COG - Earnings call transcript Q2 2021

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Operator

Good morning and welcome to the Cabot Oil & Gas Corporation Second Quarter 2021 Earnings Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. [Operator Instructions] I'd now like to turn the conference over to Dan Dinges, Chairman, President, and Chief Executive Officer. Please go ahead.

Dan Dinges

good and Philippe, you, morning. Thank joining Thank quarter for second today XXXX you earnings for of call. Cabot's us

As a reminder, statements on today's call, we our expectations. based will current on make forward-looking

will Additionally, our reference non-GAAP some comments financial of measures.

as disclaimers, GAAP release. comparable were other and measures statements well reconciliations most financial morning’s to this in as provided directly the earnings Forward-looking

in Adjusted for results first was XXXX prices, results income a with quarter driving quarter in year-over-year positive realized metrics. the Our reinforced second our exponential the for growth significant net the our them financial increase over from $XXX realized our the by adjusted share million which quarter primarily or $X.XX in to a earnings natural share per gas relative prior represents driven increase in year prices. period, five-fold increase XX% per

also million, XXXX. quarter positive of free improvement free delivered flow cash quarters last positive of million relative we our second quarter flow in to cash $XX of over cash the in flow resulting XX free the During $XXX XXth a quarter, the

returned emphasize During to flow free to quarterly continue the we of second quarter a on dividend as majority our shareholders. over two-thirds shareholders returning flow through to our our strategic base focus cash our cash free of we

station Energy, operational the We to gone quarter quarter of of the related our cost continued the expenses resulting and second quarter third-party anticipated that unit part second quarter below Production third the longer prior from for of delays first maintenance-related excluding the quarter. primarily the the later during improved our of downtime, on year-over-year our during timing of the guidance and year per quarter the compression in range than X% our wells industry-leading second one cost relative providers to to a X% to into of as certain production merge to Mcfe, was midstream all-in XXXX structure pushed improve due by $X.XX during demonstrated by expenses Cimarex with period. on improvement operating X% $X.X pending million

a relative during this incurred Our our X% relative quarter increase period. production a second the quarter approximately volumes year expenditure averaged to-date in prior We quarter, the second had day, reduction to X% capital levels. per to third $XXX million Bcf X.X production

in Our quarter prior our Leidy quarter growth second production the levels guidance South line and capital higher sequential the which the of to expansion higher year, was the the a and in realized third for fourth of the of with natural result half anticipation primarily during in service gas for quarters, project. this are expected second in during in activity prices

more continued originally We net gains a XXX also second drilled five more wells efficiency quarter, the during highlighting operations. than our and in completed planned stages

less one Our in than leverage end remains with net balance $XXX of million as XX ever EBITDA. a sheet than as resulting debt trailing times quarter strong net less of ratio month of as

We our the expect of the debt to third maturing of September. absolute debt levels during a $XXX continue to tranche reduce through in million repayment quarter

resulted the to second XX% our natural by period gas year maintenance resulting of continued increased in across America. same Leidy despite XXXX, the XXXX, significant same On in the additives and differentials during gas transitory prices prices in the our basis timeframe over NYMEX while basis prices that pipeline wider have entering quarter in XXXX. reach natural pricing has year-over-year XX%, for July to compared have prices North Through materialize in risen this gains front,

relationships. their cash historic locations across pricing trend prices We have back to to sales recently beginning witnessed compress forward and prices and Appalachia’s

to price impact a NYMEX our and regional year basis extent have of our lesser as prices of anticipated sales result We $X.XX a $X.XX wider primarily to to to relative updated differential fixed to differentials. $X.XX the guidance full $X.XX, of higher agreement

natural on release for implied by a earnings quarter updated $X.XX NYMEX first our the approximately curve while from guidance of guidance for late are prior the pre-hedged the is actual was year updated be realizations higher and guidance and average XXXX expected on now based differential April $X.XX price our balance price of based the NYMEX to our XX% the higher year. price an midpoint April than year-to-date of At prior our actual than Our guidance the future in range, from XX% realizations. our our late

expected a differentials quarter the tightening quarter to are Third widen second with fourth quarter. expected relative XXXX in the to

