Cabot Oil & Gas Corp. swung to a $51 million loss during the first quarter, as the natural gas producer based in Houston, Texas, experienced a natural gas price drop of 40 percent over the year.
Cabot’s loss, which amounted to $0.12 per share, compared to profit of $40.3 million, or $0.10 per share, in the first quarter of 2015. The company’s earnings were generally in line with Wall Street estimates, while its revenues of $282 million beat the Zack’s Consensus Estimate of $261 million.
Cabot’s overall production volume during the quarter dipped by 6 percent to about 160 billion cubic feet equivalent.
Natural gas price realizations, including hedges, were $1.49 per thousand cubic feet in the first quarter of 2016, down 39 percent compared to the first quarter of 2015. Prices for natural gas liquids, which comprise about 5 percent of Cabot’s overall output, were at $7.22 per barrel, down 35 percent compared to the first quarter of 2015.
In its earnings report, Cabot reaffirmed its $325 million capital budget and its production growth guidance range of 2 percent to 7 percent for 2016.
In the Marcellus Shale, where Cabot primarily has operations in north-central Pennsylvania, the company reported an average production of 1,628 million cubic feet per day during the first quarter, an increase of 10 percent compared to the fourth quarter of 2015. During the first quarter, Cabot drilled seven net wells, completed 12 net wells and placed eight net wells on production, it said.
“Cabot's results for the quarter highlight our commitment to financial discipline,” said Dan O. Dinges, Cabot’s chairman, president and chief executive officer, in a statement this morning.
Daniel Moore: email@example.com, 412-263-2743 and Twitter @PGdanielmoore.