Thoroughbred Cabot O&G Ready to Bolt When Pipeline Gate Opens

Cabot Oil & Gas had the highest production in the county with the highest amount of production (Susquehanna County) in 2016 in Pennsylvania. Cabot had the second highest amount of production (coming from that single county) in PA for all of 2016, not far behind Chesapeake Energy. Last year using their “Gen 4” completions in the Marcellus, Cabot increased estimated ultimate recovery (EUR) rates from 3.8 billion cubic feet (Bcf) per 1,000 feet of lateral well to 4.4 Bcf (see Cabot O&G 2016 – Production Grows from 3.8 to 4.4 Bcf per 1K Feet). Cabot gets double the gas per lateral foot of well than some of its competitors. By all accounts, Cabot is the equivalent of a thoroughbred horse. But the Cabot horse is still penned up at the starting gate, waiting for the gate to open. The gate, in this metaphor, is pipeline projects that will carry some of Cabot’s prolific northeastern PA production to other regions where it can fetch a higher price. According to research analyst Michael Fitzsimmons, writing on the Seeking Alpha investor website, Williams’ Atlantic Sunrise Pipeline “will unlock the cage that has kept Cabot Oil & Gas’ reserves bottled up” by flowing an eye-popping 1 Bcf per day of Cabot natgas south…

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