Cabot Oil & Gas (COG) Falls Despite Earnings Beat

NEW YORK (TheStreet) -- Cabot Oil & Gas (COG) was falling 5.7% to $37.04 on Friday despite fourth-quarter results that beat analysts' estimates.

The oil and gas producer reported a 91% increase in profit for the quarter, and earnings of 19 cents a share, up from 10 cents a share in the year-ago quarter. Analysts surveyed by Thomson Reuters expected earnings of 18 cents a share. Revenue rose 32% to $487.5 million in the quarter, beating analysts' estimates of $476 million.

Natural gas production rose 56% in the quarter, though average prices decreased 12% from the year-ago period. Oil, condensate, and natural gas liquids output increased by 34% while average prices declined 9.3%.

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TheStreet Ratings team rates CABOT OIL & GAS CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation:

"We rate CABOT OIL & GAS CORP (COG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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