Cabot Oil & Gas Corporation (NYSE:COG) reported it has executed a 10-year sales agreement to be the exclusive provider of natural gas supplies to Invenergy LLC’s Lackawanna Energy Center power plant. Additionally, South Jersey Industries, the energy holding company for South Jersey Resources Group, LLC, will become a counterparty to both entities through an exclusive supply fuel management service agreement.
The proposed facility is a natural-gas fueled 1,500 megawatt combined-cycle generating station located inLackawanna County, Pennsylvania and is expected to be one of the most efficient power plants in the United States. Commercial operations are expected to begin in mid-2018 and to reach full-scale operations by year-end 2018. The facility, at maximum capacity, will burn up to 240,000 dekatherms of natural gas per day. Confidential pricing terms under the agreement guarantee Cabot attractive rates of return while providing fuel costs directly linked to power prices, eliminating risks for each of the parties involved in the transaction.
“We are very pleased to finalize this agreement with SJI and to provide locally produced natural gas to this state-of-the-art power generation facility,” commented Dan O. Dinges, Chairman, President and Chief Executive Officer. “Together with our previously announced agreement with SJI to supply natural gas to the Caithness Moxie Freedom project, Cabot will be providing more than 400,000 dekatherms of natural gas per day for power generation directly in our backyard.” (Original Source)
Shares of Cabot Oil & Gas Corp closed last Friday at $25.83, up $0.09 or 0.35%. COG has a 1-year high of $30.89 and a 1-year low of $14.88. The stock’s 50-day moving average is $24.55 and its 200-day moving average is $21.74.
On the ratings front, Cabot Oil & Gas has been the subject of a number of recent research reports. In a report issued on June 27, J.P. Morgan analyst Michael Glick assigned a Hold rating on COG. Separately, on the same day, Nomura’s Lloyd Byrne reiterated a Hold rating on the stock and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Glick and Lloyd Byrne have a total average return of 24.3% and 14.6% respectively. Glick has a success rate of 92.9% and is ranked #157 out of 4010 analysts, while Byrne has a success rate of 75.9% and is ranked #411.
The street is mostly Neutral on COG stock. Out of 8 analysts who cover the stock, 7 suggest a Hold rating and one recommends to Buy the stock. The 12-month average price target assigned to the stock is $22.67, which implies a downside of 12.2% from current levels.
Cabot Oil & Gas Corp. is an independent oil and gas company. It is engaged in the development, exploitation, exploration, production and marketing of natural gas, crude oil and, to a lesser extent, natural gas liquids from its properties in the continental U.S. The company also transports, stores, gathers and produces natural gas for resale. Its exploitation and exploration activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. Cabot Oil & Gas was founded in 1989 and is headquartered in Houston, TX.