Independent natural gas producer Cabot Oil & Gas reported earnings after the bell on Thursday that beat analyst estimates for its third quarter by $0.01 per share. It posted adjusted earnings per share of $0.18, which was better than analyst expectations of $0.17 per share.
Revenue of $435.9 million, which was up 47% year over year, was just slightly below Wall Street's predictions for revenue of $442.8 million as production jumped 61% from the year-ago period to 107.1 billion cubic feet equivalent. Even though Marcellus production was pressured by pricing issues leading to volumes being held back for a brief period of time at the end of the quarter, equivalent production still grew 13% sequentially.
With a capital spending program of between $1.375 to $1.475 billion, 30% to 50% of the budget will be spent on drilling and completion activities, with more than 75% of the drilling and completion capital focused on its Marcellus Shale operations. The mid-point of it guidance for 2014 unit costs of $2.65 per Mcfe implies more than a 10% decrease relative to the mid-point of 2013 unit cost guidance.
The article Cabot Oil & Gas Beats by a Penny originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.