Cabot Oil & Gas Earnings: Booking a Profit Again

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 Corporation Earnings Cheat Sheet

Results: Net income for Cabot Oil & Gas Corporation rose to $36.6 million (17 cents per share) vs. $28.5 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 28.5% from the year-earlier quarter.

Revenue: Rose 13.3% to $296.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cabot Oil & Gas Corporation beat the mean analyst estimate of 15 cents per share. It beat the average revenue estimate of $268.4 million.

Quoting Management: “Our year-to-date production growth relative to last year further highlights the prolific nature of our wells in the Marcellus, even in the face of continued delays in permitting for gathering lines,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “Based on our plans to connect (or begin producing) 45 additional wells in the fourth quarter, we expect a ramp in production above our previous highs.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 9.5% to $263.7 million in the second quarter. The figure rose 30.2% in the first quarter from the year earlier and climbed 23.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 5 cents, and in the first quarter, it came in under estimates by 3 cents.

Net income has increased more than twofold year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than sevenfold from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 19 cents per share from 18 cents. At 41 cents per share, the average estimate for the fiscal year has risen from 36 cents sixty days ago.

Competitors to Watch: EOG Resources, Inc., Pinnacle Gas Resources, Inc., Vanguard Natural Resources, LLC, Magnum Hunter Resources Corp, Anadarko Petroleum Corp., PrimeEnergy Corporation, SM Energy Co., EV Energy Partners, L.P., Continental Resources, Inc., and Range Resources Corp.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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