Most natural gas producers are sitting on reserves that once the price of gas goes up, stand to profit nicely. In the meantime, the smart players are making sure to be well positioned in good natural gas plays to capitalize on the rise. Cabot Oil & Gas (COG) is one of those smart players. The company continues to focus a large portion of its resources toward the exploration and production of natural gas. With the spectacular production of 752 Mmcf during one 24-hour period last month at its Marcellus play and its Pearsall Shale play joint venture with Osaka Gas, as well as a few others, Cabot is marching headlong toward future success by increasing production now. I believe Cabot to be a strong buy now and one to hold onto for a very long time.
Cabot has some company in the Marcellus play. Talisman Energy (TLM)has invested aggressively in the Marcellus Shale, increasing production to approximately 485 million cubic feet per day in first quarter 2012 and has about 200,000 net acres under lease in Pennsylvania. This past summer, Talisman, Canada’s fifth-largest independent oil explorer, backed out of adeal with Sasol Ltd of South Africa citing that its immediate focus is to accelerate investment in near-term liquids opportunities, with the goal of increasing liquids and oil-linked gas production to 300,000 barrels a day by 2015. Chevron (CVX) is another company prospering in Marcellus Shale. Chevron made its way into Marcellus when it acquired Atlas Energy, Inc. and other properties in the area for around $4 billion. To continue reading, click here.