Cabot Oil & Gas Corp. reaffirmed 2021 production guidance as activity levels are expected to increase in the year’s second and third quarters. The company expects to deliver an average net production rate of 2.350 bcfed from a capital program of $530-540 million for the year. Second-quarter production guidance is 2.225-2.275 bcfed.
As part of an Apr. 29 first quarter earnings release, Dan O. Dinges, chairman, president, and chief executive officer of the Houston-based natural gas producer, said the company expects the increased activity to result in “sequential growth during the second half of the year, primarily during the fourth quarter in anticipation of higher natural gas prices and the in-service of the Leidy South expansion project.”
Leidy South will increase deliveries of Marcellus and Utica shale production in Pennsylvania to East Coast consuming centers, with an expected in-service date of fourth-quarter 2021 (OGJ Online, July 20, 2020).
The company reported first-quarter 2021 net income of $126.4 million, compared to $53.9 million in the prior-year period. First-quarter 2021 adjusted net income was $150.0 million, compared to $54.0 million in the prior-year period.
First-quarter 2021 net cash provided by operating activities was $290.5 million, compared to $204.9 million in the prior-year period.
Daily production for the quarter was 2.287 bcfed (100% natural gas). The company drilled 25.1 net wells, completed 13.0 net wells, and placed 21.0 net wells on production.
Cabot incurred a total of $124.0 million of capital expenditures in first-quarter 2021, including $123.0 million of drilling and facilities capital, $600,000 of leasehold acquisition capital, and $400,000 of other capital.
As of Mar. 31, 2021, Cabot had total debt of $1.0 billion and cash on hand of $173.7 million.
