Cabot Oil & Gas
This $16.5 billion independent oil and gas company’s primary development, exploration and production grounds are in the Marcellus Shale in Pennsylvania with approximately 200,000 net acres under lease and expanding. A well in this region costs Cabot Oil & Gas (COG) $6 million to drill and complete and generates a 115% internal rate of return. Not too shabby.
It also has partnered with EOG Resources (EOG), in Eagle Ford Shale in south Texas with approximately 60,000 net acres and 43 producing wells.
Since 2010, production has grown at an annual rate of 45%, and reserves compounded 23% annually from 2009 to 2012. In third-quarter 2013, Cabot’s production surged 61% year over year, while net income nearly doubled.
The company reports earnings on Feb. 20 after the market close.