Oppenheimer Weighs In On Cabot Oil & Gas Corporation Following Earnings

Oppenheimer analyst Fadel Gheit weighed in with a few insights on Cabot Oil & Gas Corporation (NYSE:COG), after the company released its second-quarter results Friday, missing analysts’ estimates for earnings and revenue. The analyst maintained a Perform rating on COG, without providing a price target.

Gheit said, “At current strip benchmark prices, we expect Cabot Oil & Gas to generate operating cash flow of $742M this year and $847M next year. Based on flat annual CAPEX of $938M in each year and $33M in annual dividends, we expect it to face cash flow deficits of $229M this year and $124M next, likely to be funded with additional borrowing.”

“The basis differential between NYMEX and COG’s realized gas price is expected to average $0.95-1.00/mcf in 3Q15 vs. $0.89/mcf in 2Q15. COG expects to hold its rig count at four until 2H16, when it anticipates realizations to improve as the Constitution Pipeline enters service.”, the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Fadel Gheit has a total average return of -21.3% and a 5.6% success rate. Gheit has a -5.5% average return when recommending COG, and is ranked #3718 out of 3718 analysts.

Out of the 17 analysts polled by TipRanks, 9 rate Cabot Oil & Gas stock a Hold, while 8 rate the stock a Buy. With a return potential of 37%, the stock’s consensus target price stands at $36.73.


COG Chart

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts