Stock on the Run: Cabot Oil & Gas Corporation (NYSE: COG)
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HOUSTON, January 19, 2019 – Shares of Cabot Oil & Gas Corporation (NYSE: COG) showed the bearish trend with a lower momentum of -3.22% to $16.81. The company traded total volume of 6.005M shares as contrast to its average volume of 7.71M shares. The company has a market value of $6.77B and about 402.56M shares outstanding.
Cabot Oil & Gas Corporation (COG) reported third quarter 2019 net income of $90.40M, or $0.22 per share, compared to $122.30M, or $0.28 per share, in the prior-year period. Third quarter 2019 adjusted net income (non-GAAP) was $119.70M, or $0.29 per share, compared to $108.90M, or $0.25 per share, in the prior-year period. Third quarter 2019 EBITDAX (non-GAAP) was $283.60M, compared to $291.60M in the prior-year period.
Third quarter 2019 net cash provided by operating activities was $270.90M, compared to $242.20M in the prior-year period. Third quarter 2019 discretionary cash flow (non-GAAP) was $275.50M, compared to $298.80M in the prior-year period. Third quarter 2019 free cash flow (non-GAAP) was $72.40M, compared to $28.60M in the prior-year period.
Cabot incurred a total of $197.50M of capital expenditures in the third quarter of 2019 including $190.50M of drilling and facilities capital, $2.00M of leasehold acquisition capital, and $5.00M of other capital. Additionally, the Company contributed $3.80M to its equity method pipeline investments. See the supplemental table at the end of this press release reconciling the capital expenditures during the third quarter of 2019.
Share Repurchase Program Update:
As previously announced in its September 30, 2019 press release, Cabot repurchased 10.50M shares at a weighted-average share price of $18.21 during the third quarter of 2019. Since reactivating the share repurchase program in the second quarter of 2017, Cabot has reduced its shares outstanding by over 12 percent to 407.90M shares. The Company currently has 21.00M remaining shares authorized under its share repurchase program (or approximately five percent of its current shares outstanding).
Financial Position and Liquidity:
As of September 30, 2019, Cabot had total debt of $1.20B and cash on hand of $82.30M. The Company’s net debt-to-adjusted capitalization ratio and net debt-to-trailing twelve months EBITDAX ratio were 33.9 percent and 0.7x, respectively, compared to 37.0 percent and 1.0x as of December 31, 2018. The Company currently has no debt outstanding under its credit facility, resulting in approximately $1.60B of liquidity.
The Company offered net profit margin of 34.90% while its gross profit margin was 72.30%. ROE was recorded as 36.10% while beta factor was 0.45. The stock, as of recent close, has shown the weekly downbeat performance of -3.89% which was maintained at -3.45% in this year.
