendix 25
2018 Guidance Full-year 2018 total company daily production growth guidance: 10% - 12% Q3 2018E Natural Gas Price Exposure By Index Fixed Price (2.65 per Mcf) 25% 2018 exit-to-exit divestiture-adjusted (Marcellus-only) NYMEX (minus…
Financial Position and Risk Management Profile Debt Maturity Schedule (mm) as of 6/30/2018 (Including Weighted Average Coupon Rate) 600 500 237mm 400 repaid in July 2018 300 575 200 304 312 100 188 87 62 0 2018 2019 2020 2021…
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 to Adjusted Net Income and Adjusted Earnings Per Share 30
EBITDAX Calculation and Reconciliation 31
Net Debt Reconciliation 32
Discretionary Cash Flow and Free Cash Flow Calculation and Reconciliation 33
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