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3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp

Cabot Oil & Gas Corp · Oct 24, 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. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 1
    Third Quarter 2019 Earnings Call October 24, 2019
  2. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 2
    Third Quarter 2019 Highlights Net income of 90.4 million (or 0.22 per share); adjusted net income (non- GAAP) of 119.7 million (or 0.29 per share) Q3 Q2 Q3 2019 2019 2018 Net cash provided by operating activities of 270.9 million;…
  3. 3Q 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 Wells…
  4. 3Q 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. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 5
    Cabot Continues to Evaluate its Plan for 2020, Which Will Be Dependent on the Companys Outlook for Natural Gas Prices in 2020+ 2020 Maintenance Scenario 2020 Growth Scenario (Lower NYMEX Price Environment) (Higher NYMEX Price…
  6. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 6
    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…
  7. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 7
    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…
  8. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 8
    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…
  9. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 9
    Despite Lower Natural Gas Prices, Cabot Continues to Deliver a ROCE that Exceeds its Cost of Capital and the Broader Market Average Assuming the same 2020 price Return on Capital Employed (ROCE) realizations as Cabot is estimating…
  10. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 10
    While Generating Significant Operating Free Cash Flow Free Cash Flow (mm) Pre-Hedge Free Cash Flow Impact of Hedges 2020 free cash flow range reduced by 15mm to reflect the 500 - 525 impact of the Meade (6.6% free Pipeline…
  11. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 11
    Cabot is Committed to Returning Capital to Shareholders Return of Capital to Shareholders (mm) 1,000 Dividends Share Repurchases 900 800 700 600 904 500 400 316 Year-to- 300 6% 7% free date1 200 5% 6% free Commodity…
  12. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 12
    Since 2017, Cabot Has Reduced its Shares Outstanding by 12 Percent Common Shares Outstanding (in millions) 463.7 445.5 407.9 7% free 6% cash flow7% free 5% 6% free free cash yield1,2 cash flow free cash cash flow yield 1,2…
  13. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 13
    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…
  14. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 14
    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 2020E 0.00 (0.25) (0.30) -…
  15. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 15
    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…
  16. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 16
    Cabots 2019 Program Delivers Peer-Leading Returns 2019E 2019E Return on ROCE Capital Employed (ROCE) 21% Peer A SMID-Cap Appalachia Large-Cap Peer B Permian Peer D Large-Cap Diversified Peer F SMID-Cap Diversified 16% 10% 9%…
  17. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 17
    in addition to Top-Tier Earnings Per Share Growth and Free Cash Flow Yield 2018 2019E Earnings Per Share Growth 264% Peer G SMID-Cap Diversified Peer B Large-Cap Permian Peer E Large-Cap Diversified SMID-Cap Peer M Appalachia 42%…
  18. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 18
    At 2.60 NYMEX, Cabot Delivers Financial Metrics that Meet or Exceed the Broader Market 2019E Return on Capital Employed1 2018 2019E Earnings Per Share Growth1 40.0% 21.0% 19.0% 15.9% 14.7% 14.2% 12.5% 12.0% 10.3% 8.8% 7.5% 5.6%…
  19. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 19
    Appendix
  20. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 20
    2019 and Preliminary 2020 Guidance 2019 Guidance Q4 2019E Natural Gas Price Exposure By Index 2019E production growth guidance: 17% (midpoint of previous 16% - 18% NYMEX (less 0.35) 30% guidance range), or 25% per debt-adjusted share1…
  21. 3Q 2019 Earnings Presentation – Cabot Oil & Gas Corp – slide 21
    Financial Position and Risk Management Profile Debt Maturity Schedule (mm) as of 9/30/2019 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. 3Q 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. 3Q 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. 3Q 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. 3Q 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. 3Q 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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