Cabot O&G Wants Consolidation, Won’t Rule Out PA Marcellus Sale

We have to confess, we are not only shocked, but somewhat distressed at news we are reading that Cabot Oil & Gas is considering all options, including a sale of its Marcellus acreage in Susquehanna County, PA. To be fair, and to keep it in balance, it seems that the company would prefer to add to its Marcellus acreage, rather than sell it. However, chief financial officer Scott Schroeder said at a conference in Denver yesterday that all options are on the table, including a Marcellus acreage sale “if the terms are right.” MDN editor Jim Willis lives next door to Susquehanna County (and regularly visits Montrose, PA), and knows landowners in the county signed with Cabot. You have to understand how fundamentally Cabot has changed the county, by investing $1.5 billion into the pockets of landowners over the past 10 years, along with spending another $3.1 billion to do the drilling (see Amazing: Cabot O&G Invests $4.6 BILLION in One PA County in 10 Yrs). Cabot produces nearly 2 billion cubic feet of natural per day from Susquehanna County–around 3% of total U.S. production. One county! One driller! Every landowner we know who is signed with Cabot LOVES the company. Even idle talk that the muckety mucks at the top would consider a sale of their Marcellus acreage will come as shock, we have no doubt. We have repeatedly heard Cabot officials state they are in Susquehanna County “for the next 40 years or more.” Unless, apparently, they decide to sell…

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