Marcellus Shale Overvie · 2017. 11. 30. · marcellus thickness map – 2005click to edit master...

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Decision making for the long-termWWW.CABOTOG.COM NYSE: COG

Cabot Oil & Gas Corporation

Marcellus Shale Overview

March 14, 2012

CPES Conference

Jeff Hutton

Click to edit Master title styleCabot Oil & Gas Corporation

U.S. Shale“Changing the World”

Click to edit Master title styleU.S. Shale

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Marcellus Shale


Named for a distinctive outcrop near the village of Marcellus

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Known formally as the “Marcellus Formation” Is a Middle Devonion‐age black, low density, carbonaceous

(organic rich) shale. Deposition occurred about 390 million years ago.

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Click to edit Master title styleDepth of Marcellus Shale Base

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Click to edit Master title styleMarcellus Shale Wells Year Drilled

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Click to edit Master title styleMarcellus PA Production Growth

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

MM

cf/d

DTI Transco TETCO TCO Other TGPL

Oct. 2008 Legacy Production: 300 MMcf/d

Dec. 2011 Exceeds 5.0 Bcf/dMarcellus 4.7 Bcf/d

Click to edit Master title styleHow Big Is It?

500‐1,000 trillion cubic feet of Gas in Place

450,000 wells drilled in Appalachian basin over 150 years and have produced 47 TCF

Largest conventional gas field in US – Hugoton 81 TCF

100‐150 trillion cubic feet recoverable reserves under existing technology

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Economic Growth

Click to edit Master title stylePA Dept of Labor & Industry as of August 2011

218,200 employees in Marcellus and related industries

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72,000 hires since 4th Quarter 2009

12,700 new hires in 1st Quarter 2011

7 in 10 hires are from Pennsylvania

Click to edit Master title stylePenn State Summer 2011 Study

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2010 2011 2020

Economic Value Added $11.2 billion $12.8 billion $20.2 billion

State/Local Taxes $1.09 billion $1.23 billion $2 billion

Cumulative Employment 139,889 156,695 256,420

Wells Spudded 1,405 2,300 2,497

Output (bcfe/day) 1.3 3.5 17.5

Click to edit Master title styleGeneral Estimates for Cabot

Cabot generally states that we support more than 200 employees in Susquehanna County and the majority are (70%+) are from the local area.

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Cabot has invested close to $1.5 billion into Susquehanna County and the local community.


Cabot Marcellus Operations

Click to edit Master title styleCabot’s Snapshot

NYSE: COG

Shares Outstanding • 208 Million

Market Capitalization • $7.5 Billion

Debt outstanding • $1.0 Billion

Enterprise Value • $8.5 Billion

3 Plays

Marcellus – Dry Gas 5 Rigs

Marmaton – Oil 1 Rig

Eagle Ford – Oil 1 Rig

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Click to edit Master title styleNorth Region – Marcellus Area Location Map

CABOTSusquehanna County area

PITTSBURGH

CHARLESTON

Montrose

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Click to edit Master title styleMarcellus Thickness Map – 2005

