Coterra Energy (Cabot O&G)

Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

Cabot O&G: Marcellus Cost Structure Goes Through the…Floor!
November 25, 2013November 25, 2013

Cabot Oil & Gas continues to impress and astonish the drilling industry. MDN has written many times before about Cabot’s ability to spin “gold” (profits) from “hay” (low cost price environment). Cabot recently presented at a pair of “global energy conferences” arranged by investment firms Jeffries & Co. and Bank of America Merrill Lynch. We have the slide deck from each (which is pretty much identical) and we’ve embedded it below. You’ll want to review it if you have an interest in the Marcellus Shale.

One of the startling pieces of information we glean from it: Starting in 2009 Cabot’s cost to drill and produce gas was $2.47 per thousand cubic feet (Mcf). By 2013, that number had dropped to an average $1.37/Mcf. Next year, in 2014, Cabot says their Marcellus per unit cash cost, the cost of drilling and producing, will be around…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Statewide PA

Cabot’s NE PA Wells “Some of the most productive on Earth”
November 18, 2013November 18, 2013

The mainstream media catches up to MDN and other industry-focused publications–eventually. On October 14, 2013, MDN gave you the details for the top 10 most productive wells in the Marcellus Shale with respect to natural gas production. We told you eight of those top 10 are found in one northeastern Pennsylvania county–Susquehanna–and are drilled by the same driller: Cabot Oil & Gas (see PA’s Top 10 Marcellus Shale Wells – Full Details). A Wilkes-Barre newspaper has finally come along to also blow the trumpet about how productive Cabot has been in Susquehanna County. They too make the observation that Cabot’s natural gas wells may be “some of the most productive on Earth.” Indeed.

But this mainstream story also brings to light information MDN is sometimes asked and until now didn’t have a ready answer for: When it comes to Cabot in the Marcellus with “dry gas,” or companies like Gulfport in the Utica, very successful with “wet gas,” are they just lucky in hitting the “sweet spot”? Or are they smart about the geographies where they decide to lease and drill? Although luck plays a role, this article, in talking about Cabot’s work in the Marcellus, says they fully knew what they were doing when they leased up thousands of Susquehanna County acres. Forthwith, a really good story from a mainstream media source!…
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CNG/LNG | Coterra Energy (Cabot O&G) | Education | Energy Companies | Industrywide Issues | Lackawanna County | Luzerne County | NG Vehicles | Pennsylvania | Wyoming County (PA)

Cabot’s Big CNG Celebration at Johnson College in Scranton, PA
November 8, 2013November 8, 2013

Yesterday Cabot Oil & Gas held a “CNG Celebration” at Johnson College in Scranton, PA. Unfortunately MDN could not be on hand to help celebrate. However, we do have a couple of stories to bring you from that event.

The purpose of the event was several-fold: announce Johnson College’s curriculum expansion with new courses in compressed natural gas (CNG) technology and eventually a certification (with financial and technical assistance from Cabot); PA DEP Sec. Chris Abruzzo was on hand to announce $3 million in grants to businesses and organizations to purchase or retrofit vehicles to run CNG (see our companion story today); welcome the Marcellus Shale Coalition’s new executive director, David Spigelmyer; and show off some impressive big trucks and other vehicles running CNG. “Celebration” is an appropriate word that about covers it!…
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Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Crime | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

NE PA Anti-Driller Slapped with Trespassing Injunction
October 28, 2013October 28, 2013

Vera Scroggins is a minor celebrity in Susquehanna County, PA–perhaps even beyond. Josh Fox of Gasland fame knows her and loves her. She certainly knows how to harass people she disagrees with (see “The Final Ploy of the Desperate” Natural Gas Opponents for one shining example of her charm). Scroggins has, until now, created a cottage industry of taking “tour groups” around to fracking sites in Susquehanna County–trespassing and pushing her ever-present camera into the face of private landowners (who have asked her to leave) and into the face of gas workers.

Cabot Oil & Gas, the company leasing many of the sites targeted by Scroggins, finally went to court to keep her from harassing private landowners and their workers. That is, Cabot asked the court to stop Scroggins from breaking the law. And the court has now done so by issuing a temporary injunction against Scroggins which will remain in force until a hearing for a permanent injunction is held…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Zeitsgeist: Is 20 Bcf per Well the New Marcellus Standard?
October 28, 2013October 28, 2013

Energy analyst and Seeking Alpha blogger Richard Zeits asks the question, is 20 billion cubic feet (Bcf) per well is the new operating standard for the Marcellus Shale? He asks the question based on the latest quarterly update issued by Cabot Oil & Gas last week for their operation in Susquehanna County, PA. Zeits says Cabot’s report is further proof that the “sweet spot” for dry gas in the Marcellus is northeastern PA.

