Cabot Oil & Gas Corp Earnings: The Streak is Broken

S&P 500 (NYSE:SPY) component Cabot Oil & Gas Corporation (NYSE:COG) reported its results for the fourth quarter. Cabot Oil & Gas is an independent company engaged in the development, exploitation, and exploration of oil and gas properties in North America.

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Cabot Oil & Gas Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the independent oil and gas company fell to $26.4 million (13 cents per share) vs. $49.1 million (24 cents per share) a year earlier. This is a decline of 46.3% from the year-earlier quarter.

Revenue: Rose 20.5% to $268 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cabot Oil & Gas Corporation reported adjusted net income of 20 cents per share. By that measure, the company beat the mean estimate of 14 cents per share. Analysts were expecting revenue of $265.1 million.

Quoting Management: “In 2011, we continued our focused effort primarily in two basins with outstanding results that were not only recognized in our operating performance, but also in our total shareholder return,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “We exceeded 3.0 Tcfe of total proved reserves, grew production 44 percent and reduced overall leverage at the same time.”

Key Stats:

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose more than sevenfold in the third quarter and more than twofold in the second quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 14 cents versus a mean estimate of net income of 17 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 13 cents per share, a drop from 25 cents. For the fiscal year, the average estimate has moved down from 61 cents a share to 58 cents over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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