Investment thesis
Cabot Oil & Gas (COG), one of the most profitable natural gas producers in the Marcellus shale play, has seen its financials weaken in 2019, as the oversupplied U.S. natural gas markets weighed on gas prices.
Yet, the stock price has recently stabilized after the disappointing 2Q2019 earning release, which confirmed that COG's revenue stream and free cash flows are on a declining path.
In spite of that, COG's profitability is unmatched in the Marcellus shale play, and its decision to acquire additional acreage on its eight-well pad will boost capital