An article on the Investors Business Daily website published yesterday chronicles how Cabot Oil & Gas has built a cash-generating asset (a virtual money machine) with their Marcellus Shale wells in Susquehanna County, PA. One of the analysts quoted in the article says the numbers for Cabot are “wildly economic,” and another wonders what they’ll do with all their available cash!
The interesting tidbit from the article for MDN is an estimate for how much it costs Cabot per thousand cubic feet (Mcf) to get the gas from those Susquehanna County Marcellus wells. Previous numbers we’ve seen thrown around as the breakeven price for Marcellus drilling in northeastern PA are from $2.88 – $3.44 per Mcf. However, the analysts say that for Cabot, the number is MUCH lower…
