Cabot Oil & Gas Corp (COG) WACC Analysis

As of June 12, 2025, Cabot Oil & Gas Corp (COG) carries a Weighted Average Cost of Capital (WACC) of 8.3%. WACC reflects the blended rate Cabot Oil & Gas Corp must pay to both equity and debt holders.

Within that, the cost of equity is 7.4%, the cost of debt is 4.3%, and the effective tax rate is 23.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1 – 1.19
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.13

What It Means for Investors

With a selected WACC of 8.3%, Cabot Oil & Gas Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.