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2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Jul 26, 2019 · 26 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. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 1
    Second Quarter 2019 Earnings Call July 26, 2019
  2. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 2
    Second Quarter 2019 Highlights Q2 Q1 Q2 Net income of 181.0 million (or 0.43 per share); adjusted net 2019 2019 2018 income (non-GAAP) of 150.6 million (or 0.36 per share) Equivalent Production (Mmcfe/d) 2,349 2,276 1,895 Net cash…
  3. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 3
    Cabot Oil & Gas Overview Marcellus Shale 2,900 Remaining Undrilled Locations1 Year-End 2018 Net Operated Producing Horizontal Wells: 647 2018 Wells Placed on Production: 84 Net Wells 2019E Wells Drilled and Completed: 90 Net…
  4. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 4
    Cabot Oil & Gas Strategy Disciplined capital allocation focused on: Delivering growth per debt-adjusted share Increasing return of capital to shareholders Generating positive free cash flow Maintaining a strong balance sheet…
  5. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 5
    Proven Track Record of Debt-Adjusted per Share Growth Daily Production Per Debt-Adjusted Share1 7% free 2012 2013 2014 2015 2016 6% 2017 2018 cash flow yield1,2 5% free cash Year-End Proved Reserves Per Debt-Adjusted free…
  6. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 6
    Industry-Leading Cost Structure Continues to Improve Total Company All-Sources Finding & Development Costs (/Mcfe) 0.87 0.71 0.55 0.57 0.37 0.35 0.30 2012 2013 2014 2015 2016 2017 7% free 2018 6% cash flow 5% free cash…
  7. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 7
    Resulting in a Continued Reduction in Breakeven Prices All-In Operating Expenses (Including Non-Cash Expenses) (/Mcfe) Operating Transportation DD&A Taxes O/T Income Total G&A Financing Exploration 3.69 3.03 2.56 2.37 2.17 2.02…
  8. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 8
    Cabots 2019 Operating Plan is Expected to Deliver Continued Improvement in ROCE Return on Capital Employed (ROCE) 23.5% 22% - 24% 21% - 23% 20% - 22% 7% free 6% cash flow 5% free cash yield1,2 free cash flow yield1,2 8.5%…
  9. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 9
    and a Significant Expansion of Free Cash Flow Free Cash Flow (mm) 600 - 625 550 - 575 500 - 525 381 7% free 7% free 6% 6% free cash flow cash flow 297 1,2 yield1 5% free cash cash flow yield free cash 5% free flow yield1,2…
  10. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 10
    Cabot is Committed to Returning Capital to Shareholders Return of Capital to Shareholders (mm) 1,000 Dividends Share Repurchases 900 800 700 600 904 500 400 300 6% 7% free 5% 6% free 125 Year-to- cash flow 200 Commodity…
  11. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 11
    Since 2017, Cabot Has Reduced its Shares Outstanding by Ten Percent Common Shares Outstanding (in millions) 463.7 445.5 418.4 7% free 6% cash flow7% free 5% 6% free free cash yield1,2 cash flow free cash cash flow yield…
  12. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 12
    Cabots Balance Sheet Provides Financial Flexibility Through the Commodity Price Cycle Net Debt to LTM EBITDAX Target Leverage Ratio: 2.5x 1.0x Through the Commodity Price Cycle 1.8x 7% free 1.4x 1.4x 6% cash flow7% free 1.2x…
  13. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 13
    Cabots Differentials Continue to Improve, Driven by New Infrastructure Projects and In-Basin Demand Growth Weighted-Average Differential to NYMEX Before Hedges (/Mcf) 2014 2015 2016 2017 2018 2019E 0.00 (0.25) (0.30) - (0.35)…
  14. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 14
    Cabots Recycle Ratio is Unrivaled Across Both Oil and Gas Peers 5.8x 2019E All-In Total Recycle Ratio After G&A and Interest Expense 3.9x 2.4x 2.4x 2.1x 2.0x 1.8x 1.7x 1.5x 1.5x 1.5x 1.4x 1.4x 1.3x 1.2x 1.2x 1.2x 1.1x 1.0x…
  15. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 15
    Cabots 2019 Program Delivers Peer-Leading Returns 2019E 2019E Return on ROCE Capital Employed (ROCE) 22% SMID-Cap Peer A Appalachia Large-Cap Peer B Permian Large-Cap Peer D Diversified SMID-Cap Peer E Diversified 15% 10% 9%…
  16. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 16
    in addition to Top-Tier Earnings Per Share Growth and Free Cash Flow Yield 2018 2019E Earnings Per Share Growth 296% SMID-Cap Peer K Diversified Large-Cap Peer B Permian Peer G Large-Cap Diversified SMID-Cap Peer L Appalachia 55%…
  17. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 17
    Between 2.60 and 2.80 NYMEX, Cabot Delivers Financial Metrics that Meet or Exceed the Broader Market 2019E Return on Capital Employed1 2018 2019E Earnings Per Share Growth1 22.0% 23.0% 21.0% 18.3% 54.0% 16.0% 47.0% 14.8% 14.2%…
  18. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 18
    Appendix
  19. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 19
    2019 and Preliminary 2020 Guidance 2019 Guidance Q3 2019E Natural Gas Price Exposure By Index Full-year 2019E daily production growth guidance: 16% - 18% NYMEX (less 0.30) 28% (24% - 26% per debt-adjusted share1) Fixed Price (2.80)…
  20. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 20
    2019 Hedge Summary Swaps Basis Swaps Total Weighted-Average Weighted-Average Pricing Index Mmbtu (/Mmbtu) (/Mmbtu) Q3 2019 Transco Zone 6 NNY 2,760,000 0.41 Transco Zone 6 NNY 13,800,000 2.61 Leidy 13,800,000 7% (0.53) free 6%…
  21. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 21
    Financial Position and Risk Management Profile Debt Maturity Schedule (mm) as of 6/30/2019 Senior Notes 600 500 400 300 575 200 312 100 188 87 62 0 7% free 2019 2020 2021 2022 2023 2024 2025 2026 6% cash flow7% free 5%…
  22. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 22
    Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share 7% free 6% cash flow 5% 6% free free cash yield1,2 free cash cash flow yield 1,2 flow flow5% free yield 1,2 yield1,2 cash flow yield1,2…
  23. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 23
    EBITDAX Calculation and Reconciliation 7% free 6% cash flow7% free 5% 6% free free cash yield1,2 cash flow free cash cash flow yield 1,2 flow yield1,2 flow5% free yield 1,2 yield1,2 cash flow yield1,2 24
  24. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 24
    Net Debt Reconciliation 6% 5% 6% free free cash free cash cash flow yield 1,2 flow flow5% free yield 1,2 yield1,2 cash flow yield1,2 25
  25. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 25
    Discretionary Cash Flow and Free Cash Flow Calculation and Reconciliation 7% free 6% cash flow 5% 6% free free cash yield1,2 free cash cash flow yield 1,2 flow flow5% free yield 1,2 yield1,2 cash flow yield1,2 26
  26. 2Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 26
    Return on Capital Employed Calculation 6% 5% 6% free free cash free cash cash flow yield 1,2 flow flow5% free yield 1,2 yield1,2 cash flow yield1,2 27

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