Pennsylvania local the during prices $X on further project in to expansion XXXX are gas the levels fourth pricing. the Leidy day of XX% over with we are We in the are deliver are impact XXXX in of about across optimistic equal to levels during NYMEX year realized below foot improving the by each Of improvement South profiles and the the demand, storage wider our X% XXX service Cabot’s projected that a are strength of be and and half quarter, for expectations importance, placed in extremely volumes Basin we which per continued currently below second optimistic the will average. very is production northeast Northeast current for driven cubic market the mid-Atlantic of the quarter gas million the year of area, encouraged second while five in flat by reduction production averaging Appalachian natural balance pricing despite in futures strong a significant differentials the year regional

which and in into demand of markets. and East even more PennEast be between out basin access XXXX, and Additionally, supply service expansion projects are growing the the will to XXXX move Regional projected

forward XXXX beginning the to As work or since year. by $X.XX are we we increase XX% the the TAL futures of extremely encouraged in approximately XXXX, to the NYMEX improvement

million. price $XXX to year production per significant In XXXX supports profile. a an environment reaffirmed providing that deliver $XXX capital cash improving exposure our flow We unhedged strong program X.XX an in morning’s we day currently standalone from of natural of to to release, average plan rate are this net Bcf XXXX a gas full million

the from XX from range drilled wells resulting – unchanged XX continued in well efficiencies. drilling for to guide capital increase drill year expected our the net despite net remain Our our

per to our also provided day. production third Bcf X.XXX guidance range We quarter of XXXX X.XXX Bcf

growth guidance we quarter of from the with implies production approximately the at quarter gas South coinciding to second quarter sequential the third of midpoint, expansion in the fourth relative growth quarter anticipate production range natural third higher The sequential prices Leidy project. XX% into while service of the the X% and

expected with half second free driven Third flow, expected year merger-related sequential of as half the excluding activity of I times compelling, a XXXX. excited to on fourth second season. quarter expenditures we lower in fourth about expected closing levels with is enter for by expenses. our two our the Operationally, the the share decline are to are we slightly quarter capital decrease greater make quarter and and relative progress impact winter also anticipated merge merge as we we on our the result our approximately of guidance, benefits update to to quarter cash standalone continue flow in towards be current prices. to cash financial financially, while outlook stronger of the is want XXXX realized free pending our strategic Based strip, higher execute provide of of with brief the much to Cimarex, line the a for continue as program a first to

create over operator strategy scale, an geographic strength in balance will studied and commodity today’s Marcellus pending and merge out industry-leading cycles. Shale of and accelerate scale the the to transaction, beyond benefits long-term when adding at carefully I noted, and across more with to announced financial we the May, diversity, operations. and the thrive end commodity long-term the of As market the The price geographically expanding

which In and clearly energy supply Cimarex capital supply reduced fuel cost our opportunities the late balance complementary to footprint, our will will a low return to capture high through prices will free in near-term strong teams gas gas of Cimarex’s able to to Cimarex more accelerated capital strong With in flow May. scale shareholders, oil Anadarko peer-leading to natural quality and maintaining cash to driven consolidation in and the oil business in to and combining addition exposure will facilitate short, lowest delivers exposure be the demand both basins Cabot’s capital Together, light and gas free significant standalone, prices scale, be with very especially we peers, foundation to and of the flexibility a demand. profile assets assets Shale, Compared gas have margin cost returns, will capital extent in capital low increased in positioned resilient improvement cost, deal sheet substantially right differentiated a with United an oil assets be in oil capital Cimarex and States. allocation and Basins the cost while and financial liquidity. by Marcellus natural more best-in-class company profile cycles, Permian with a the to a will transition the Cabot combined create relative and the generation, of we be quality This to with balance and return have shareholder increased assets assets strong to upstream a announced and of value from creation With was assets long-term top-tier cash natural flow lesser the of we shareholders. through a since our that will high top portfolio oil strong positions of the premier a due and deliver increased and we company a return will the of sheet.

