Cabot Oil & Gas is a unique company. To date, Cabot produces ~2.5% of the U.S.’ entire natural gas production out of a single northeastern Pennsylvania county: Susquehanna. One company, one county, 2.5% of all our natural gas production. It’s mind-blowing! No wonder they are called Wall Street’s natural gas unicorn (see Marcellus Driller Cabot Oil & Gas: Wall Street’s NatGas “Unicorn”). Although we jealously like to think of Cabot as a Marcellus-only driller, the truth is, they own acreage and wells, and do drilling, in a number of other plays too. Not much drilling, mind you. But some. Cabot mostly sticks to drilling in the Marcellus in northeast PA, although lately they’ve had a wandering eye (see Cabot O&G Considers Drilling in Ashland County, OH). One of the other shale plays where Cabot has been active in the past is the Eagle Ford Shale, in South Texas. The Eagle Ford is largely an oil play. This past year it did not escape our notice that Cabot had de-emphasized their Eagle Ford drilling efforts. Looks like drilling for oil in Texas is not in the cards for Cabot. Yesterday Cabot announced they’ve cut a deal to sell all of their Eagle Ford assets–land and wells–to Venado Oil & Gas for $765 million. They also said they are selling their remaining East Texas assets to an undisclosed buyer. The Houston-based Cabot won’t have any active operations in the Lone Star State. As part of yesterday’s announcement, Cabot released high level budget numbers for 2018. They intend to spend close to $1 billion next year–almost all of it in the Marcellus…
