Cabot Oil & Gas Corp Earnings Cheat Sheet: Two Quarters in a Row of Rising Profit

S&P 500 (NYSE:SPY) component Cabot Oil & Gas Corporation (NYSE:COG) reported net income above Wall Street’s expectations for the third quarter. Cabot Oil & Gas is an independent company engaged in the development, exploitation, and exploration of oil and gas properties in North America.

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Cabot Oil & Gas Earnings Cheat Sheet for the Third Quarter

Results: Net income for the independent oil and gas company rose to $28.5 million (27 cents per share) vs. $3.9 million (4 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 17% to $262.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: COG reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. It fell short of the average revenue estimate of $273.3 million.

Quoting Management: “Our production volumes landed at the mid-point of guidance even with all the noise during the quarter surrounding takeaway capacities, weather and project delays,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. Pricing between comparable quarters showed weakness versus last year for both commodities. Natural gas realized prices fell 17 percent while oil declined just under 12 percent. Total expenses, including financing, were nearly equal between the two third quarters, while per unit costs continued their downward trend with the ramp in production.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 7 cents in the second quarter and by 3 cents in the first quarter.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 23.1% to $240.7 million from the year earlier quarter.

The company has now seen net income rise in two straight quarters. In the second quarter, net income rose more than twofold from the year earlier.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 48 cents per share to 40 cents. The average estimate for the fiscal year is $1.36 per share, a rise from $1.09 ninety days ago.

Competitors to Watch: EOG Resources, Inc. (NYSE:EOG), Pinnacle Gas Resources, Inc. (PINN), Vanguard Natural Resources, LLC (NYSE:VNR), Magnum Hunter Resources Corp (NYSE:MHR), Anadarko Petroleum Corp. (NYSE:APC), PrimeEnergy Corporation (NASDAQ:PNRG), SM Energy Co. (NYSE:SM), EV Energy Partners, L.P. (NASDAQ:EVEP), Continental Resources, Inc. (NYSE:CLR), and Range Resources Corp. (NYSE:RRC).

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(Source: Xignite Financials)