Cabot Oil & Gas posts Q1 beat; raises outlook for 2017 production, capex

|About: Cabot Oil & Gas Corporation (COG)|By:, SA News Editor

Cabot Oil & Gas (COG -3.6%) is lower despite beating expectations for Q1 earnings on 83% higher revenues and guiding FY 2017 production higher.

COG says Q1 production totaled 170.1B cfe, in-line with the high end of its guidance range, and raises its 2017 production growth guidance range to 8%-12% from 5%-10%, citing recent outperformance from its fourth generation Marcellus wells and an improving natural gas price outlook throughout Appalachia.

COG also increases its 2017 capex budget to as much as $845M, reflecting a ~$125M increase for exploratory leasing and testing, and still forecasts $250M-plus of positive free cash flow based on recent strip prices.