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Cabot (COG) Receives Updates on Atlantic Sunrise Project

Domestic energy explorer Cabot Oil & Gas Corp. COG has been issued the final Environmental Impact Statement by the Federal Energy Regulatory Commission for Williams Partners' WPZ Atlantic Sunrise project. This, in turn has paved the way for an early 2017 final decision. Post the necessary approvals, Williams Partners expect the construction to begin in mid-2017. The project is likely to begin its services by mid-2018.

Along with agreements linked to Cabot's 850,000 MMBtu transport capacity on Atlantic Sunrise, Cabot Oil & Gas has agreed to sell an additional 150,000 MMBtu of natural gas to an undisclosed company over a term of 3 years.

Cabot Oil and Gas, based in Houston, TX, is an independent oil and gas exploration company with producing properties mainly in the continental U.S.

Over the past one year, the Zacks categorized U.S. Oil and Gas Exploration and Production industry has registered an impressive growth of 41%. However, the Cabot Oil & Gas stock has underperformed the industry by registering growth of only 32.8%.

Cabot Oil & Gas Corp.'s portfolio is spread between low-risk/long reserve-life properties and large-volume/rapid-payout assets, with further variety from large prospect inventories that have a broad mix of production and payout profiles. Also, Cabot's exposure to the high quality Marcellus and Eagle Ford assets help it to achieve industry leading rates of return.

However, with gas prices still just above $3, Cabot has been able to extract less value for its products. This has pressured the profit margins. Moreover, being a relatively small player, Cabot lacks the financial resources of larger industry giants. As such, during the current prolonged credit crunch, the company is forced to spend within its internal cash generation. This may prove detrimental to its growth plans.

As a result, the company carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked players from the broader energy sector include Braskem S.A. BAK and CONE Midstream Partners LP CNNX. Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.

In the last four quarters, CONE Midstream Partners posted an average positive earnings surprise of 14.68%.

Zacks' Top 10 Stocks for 2017

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WILLIAMS PTR LP (WPZ): Free Stock Analysis Report
 
CONE MIDSTREAM (CNNX): Free Stock Analysis Report
 
BRASKEM SA (BAK): Free Stock Analysis Report
 
CABOT OIL & GAS (COG): Free Stock Analysis Report
 
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