the more year. employees. my dedication you to shareholder will acknowledge best be enhanced and cash our Cabot best-in-class the commodity stronger, a flow incredible appreciation. free substantial the and facilitate I over resilient in deepest have would we we I’ve company, generate and commitment believe the by As like our have been cycles positioned to world returns employees, last work deliver inspired capital the value. well I through of To employees

executing have will remain we and transaction the Philips, the the our excitement intend creation I we we with superior, builds hope ahead quarter long-term value questions. of of more forward look and for for XXXX, stakeholders. the the answer with receiving And our I'll Cimarex, the in shareholders ahead, weeks been shareholders continuing Together, transaction with to our on We fourth other engage share pending to be you after shortly that, and happy approval. to enthusiasm future. in to strategy accelerates to any the and deliver, regarding close merge. benefits on shareholder Looking track This

Operator

of Mariani with [Operator the first question Instructions] from Your Leo comes line KeyBanc.

is line Your open.

Leo Mariani

little was hoping a I really bit you in a increase like quarter. the big guys. the here. seems to It talk Hi jump mechanics of the could production fourth XX%

volumes the on wider have just or to dips. of not held trying XQ back sense here been some there or whether get Just maybe in XQ a

or maybe get timing opening Just lot up get a trying kind wells to help just of little you more its a But if just lines. of are XX%? sense bit turning the that a of us to mechanically

Dan Dinges

appreciate We question. the Yes.

locations acreage commissioning. up just certainly our the in on anticipated With fourth the what be was design And production we coming that of quarter it South to Group has set this in timing strong designed the that mind, take a the but with Leidy fourth up those program, online able of quarter growth. cadence done the But set and in and increase back, pricing, by the of somewhat enhances us to the morning. was with here is also anticipation keep cadence for advantage that North has been which while built bring XXXX when

the this reduce little on the bring just are very, a increase on that bringing kind it this so given or either the was is enhance we months. delay can period quarter any but cadence quarter by you of how big production the year, on So, of but your have the had four somewhat five our pads few But that’s in it disruptive end quarter, slightly past back fourth accelerating towards design, into very in your dissipating we and during seen we year narrow one or us given a a bit three way it pad, that keep on any you if when or or – by on capital time winter design days production mind the and other. upfront

Leo Mariani

Okay. helpful. maybe a follow-up And just on expectations That’s your there.

kind of of South So, XXXX now. think can to the $X.XX local you going bit And be bit the benefit guess, right that terms you the you then, did earlier in the talk that? you quarter? that mention that comes to in better Is on? Leidy expecting to fourth are Maybe are update us despite a on you on ability hedge a still around hedge little you little can do pricing when and the I it, expansion lastly for just

around So maybe that. thoughts just any provide

Dan Dinges

at weigh kind will will the on just let first I South. mention market. the looking the of But also way. hedge I Leidy Jeff good. we the of out Very in are

We looking storage. We eye keep the are at the macro close environment. a on

we up constructive levels are to As and storage significantly east year down the five in from below year That’s drawn pricing. mentioned, all a the XXXX last average.

are for we point? have some eye going. close gas the volumes I that where a committee think a aware, Yes, hedge some Do hedge do. discussion. So keeping all we’ll at that. we are we’ve But XXXX have reasons on to And fairly regular prices basis been I been bullish have in meets on our natural

fact, forward The expect to being Leidy is demonstrated do Jeff, aware it. about continuing We you by let to industry you I macroenvironment. for look going And am the South, certainly what are also talk that as that Cabot. and you we that to constructive constraints capital the is

Jeffrey Hutton

Well, thank XXX,XXX for know Seneca, South, you, number drawing for day – from Leidy area. around Western – of XXX,XXX Northeast for of a in-basin and has on Leo. project a PA. was leadership day the Okay. you an the incremental it’s a the as Cabot, is And mode years been

a couple just For and Cabot, of and seeing Those much stations. projects compressor early involved of a little there. existing some the expansion complete, some are expansion begun we are happy bit stations new

