Cabot Oil & Gas Corporation (COG) shares are up 1.70% to $28.18 in morning trading Friday after the company reported its fourth quarter earnings results.
The independent oil and gas producer reported earnings of $0.25 per share on revenues of $618 million, up 26.8% from a year ago. Analysts were expecting EPS of $0.22 on revenues of $546.27 million.
For fiscal 2015, Cabot lowered its capital spending budget to $900 million from an earlier outlook of $1.53 billion to $1.6 billion in October. The company adjusted its 2015 production growth guidance range to 10% to 18%, including 50% to 60% growth in liquids production. Cabot said the updated production guidance range assumes a modest level of operational and price-related curtailments in the Marcellus at certain points during the year.
“While Cabot is well-positioned to navigate through this commodity cycle due to our high-quality asset base and our strong financial position, we are not immune to the current market conditions and have adjusted our 2015 program accordingly to focus on managing the balance sheet, preserving capital and maximizing returns,” Dan O. Dinges, Chairman, President and CEO Cabot Oil & Gas Corp said in a statement.
On valuation measures, Cabot Oil & Gas Corp. shares, which currently have an average 3-month trading volume of 7.03 million shares, trade at a trailing-12 P/E of 29.29, a forward P/E of 84.53 and a P/E to growth ratio of 1.14. The median Wall Street price target on the name is $34.00 with a high target of $46.00. Currently ticker boasts 17 ‘Buy’ endorsements, compared to 12 ’Holds’ and no ‘Sell’.
Profitability-wise, COG has a t-12 profit and operating margin of 20.49% and 37.85%, respectively. The $11.61 billion market cap company reported $309.99 million in cash vs. $1.61 billion in debt in its most recent quarter.
COG currently prints a one year loss of about 31%, and a year-to-date loss of around 6.50%.
The chart below shows where the equity has traded over the last 52 weeks.
Cabot Oil & Gas Corp. is an independent oil and gas company engaged in the development and production of natural gas, crude oil, and natural gas liquids in the United States. The company was founded in 1989 and is headquartered in Houston, Texas.