HOUSTON, Oct. 28, 2016 /PRNewswire/ -- Cabot Oil & Gas
Corporation (NYSE: COG) ("Cabot" or the "Company") today reported
financial and operating results for the third quarter of 2016.
Highlights for the quarter include:
- Equivalent production growth of six percent relative to the
prior-year comparable quarter, driven by a nine percent growth in
natural gas production;
- Positive free cash flow (cash flow from operating activities
less capital expenditures) for the third quarter and
year-to-date;
- Cash operating expenses per unit improved by 13 percent
relative to the prior-year comparable quarter;
- Approximately $2.2 billion of
liquidity and only $1.0 billion of
net debt as of quarter-end
"The volatility in commodity prices continues to challenge our
industry and has driven us to be more efficient," said Dan O. Dinges, Chairman, President and Chief
Executive Officer. "We have been successful at creating a free cash
flow positive investment program that still generates growth, while
simultaneously driving down our cost structure and our resulting
breakeven levels." Dinges added, "While our impatience with the
regulatory pipeline approval process is very real, it has not
impacted our focus on prudently managing this business for the
long-term as evidenced by our results this quarter."
Third Quarter 2016 Financial Results
Equivalent production in the third quarter of 2016 was 150.8
billion cubic feet equivalent (Bcfe), consisting of 144.4 billion
cubic feet (Bcf) of natural gas, 941.4 thousand barrels (Mbbls) of
crude oil and condensate, and 129.6 Mbbls of natural gas liquids
(NGLs). The Company estimates that downstream maintenance projects
and unscheduled upstream gathering downtime negatively impacted
natural gas production for the quarter by approximately 3.2 Bcf, or
35 million cubic feet (Mmcf) per day.
Cash flow from operating activities in the third quarter of 2016
was $105.4 million, compared to
$146.4 million in the third quarter
of 2015. Discretionary cash flow in the third quarter of 2016 was
$128.4 million, compared to
$150.4 million in the third quarter
of 2015. Net loss in the third quarter of 2016 was $10.3 million, or $0.02 per share, compared to net loss of
$15.5 million, or $0.04 per share, in the third quarter of 2015.
Excluding the effect of selected items (detailed in the table
below), net loss in the third quarter of 2016 was $16.7 million, or $0.04 per share, compared to net loss of
$2.2 million, or $0.01 per share, in the third quarter of 2015.
EBITDAX in the third quarter of 2016 was $138.8 million, compared to $167.6 million in the third quarter of 2015. See
the supplemental tables at the end of this press release for a
reconciliation of non-GAAP measures including discretionary cash
flow, net income (loss) excluding selected items, EBITDAX and net
debt to adjusted capitalization ratio.
Natural gas price realizations, including the impact of
derivatives, were $1.75 per thousand
cubic feet (Mcf) in the third quarter of 2016, down 13 percent
compared to the third quarter of 2015. Excluding the impact of
derivatives, natural gas price realizations for the quarter implied
a $1.01 discount to NYMEX settlement
prices compared to a $1.09 discount
to NYMEX settlement prices in the third quarter of 2015. Oil price
realizations, including the impact of derivatives, were
$40.13 per barrel (Bbl), down eight
percent compared to the third quarter of 2015. NGL price
realizations were $12.64 per Bbl, up
25 percent compared to the third quarter of 2015.
Operating expenses (including financing) decreased to
$2.14 per thousand cubic feet
equivalent (Mcfe) in the third quarter of 2016, a nine percent
improvement compared to $2.35 per
Mcfe in the third quarter of 2015. Cash operating expenses
(excluding depreciation, depletion and amortization; stock-based
compensation; exploratory dry hole cost; and amortization of debt
issuance costs) decreased to $1.17
per Mcfe in the third quarter of 2016, a 13 percent improvement
compared to $1.34 per Mcfe in the
third quarter of 2015.
Cabot drilled 11 net wells and completed 23 net wells during the
third quarter of 2016, incurring a total of $99.5 million in capital expenditures associated
with activity during this period.
Year-To-Date 2016 Financial Results
Equivalent production for the nine-month period ended
September 30, 2016 was 463.0 Bcfe,
consisting of 441.8 Bcf of natural gas, 3,190.4 Mbbls of crude oil
and condensate, and 334.6 Mbbls of NGLs.
