Cabot to drill 60 to 70 wells in 2020

Cabot Oil & Gas Corporation expects to drill, complete and produce 60 to 70 natural gas wells in 2020, with two-thirds placed on production between mid-May and late August. In the first quarter, the company drilled 22 wells and completed 13.

Details were provided as part of the company’s financial and operating results for first-quarter 2020.

First quarter daily production was 2,363 MMcfed (100% natural gas), a 4% increase relative to first quarter 2019.

Second quarter production guidance is 2,175-2,225 MMcfed. The decline is primarily driven by lighter turn-in-line schedule during the first 4 1/2 months of the year with only 13 wells on production between the beginning of the year and mid-May, a consequence of longer cycle times for larger pads with longer laterals during first and second quarters.

Additionally, forecasts show modest price-related curtailments during natural gas shoulder season.

The second quarter guidance also reflects impact of unplanned downtime related to remedial work on one well on a large pad which deferred over 230 completed stages from first quarter to the second, leading to lower first quarter capital spending.

Full-year production guidance has decreased to 2,350-2,375 MMcfed from 2,400 MMcfed to reflect the above operational changes.

“The midpoint of our updated production guidance range implies flat production levels year-over-year, with fourth quarter 2020 exit volumes expected to be flat to the fourth quarter of 2019,” said Dan Dinges, chairman, president, and chief executive officer.

Net income for first quarter 2020 was US$53.9 million compared with US$204.9 million in first quarter 2019.

First quarter 2020 adjusted net income was US$54 million compared with US$307.8 million in the prior-year period.

First quarter 2020 net cash provided by operating activities was US$204.9 million compared with US$585.3 million in the prior-year period.

Cabot has reaffirmed its 2020 capital programme of US$575 million.

Source: Oil & Gas Journal