This is a Z4 Research Pre Call Note
COG Reports Solid 3Q19 Results Despite Depressed Natural Gas Prices; Increases Dividend; Lays Out Potential Maintenance Mode Avenue
The 3Q19 Numbers:
- Volumes were in the upper half the guidance range,
- Differentials: $0.34 below Nymex (a not unexpected widening and there was no change to the 2019 differential guidance range).
- Cash OPEX (defined by us as direction operations plus transportation and gathering plus production taxes plus cash G&A) were $0.84 / Mcf, flat with 2Q levels and down 4 cents / Mcf vs 3Q18.
- Free cash flow story