Zeits starts his latest sterling analysis this way:
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot 3Q13: Production Up 61%, 4 Wells Produced Avg 27.5 Mmcf/d
October 25, 2013October 27, 2013

Quarterly reporting season continues. Yesterday Cabot Oil & Gas, one of our favorite Marcellus drillers, reported that production for 3Q13 averaged an amazing 107.1 billion cubic feet for the quarter. That’s a 61% increase over the same time last year. Truly astonishing. Also of interest, during 3Q13 Cabot drilled a pad with four wells in Susquehanna County, PA with 109 total frac stages across the four wells. Those combined four wells produced an initial production rate of 110 million cubic feet per day (Mmcf/d)–an average of 27.5 Mmcf/d per well! Just unheard-of rates.

Here’s Cabot’s 3Q13 financial and operations update from yesterday, with details of the Marcellus drilling operations in Susquehanna County, PA:
Read More “Cabot 3Q13: Production Up 61%, 4 Wells Produced Avg 27.5 Mmcf/d”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

End of an Era? Sautner’s Dimock Home Leveled, Property Sold
October 21, 2013October 21, 2013

It becomes harder and harder for mainstream media to keep the Dimock story alive. Dimock is a rural community in Susquehanna County, PA made famous by Josh Fox and his Gasland fictional movies. Without rehashing the entire story yet again, suffice it to say that nearby Marcellus drilling by Cabot Oil & Gas was said (by the PA Dept. of Environmental Protection) to have caused methane to migrate into some of the area’s water wells–especially around the Carter Road area.

The DEP ordered Cabot to install fixes on said wells and pay homeowners twice their property’s value, which they tried to do. Some of the families wouldn’t allow the fix and wouldn’t accept payment. Instead they sued, hoping for piles of money. One of those families was the Sautners…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Sells TX & OK Properties – Plows Proceeds into Marcellus
October 18, 2013October 18, 2013

Cabot Oil & Gas is an amazing company. They (currently) drill in a single northeastern Pennsylvania county–Susquehanna County. And in that single county they have 8 of the top 10 producing Marcellus shale wells in the entire state (see PA’s Top 10 Marcellus Shale Wells – Full Details). Cabot produces an amazing 1 billion cubic feet (Bcf) of natural gas per day from their wells in Susquehanna County (see Who’s a Member of the Marcellus “1 Bcf/d” Club?). And get this, they can make money on selling their gas for as low as $1.20 per thousand cubic feet (Mcf). That has to rank them among the best-run, most efficient drillers in the world. No wonder the company, with just 1/10th of the revenues of Chesapeake Energy, is worth more than Chessy (see Corporate Hubris Humbles Chesapeake – Cabot Soars Sure & Steady).

So it shouldn’t surprise you to learn that Cabot has just sold off more (the rest of?) it’s oil and gas properties in West Texas and Oklahoma for $188 million and plans to invest that money in the Marcellus…
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Bradford County | Chief Oil & Gas | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Greene County (PA) | Lease & Royalty Payments | Pennsylvania | Susquehanna County

PA’s Top 10 Marcellus Shale Wells – Full Details
October 14, 2013October 14, 2013

Who doesn’t like a Top 10? We have one for you: What are the Top 10 producing Marcellus Shale wells in Pennsylvania? Would it surprise you to learn that 8 of the top 10 wells are found in a single PA county, drilled by the same driller?

Here’s the Top 10 PA Marcellus Well List, complete with the name of well, county, driller, estimated earnings per day and estimated royalties paid per day:
Read More “PA’s Top 10 Marcellus Shale Wells – Full Details”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

The Cabot O&G Marcellus Rocketship – To the Moon!
October 4, 2013October 4, 2013

Cabot Oil & Gas, one of our favorite Marcellus drillers, continues to amaze and astound just about everyone. Last Friday (a week ago) the company issued a new “guidance” or “this is our best, educated guess” as to how much natural gas production the company will end up producing for 2013, and how much they believe it will grow in 2014. Given Cabot is already the number one natural gas producer in PA and the first member of what MDN calls the “billion cubic feet per day” club (see Who’s a Member of the Marcellus “1 Bcf/d” Club?), it’s amazing that in 2014 they predict production will be up another 30-50% over this year. Wow!

Something just as startling and no doubt the envy of all their competitors, Cabot CEO Dan Dinges tips their hand as to what the breakeven price is at which the company starts to make money. It’s a LOT lower than even we thought is was…
Read More “The Cabot O&G Marcellus Rocketship – To the Moon!”
Coterra Energy (Cabot O&G) | Energy Companies | Lackawanna County | Pennsylvania | Susquehanna County

Cabot Oil & Gas Sponsors Clay Shoot for NE PA Charity
September 24, 2013September 23, 2013

Cabot Oil & Gas continues to be one of those companies that truly impresses MDN. Last year the company was a key in donating more than $2 million of its own money, and key in spurring on other companies to contribute another $2.4 million so that a stalled project to build a new hospital in Montrose, PA finally got off the ground (see Cabot Effort Raises $4.4 Million for PA Physicians Clinic). Cabot’s actions are more than just a photo op and quick PR gimmick. You don’t pony up $2 million of your own (and investors’) money, and dedicate countless hours of your staff’s time, unless you’re serious about being a good neighbor.

