Cabot Oil & Gas Corp. Q3 2009 Earnings Call Transcript

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2009-10-27 11:21:09.0

Tags: New York, Call Transcript, Completion, Earnings, Cabot Oil & Gas Corp., Capital Structures, Sales Strategy, Finance, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Ellen Hannan with Weeden & Company.

Ellen Hannan - Weeden & Company

Just a couple of questions on your acreage position in Northeast Pennsylvania, you said 170,000 acres, I wanted to see if that was your net number. In terms of leasing, are you looking at anything in New York State?

Dan Dinges

As far as our gross to net up there, they're just about an overlay, Ellen, on the numbers I gave you. In regard to New York, there is still not any clarity yet on when the Marcellus or other operations will be available in New York and hence we are not spending any capital in looking in New York.

Ellen Hannan - Weeden & Company

Looking at your efficiency improvements, again, in the Susquehanna area going from 87 days it looks like to drilling completed well down to 22, it looks like your completion part of your activity is actually increased. So what do you attribute that efficiency gain to?

Dan Dinges

Well, we have on the completion side, of course, the water hauling is a big issue for us. We have acquired and have built more frac tanks to be able to move around to locations. So, logistically, we're now able to get out ahead of the completion process more or so than we were earlier when we had fewer trucks hauling water, fewer fracs and so we're now on a pretty good steady incline. The 22 days, actually it's kind of been between 18 to 22 days is our drilling only number.

Ellen Hannan - Weeden & Company

Dan, I just had one question in your Southern region. You mentioned I think that you said that you're looking at five horizontal Haynesville wells planned for 2010 at this juncture. Are any of those 100% Cabot wells or are those all in your AMI?

Dan Dinges

Yes. The location we're preparing and starting to prepare right now which kind of offsets our Von Goetz well is a 100% location at this stage.

Operator

Your next question comes from the line of Michael Jacobs with Tudor Pickering and Holt.

Michael Jacobs - Tudor Pickering and Holt

Dan, thanks for walking us through your activity by region as it relates to how we should think about guidance. That's really helpful. I had a few follow-ups to that end. I wanted to kick things off in the Marcellus. When we look ahead to 2010 of the 73 wells that you plan to drill, how many of those do you expect to put on to sales?

 

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