We to up. on anticipate But frac December service X. a are going that through you full

during timing August. available could there that, time of likely prior However, outcome volumes rough to the be

project, monthly of the our the on the and that Transco schedule. For We pipe everything are schedule. do upgrades on with includes replacement Williams have and which rest is

down in-basin So, The and pricing Mid-Atlantic of most incremental does area. it the for markets. further Cabot out move we’ve already to part volume secured

and auctions we wait and have We see to are that on. opportunities here going some some

in-basin prices So the and Mid-Atlantic difference up we primarily pricing. pick will between the

pricing Although and other expectations fundamentals. our basin with storage improve levels with the materially will low eastern

Leo Mariani

Okay. Thanks guys.

Dan Dinges

Thank you, Leo

Operator

comes question from Arun Your Jayaram next the JPMorgan Chase. of with line

open. line Your is

Arun Jayaram

give if Yes. a of us that differentials expansion? Leidy views you Maybe pipe? Leo’s the just South. kind your in And you XXXX maybe thoughts Good when influenced also your us on remind you can this of morning. that can wondering question follow-up to on how transport on cost get Dan, maybe

Dan Dinges

Bcf from is, greater is already into for my We realized half make just we to competition I’ll little and Arun, a of out to constructive. takeaway. are And the there just it’s the up. very feel move about of differentials Yes. higher we’ll Jeff light Half of neck markets in the think a just it. is going a day improvements And as our be good you But telecommentary some you going view essentially and the having be let and I’ll a the basin seeing constructive. see wood out by and improvements I differentials and very gas-on-gas today reason Bcf too this follow-up. than to – the exacerbated much production

commentary. So, to in other and the period be northeast. pipelines XXXX look to my up constructive look XXXX the the forward constructive in We to into – XXXX the differentials we to other in to were for the forward also

Arun Jayaram

Cimarex Obviously, would an above of growth the of I market kind think need adequate your hurdle Great. Dan, rate below it’s today what $X. the adding of we kind getting end rate on about just is natural of still get to to different call the obviously just of price of signal Great. prices your return. the gas, curve a a back getting of to little near-term And merger. well want on follow-up, bit type with kind thoughts but a, it remains signal you my decision the are price a maybe But

Dan Dinges

Yes.

the a we low have We now plan in lined our discussed with a as right program the that’s stick out is close past we’ve and couldn’t growth. very that. as And maintenance to

demand shareholders one on impacts deliver tuned it makes sense look can for a us your – as into that value that can makes look at at a We moving can supply and We that’s moving you out your well price You program you and more market and versus a is look think on asset the oversupplied. is at to more point of base it gas your think than of not the much inventory, less a better of point. for inventory gas to more your price sense. for differentials

going coming measuring programming also. So make going forward. we to not Jeff look with the we the pleased then are are a price increased the and the and we we let that’s on the forward. And be – driver its importantly, I’ll dips going look is are dips, realizations we takeaway at at how more The effects what comment

Jeffrey Hutton

Yes.

would the differentials months least been other the question. that So, where total your or fundamentals a in driven have to has not bit with first a I point year. disappointing to at this argue There the and little factors.

spoke on I for the huge Atlantic about pipeline. said, basin good we to of was $X.XX than compares this original did foundation a market. was saw. have the but down of Transco. the All really Cimarex to Differentials operationally expansion, the markets the in to to of not from Leidy which our project that $X.XX earlier Cabot out that did per question, course the of end original that back XX That your – Mid-Atlantic pricing currently for rate pipeline the get a$X. the is basin Cabot year on rate for Mmbtu on May not down reasons, the $X.XX the system anticipate duration the to issue we affect the South drop replacement pipe As any in the of about not

Arun Jayaram

and for a call good be hedging. for think. to not to That your team congrats your I makes Thanks color Great.

Dan Dinges

Thanks, Arun.