For the nine-month period ended September
30, 2016, cash flow from operating activities was
$252.6 million, compared to
$585.0 million for the nine-month
period ended September 30, 2015.
Discretionary cash flow was $297.1
million for the nine-month period ended September 30, 2016, compared to $573.8 million for the nine-month period ended
September 30, 2015. For the
nine-month period ended September 30,
2016, net loss was $124.4
million, or $0.27 per share,
compared to net loss of $2.8 million,
or $0.01 per share, for the
nine-month period ended September 30,
2015. Excluding the effect of selected items, net loss was
$102.3 million, or $0.23 per share, compared to net income of
$62.5 million, or $0.15 per share, for the nine-month period ended
September 30, 2015. EBITDAX for the
nine-month period ended September 30,
2016 was $367.0 million,
compared to $651.0 million for the
nine-month period ended September 30,
2015.
Natural gas price realizations, including the impact of
derivatives, were $1.62 per Mcf for
the nine-month period ended September 30,
2016, down 27 percent compared to the nine-month period
ended September 30, 2015. Oil price
realizations, including the impact of derivatives, were
$35.85 per Bbl, down 25 percent
compared to the nine-month period ended September 30, 2015. NGL price realizations were
$11.08 per Bbl, down 14 percent
compared to the nine-month period ended September 30, 2015.
Operating expenses (including financing) decreased to
$2.21 per Mcfe for the nine-month
period ended September 30, 2016, an
eight percent improvement compared to $2.40 per Mcfe for the nine-month period ended
September 30, 2015. Cash operating
expenses (excluding depreciation, depletion and amortization;
stock-based compensation; exploratory dry hole cost; and
amortization of debt issuance costs) decreased to $1.18 per Mcfe for the nine-month period ended
September 30, 2016, a 10 percent
improvement compared to $1.31 per
Mcfe in the nine-month period ended September 30, 2015.
Cabot drilled 28 net wells and completed 55 net wells during the
nine-month period ended September 30,
2016, incurring a total of $262.1
million in capital expenditures associated with activity
during this period.
Financial Position and Liquidity
As of September 30, 2016, Cabot
had total debt of $1.5 billion and
cash on hand of $501.2 million. The
Company's net debt to adjusted capitalization ratio and net debt to
trailing twelve months EBITDAX ratio were 26.2 percent and 1.9x,
respectively, compared to 50.1 percent and 2.5x as of December 31, 2015.
Total commitments under the Company's revolving credit facility
remain unchanged at $1.8 billion,
with approximately $1.7 billion
currently available to the Company. The Company currently has no
debt outstanding under the credit facility, resulting in
approximately $2.2 billion of
liquidity.
Fourth Quarter and Full-Year 2016 Guidance
Cabot has provided fourth quarter net production guidance of
1,650 to 1,725 Mmcf per day for natural gas; 8,500 to 9,000 Bbls
per day for crude oil and condensate; and 1,000 to 1,050 Bbls per
day for NGLs.
Based on the fourth quarter production guidance, the Company has
adjusted its full-year 2016 equivalent production growth guidance
range to 3 to 4 percent. Additionally, Cabot is increasing its 2016
capital budget guidance by $35
million to $380 million. This
increase reflects the drilling and completion of an additional 8
net wells during the fourth quarter and the implementation of
Cabot's fourth-generation completion design across its entire
Marcellus Shale program beginning in the fourth quarter. "We have
seen tremendous success from our fourth-generation completion pilot
tests as these wells have significantly outperformed the
third-generation wells drilled on the same pad site," highlighted
Dinges. "As a result, we plan to utilize this new completion design
moving forward given the material uplift in economics we have
realized."
