Cabot Oil & Gas finished 2011 as the S&P 500 top performer. The energy company’s stock value increased by a whopping 101% in 2011, despite falling natural gas prices. Cabot increased their dividend to shareholders by 33 percent and the company has declared a two-for-one stock split to be distributed later this month.
Cabot more than doubled natural gas production in the Marcellus Shale last year, largely due to their exceptionally productive wells in northeastern Pennsylvania, including Dimock, PA in Susquehanna County. Yesterday, Cabot released new numbers for just how productive their wells have become, passing the 600 million cubic feet (Mmcf) per day mark in combined output:
Cabot Oil & Gas Corporation (NYSE: COG) today announced a new milestone for its Marcellus production with the achievement of 606 Mmcf per day (before royalty) for a 24 hour period and an average of 600 Mmcf per day for the final two days of 2011. This level represents a 154% increase over the 2010 Marcellus exit rate of 236 Mmcf per day. Contributing to the additional volumes is a recently commissioned upgrade to the Teel compressor station that increased compression capacity to 200 Mmcf per day from 100 Mmcf per day, giving the Company 650 Mmcf per day of total compression.
Also of note is the initial startup of Springville Pipeline which commenced receiving gas from Cabot on Wednesday, December 28, 2011, initially for line pack and new compression commissioning. First deliveries to Transco Pipeline are scheduled for January 5, 2012 with expected volumes totaling 250 Mmcf per day, and with continuing deliveries of 350 Mmcf per day to Tennessee.
"Ending 2011 with this momentum provides us a great start to the new year," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "We have long anticipated these events and completing these during 2011 gives an exclamation point to what has been Cabot’s best year in many regards. My sincere appreciation goes out to all those contributing to this effort."*
*Cabot Oil & Gas (Jan 4, 2012) – Cabot Oil & Gas Corporation Sets New Marcellus Production Milestone