Operator

of from Research. Wolfe Josh with next the Your line Silverstein question comes

open. Your line is

Josh Silverstein

morning, guys. Thanks. Yes. Good

the about curve. pricing talk the and stock to wanted forward Just

Your about over down stock while year, the up XXXX is period. is XX% now over the past XX% time that curve

aggressive dislocation to probably close now, that’s some that that really you’ve had the uncertainty your take now, to those advantage of that are like buyback this transactions. seems given We of around right as given right there only not that’s this it environment trying get stock. to How the get out to way

So, just curious around that.

Dan Dinges

range let let the with to have we is. Yes. we and to still are But respond being I’ll our I’ll all Scott quiver certainly disappointed that, also that. arrows our stock in but Josh, Scott handle where

Scott Schroeder

I been and think and in our what and very Board Cabot the to generation by at looking a the be double are mean it of circumstances I part Josh, circumstances would I under discussion modeling the think this That good Yes. particularly our higher the list, have normal mass standalone. week fact point we year. it’s on normal will and free be especially Board cash that second Meeting, room flow with going the would

we end an as close still arrow the Dan capital cash the in Our dividend we plenty come of when of that commitment will on that. laid the be also period, the in return aspects. that out in special we XX% of and want in the the before time the down manage all at the and report quarter quiver. balance those said, This, standalone by of merger, together still the things locked is announcement transitionary by the end anticipation sheet. the availability We year, the we’ve dynamic that of have year, make to closing the so What of to make but sure changes merger, still be the our this to out

in couple a us have We recently. calls shareholders this to had about investor talk more of

dynamic of know, us, to our forward. continue back As when the dynamic look be has we at going part of part and it will you been

the share announcement I still am you same this the in As in combined know organization. in

Not merger past question. time appreciate But a So, definitely think right and at the for the I discussion. the noise it’s the all this table the moment. big with on

Josh Silverstein

some $X.X be a and cash will assumptions Cimarex flow around Or asset now there. transaction PA? that? XXXX, can billion, of with of basically lot. free you’ve I the the are mode the it, the around outlined How in could Thanks maintenance any that? about base talk I of on comes base? think the a Northeast and much that helpful. just for be from call you your asset that in estimate higher And uncertainty behind the assumptions Yes. what assumptions And just Are sort versus agree then, Just that it between you,

Dan Dinges

rolling double And we as better and XXXX, Well, we starting year. going year. what are we I internal anticipate there of still going on it it’s Josh, significant free in of also. pick looking looking into cash – our to the on the models at half year to is, know higher say, forward cash We at flow out are the up volume half XXXX the mentioned free that than from which what certainly and a is realizations is models program second curve your had flow to allocation at in looking a have at our significantly looking capital our – just earlier this And first unhedged be, and be. guided the

right now, program but, designed we’ve our on The given our cash that guidance capital flow expectations. the our for. So, design on and macro is

Josh Silverstein

Thanks Alright. guys.

Dan Dinges

Josh. Thanks,

Operator

of Your Leggate Bank the of next question from Doug line America. comes with

Your line is open.

Doug Leggate

Dan, questions. capacity. two doing are the on this morning. you call takeaway appreciate [Indiscernible] on I Thanks.

laid given I you but guess. laid you’ve out of have and the kind over You merger, that post then strongly enough

standalone out to laid And you you the capacity couple years. the as mode Cabot would of that’s that – You’ve Does assets? expansion takeaway the from expect next over what back your… expansion see move

Dan Dinges

interrupt let could. you me if I Doug, one second

phone out having to cutting and question. I and in talking am Phil, phone a receiving I your am time and Your very your difficult is

Doug Leggate

Alright. the is any better, that I’ll up pick Dan? phone

Dan Dinges

Yes.

that. try Let’s

Doug Leggate

putting obviously today. it’s headset my up with try I’ll Okay.

about Sorry that.

to question simple the you you to do That what shale not longer takeaway be can the the Cabot’s and of to would lot longer think So, for for be term do means – production it does part with longer the term? in already, is obviously question. be a albeit plateau you ultimate is what capacity term Cabot are think Where production takeaway going value but get level? of capacity, on my you

Dan Dinges

The ultimate production?

