Cabot Oil & Gas : First Quarter 2020 Earnings Presentations

First Quarter 2020 Results

April 30, 2020

Forward-Looking Statements and Other Disclosures

This presentation includes forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements regarding future financial and operating performance and results, returns to shareholders, strategic pursuits and goals, market prices, future hedging and risk management activities, and other statements that are not historical facts contained in this report are forward-looking statements. The words "expect", "project", "estimate", "believe", "anticipate", "intend", "budget", "plan", "forecast", "outlook", "target", "predict", "may", "should", "could", "will" and similar expressions are also intended to identify forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the effects of the COVID-19 pandemic and the impact thereof on the Company's business, financial condition and results of operations, market factors, market prices (including geographic basis differentials) of natural gas and crude oil, results of future drilling and marketing activity, future production and costs, pipeline projects, legislative and regulatory initiatives, electronic, cyber or physical security breaches and other factors detailed herein and in our other Securities and Exchange Commission (SEC) filings. See "Risk Factors" in Item 1A of the Form 10-K and Form 10-Q and subsequent public filings for additional information about these risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Any forward-looking statement speaks only as of the date on which such statement is made, and Cabot Oil & Gas (the "Company" or "Cabot") does not undertake any obligation to correct or update any forward-looking statement, whether as the result of new information, future events or otherwise, except as required by applicable law.

This presentation may contain certain terms, such as resource potential, risked or unrisked resources, potential locations, risked or unrisked locations, EUR (estimated ultimate recovery) and other similar terms that describe estimates of potentially recoverable hydrocarbons that the SEC rules prohibit from being included in filings with the SEC. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and may not constitute "reserves" within the meaning of SEC rules and accordingly, are subject to substantially greater risk of being actually realized. These estimates are based on the Company's existing models and internal estimates. Actual locations drilled and quantities that may be ultimately recovered from the Company's interests could differ substantially. Factors affecting ultimate recovery include the scope of the Company's ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availably of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, actual drilling results, including geological and mechanical factors affecting recovery rates, and other factors. These estimates may change‐ significantly as development of the Company's assets provide additional data. Investors are urged to consider carefully the disclosures and risk factors about Cabot's reserves in the Form 10 K and other reports on file with the SEC.

This presentation also refers to Discretionary Cash Flow, EBITDAX, Free Cash Flow, Adjusted Net Income (Loss), Return on Capital Employed (ROCE), Net Debt calculations and ratios and Finding and Development Costs. These non-GAAP financial measures are not alternatives to GAAP measures, and should not be considered in isolation or as an alternative for analysis of the Company's results as reported under GAAP. For additional disclosure regarding such non-GAAP measures, including definitions of these terms and reconciliations to the most directly comparable GAAP measures, please refer to Cabot's most recent earnings release at www.cabotog.comand the Company's related 8-K on file with the SEC.

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First Quarter 2020 Highlights

• Net income of $53.9 million (or $0.14 per share); adjusted net income (non-GAAP) of $54.0 million (or $0.14 per share)
• Free cash flow (non-GAAP) of $49.8 million
• Return on capital employed (ROCE) (non-GAAP) for the trailing twelve months of 14.1 percent
• Daily equivalent production of 2,363 million cubic feet equivalent (Mmcfe) per day, an increase of four percent relative to the prior-year period
• Net debt / LTM EBITDAX (non-GAAP) of 0.9x and liquidity of ~$1.7bn as of 3/31/2020

Note: See supplemental tables at the end of the presentation for a reconciliation of non-GAAP measures

1 Includes direct operations, transportation and gathering, taxes other than income, exploration, DD&A, general and administrative, and interest expense

	Q1	Q4	Q1
	2020	2019	2019
Equivalent Production (Mmcfe/d)	2,363	2,457	2,276
Realized Gas Price (Incl. Hedges) ($/Mcf)	$1.72	$2.15	$3.35
Realized Gas Price (Excl. Hedges) ($/Mcf)	$1.72	$2.05	$3.09
Net Income ($mm)	$53.9	$147.0	$262.8
Adjusted Net Income (non-GAAP) ($mm)	$54.0	$120.8	$307.8
Discretionary Cash Flow (non-GAAP) ($mm)	$198.5	$277.5	$505.9
Free Cash Flow (non-GAAP) ($mm)	$49.8	$109.5	$308.4
EBITDAX (non-GAAP) ($mm)	$189.0	$300.3	$513.7
Operating Expenses1 ($/Mcfe)	$1.46	$1.43	$1.48
LTM Net Debt / EBITDAX (non-GAAP)	0.9x	0.7x	0.6x
TTM ROCE (non-GAAP)	14.1%	22.2%	20.4%
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Cabot Oil & Gas Strategy

