- Cabot Oil and Gas (COG +0.1%) inches higher following Q1 earnings and revenues that topped expectations, but earnings nevertheless fell 54% Y/Y and revenue slipped 9% to $465M even as production volume rose 43% to 171.4B cfe.
- The falling price of gas meant COG fetched a price of $2.46/MMcf for its gas in Q1, nearly a third less than last year; COG expects its Q2 natural gas price realizations before the impact of hedges to average $0.82-$0.92 below Nymex settlement prices.
- COG provides Q2 net production guidance of 1,375MM-1,425MM cf/day of natural gas and 17.5K-18.25K bbl/day for liquids, and forecasts full-year production growth of 10%-18% vs. an earlier estimate of 20%-30% growth.
- COG says it will drop one rig in the Eagle Ford Shale, reducing its portfolio to a single rig in the play; it operates three rigs in the Marcellus Shale, which it plans to continue to run but plans to slow its production there to drop output by 50M cf/day.