Coterra Energy (Cabot O&G)

As MDN pointed out yesterday, Cabot Oil & Gas continues to shine in Susquehanna County, PA’s Marcellus Shale, with production up 52% from 2012 for the second quarter (see Cabot Continues to Shine in Susquehanna County Marcellus). As part of their reporting this week, Cabot released a slide deck called “Marcellus Marketing Supplementary Materials.” We’ve embedded it below. There’s a very interesting pipeline map and several charts discussing the region’s capacity to move gas to market–well worth a glance if you have an interest in the Marcellus in northeastern PA.

A hat-tip to MDN reader and contributor Chris Acker for alerting us to these slides. Here they are:
Read More “Cabot’s Marcellus Marketing Plan / Slidedeck”

Cabot Oil & Gas continues to be a star performer in the northeast PA Marcellus Shale. Releasing their second quarter update yesterday, Cabot reports their natural gas production is up 52% from 2Q12. Meanwhile, they’ve now added a sixth drilling rig in Susquehanna County, PA. If memory serves, it was only a little over a year ago that Cabot was running just three rigs in Susquehanna County.

According to MDN sources, some farmers in Susquehanna County, PA are getting $10,000 per day in royalties. In addition to spreading manure, they’re now spreading an incredible amount of wealth around the county! Here’s select portions of the latest press releases from Cabot:
Read More “Cabot Continues to Shine in Susquehanna County Marcellus”

Saturday in New York’s Southern Tier and Pennsylvania’s Northern Tier (the border between Broome County, NY and Susquehanna County, PA) was OK weather-wise. It was a bit overcast and threatened rain, which is likely what kept the crowds a bit lower at this year’s Cabot Oil & Gas annual picnic in Susquehanna County, PA. (UPDATE: They actually broke the record! See update below.) Still, from what MDN editor Jim Willis saw, it was a packed house with long lines for free hamburgers and hot dogs, free games with prizes, and lots of equipment to see and touch (see pictures below).

Equal parts county fair, picnic, carnival and trade show, each year Cabot sponsors a “community picnic” in Susquehanna County–the only county in Pennsylvania where Cabot drills for Marcellus Shale gas…
Read More “Cabot Susquehanna County Picnic 2013: A Great Time for All!”

Cabot Oil & Gas announced last week that they will plug one of the first Marcellus wells they drilled in Dimock Township (Susquehanna County), PA as soon as the PA Dept. of Environmental Protection (DEP) concludes an investigation into the gas well and two nearby water wells that may have been contaminated with methane from the Cabot well. The well is “unviable.” Cabot (and the DEP) stress that the investigation into whether or not the well is creating methane migration is not done and in the meantime Cabot is supplying water to one of the two affected homes…
Read More “Cabot to Plug Unviable Gas Well in Dimock, PA”

An article on the Investors Business Daily website published yesterday chronicles how Cabot Oil & Gas has built a cash-generating asset (a virtual money machine) with their Marcellus Shale wells in Susquehanna County, PA. One of the analysts quoted in the article says the numbers for Cabot are “wildly economic,” and another wonders what they’ll do with all their available cash!

The interesting tidbit from the article for MDN is an estimate for how much it costs Cabot per thousand cubic feet (Mcf) to get the gas from those Susquehanna County Marcellus wells. Previous numbers we’ve seen thrown around as the breakeven price for Marcellus drilling in northeastern PA are from $2.88 – $3.44 per Mcf. However, the analysts say that for Cabot, the number is MUCH lower…
Read More “Cabot O&G Builds a Cash-Generating Machine in NE PA Marcellus”

Cabot Oil & Gas has jumped on the natural gas-powered drilling rig bandwagon. Yesterday, Cabot announced they have begun using “field gas”–Marcellus Shale gas from the very wells they’re drilling–to help power the drilling rigs they’re using to drill for the gas. According to Cabot, this is the first time field gas has been used in drilling rigs in northeastern PA. Cabot is using Caterpillar engines that run on duel fuel technology–part natural gas, part diesel.

You may recall other Marcellus drillers are also using duel fuel, and some are using 100% natural gas, to power their rigs. Those companies include EQT, CONSOL, Seneca Resources and Antero Resources (see Antero Res 2nd Marcellus Driller to Use 100% NatGas Rig Engines for a description of other drillers’ efforts to date). The unique aspect of Cabot’s announcement is that they’re using field gas and not trucking in LNG to power their duel fuel engines. It means far fewer truck trips to the drill site.
Read More “Cabot O&G Uses Marcellus Shale Gas to Power Drilling Rigs”

Energy analyst and Seeking Alpha blogger Richard Zeits listened in to the recent Cabot Oil & Gas investor’s conference call and came away with some mind-blowing numbers. The bottom line from the call and from Zeits’ analysis is that Cabot has indeed found a “super-productive” location in Susquehanna County, PA where they own leases on about 200,000 acres. New wells they’ve recently drilled prove that all of their acreage is in this sweet spot.

One startling find by Zeits: A well drilled by Cabot in Susquehanna County has, in just 667 days, produced a cumulative 8 billion cubic feet of natural gas–a single well! That equates to an average of 12 million cubic feet of natural gas per day from that one well. Astonishing. (No wonder Southwestern just picked up an additional 51,000 acres from Chesapeake in Susquehanna County earlier this week, for an average of $574 per acre. Chesapeake was taken to the cleaners).

Here’s some of Zeits’ analysis of the Cabot call, with lots of facts and figures:
Read More “Cabot Monster Well in NE PA Yields 8 Bcf in 667 Days”