Cabot Production Growth Seen Cut as Gas Hits 10-Year-Low: Energy
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Cabot Oil & Gas Corp., the best performer in the Standard & Poor’s 500 index last year, may curtail drilling to cope with natural-gas prices that slumped to a 10-year low because of a supply glut it helped create.
Cabot will fall about $75 million short in funding its drilling program after the benchmark U.S. gas price lost almost half its value in the past year, Anish Patel, a managing director with ISI Group in New York, estimated. With gas selling for $2.53 per million British thermal units, the Houston-based company may join other explorers in postponing or canceling wells amid dwindling returns, said John Lutz at Frost Investment Advisors in San Antonio.