Cabot is “at it again”! This time they’re sponsoring a sporting clay tournament in northeastern PA with all proceeds to benefit what they call “the amazing” St. Joseph’s Center in Scranton, PA. MDN encourages you to consider going to the clay shoot or if you can’t, donating to this very worthy cause…
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Chesapeake Energy | Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Industrywide Issues | Range Resources Corp

Production from 4 Marcellus Drillers Keeps U.S. NatGas Prices Low
September 19, 2013September 19, 2013

An article on the investor website The Motley Fool does a good job of putting into context the enormous importance of the Marcellus Shale. According to the article, even though production from other major U.S. shale plays like the Haynesville has fallen in recent years, Marcellus production is up so dramatically it single-handedly keeps the price of natural gas low in this country.

The article (read it below) also gives a quick roundup of four key drillers driving the success of the Marcellus…
Read More “Production from 4 Marcellus Drillers Keeps U.S. NatGas Prices Low”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Gas Drilling Helps Save a Piece of African American History in PA
September 17, 2013September 17, 2013

Next door to Dimock (in Susquehanna County), PA is the other story about gas drilling you almost never hear about in mainstream media: How gas drilling is helping preserve an historic African America farm that dates back to the early 1800s. The reason you don’t hear much about it is because Denise Dennis, heir and president of the Dennis Farm Charitable Land Trust, changed her view on gas drilling. Three years ago Dennis gave a stirring anti-drilling speech at a Philadelphia City Council meeting saying extracting natural gas was as dirty as coal mining. Last year about this time, she signed a gas lease with Cabot Oil & Gas for $800,000 (see Leading Anti-Driller Does 180, Signs Lease with Cabot in PA). It was an about-face for Dennis…
Read More “Gas Drilling Helps Save a Piece of African American History in PA”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Dimock Family & Lawyers in Legal Hot Water for Secret Assistance
September 16, 2013September 16, 2013

“Dimock” is the issue that won’t die because the media and anti-drillers won’t let it. The latest installment in this soap opera: Landowners Scott and Monica Ely refused Cabot Oil & Gas’ offer to settle in 2012, although virtually all other landowners who say Cabot contaminated their water wells with methane (natural gas) did settle. The Elys were hoping for a bigger payday, so they kept on–against the advice of their lawyers.

The Elys told the court they couldn’t find legal help so they would represent themselves. Then, against legal and ethical standards, a pair of lawyers (one of them from the firm previously representing the Dimock families) secretly helped them anyway. The Elys and their surreptitious lawyers are now in legal hot water…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Investor Presentation from August: Cool Maps & More
September 5, 2013September 5, 2013

A few weeks back Cabot Oil & Gas released their latest Investor Presentation, prepared for the EnerCom Oil & Gas Conference held in Denver (August 12, 2013). We always enjoy Cabot’s PowerPoint presentations because they’re so informative. This latest presentation doesn’t disappoint.

We’ve embedded the full presentation below. Our favorite slides: Cabot’s Marcellus Summary map on page 12, which overlays a map of Susquehanna County, PA with township boundaries and flags showing not only where their wells are located (by township), but also which ones are producing the most (by color). Very cool. We also like the Interstate Pipeline map on page 18, showing how Cabot gets all that gas–now over 1 billion cubic feet per day–to market…
Read More “Cabot Investor Presentation from August: Cool Maps & More”
Coterra Energy (Cabot O&G) | Education | Energy Companies | Industrywide Issues | Luzerne County | Pennsylvania

Cabot to Teach Hazelton, PA 9th Graders How to Frack
August 28, 2013August 28, 2013

Ninth-grade students at a new magnet school opening this fall in the Hazelton, PA area will be taught a series of lessons on the technology, economics and environmental issues related to fracking and shale gas drilling. The plan calls for the school’s teachers to lead four lessons in the series, an “environmentalist” (i.e. anti-driller) will teach one lesson, and someone from Cabot Oil & Gas, the northeast PA driller funding the program, will teach two of the lessons. There’s sure to be stiff opposition to Cabot’s involvement from the anti-drillers. “Fair” to them would be Cabot pays for the whole thing but anti-drillers are the only voices heard in the classroom. Not this time!

MDN finds it amusing the program will feature a mock town hall meeting complete with squabbling neighbors and people falsely claiming their water wells have been contaminated. We need to learn ’em young, ya know…
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