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Recommendation: Buy

Recommendation: Buy. Cabot Oil & Gas. Duc Dam Sarah Dhaduk Maria Tabanian Nga Tran. Overview. Recommendation: Buy Target price: $78.00 Current price: $43.15 (10/25/2012) Investment Thesis Stable revenue Good financial position Potential development. Contents. Business outlook

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Recommendation: Buy

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  1. Recommendation: Buy Cabot Oil & Gas Duc Dam Sarah Dhaduk Maria Tabanian Nga Tran

  2. Overview Recommendation: Buy • Target price: $78.00 • Current price: $43.15(10/25/2012) Investment Thesis • Stable revenue • Good financial position • Potential development

  3. Contents • Business outlook • Good financial position • Stable revenues • Potential growth

  4. Contents • Business outlook

  5. Outlook • Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. • The Company’s primary areas of operation include Appalachia, east and south Texas, and Oklahoma. (Rueters)

  6. Primary and Secondary Markets/Products (Foreign and Domestic) • The Company operates in one division, natural gas and oil development, exploitation and exploration, exclusively in the continental United States. • Cabot Oil & Gas Company is only a domestic company and does not have any foreign affiliations. Approximately 96% of Cabot’s reserves and 95% of Cabot’s production is natural gas, that being its primary market. Cabot’s secondary market is petroleum. (Rueters)

  7. Business risks/outstanding litigations • Toxic hydro-fracking spills • Pennsylvania Department of Environmental Protection

  8. Contents • Business outlook • Good financial position

  9. Gross Profit, Total Revenue and Net Income

  10. 4 Year

  11. Contents • Business outlook • Good financial position • Stable revenues

  12. Business Strategy • COG strategy is to continuously improve.

  13. Long – term Solvency Annual Comparision for Debt to Capital Ratio

  14. Long – term Solvency Annual Comparision for Debt to Equity Ratio

  15. Low Financial Risk Annual Comparision for TL/TA ratio

  16. Stable Operating Cashflow Annual Cashflow break - down

  17. Potential Operating Cashflow Growth Compound Annual Growth Rate over 5 years

  18. Contents • Business outlook • Good financial position • Stable revenues • Potential growth

  19. SWOT • Strength • Marcellus Shale • Constant Growth • Weakness • Toxin during exploitation • Opportunities • Future natural gas’ price • Threats • Warmer winter • Economic downturn

  20. Revenue Drivers

  21. Gross Margin

  22. Valuation

  23. Sources Used Cabot oil & gas corporation (cog.n). Reuters. Retrieved from http://www.reuters.com/finance/stocks/companyProfile?symbol=COG.N www.capitaliq.com Daris, M. (2012, October 4). 3 new reasons to buy cabot now. Seeking Alpha, Retrieved from http://seekingalpha.com/article/903581-3-new-reasons-to-buy-cabot-now?source=yahoo McFarland, J. (2012, October 2). [Web log message]. Retrieved from http://www.oilandgaslawyerblog.com/oil-and-gas-news/ Operator: Cabot oil and gas corporation. (n.d.). Retrieved from http://www.fracktrack.org/searchexp.php?p=op_name&val=OGO-10897

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