Focus on Financial Returns

Demonstrate Continued Cost Control

Maintain Financial Strength

Generate Positive Free Cash Flow

Return Capital to Shareholders

Increase Our Proved Reserve Base

• Generate financial returns that exceed our cost of capital by focusing on disciplined capital investment and maintaining a low cost structure
• TTM Q1 2020 ROCE of 14.1%
• Low cost structure provides a competitive advantage, especially in a low natural gas price environment
• Q1 2020 operating expenses per unit (including interest expense and G&A) of $1.46 per Mcfe
• Net debt / LTM EBITDAX of 0.9x as of 3/31/2020
• Liquidity of ~$1.7bn as of 3/31/2020, including $202.8mm of cash on hand
• Expected to generate positive free cash flow for the fifth consecutive year1
• 2020 program is expected to generate enough free cash flow to fully fund the Company's dividend1
• Minimum annual return of capital target of at least 50% of free cash flow
• Reduced weighted-average shares outstanding by 14% and increased dividend five times since 2017
• Increased proved reserves by 11% in 2019 at an all-sources F&D cost of $0.36 per Mcfe
• Over two decades of remaining drilling locations, including nine years of remaining Lower Marcellus inventory

Note: See supplemental tables at the end of the presentation for a reconciliation of non-GAAP measures
1 Based on the current NYMEX futures curve as of the week of April 27, 2020	4

2020 Capital Program & Outlook

2020 Capital Program: $575 million

Drilling / Completions / Facilities

Other Program Capital¹

8%

92%

• Cabot's 2020 maintenance capital program of $575 million is expected to deliver an average net production rate of 2,350 - 2,375 Mmcfe per day (flat production year-over- year)
• • Program includes 60 - 70 net wells drilled, completed, and placed on production
  • Approximately two-thirds of the capital program is expected to be incurred during the first half of 2020 based on the current drilling and completion schedule
  • Approximately two-thirds of the 2020 wells are expected to be placed on production between mid- May and late August, resulting in a significant sequential production increase in Q3 2020
  • • Fourth quarter 2020 production is expected to be flat to the fourth quarter of 2019
• Based on the current NYMEX futures curve2, the program is expected to generate enough free cash flow to fully fund the Company's dividend

1	Includes production equipment, lease acquisition, corporate, and GasSearch Drilling (GDS) capital	5
2	As of the week of April 27, 2020

The Outlook for Natural Gas Markets Has Improved Significantly, Driven By Large Reductions

in Operating Activity Across Both Gas-Focusedand Liquids-FocusedBasins…

Horizontal Rig Count

	Peak 2019 Rig Count		Current Rig Count

70

60

50

40

30

20

54%	41%
decline
decline

55%

450

400

350

300

250

200

150

100

46%

decline

59%

10

0

decline 50 0

Marcellus Haynesville Utica

Gas-Focused Basins

	decline	93%	55%	52%
	decline
	decline
		decline
Permian	Eagle Ford	Cana	Williston	DJ/Niobrara
		Woodford

Liquids-Focused Basins

Source: Baker Hughes Rig Count as of April 24, 2020	6

…Resulting in the Expectation for Material Declines in U.S. Dry Gas Production in 2020 and 2021…

U.S. Dry Gas Production (Bcf/d)

96.0	Dec. 2019:
	94.3 Bcf/d
94.0
92.0
90.0
	Dec. 2018:
88.0	88.0 Bcf/d
Dec. 2020E:
	86.5 Bcf/d
86.0	Mar. 2021E:
	84.1 Bcf/d
84.0
82.0

Source: Genscape Forward Natural Gas Supply and Demand Forecast as of April 24, 2020

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…and Higher Natural Gas Prices Due to a Healthier Natural Gas Supply and Demand Balance

