The following is a memo sent to all Cabot employees by Dan Dinges, Chairman, President and Chief Executive Officer, which highlights the last 18 months of milestones in Cabot’s Marcellus operations.
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TO: All Employees
FROM: Dan O. Dinges
DATE: September 26, 2016
RE: Marcellus – Game Changer for COG Shareholders, Employees and Communities
Today marks a major milestone in the history of this company: 10 years ago today, we began drilling our first well in the Marcellus, the Teel 1.
In the last 18 months we have achieved three additionally impressive milestones in the Marcellus. In April 2015 the 500th well was drilled and just last month the 10,000th frac stage was completed. At the end of last month our cumulative Marcellus production hit 2.5 trillion cubic feet of natural gas – a stunning amount of production by just one company over the past decade.
Make no mistake; these operational records would have been unachievable if not for the dedication, innovation, and knowledge of the Cabot team across the country. I have said time and again that Cabot has access to a world class asset in the Marcellus – but the reality is, without the right employees with the right skill sets employed in each and every one of our departments, we would not achieve this level of success.
The last 24 months have been challenging. We have all seen firsthand the effects of a down market on our industry and the communities where we live and work. But we have all found ways to increase our efficiencies to not just maintain Cabot, but to keep the company positioned to take advantage of the eventual return to better pricing.
Ten years ago we began operations in what is now one of the largest shale gas fields using the knowledge of our employees gained from their experiences around the country and around the world. That experience and work has led us to: 2.5 TCF, 500 wells, and 10,000 frac stages. As many of you are aware, we have new infrastructure scheduled for completion during the next couple of years. Upon commissioning this infrastructure we will be working to more than double our current production levels towards 4 BCF per day in the Marcellus.
Knowing all we have learned and pioneered during the last decade, the prospect of what we will accomplish and the value we will create for shareholders in the years to come is exciting.
I offer my sincere congratulations on these accomplishments to each and every one of you. As we transition to move rigs back into our areas of operation, keep in mind every creative idea you have as an employee of Cabot moves us closer to the next big milestone.
Dan O. Dinges