FINANCIAL ANALYSIS

HTC and Cabot Oil & Gas Corporation

Table of Contents

Introduction3

Background and Industry3

Financial Performance of Cabot Oil & Gas Corporation5

Financial Ratios of Cabot Oil & Gas Corporation for 2008 to 20105

Liquidity Ratios7

Profitability Ratios7

Debt Management8

Assets Management Ratios8

Return on Equity for 2008, 2009, and 2010 using the DuPont analysis9

Financial Analysis12

Stock Performance15

Recommendation17

HTC and Cabot Oil & Gas Corporation

Introduction

The study is about High Technology Corporation which is going to further expand its business in the international market. In addition this, High Technology Corporation is currently a new fully integrated wireless communication service for worldwide use. For this purpose, HTC wants to have knowledge of Cabot Oil & Gas Corporation, as it is offering competitively favorable deal to HTC.

Background and Industry

Cabot Oil & Gas is an oil and gas company engaged in the development, exploitation, exploration, production and marketing of natural gas, crude oil and, to a lesser extent, natural gas liquids. Company also transports, stores, gathers and produces natural gas for resale. Company's exploitation and exploration activities are focused in areas with known hydrocarbon resources. Company operates in the North region, which consists of Rocky Mountain and Appalachian areas; and South region, which consists of Texas and Louisiana areas. As of Dec 31 2010, company had proved reserves totaling approximately 2.70 trillion cubic feet of natural gas equivalents, of which 98.0 % were natural gas.

Cabot Oil & Gas Corporation (Cabot) is a US based independent Oil and Gas Company. Cabot is involved in the exploration, development, production and marketing of crude oil, natural gas liquids and natural gas. It is also engaged in the transportation, storing, gathering and producing natural gas for resale. Its exploitation and exploration activities are concentrated in areas of hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. The company's principal areas of operations include Rocky Mountain and Appalachian areas in North region, and the Anadarko Basin in Texas and Louisiana areas of south region. The company is headquartered at Houston in Texas, the US.

Financial Performance of Cabot Oil & Gas Corporation

Cabot Oil & Gas Corporation

Marathon Oil Corp.

Anadarko Petroleum Corp

2010

2009

2008

2010

2009

2008

2010

2009

2008

Revenue

844.04

879.28

944.76

29,974.02

2,367.00

2,576.07

13,592.10

3,422.70

3,521.00

EBITDA

588.9

581.55

618.78

8,202.00

1,894.74

1,824.00

8,475.10

2,072.35

2,243.00

Net income (loss)

103,386

148,343

211,290

2,568,000

1,463,000

3,528,000

821,000

-103,000

3,261,000

Earnings Per Share

0.98

1.72

2.31

3.47

0.85

0.79

3.42

0.76

0.8

Total stockholders' equity

1,872,700

1,812,514

1,790,562

21,439,000

20,415,000

226,574,408

23,771,000

21,910,000

21,409,000

Working Capital

720,920

705,569

675,568

6,756,000

6,738,000

6,696,000

7,496,000

7,243,000

5,696,000

Total assets

4,005,031

3,683,401

3,701,664

50,014,000

47,052,000

42,686,000

51,559,000

50,123,000

48,923,000

Total liabilities

2,132,331

1,870,887

1,790,252

26,243,000

25,142,000

21,277,000

13,284,000

13,136,000

13,364,000

Financial Ratios of Cabot Oil & Gas Corporation for 2008 to 2010

As it is known that the most important factors in the well being of a business, is to see that it operates at a profit and to organize it in order to be able to meet its liabilities at appropriate times. If either of these points is not covered efficiently it could mean that the business might have to be closed down. This is the reason why we choose to calculate profitability and liquidity ratios and other ratios, which are the most important and reliable guides (Ray and Eric, 2008). In addition to this, various past studies states that we decide to calculate activity ratios in order to see how efficiently the company like Cabot Oil & Gas Corporation has managed its debt management ratios, asset management ratios and per share values to commend upon the Cabot Oil & Gas Corporation's sources ...