Cabot Continues to Lower Cost/Mcf, Plans for Constitution in 2016
Last Friday the Cabot Oil & Gas management team held an analyst call to discuss first quarter 2015 results–and look forward to the rest of 2015. There is a lot of good stuff to read in the transcript from the call. We can’t include it all (much as we would like to). Two things really stood out to us as we scanned through the prepared remarks by Cabot personnel and in the question and answers that followed. (1) Cabot’s direct cost to drill and extra natural gas (and oil) continues to drop thanks to their diligence. That cost is now $1.22 per thousand cubic feet equivalent. That number does not (we assume) include the cost to transport and process the natural gas. What it means is that even at somewhere around $1.75-$2.00 per Mcf (our estimate), Cabot is at break even and starts to make money. (2) The Constitution Pipeline is still on track and Cabot predicts it will be operational in mid-2016. Cabot CEO Dan Dinges had some interesting things to say about the Constitution and whether or not they intend to send current production through it–or bring online new production to help fill the Constitution…
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Where’s HG Wells when you need him? We’ve had another Martian sighting! At yesterday’s PA Dept. of Environmental Protection Oil & Gas Technical Advisory Board (TAB) meeting, Amy Nassif, representing some of the parents from the Mars School district in Butler County, PA, addressed TAB members imploring them to “keep oil and gas well pads away from schools.” Aaah, Ms. Nassif–what about well pads that already exist ON SCHOOL PROPERTY? Like the well pad at the Elk Lake School in Susquehanna County (see 
As MDN told you last week, natural gas production in Pennsylvania went DOWN from January to February 2015 (see 
How low will it go? Data from the Pennsylvania Dept. of Environmental Protection (DEP) shows a significant drop in the number of Marcellus Shale drilling permits issued for the first quarter of 2015. In fact, the number of permits issued dropped 30% in 1Q15–to the lowest number of permits issued in the past five years. Here’s a look at the numbers…
One more twist in what is shaping up to be a very long process to build the state’s largest electric generating plant powered by Marcellus Shale gas. Invenergy hopes to build the 1500-megawatt plant in the borough of Jessup (Lackawanna County), near Scranton, on an 80-acre former coal mine and landfill site (see