Cabot Cuts 2015 Budget 44%, Will Drill 70 New Marcellus Wells

Last week Cabot Oil & Gas issued its fourth quarter 2014 and full year 2014 update, along with guidance on what they plan to do for 2015. In October Cabot said they would spend upward of $1.6 billion on drilling in 2015 and planned to grow their production a very healthy 20-30% (see Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!). Last week Cabot slashed the budget to $900 million and their new planned growth projection is 10-18%. Cabot also said they’re downsizing their rig fleet–in the Marcellus they’re going from 5 rigs to 3, and in the Eagle Ford (Texas) they’re cutting back from 3 rigs to 1. Revenue for 2014 was down 63% over 2013 due mostly to the low price of natgas along with certain other “impairment” charges. Amidst the bad news of budget cuts and lower revenue, there was really good news: Cabot hit a new production high of 531.8 billion cubic feet in 2014, up 29% from 2013; proved reserves increased 36%–to 7.4 trillion cubic feet equivalent; and they still plan to drill upward of 70 new wells in 2015 in the PA Marcellus (in Susquehanna County)…

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