Cabot Oil and Gas: 4Q14 earnings and big changes for 2015 (Part 1 of 6)
4Q14 earnings
Cabot Oil and Gas Corporation (COG) reported its 4Q14 earnings on February 20. The company reported a net loss of $221.8 million, or $0.54 per share during the quarter.
However, adjusted net income was $95.3 million, or $0.23 per share, compared to $74.4 million, or $0.18 per share, in the corresponding period last year. This excluded the effect of impairment of certain oil and gas properties due to a decline in commodity prices and other select items.
Earnings managed to edge out Wall Street analysts’ estimated forecast by a penny.
Analysts had expected earnings of $0.22 on a revenue of $547.2 million.
Earnings amid falling commodity prices is a positive
The fact that COG managed to beat its earnings estimate amid falling commodity prices is a positive. Let’s compare COG to some of its peers. EQT Corporation (EQT) reported earnings of $0.96 against an estimate of $0.61. Range Resources (RRC) reported earnings of $0.39 against an estimate of $0.28. Southwest Energy (SWN) missed its estimates by a penny, posting earnings of $0.50 against an estimate of $0.51.
All these companies, including COG, are components of the Energy Select Sector SPDR ETF (XLE) and make up ~4% of the ETF.
COG’s adjusted net income for the year came in at $404.6 million, or $0.97 per share, compared to $298 million, or $0.71 per share, last year.
COG’s revenue
Quarterly revenues came in at $618 million, ~27% higher than revenues for the corresponding period last year. They topped analysts’ expectations of $547.2 million
Total revenue for the year was ~$2.2 billion compared to ~$1.7 billion in 2013.
In the following part, we’ll take a look at Cabot Oil and Gas Corporation’s (COG) operational performance in 4Q14.
Continue to Part 2
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