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$COG agreed to sell its operated and non-operated Eagle Ford Shale assets to an affiliate of Venado Oil & Gas LLC for $765MM. This transaction is expected to close during 1Q18. Separately, the company announced the sale of its remaining East Texas assets to an undisclosed buyer that is expected to close on or before July 1, 2018.
$COG stated that on the exploratory well digging in 2H17, the company is going to plan within its $125MM budget to drill five well. $COG added that it has four wells in one area, which is the areas where it has less sub surface control points to be able to mature its concept. The other well is in the area of more sub surface information.
$COG expects 3Q17 net production to be 1,750-1,800 Mmcf per day for natural gas, while for crude oil and condensate the company expects net production of 13,000-13,750 Bbls per day. For NGL’s $COG expects net production to be in the range of 1,350-1,450 Bbls per day in 3Q17. For FY17, $COG expects production growth to be in the 8-12% range.
Higher price, increased production, and spiked operating revenue helped $COG swing to profit in 2Q17. The oil and gas producer reported net income of $21.52MM or $0.05 per share compared to a net loss of $62.91MM or $0.14 per share a year earlier. Operating revenue surged 86.5% to $460.45MM. Excluding items, $COG earned $0.14 per share.
$COG believes the $125MM allocated for exploration is consistent with its prior levels of capital allocation. The Marcellus Shale is a low capital intensity asset in terms of the drilling rigs and frac crews required to grow production. The company believes it has the potential to generate a significant amount of free cash.
$COG raised its FY17 production growth guidance range from 5-10% to 8-12%. Additionally, it has increased its capital budget for the year to reflect an increase of up to $125MM for exploratory leasing and testing, resulting in FY17 exploration and production spending of up to $775MM.
Petroleum and gas production company $COG swung to a profit in 1Q17 from a loss a year ago, helped by higher natural gas prices due to the recent tightening in the US market. Net income was $105.7MM, or $0.23 per share, compared to a net loss of $51.2MM, or $0.12 per share in 1Q16. Excluding special items, net income was $0.19 per share.
For 2017, $COG increased total program spending from $625MM to $720MM. This includes $85MM increase for additional Eagle productivity to capitalize on the higher prices, improved well productivity, $20MM increase in equity pipeline investments and $15MM increase in the Marcellus.
$COG provided 1Q17 net production guidance of 1,780 to 1,820 million cubic feet (Mmcf) per day for natural gas; 10,000 to 10,500 Bbls per day for crude oil and condensate; and 1,200 to 1,250 Bbls per day for NGLs. For 2017, $COG reiterated its production growth forecast of 5-10% and initiated crude oil production growth estimate of 15%.
$COG's natural gas price realizations, including the impact of derivatives, were $1.94 per Mcf for 4Q16. $COG's oil price realizations, including the impact of derivatives, grew 14% to $42.94 per Bbl. NGL price realizations rose 18% to $13.84 per Bbl. $COG drilled 12 gross (10.0 net) wells and completed 25 gross (25 net) wells in 4Q16.
$COG's equivalent production for 4Q16 was 164.2 billion cubic feet equivalent (Bcfe), consisting of 158.6 Bcf of natural gas, 822.7 thousand barrels (Mbbls) of crude oil and condensate, and 106.5 Mbbls of natural gas liquids (NGLs). Equivalent production increased 9% from 3Q16 and was in line with the high-end of its guidance range for the quarter.