INVESTOR PRESENTATION EnerCom s The Oil & Gas Conference 19 August 18, 2014
KEY INVESTMENT HIGHLIGHTS Extensive Inventory of Low-Risk, High-Return Drilling Opportunities Industry-Leading Production and Reserve Growth Over 3,000 locations in the sweet spot of the Marcellus Shale, implying 25+ years of inventory at current drilling levels Peer-leading rates of return and EUR per lateral foot in the Marcellus Shale Oil-focused initiative in the Eagle Ford Shale 2014 production growth guidance of 28% - 41% Initial 2015 production growth guidance of 20% - 30% 2013 proved reserve growth of 42% resulting in a three-year reserve CAGR of 26% 2013 total company all-sources finding costs of $0.55 per Mcfe Low Cost Structure 2013 Marcellus-only all-sources finding costs of $0.40 per Mcf 2014 total company per unit cash cost 1 guidance of ~$1.25 per Mcfe 2014 Marcellus-only per unit cash cost 1 guidance of ~$0.75 per Mcf Strong Financial Position and Financial Flexibility Net debt to adjusted capitalization ratio of 32.3% as of 6/30/2014 Over $900 million of liquidity as of 6/30/2014 1 Excludes DD&A, exploration expense, stock-based compensation and pension termination expenses 2
ASSET OVERVIEW 2013 Year-End Proved Reserves: 5.5 Tcfe 2013 Production: 413.6 Bcfe 2014E Production: 530 585 Bcfe 2014E Drilling Activity: 150 170 net wells Marcellus Shale ~200,000 net acres Current Rig Count: 6 2014E Drilling Activity: ~110 net wells Eagle Ford Shale ~53,000 net acres Current Rig Count: 3 2014E Drilling Activity: 40-50 net wells 3
PROVEN TRACK RECORD OF PRODUCTION GROWTH 700 600 500 2015 Guidance: 20% - 30% 413.6 Bcfe 400 300 267.7 2014 Guidance: 28% - 41% Liquids Gas 54.5% 200 130.6 187.5 42.8% 100 43.5% 0 2010 2011 2012 2013 2014E 2015E 4
AND RESERVE GROWTH 9.0 8.0 7.0 6.0 5.5 Tcfe 5.0 4.0 3.0 2.7 12.3% 3.0 26.7% 3.8 41.9% Liquids Gas 2.0 1.0 0.0 2010 2011 2012 2013 2014E 2015E 5
INDUSTRY-LEADING CASH COST STRUCTURE $2.50 Operating Transportation¹ Taxes O/T Income Cash G&A² Financing $2.12 $2.00 $1.76 $1.67 $ / Mcfe $1.50 $1.28 Guidance Midpoint: $1.25 $1.00 ~$0.75 $0.50 $0.00 2010 2011 2012 2013 2014E 2014E Marcellus Only 1 Includes all demand charges and gathering fees 2 Excludes stock-based compensation and pension termination expenses 6
CAPITAL EFFICIENT ASSETS CONTINUE TO RESULT IN SUPERIOR FINDING COSTS... Total Company All-Sources F&D Marcellus-Only All-Sources F&D $1.25 $1.21 $1.05 $1.00 $0.87 $ / Mcfe $0.75 $0.50 $0.63 $0.65 $0.49 $0.55 $0.40 $0.25 $0.00 2010 2011 2012 2013 7
RESULTING IN PEER LEADING GROWTH WITHOUT STRESSING THE BALANCE SHEET 31% 30% 29% 29% LTM Discretionary Cash Flow Growth (%) 27% 26% 19% 14% COG Peer A Peer B Peer C Peer D Peer E Peer F Peer G 45% LTM Production Growth (%) 28% 21% 20% 16% 14% 13% 7% COG Peer B Peer G Peer E Peer F Peer C Peer A Peer D LTM Capital Expenditures / Discretionary Cash Flow (%) 98% 106% 118% 118% 125% 126% 133% 153% Peer E COG Peer D Peer F Peer C Peer A Peer G Peer B Data as of 6/30/2014 company filings. Peers include Cimarex Energy, Concho Resources, EQT, Noble Energy, Pioneer Natural Resources, Range Resources and Southwestern Energy 8
WHILE PROVIDING TOP-TIER COMPANY WIDE RETURNS 15.4% 15.1% LTM Cash Return on Cash Invested 1 14.8% 13.8% 13.6% 11.7% 10.9% 10.5% COG Peer A Peer B Peer C Peer D Peer E Peer F Peer G % Liquids 2 4% 64% 0% 66% 46% 8% 52% 34% 1 (LTM cash flow from operations + after-tax financing costs - exploration expense) / average gross cash invested (gross PP&E + other assets + goodwill + net working capital + cash) 2 Based on 1H 2014 production mix Data as of 6/30/2014 company filings. Peers include Cimarex Energy, Concho Resources, EQT, Noble Energy, Pioneer Natural Resources, Range Resources and Southwestern Energy 9
HIGHLY PRODUCTIVE, LOW CAPITAL INTENSITY MARCELLUS ASSETS 373 2H 2013 Cumulative Gross Production From Unconventional Horizontal Wells in Pennsylvania (Bcfe) 229 149 123 106 98 91 61 59 56 Peer A COG Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I # of horizontal producing wells 611 279 642 225 168 257 350 136 207 277 Cabot s Marcellus assets accounted for ~14% of the gross oil and gas production in the state of Pennsylvania during the second half of 2013 from only ~6% of the total producing wells Source: PA DEP Website; Peers include Anadarko Petroleum, Chesapeake Energy, Chevron, EQT, Range Resources, Seneca Resources, Southwestern Energy, Shell and Talisman 10
