Cabot Oil & Gas (COG) is facing a more challenging long-term outlook with the cancellation of the Atlantic Coast Pipeline. While it should still be in good financial shape, takeaway capacity issues could push its long-term realized price for natural gas below $2 and reduce the amount of positive cash flow that it could generate. The outlook for future new Appalachian pipelines also looks uncertain given the lengthy and costly battles to attempt to advance the Atlantic Coast Pipeline and the Mountain Valley Pipeline (which may still be completed in 2021).
Cabot's estimated