2021 NYMEX Futures Daily Settlements ($/Mmbtu)

$2.80	Current:
	~$2.75
$2.70
$2.60
$2.50
$2.40
$2.30
$2.20

Source: J.P. Morgan Commodities as of 4/30/2020	8

Appendix

2020 Guidance

2020 Guidance

• 2020E production guidance: 2,350 - 2,375 Mmcfe per day
• • The midpoint of the production guidance range implies flat production levels year- over-year, with Q4 2020 exit volumes expected to be flat to Q4 2019
• Q2 2020E production guidance: 2,175 - 2,225 Mmcfe per day
• • As previously disclosed, the sequential production decline in Q2 2020 is primarily driven by a lighter turn-in-line schedule during the first four and a half months of the year with only thirteen wells expected to be placed on production between the beginning of the year and mid-May. This is primarily a result of longer cycle times for larger pads with longer laterals during Q1 and Q2 2020
  • Q2 2020 production guidance range also reflects the impact of unplanned downtime related to remedial work on one well on a large pad that resulted in the deferral of over 230 completed stages from Q1 2020 to Q2 2020, which led to lower capital spending levels in Q1 2020
  • Approximately two-thirds of the 2020 wells are expected to be placed on production between mid-May and late August, resulting in a significant sequential production increase in Q3 2020
• 2020E capital program: $575 million
• • Approximately two-thirds of the capital program is expected to be incurred during the first half of 2020 based on the current drilling and completion schedule
• 2020E weighted-average natural gas price differential1: ($0.30) to ($0.35) per Mcf
• 2020E wells drilled, completed, and placed on production: 60 - 70 net wells
• 2020E income tax rate guidance: 24%
• 2020E deferred tax rate guidance1: 125% - 135%

Q2 2020E Natural Gas Price Exposure By Index

NYMEX (less $0.43)	27%
Fixed Price ($~2.62)	19%
Transco Z6 NNY (less $0.65)	19%
Leidy Line	11%
TGP Z4 -300 Leg	9%
Power Pricing	8%
Dominion	4%
Millennium	3%

Note: Fixed price percentages above include volumes associated with sales agreements that have floor prices. An additional deduct of ~$0.05 per Mcf should be applied to account for fuel use.

Q2 2020E Cost Assumptions ($/Mcfe, unless otherwise noted)

Direct operations	$0.09 - $0.10
Transportation and gathering	$0.66 - $0.68
Taxes other than income	$0.02 - $0.03
Exploration2	$0.01 - $0.02
Depreciation, depletion and amortization	$0.46 - $0.48
Interest expense	$0.06 - $0.07
General and administrative ($mm, excluding stock-based compensation)	$15.5 - $16.5

(1)	Based on forward curves as of the week of April 27, 2020
(2)	Excluding exploratory dry hole costs; includes exploration administration expense and geophysical expenses	10

										Financial Position and Risk Management Profile
													Debt Maturity Schedule ($mm) as of 3/31/2020
$600														Senior Notes ($mm)		Weighted-Average Coupon Rate								7.00%
																																					6.00%
$500			6.54%
											6.25%
																$575											5.00%
$400																										4.17%
																														4.00%
$300								4.26%
																		3.67%											3.00%
$200
																													$312		2.00%
$100								$188
		$87							$62															1.00%
$0																										0.00%
		2020			2021	2022	2023	2024				2025	2026
																Capitalization / Liquidity
	As of 3/31/2020																													$bn
	Cash and Cash Equivalents																												$0.2
	Debt																																	$1.2
	Net Debt																																	$1.0
	Net Capitalization																												$3.2
	Liquidity1																																	$1.7
	Net Debt / Capitalization																												31.9%
	Net Debt / LTM EBITDAX																													0.9x

1 As of closing of amended and restated unsecured revolving credit facility on April 23, 2020

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2020 Hedge Summary

Natural Gas (NYMEX) Swaps
Total Volume (Mmbtu)	Weighted-Average Price	Duration
21,400,000	$2.27		April 2020	- October 2020
18,400,000	$2.10		May 2020	- October 2020
Natural Gas (NYMEX) Collars
Total Volume (Mmbtu)	Weighted-Average	Weighted-Average	Duration
	Floor Price	Ceiling Price
21,400,000	$2.15	$2.38	April 2020	- October 2020
73,600,000	$2.02	$2.20	May 2020	- October 2020

Note: As of April 30, 2020

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