Cabot Q4 Production Exceeds High-end Of Its Guidance; To Reduce Capital Spending

(RTTNews) - Cabot Oil & Gas Corp. (COG) said it expects fourth-quarter production to be approximately 2,457 million cubic feet equivalent (Mmcfe) per day, exceeding the high-end of the company's guidance range. Cabot expects to incur between $160 and $170 million of capital expenditures during the quarter.

For 2020, Cabot has elected to adopt its maintenance capital plan as the company's official budget. The plan targets an average net production rate of approximately 2.4 billion cubic feet (Bcf) per day for the year from a capital program of $575 million. The program is anticipated to deliver between $275 and $300 million of free cash flow.

"Our decision to reduce capital spending by approximately 27 percent year-over-year highlights our continued commitment to disciplined capital allocation. We will continue to evaluate the potential for additional capital reductions if prices erode further," said Dan Dinges, CEO.

During the fourth quarter, Cabot repurchased 10 million shares at a weighted-average share price of $17.22. The company currently has 11 million remaining shares authorized under its share repurchase program.