Canaccord Genuity Maintains a 'Buy' on Cabot Oil & Gas (COG); Production Should Grow 74% in '12E Versus 45-55% Guidance
Tweet
Share
E-mailGet Alerts COG Hot Sheet
Price: $22.25 --0%
Rating Summary:
20 Buy, 23 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
20 Buy, 23 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Join SI Premium – FREE
Canaccord Genuity maintains a 'Buy' on Cabot Oil & Gas (NYSE: COG) price target raised $21 to $127.
Analyst, John Gerdes, said, "We believe Cabot should grow production 74% in ’12, above our prior 62% expectation and 45-55% guidance. For comparison, we believe Cabot should achieve production growth of 45% in ’11 after setting initial guidance of ~20%."
"Cabot should fill growing pipeline capacity with a three month lag - Cabot recently announced it began sending 250 Mmcfpd down the Springville lateral to Transco in late ‘11. Deliveries to Tennessee 300 were accordingly reduced to 350 Mmcfpd. Springville provides another market for Cabot and should alleviate recent acute price weakness experienced on the Tennessee 300 system. Additional compression should provide 600 Mmcfpd of incremental gas transportation capacity by Q3/12 on Laser to Millenium, Lennoxville to Tennessee and Springville to Transco. We believe Cabot can fill this capacity with a three-month lag by drilling new wells and working off ~50% of its ~500 stage backlog."
For an analyst ratings summary and ratings history on Cabot Oil & Gas click here. For more ratings news on Cabot Oil & Gas click here.
Shares of Cabot Oil & Gas closed at $79.66 yesterday.
Analyst, John Gerdes, said, "We believe Cabot should grow production 74% in ’12, above our prior 62% expectation and 45-55% guidance. For comparison, we believe Cabot should achieve production growth of 45% in ’11 after setting initial guidance of ~20%."
"Cabot should fill growing pipeline capacity with a three month lag - Cabot recently announced it began sending 250 Mmcfpd down the Springville lateral to Transco in late ‘11. Deliveries to Tennessee 300 were accordingly reduced to 350 Mmcfpd. Springville provides another market for Cabot and should alleviate recent acute price weakness experienced on the Tennessee 300 system. Additional compression should provide 600 Mmcfpd of incremental gas transportation capacity by Q3/12 on Laser to Millenium, Lennoxville to Tennessee and Springville to Transco. We believe Cabot can fill this capacity with a three-month lag by drilling new wells and working off ~50% of its ~500 stage backlog."
For an analyst ratings summary and ratings history on Cabot Oil & Gas click here. For more ratings news on Cabot Oil & Gas click here.
Shares of Cabot Oil & Gas closed at $79.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Emkay Global Starts Urban Company (URBANCO:IN) at Buy (1)
- ICICI Securities Resumes Dalmia Bharat Ltd (DALBHARA:IN) at Add (2)
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
