Cabot latest to see red

Texas independent Cabot Oil & Gas has reported a loss of $27.5 million for the second quarter of 2015, a 123-percent year-on-year decline from $118.4 million in 2014. It is the latest in a string of US oil and gas companies to have seen their profits turn to red as low energy prices drag on. Cabot’s revenue also fell to $306.2 million, down from $533 million in the second quarter of 2014.

Despite efforts to lower production during the second quarter of 2015 to maintain reserves for a more favourable price environment, Cabot’s output increased. Between April and June, Cabot produced on average 38 mcm (1.34 bcf) of gas per day from its Marcellus assets, a year-on-year increase of 7 percent. At its Eagle Ford assets, the company produced on average 17,899 barrels of oil equivalent, a year-on-year rise of 74 percent.

Cabot plans to keep production levels as steady as possible in the next quarter, at 39 mcm-40.4 mcm (1.38 bcf-1.43 bcf) per day for gas and 15,750-17,000 barrels of oil equivalent for liquids. “We do not believe that accelerating activity and allocating incremental capital in this commodity price environment is the appropriate investment decision,” Cabot’s CEO Dan Dinges told investors in a statement.

Cabot also recorded $228.2 million in capital expenditure for the second quarter, on track to meet the annual budget of $900 million. The company drilled a total of 37 new wells and maintained a steady rig count of four.