Boston, MA 09/25/2014 (wallstreetpr) – Cabot Oil & Gas Corporation (NYSE:COG) is eyeing expansion by acquiring 30,000 net acres (approximately) in the Texas-based Eagle Ford Shale. The company also voiced out about its further course of action concerning an amount of $210 million for increasing acreage in Shale.
However, it brought down the upper limit of its yearly production guidance by 30 billion cubic feet equivalent. The company, while doing so, hinted towards the Marcellus Shale infrastructure glitches in Appalachia. Dan Dinges, the Cabot’s CEO, meanwhile, said that as far as Marcellus production record was concerned, the company has achieved its new gross record worth 1.678 billion cubic feet per day. However, he accepted that infrastructure issues stopped this level to be achieved later in the recent quarter.
The Acreage Increase
Eagle Ford Shale’s 30,000 net acres will be acquired through a seller, about whom there is no information. This will allow Cabot Oil & Gas Corporation (NYSE:COG) to push the position in Texas area to approximately 83,000 net acres. While the company completed the deal, its assets were yielding a total of 1,600 barrels of oil equivalent on per day basis.
Capital Spending View Increased
After the planned acquisition, Cabot Oil & Gas Corporation (NYSE:COG) also increased the amount of its yearly spending view from $1.38 billion- $1.48 billion approximately to $1.45 billion- $1.55 billion.
In the recent history, Cabot Oil & Gas Corporation (NYSE:COG) has also been posting fertile earnings, because of the increased production due to pressurized natural gas prices.
The “Meaningful Disconnect”
The CEO said that the company had a “meaningful disconnect” between its present market valuation and long-term value opportunities. Also, he added that, while the company has 2.7 million shares bought back since the previous quarter which ended in July 2014, the other lot of 11.7 million shares was in present repurchase plan. The Q2 2014 earnings of Cabot Oil & Gas Corporation (NYSE:COG) has augmented 33% because of higher production.
