Operationally, it is difficult not to admire Cabot Oil & Gas' (COG) story. The company's Marcellus dry gas assets in Susquehanna County, Pennsylvania are the envy of the industry. Cabot leads its peers with some of the highest EURs per well demonstrated in North America's onshore resource plays. Low well costs translate into exceptional drilling economics that rival sweet spots of top oil plays even at relatively low gas prices. The company's acreage block is large (~200,000 net acres), contiguous and in most part located within the play's sweet spot.
There is one issue, however, that stands in the way of equally admiring the company's stock: the shares appear pricey based on the current trading multiples. Using $38.31...
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