October 26, 2018 / 11:23 AM / a month ago

UPDATE 1-Cabot Oil and Gas expects jump in 2019 production

(Compares with estimates, adds production estimates, background)

Oct 26 (Reuters) - Cabot Oil and Gas said on Friday it expects production to grow between 20 percent and 25 percent in 2019, much bigger than the 7 to 8 percent growth for this year, on higher natural gas demand and prices.

The Marcellus-focused company, which gets bulk of its revenue from natural gas, said average production rose 10 percent to 2.03 billon cubic feet (bcf) in the third quarter.

Sales price of natural gas, excluding hedges, rose nearly 17 percent to $2.36 per thousand cubic feet.

Marcellus producers have been able to benefit from higher gas prices in the Midwest and Gulf Coast, thanks to more pipelines coming into operation in the shale region that have helped move out the gas.

In contrast, Permian producers have been weighed down by supply bottlenecks that have pressured realized prices.

On an adjusted basis, Cabot earned 25 cents per share, missing analysts' average estimate of 28 cents, according to Refinitiv data.

The company hiked its dividend by 17 percent to 7 cents per share.

Cabot's net income rose to $122.3 million, or 28 cents per share, for the third quarter ended Sept. 30, from $17.6 million, or 4 cents per share, a year earlier.

The company booked a gain of $25.66 million in the quarter related to assets sales.

Operating revenue rose 42 percent to $545.2 million.

Reporting by Shanti S Nair in Bengaluru; Editing by Sriraj Kalluvila

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below