Seems more like a nuisance and PR problems than anything else. Sold off hard on the news, but I like this name. I don't know what the market will do next week, perhaps further weakness, but will be watching energy close, might be interested if sector shows strength and market holds up somewhat.
Stock broke through all levels of support on this news, so chart is busted, 200SMA is around $30, so still well above those levels. Good luck to all.
Believe me... It's not done with... Pa can't even pass a budget because of the beauracracy... I'm right in the sweet spot up here and people are Pissed and worried with fracting.. This is going to put stricter legislation on drillers..All of them... On top of that it seems Cabot is the only one who is making the mess... We havent signed a lease yet,but I guareentee you we wont sign with Messy Marvin.... and you can take that to the bank.. I'm sure you would think twice about who is drilling your land if you were up here....
If the idoit polititions wanted to balance their budgets they would allow resonable drilling and take their pound of flesh in taxes instead of grandstanding. A regulation never filled a states coffers.
No I agree there are problems with fracs that are simply unknown at this point. Issues with groundwater, etc. I also think that the problems are heightened by the manner in which companies carry out operations. Its more of I believe a industry culture that wants to get things done as fast as possible; and premiums are put on time to completion of tasks where faster = better. Also, in terms of field personnel that are handling some of the fracs and responsible for operations, you can be dealing with some fairly unsophisticated parties.
I don't believe this will be a major issue for COG in the longer term. I like their asset base, I like their presence in 2 of the BIG 4 shale plays, I like their acreage positions.
All that being said, I swing/position trade based off of technicals, and will let price determine what I do, as I am flat this and all oil and gas names right now. Will need to see how market reacts; and overall I am somewhat bearish the entire market. However, IF market holds up, independent oil and gas is a sector where I am inclined to be bullish, and IF oil and gas sector holds up I like COG in the sector. Technically, today close below 10; 20; 50SMA = bad; however closed above trendline dating from March low; after breaking it intraday. Still holding a ways above 200 day. Would look for and entry if it holds the March trendline or falls back to 200 day and holds there at around $30 assuming market internals are ok. Good luck.