Doug Leggate

Yes.

on of where today, can sight get over the years? have next of takeaway to think couple the With capacity you line you do you

Dan Dinges

Well, not speculate that to I out far. am going

We Leidy we the the see maintenance to the have premier the in we a Regional front locations capacity so PennEast glide now takeaways the capital light us. of South macro. additional a a in We’ve enhancing by that have long, long our basin. pleased there and runway takeaway and program Access, managed But of are of on right to in

And so, right now, like sheet. balance the shareholders like to cash see a a They flow. significant strong see amount of also free to

I able can market are deliver I as would be of We but say this. only as what both when us front way commissioned to speculating macro those, that. they the far in to of and of would maybe lines out be is answer those the timing

If on amount for a mean, drill from production, significantly I it get in to crews today it I am to of going in next the you them time might wanting the significantly. to the drill and increase just increase is years. long equipment done couple speculate But are bring and wells them it could able be where not frac and and where go

Doug Leggate

And guys on capital charge kind job of Matt your pretty ten how time. year you has a during led to explaining good discipline done

share are We cannot selling all of you the see process. Are own I about shareholders, you merger. curious get My this pushback that pushback really just could lot the happened. So a And But not just you if what are a to from concerned to is that and may now. going Cimarex congratulate you way can your company I’ll looking extent on concerned is, I that to did from achieved the closing? with has again, this am second clearly Cabot, the in curious on the that to of company for things. much The going as discussions at had them. you gassier that. am I the question SX shareholders your

Dan Dinges

this, kind are But the companies the much these in say combining of company the flow company, to I Well, reasons outlined going of be merge. the my positioned cash I I constrained a will somewhat for free more details across to drive we that It’s comments. significant the and am resilient cycles. stronger that on

We world, sun both the cycles now it gas benefit. is combined are flow where it’s would and be cash Cabot Cabot another its it’s right enhancing I think having and a the and in in to day seeing a natural of a benefit

disciplined you product and look of natural we the a of future, gas that combination are I energy company as at dynamic you cannot to don’t the long-term, going the So, that a balance the have how about delivering extremely free and strong objective how going any back don’t sheet with be creates and combination. forward this shareholder shareholders. a of I the of type embrace know with a know significant flow resiliency cash to not future could excited

Doug Leggate

you with answer. above a sure issue been all overlap. and as am the could comments know, achieved much the But I because more I thanks synergies Dan, think industrial is so lot issue. of I the the lack I your think appreciate of Yes, is have for

Dan Dinges

you. Thank

Operator

of Your Mehta next question comes from Sachs. Goldman with Neil the line

line Your open. is

Neil Mehta

team. Yes. Good morning,

been has you announcement, special about the the dividend curve and you what of peak into the or dividend of like wanted dividend you estimate that at following a you – think talk is year? be. could at think estimate look as you an Give look talked about acquisition, out us on you could follow-up next variable XXXX? the a reasonable a of Just what then to put Can forward variable

Dan Dinges

this. say will I Yes,

particularly to at dividend very the variable look looked way it and year. to is I the good think, the going this compared beginning of

off color Scott you give of. I’ll However, let some

Scott Schroeder

of Neil. to Thanks, shareholders. return going was XX% we Yes. is in in the forward dividend variable that the flow Remember company. the new And it Hi to Neil. supplemental or cash free called back memorialized cash

been realizations base, be $X.XX the broader the in a the not higher the going to mix, in variable, increase pre-announced only going also to the obviously, on level. the base company, the oil commodity in part the transaction. with side, it’s So, dividend of of new It’s the broader for the what’s forward robust obviously fairly terms

come year, combined a in the the again, guidance it’s is So, the that cash. was but out say for safe point together, we got of put being message key returned together, put as I that remember new in think minimum models flow cash to free of to XX%

Neil Mehta

the Okay. hub Henry is here. gas just market Great. then, on the And follow-up

think substitution start gas Can as gas ultimately balancing it flat really be as overall example thought that talk LNG right upside a that natural real has the do capacity we winter, gas a have org. cold been you you to that As Canadian what also about about flow you prices, have now scenarios. can we feeling much with about down potential the shut some creates if mechanism pronounced. for you Historically, you on think for design gas scenario? to But item, the coal-fired shutting or as it coal but as having in

what mechanism demand So, a gas about, potential on impact how natural due offset can the the is side think a that that do you cold to winter? very

