Cabot Oil & Gas Corp Seeking Eagle Ford Expansion Despite Marcellus Potential
Despite prolific Marcellus shale wells detailed in the fourth-quarter earnings review, Cabot Oil & Gas (NYSE: COG ) made a recent decision to expand drilling assets in the Eagle Ford. The company continues to face infrastructure and price realization issues in the Marcellus that are impacting short-term investment decisions.
In six short years, the company has already reached total production in the Marcellus shale of 1 trillion cubic feet on only 290 wells. Even more interesting, the company has 51 wells in various stages of reaching production, including waiting on pipelines and completions. Based on that data and recent Eagle Ford drilling results, maybe investors shouldn't be surprised by the move to add a rig and capital spending to oil production in that area.
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