Cabot Oil & Gas Corp. (NYSE: COG) said on Oct. 26 it expects production to grow between 20% and 25% in 2019, much bigger than the 7% to 8% growth for this year, on higher natural gas demand and prices.
The Marcellus Shale-focused company, which gets bulk of its revenue from natural gas, said average production rose 10% to 2.03 billion cubic feet (Bcf) in the third quarter.
Sales price of natural gas, excluding hedges, rose nearly 17% to $2.36 per thousand cubic feet.
Marcellus shale producers have been able to benefit from higher gas prices in the Midwest and Gulf Coast, thanks to more pipelines coming into operation in the shale region that have helped move out the gas.
In contrast, Permian Basin producers have been weighed down by supply bottlenecks that have pressured realized prices.
On an adjusted basis, Cabot earned 25 cents per share, missing analysts' average estimate of 28 cents, according to Refinitiv data.
The company hiked its dividend by 17$ to 7 cents per share.
Cabot's net income rose to $122.3 million, or 28 cents per share, for the third quarter ended Sept. 30, from $17.6 million, or 4 cents per share, a year earlier.
The company booked a gain of $25.66 million in the quarter related to assets sales.
Operating revenue rose 42% to $545.2 million.