Cabot O&G 3Q18: Production 2 Bcf/d, $122M Profit
Although Cabot Oil & Gas extracts natural gas from an area of Pennsylvania where gas fetches some of the lowest prices in the country, the company is making money hand over fist. The company made $122 million in profit during 3Q18 and estimates it will generate “free cash flow” (money in the bank) in the range of $650 million to $700 million in 2019. Cabot has moved from growth for growth’s sake to steady growth and higher dividends. A key part of their growth is the addition of new pipelines.
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Southwestern Energy’s third quarter 2018 update on Friday showed the company hitting a new record-high for production. While Cabot Oil & Gas’ production is 100% natural gas (dry gas at that), Southwestern has a mix. The jump in production–to an average of 2.77 billion cubic feet equivalent per day (Bcfe/d)–is largely due to an increase in wet gas (NGL) production. CEO Bill Way said he expects “liquids production” will represent one-third of the revenue the company receives in 2018. Although Way says the company experienced an “outstanding quarter both financially and operationally,” we do have to point out they lost $29 million during 3Q18.
Penn Virginia is an oil and gas driller headquartered in Radnor, PA (near Philadelphia). Although it’s based in the Keystone State, Penn Virginia has only a small presence in the Marcellus Shale–21,700 net acres with no drilled wells (at last check). They concentrate on oil drilling the Texas Eagle Ford Shale play. In July we told you the company is once again trying to sell itself (see 
An important court case was decided on Friday in Pennsylvania Commonwealth Court that potentially impacts all shale drilling in the state. You will recall that seven selfish towns sued the state over the 2012 Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. Seven selfish towns (including Robinson Township) wanted their own ordinances and sued, ultimately winning at the Supreme Court (see 
In early October NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, received permission from the Federal Energy Regulatory Commission to begin partial operation (see 
In August 2016, energy giant Tenaska (headquartered in Omaha, NE) broke ground to build a 925-megawatt natural gas-fueled power plant in South Huntingdon (Westmoreland County), PA (see 
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Pittsburgh mayor dismisses facts, science in speech to fracking protesters; Susquehanna County produces more than 4% of U.S. natural gas!; Rabbittransit switching to natural gas for buses at Gettysburg; The plantation politics of the William Penn Foundation; Mostly outside groups pour $13.8M into redistricting proposal in Michigan; Wyoming watching Colorado’s anti-fracking ballot issue; The market for oil country tubular goods (OCTG) heats up; FERC HDD guidance – your input needed; Third quarter oil and gas deals hit $123 billion; Can U.S. gas demand keep up with surging production?; UK natural gas fracking paused following ‘Red Event’: Cuadrilla; Renewable energy, Russian natural gas and the lesson of January 2006.