CABOT S EUR PER FOOT AND F&D COSTS REMAIN BEST-IN- CLASS IN THE MARCELLUS AND UTICA 4.0 $1.20 EUR per 1,000 ft. of lateral (Bcfe) 3.5 3.0 2.5 2.0 1.5 1.0 $1.00 $0.80 $0.60 Implied F&D Cost ($/Mcfe) 0.5 $0.40 Source: Company presentations; peers include Antero Resources, EQT Corporation, Gulfport Energy, Noble Energy, Range Resources, and Rice Energy 11
CONTINUED IMPROVEMENT IN MARCELLUS RESULTS DRIVEN BY COMPLETION ENHANCEMENTS Proppant Per Foot (Lbs.) ~1,900 2009 2010 2011 2012 2013 EUR Per 1,000 Feet of Lateral (Bcf) 3.6 2009 2010 2011 2012 2013 COG has realized a 25% increase in Marcellus PV-10s due to changes in completion design since 2009, assuming a 5,000 lateral and current service costs 12
CABOT S MARCELLUS ECONOMICS Typical Marcellus Well IRR Sensitivity 250% BTAX %IRR 200% 150% 100% 50% 206% 150% 102% $3.00 $3.50 $4.00 COG s expected 2014 Marcellus realized natural gas price Typical Marcellus Well Parameters (Based on 2013 Program) EUR: 16.9 Bcf Well Cost: $7.0 million Lateral Length: 4,666 Number of Stages Per Well: 23 Average Working Interest: 100% Average Revenue Interest: 85% Cabot plans to drill longer laterals in 2014 relative to the 2013 program 13
EAGLE FORD PERFORMANCE IMPROVEMENTS 5,813 Lateral Length (Ft.) 6,872 Proppant Per Lateral Foot (Lbs.) 1,546 1,831 2013 2014 YTD 2013 2014 YTD Cumulative Oil Production Per Lateral Foot (Bo/Ft.) 7.7 5.8 5.8 2.0 3.4 4.0 2013 2014 YTD 30-Day 60-Day 90-Day 14
CABOT S EAGLE FORD ECONOMICS Typical Eagle Ford Well IRR Sensitivity 90% 80% 86% BTAX %IRR 70% 60% 50% 40% 66% 48% $80.00 $90.00 $100.00 WTI Oil Price ($/Bbl) Typical Eagle Ford Well Parameters EUR: 500 MBoe Well Cost: $7.0 million Lateral Length: 7,000 Number of Stages Per Well: 26 Average Working Interest: 100% Average Revenue Interest: 75% Note: Economics include facilities costs. Assumes Henry Hub price of $4.00 and NGL price of 40% of WTI. 15
ONGOING INITIATIVES TO ENHANCE SHAREHOLDER VALUE North Region 500 Marcellus downspacing pilots 150 Marcellus frac stage spacing pilots Wood County, WV Point Pleasant test Other exploratory concepts under review South Region 300 Eagle Ford downspacing pilots 200 Eagle Ford frac stage spacing pilots Further refining lateral placement Optimizing production facility design Increasing pad drilling efforts through walking rig packages Ongoing grassroots Eagle Ford leasing program 16
Pricing 17
2H 2014 TOTAL COMPANY NATURAL GAS PRODUCTION EXPOSURE BY INDEX 9% 6% 2% 1% 26% Average discount of ~$0.30 to NYMEX NYMEX Leidy Line Millennium Tennessee Zone 4-300 Leg 18% Dominion 20% Columbia 18% TETCO M3 Houston Ship Channel 18
ILLUSTRATIVE 2H 2014 TOTAL COMPANY NATURAL GAS PRICE REALIZATIONS (INCLUDING THE IMPACT OF HEDGES) $3.75 NYMEX (Sept. - Dec.) $4.00 NYMEX (Sept. - Dec.) $4.25 NYMEX (Sept. - Dec.) 2H 2014 COG Total Company Natural Gas Realizations ($/Mcf) $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $3.31 $3.18 $3.23 $3.26 $3.13 $3.17 $3.20 $3.07 $3.11 $3.14 $3.01 $3.06 $3.08 $2.96 $3.00 ($1.00) ($1.25) ($1.50) ($1.75) ($2.00) Basis Differential Sensitivities for TGP Zone 4 300 and Leidy Line Prices Note: Assumes actual index settlement prices for July - August and the following regional basis estimates for September December based on futures curves and indicative quotes: TCO ($0.10); DTI ($1.41); MPL ($1.54); TETCO M3 ($0.65) 19
DIVERSITY OF TAKEAWAY OPTIONS OUT OF THE MARCELLUS Canada NY Iroquois VT NH TGP 200 Line Constitution MA Boston Laser Millennium CT RI TGP 300 Line Hartford Transco Central Penn Springville PA Susquehanna County NJ New York City Long Island Current Markets Tennessee Gas Pipeline (300) Transco Gas Pipeline Millennium Gas Pipeline Late 2015 / Early 2016 New Markets Iroquois Pipeline Tennessee Gas Pipeline (200) TransCanada Pipeline (via Iroquois) Washington D.C. Cove Point LNG Facility 2017 New Markets Cove Point LNG Facility Washington D.C. (WGL) 20
Current Focus 21
CABOT S STRONG BALANCE SHEET AND FREE CASH FLOW OUTLOOK PROVIDE OPPORTUNITIES TO ACCELERATE VALUE Eagle Ford Acceleration Share Repurchases Acceleration of Organic Exploration Opportunities 22
Thank you The statements regarding future financial performance and results and the other statements which are not historical facts contained in this presentation are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price of natural gas and oil, results of future drilling and marketing activity, future production and costs, and other factors detailed in the Company s Securities and Exchange Commission filings. 23