Cabot Oil & Gas Corporation (NYSE:COG) Reports Doubling of Earnings in 3Q.

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Dallas, Texas 11/01/2013 (Financialstrend) – The S&P 500 index tracked oil and gas major Cabot Oil & Gas Corporation (NYSE:COG) has a market cap of $14.86 billion. On October 23, the oil firm announced strong surge in its third quarter results. It reported revenue of $435 million and posted earnings per share of $0.18 per share. It posted earnings which were nearly double compared on a year on year basis. It translated to a 91% jump in earnings largely driven by natural gas production. The natural oil production zoomed up 61% on a year on year basis to 107 billion cf.  This was offset by a drop in the price that the company realized. Additionally the firm managed to report oil and natural gas liquids post a 43% increase to 0.898 million barrels of oil equivalent. This production increase was complemented by an increase of 2.4% in the realized price for oil. In order to sustain and return share holder value the company has set a forecast of spending between $1.37 to 1.47 billion as capital expenditure. These monies are expected to be spent on drilling close to 200 new wells in 2014 and make them operational. The company has also given soft price guidance for 2014. It expects the next years “costs of $2.65/Mcfe which translates to 10% drop in comparison to 2013 price points.

Post the results announcement, ratings agency UBS pegged the stock at neutral while upping the target price to $38 while Global hunter securities rating firm has upgraded the stock from neutral to accumulate. The target price has been upped to $42 from $41 by Global Hunter.

As of close of business on October 31, the stock was trading at $35.32 per share down 0.31% from its previous day close. These prices are $12.44% less than its 52 week high pricing.