JP Morgan Focuses On Near-Term Activity For Cabot OIl & Gas

JP Morgan has published a research report on Cabot Oil & Gas (NYSE: COG) and writes that "Given our negative view on the gas market, COG's leverage to gas could cause the stock to decline. COG is focusing its near-term activity primarily on the Marcellus Shale, but it also has Eagle Ford Shale and non-operated Haynesville Shale activity. Based on our current valuation, COG stock has upside, but it is highly levered to natural gas. Additionally, COG's next step-up in production in the Marcellus Shale is dependent on the PA DEP approval of additional compressors at Lathrop, which, in our view, increases the near-term risk associated with COG's production."

JP Morgan maintains its Neutral rating and $50 price target.

Cabot Oil & Gas closed Friday at $36.93.