Cabot Oil & Gas Plans to Cut Capital Spending in 2021; Sets Natural Gas Production on Declining Course
04:10 PM EST, 02/05/2021 (MT Newswires) -- Cabot Oil & Gas (COG) said its operating plan for 2021 will deliver an average net production rate of 2,350 million cubic feet equivalent per day from a capital spending program of $530 to $540 million, representing a 6% cut year-over-year at the midpoint.
For Q1, the company set out a production guidance range of 2,250 Mmcfe a day to 2,300 Mmcfe a day, according to a statement. Shares closed almost 7% lower on Friday.
"Our maintenance capital program in 2021 is expected to provide significant opportunities to return additional capital to shareholders as we continue to target a minimum return of capital of at least 50% of free cash flow annually, which the company has far exceeded each of the last five years, in addition to retiring our 2021 debt maturities," CEO Dan Dinges said.
In Q4, 2020, the company expects production to come in at about 2,375 Mmcfe a day, exceeding the high-end of its guidance range of 2,300 Mmcfe per day to 2,350 Mmcfe per day and also helping the full-year output to beat the internal forecast.
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