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Linn Energy, LLC Message Board

  • rlp2451 rlp2451 Oct 26, 2012 11:02 AM Flag

    OT: Go Cabot Go - Who Needs Hedges?

    Up 50% from my purchase price of $30 earlier this year ..$4 today! Leading producer in the MARCELLUS.

    Domestic energy explorer Cabot Oil and Gas Corporation (COG) reported stellar third quarter 2012 results, owing to enhanced output, better oil prices and lower exploration costs.

    The predominantly natural gas-focused exploration and production firm reported earnings per share (excluding special items) of 21 cents, breezing past the Consensus Estimate of 15 cents. Cabot’s performance also improved considerably from the year-ago adjusted profit of 17 cents per share.

    During the three-month period ended September 30, 2012, Texas-based Cabot generated operating revenues of $296.9 million – up 13.3% year over year – with the help of healthier production.

    Volume Analysis

    Overall production during the quarter was 66.5 billion cubic feet equivalent (Bcfe) – 94% gas – up 33% from the previous-year period. Natural gas volumes jumped 31.4% year over year to 62.7 billion cubic feet (Bcf), while liquid volumes shot up 60.9% to 629 thousand barrels (MBbl). The driving force behind the increase in natural gas production was Appalachia region, where volumes swelled by 42.4%..

    For full-year 2013, the company expects to see production growth in the range of 35% to 50%, including an expected liquid growth of 45% to 55%.

    “Our year-to-date production growth relative to last year further highlights the prolific nature of our wells in the Marcellus, even in the face of continued delays in permitting for gathering lines,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “Based on our plans to connect (or begin producing) 45 additional wells in the fourth quarter, we expect a ramp in production above our previous highs.”

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    • For full-year 2013, the company expects to see production growth in the range of 35% to 50%, including an expected liquid growth of 45% to 55%.

      If Obama wins Cabot will.

      I sure hope Democrats in Ohio look at their coal miners and the providence of the new oil and gas resources in their state.

      American manufacturing can and should greatly benefit from inexpensive American natural gas and coal. Unlike Obama taking our money and giving it away this creates new American wealth and therefore really does save and create high value added jobs.

      • 3 Replies to norrishappy
      • norris, a few things come to mind.

        Compare the finviz chart for LINE & COG. They look fairly similar.

        But if a co. were to go without hedges then why not be more direct, more in control, reduce costs etc, and just trade oil or gas futures instead?

        How could an oil & gas co protect their distributions without hedging?

        Oh, distributions were not the motivation but growth loos good?

        Then why not consider LINE, KOG, or CLR or some other growing oil & gas co who has more of an oily mix in this market?

        "Who needs hedges" is the type of comment that one would make if (and only if) they were on the side of a trade that is gaining (for now) and would be wishing for those hedges if the commodity prices were going in the other direction.

        When I think of COG, I think of two other things that LINE does not need to worry about.

        A place called Dimok in Pa and that COG did resolve the local issues and no longer transports drinking water in.

        Act 13 in Pa, which is a new law that is being challenged by some local townships who are sueing and seems to be still a bit unresolved, for now.

        And, then there is this post to think about

        The Sky Is Pink
        By rlp2451 . Aug 5, 2012 11:40 AM . Permalink
        ............(link removed) Josh Fox does a follow-up documentary to his hit Gasland about the propaganda & misinformation that the hydraulic fracking industry puts out. He refutes the claims that fracking is clean & safe by the industry.

      • So..if Mitt wins, we get more drilling, if Obama wins, we get more drilling. Sounds like a no-lose either way.

      • Mavbe some of the coal miners that are out of work can get employment at the auto plants or on Ng and Oil rigs. Retrainng is what we are looking at not just in that sector but in all sectors of manufacturing.

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