good and Kay you, morning. Thank
joining Thank quarter for third today earnings you call. for XXXX Cabot’s us
As on based on a forward-looking our make reminder, current this call, expectations. will we statements
measures. our reference comments Additionally, some non-GAAP of financial will
the healthy families Forward-looking statements its the your and NYMEX XXXX unprecedented have challenges in comparable and through across disclaimers, on as you has and provided global proven industry had financial were I earning a the most challenging this many record reconciliations measures last The safe has driven of fair year gas natural well GAAP in each years. yesterday’s directly price as on lowest time. other to remained of hope XX by specifically release. to the share market. be fronts
have the to cycle. for since which XXXX, very a with have the our healthy price numerous actions, natural However, began lows Marcellus of positioned the leasing Shale procedures we we a assets undertaken in cost in success, strategic even in position, gas utilized investors, higher includes financial maintain continued first company
coupled and U.S. outlook, by the large driven good news natural into an is natural supplies While strong to generate winter disciplined free that we outlook are sheet environment. The flow gas lower allocation we continue heading across capital balance to already allow demand season. the gas even strategy, us declines and experiencing this significant corporate our low-cost returns certainly improving current price tailwinds supply heating for are to not gas prices, demand immune and in in structure, cash with natural
income, our current result cash the futures a flow year. return are $X, levels since capital for material net early XXXX on and free would we March, As over in the next have NYMEX a of which XX% employed that above expansion to in increase a seen result,
cash in XXXX flow proud believe lie ongoing while environment, price in our manage free we extremely for beyond. generating operations this ability better team's the of Cabot pandemic, and we're during the positive low While our days to successfully ahead
quarter, the in of comparable flow relative delivered specifically, income natural net despite XX% prior to decline a gas million third $X.XX adjusted share the For prices period. or we and free a cash realized breakeven per generated program, $XX.X year
the our during our Our production the the for day, approximately curtail were Bcf quarter price that original X.X was days curtailment XX was range, guidance. per included last quarter in which not despite guidance inside of
on look the cost prior opportunities to to environment. quarter improve cost Our – structure even a flat period, in for relative unit our the continue production year we improved price peer-leading to for and flat
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and our Marcellus interval. this lateral reminder, allocate as annually the of placement a amount As to and modest lateral continue well Upper we across design plan placement to refine capital we a to
our With of this full the intent tail of development inventory of Marcellus moving decade. the at to end Upper
yesterday's wells we average, producing continue opportunity which section. that greater our improving than across have XX,XXX at our in over reinforce move our In this to we awaits length the been us questions lateral of continue quarter full confidence that, our curtailments Upper lateral which optimal range, the the asset expect fourth on full well production average at we at savings, years, an guidance have Upper guidance. would to point, previously announced evaluate which production as cost to impact this Marcellus and reservoir, five develop the continue we to feet, Marcellus to also receive Despite We the of this the well also reaffirmed further upper provide economics high-quality as release, for development on significant of over when press inventory. capital XX length year our we price-related our includes
September weaker year capacity. originally and which from east in differentials XXXX expectation due demand wider local the slightly is for anticipated, storage and in is While current shoulder than resulting season our October, nearing wider basis primarily to levels
are we target capital from reducing debt our far a lower repayment ratio the the consecutive environment. positive seen price cash to of XX% have of we in exceed our Despite year still moderate leverage absolute flow in cash on generate July, of earlier return for through and fifth free resulting due free to track However, least the year. this our low of maturity at our EBITDAX flow increase
retire However, combination free maturities. we significant resulting and flow a higher next debt-to-EBITDAX debt portion deleveraging still of a X.X ratio times of EBITDAX plan to cash utilize XXXX in a improved of price levels our from with our year we absolute ended and the XXXX healthy lower as realizations to expect quarter expected debt through a
leading-edge and a year-over-year. resulting utilization in reduction combination anticipated representing our lower a a flat XXXX. reduction driven a of million from efficiency $XXX is to preliminary the million, operations expected capital program gains, capital maintenance X.XX guidance per The service spending This at capital operating across is initiated by costs. year-over-year We day X% capital to technology $XXX program levels of in also production Bcf hold for from roughly of
XX% in generally we far minimum and our incremental cash over also base is to only shareholders which a continue year and on our opportunistic depending cover belief return maturing the prioritization growing capital years cycle, dividend, maintaining our allowing like to next more flow incremental free that return free It and commodity the Our debt, certain to allocation flexibility of but in creation capital is program sit sizable paramount, ours. of not year-over-year, financial and between opportunistically of special/variable expansion committed of industry flow evaluate exceeded offer repurchases. than would base would remain have $XXX price generate share we others for in to We dividends, last where -- cyclical returning the us value capital that the of levels million shareholders. options five dividend retire our to annually, will especially to a a cash
price consider would what asked we again. investing often are We level in growth
the believed there believe producer. of price are investments of growth, we warrant for in the disciplined flow, sake cost expansion environments never cash While especially we have lowest do as operating certain in that growth the
partial the will appropriate believe we the to project, December. natural for in access recently early consider have which Leidy service in capacity provide our a this current However, well the do XXXX gas the expansion growing premium beyond environment South backwardation, in and path new requested was is base. us and This XXXX, mid-Atlantic. in below takeaway the not with time futures on are in this anticipating for project we additional production markets coming as $X-plus as to do We
the rise growth. years, prices continue we outlets natural support incremental new have out to in to if gas So, value-enhancing
dividend, maintaining by capital funding exposure In are cash focused debt in XXXX, market maturities, our ensure hedges current gas have returning objectives price priorities shareholders. opportunistically our strategic current incremental free prices able to year stated, opportunistically, higher. locking maintaining to for our However, as while natural of protection allocation flow to if for deliver that level, begun continue production we our some previously we move are layering on on to XXXX in downside these retiring and we order next level
ceiling physical if through the flow, our Specifically, potential prices our protected higher. additional have XX% average weighted XX% of upside Currently, while to on level a our volumes of collars a of employed a financial and costless generates free in primarily targeted volumes we still capital the providing that and we floors have floor for through year. approximately compelling with return next an approach sales cash contracts hedged remain
current We will to opportunistically position on our to and rallies our floors improve and add hedge ceilings.
report our our be natural operations At gas, leading in and impact sustainability yesterday; safe, to but not a of minimize Cabot, we a to community also strive responsible to posted and only our Lastly, SASB we the I'm producer announce website. independent the on pleased leader operations that inaugural to our environment. employees, to be of our
value strong to of Our along U.S. achieving developing support in commitment the total unconventional submissions, abundant operating and of for We operational other success care success and will people, reducing environment. in high-value helps shareholders this respect in to the of the goal our property continue greenhouse create while with places and corporate with responsibility independence Cabot's gas energy natural our legacy gas our communities. stakeholders for believe in supplies
We are emissions proud carbon… our tons that greenhouse of intensity for XXXX report was to gas X.X