Dan Dinges

that our I expert. Yes. Neil Thanks, will turn to Jeff, and gas

Jeffrey Hutton

we very into day the because intriguing too. here market perhaps in and an and obviously record the The across demand LNG that country is Mexico a question, was of robust we out. day have that’s thought that about Neil, exports – export Yes, impact currently consistent

imports been there the that the watch products upper is more as the upper direction out maintenance and we You you that’s we few source in Even evolving the the in here and are hiccups Canadian has in the to the years positioning and Canada got demand done increase. last Northwest from exports actually then there that. like But influenced interesting over Midwest. That’s watching to levels the mentioned the and of agro Midwest. Pacific with a couple just things see

I well, Bcf levels. coast well as well same the last are this they think year, a over XXX east time – somewhere

can your is So it question about good about – many our a question. we that. how go And supports think – or about that units

country the A the of we price And year. yes, and a for a be impacts good increases. so, for employed fundamentally set spot are this winter and system capital good will up year. year there It

impact. this customers. time source levels as not year to where We are get an [Indiscernible] our they to prepared last The well will to were

that relative and lack Chicago the amount storage year. taking think do had I areas that other the is the Boston last we how, York the market New of market, go that again So, market,

the I market of So, past. for, $X, later. the we’ve $X, expecting cap don’t in New if we there $X seen in a know is necessarily are York $X,

So, I all it’s table point. the on this at think

Neil Mehta

guys. Thanks

Dan Dinges

you, Neil. Thanks

Operator

next of comes Energy from Pickering Your line the with question David Heikkinen Partners.

line Your open. is

David Heikkinen

Yes. of merger Good to wanted make the for I the of about correctly. morning, all I and the sure thanks am that thinking synergies one question. taking

you talk the and merged, and then little the if a company, with the on commodity Cabot, given and prices, standalone just to where your quantify that your about are cash we deferred of particularly you you increasing for just over But taxes tax bit get you? time NOLs you change some in benefit increasing , So, had benefit just to thoughts the then the get Cabot helpful new standalone could wanted Cimarex were to be taxes how kind now, of cash percentage. that once of

Dan Dinges

we run No, I all modeling once have all – have getting and we the do Scott we all Matt kinds the David, both get the that approval. into here of details, But… shareholder of can on and

David Heikkinen

been Maybe about helpful be have what merge? with cash your those would talk then taxes standalone just and would

Dan Dinges

Yes.

David. Thanks, Okay.

Matt Kerin

Matt. we with and environment It’s could XX% year at currently be David. Hey, we looking maybe are this XX% Yes current today. that deferred the even are that

in the and it’s go But if and taking the that be we at standalone were beyond, movement down able As we’d and we that’s environment, XXXX to certainly obviously are number double our the although a we year we to all look XX% next that what IT. so bit. a advantage XXX looking at something our be and going XX%, deferred in on of a take maybe the to are pricing we very sensitive will but then XXX, new to on little

David Heikkinen

makes you That’s Yes. commodity even that for benefit. feel as get us you all moving better is

just you. trying quantify. So I to helpful. That’s Thank was

Dan Dinges

Thanks, David.

Operator

closing remarks. This session. back over concludes our answer conference turn would to question Dinges for I and the like Dan to

Dan Dinges

are have. not thank to combination with shareholder all for fourth if the get quality for The to able the Philippe, quality asset and for bright, extremely to they groups. certainly you, represented the have. early more, committed in We Cimarex, Cabot, excited the tuning both It’s of And are about for they bright to we be and you that its opportunity obtain deliver a quarter. in. we future all we’ve approval deliver look shareholders the people forward we closed shareholder and future once the Thank

So, thanks very again Thank look for to your we forward you and interest the meeting have. next much. we

Operator

call. today's This concludes conference

disconnect. You may now

Coterra Energy (CTRA) 30 Jul 212021 Q2 Earnings call transcript