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DEVONIAN OUTCROP

STEUBE N COUNTY

GREENE CO

ALBANYSCHOHARIE

SCHENECTADY

FULTON SARATOGA

DUCH

ULSTER

ORANGEPUT

WESTC

ROCKLAND

BRONX

BROOKLYN

NEW YORK CITY

RICHMOND

MANHATTAN

CAYUGA

MADISON

CORTLAND

CHENANGO

ONONDAGA

TIOGA

BROOME

TOMPKINS

OTSEGO

DELAWARE

ERIE WYOMING

LIVINGSTON

ALLEGANYCATTARAUGUS

ONTARIO

CHAUTAUQUA

NIAGARA

MONROE WAYNE

HERKIMER

YATES

STEUBEN

MONTGOMERY

BRADFORD SUSQUEHANNA WAYNE

CHAUTAUQUA

FAYETTE

GREENE

JEFFERSON

FOREST

WESTMORELAND

INDIANA

MERCER

LAWRENCE

BEAVER

ALLEGHENY

WASHINGTON

BUTLER

ARMSTRONG

CLARION

CRAWFORD

ERIE

VENANGO

WARREN

CAMBRIABLAIR

SOMERSET BEDFORD

CLEARFIELD

FULTON

JUNIATA

PERRY

POTTER

MC KEAN

ELK CAMERON

TIOGA

YORK

F

NORTHAMPTON

DAUPHIN

LEBANON

NORTHUMBERLAND

LACKAWANNA

CARBON

LUZERNE

DELAWARE

MIFFLIN

HUNTINGDON

CLINTON LYCOMING

MONROE

PIKE

WYOMINGSULLIVAN

COLUMBIAMONTOUR

UNIONCENTRE

SNYDER

CUMBERLAND

FRANKLIN

ADAMS

BERKS

BUCKS

LANCASTER

CHESTER

MONTGOMERY

SCHUYLKILL

LEHIGH

PHILADELPHIA

SULLIVAN

CHEMUNG

CAYUGASENECA

SCH

UYL

ER

116

138

14693

971009592888690

96

132

230

137

145

97

100

150

84

156

88

142

45

162

206

197

208200212

194161 196

43

47

42

60

26

18

6

7271

62

110

170

180162

153148145

138

88

125

108118

113116

133

12386

78

89121

38

21

25

4024

90

55

105150 83

112

50

22

10580

75

88100113

15060

6257

60 60

27

10

60

55

56

50

48

80

44

5442

64 77

152

152

168

151

174159

113

110100

99

34

15

4423

42

53

41

3344

143

130

155

85

169

195

341

207

0 10 20 30 mi

DEVONIAN OUTCROPDEVONIAN OUTCROP

PA

CABOTPROSPECT AREA

CABOTPROSPECT AREA

NY

30 miles

Play DiscoveryPlay Discovery

Click to edit Master title styleSusquehanna Prospect – 2006

4000’

Discovery Well Permit #7

6th well in county1st well in 34 years

Discovery Well Permit #7

6th well in county1st well in 34 years

Teel #1Max flow rate 7 Mmcf(flow rate to atmosphere)

TENNESSEE PIPELINE

2006 Total Leasehold19,500 Net Acres

$31 per acre

2006 Total Leasehold19,500 Net Acres

$31 per acre

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~180,000 acres

Marcellus ShaleGross Isopach

CI: 50 ft

Field Production: 600 MMCF/D

Wells Producing: 118 H, 37V

WOPL: 9 wells (120 Stages)

Completing: 7 wells (119 Stages)

WOC: 22 wells (278 Stages)

Horizontal Rigs: 5

RUSH

HOP BOTTOM

BROOKLYN

SPRINGVILLE

MIDDLETOWN

MONTROSE

NEW MILFORD

HARFORD

NEW MILFORD

JACKSON

JESSUP

LATHROPCLIF

DIMOCK

FOREST LAKE

AUBURN

BRIDGEWATER

LENOX

GIBSON

LEMON

NICHOLSONMESHOPPEN

MESHOPPEN

NICHOLSON

WASHINGTON

BENTON

GREENFIELD

ZONE 2ZONE 3

ZONE 1ZONE 4

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Marcellus Summary


Best Practices

Click to edit Master title styleBest Practices

Flowback = 15% of water returned to surface to Frac tanks. Flowback water hauled to recycle center – pumped into mobile treatment facility and returned to clean Frac tank for next job.

Disposal = None – 100% of Flowback water is recycled.

Drilling = Cabot utilizes closed loop drilling system – No open pits 100% of drilling location is cover by $20,000 tarps.

Additives = Cabot has always supported full disclosure of additives

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Infrastructure and Market

Click to edit Master title stylePipeline Capacity

Up to 650,000 Dth/d to TranscoUp to 250,000 Dth/d to Millennium

Up to 600,000 Dth/d to TGP 300 Line

Up to 500,000 Dth/d to Iroquois/TGP 200 Line (March 2015)

2 Bcf/d of Market Opportunity on Five Interstate Pipelines!

Total Capacity Summary

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Click to edit Master title styleMarkets

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TGP 200 Line

TGP 300 Line

TransCanada

Boston

NYVT NH

PA

NJ

CT

MA

RI

Long Island

HartfordMillennium

Transco

Susquehanna Cty


Decision making for the long-termWWW.CABOTOG.COM NYSE: COG

Cabot Oil & Gas Corporation

Thank You!

Marcellus Shale Overvie · 2017. 11. 30. · marcellus thickness map – 2005click to edit master...

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