Full-Year 2017 Guidance and Preliminary 2018 Outlook
The Company has initiated its 2017 production growth guidance
range at 5 to 10 percent. This production growth range is based on
an exploration and production (E&P) capital budget of
$575 million. In addition, Cabot
anticipates approximately $50 million
of contributions to its equity method investments in the Atlantic
Sunrise and Constitution pipelines, resulting in total 2017 program
spending of $625 million. Drilling,
completion and facility capital will account for approximately 93
percent of the E&P budget, with approximately 79 percent
allocated to the Marcellus Shale and 21 percent allocated to the
Eagle Ford Shale. The Company expects to drill approximately 70 net
wells (including 55 net wells in the Marcellus Shale and 15 net
wells in the Eagle Ford Shale) and complete approximately 75 net
wells (including 50 net wells in the Marcellus Shale and 25 net
wells in the Eagle Ford Shale). The average lateral length for the
2017 drilling program in the Marcellus Shale is expected to be
8,000 feet and will utilize the fourth-generation completion
design, resulting in 53 completed stages per well. The average
lateral length for the 2017 drilling program in the Eagle Ford
Shale is expected to be 9,000 feet with 36 completed stages per
well. Approximately $225 million of
the drilling, completion and facility capital is the maintenance
capital required to hold Cabot's anticipated 2016 exit production
rate flat throughout 2017, which would result in full-year
production growth near the low-end of the production growth
guidance range, while allowing the Company to meet all obligatory
leasehold commitments. The remainder of the drilling, completion
and facility capital will be used to fund incremental growth in
2017 and position the Company for production growth of 15 to 25
percent in 2018. This preliminary outlook for 2018 is predicated on
Cabot's current expected in-service dates for its new takeaway
capacity, which are referenced in the supplemental materials posted
to the Company's website this morning, including a mid-2018
in-service date for Atlantic Sunrise.
Conference Call Webcast and Supplemental Earnings
Materials
A conference call is scheduled for Friday, October 28, 2016, at 9:30 a.m. Eastern Time to discuss third quarter
2016 financial and operating results as well as fourth quarter 2016
and full-year 2017 guidance. A supplemental presentation is also
available in the Investor Relations section of the Company's
website at www.cabotog.com. To access the live audio
webcast, please visit the Investor Relations section of the
Company's website. A replay of the call will also be available on
the Company's website.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent
natural gas producer with its entire resource base located in the
continental United States. For
additional information, visit the Company's website at
www.cabotog.com.
This press release 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, 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", "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, 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, 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
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 the Company 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.
OPERATING
DATA
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
PRODUCTION
VOLUMES
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
144.4
|
|
|
133.0
|
|
|
441.8
|
|
|
423.2
|
|
Crude oil and
condensate (Mbbl)
|
941.4
|
|
|
1,350.0
|
|
|
3,190.4
|
|
|
4,225.5
|
|
Natural gas liquids
(NGLs) (Mbbl)
|
129.6
|
|
|
162.9
|
|
|
334.6
|
|
|
493.0
|
|
Equivalent production
(Bcfe)
|
150.8
|
|
|
142.1
|
|
|
463.0
|
|
|
451.5
|
|
|
|
|
|
|
|
|
|
AVERAGE SALES
PRICE
|
|
|
|
|
|
|
|
Natural gas,
including hedges ($/Mcf)
|
$
|
1.75
|
|
|
$
|
2.02
|
|
|
$
|
1.62
|
|
|
$
|
2.23
|
|
Natural gas,
excluding hedges ($/Mcf)
|
$
|
1.80
|
|
|
$
|
1.68
|
|
|
$
|
1.61
|
|
|
$
|
1.91
|
|
Crude oil and
condensate, including hedges ($/Bbl)
|
$
|
40.13
|
|
|
$
|
43.71
|
|
|
$
|
35.85
|
|
|
$
|
48.00
|
|
Crude oil and
condensate, excluding hedges ($/Bbl)
|
$
|
40.13
|
|
|
$
|
43.71
|
|
|
$
|
35.92
|
|
|
$
|
48.00
|
|
NGL
($/Bbl)
|
$
|
12.64
|
|
|
$
|
10.11
|
|
|
$
|
11.08
|
|
|
$
|
12.87
|
|
|
|
|
|
|
|
|
|
AVERAGE UNIT COSTS
($/Mcfe)
|
|
|
|
|
|
|
|
Direct
operations
|
$
|
0.16
|
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
|
$
|
0.24
|
|
Transportation and
gathering
|
0.70
|
|
|
0.72
|
|
|
0.70
|
|
|
0.71
|
|
Taxes other than
income
|
0.06
|
|
|
0.08
|
|
|
0.05
|
|
|
0.08
|
|
Exploration
|
0.02
|
|
|
0.03
|
|
|
0.03
|
|
|
0.04
|
|
Depreciation,
depletion and amortization
|
0.92
|
|
|
1.02
|
|
|
0.97
|
|
|
1.05
|
|
General and
administrative (excluding stock-based compensation)
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
Stock-based
compensation
|
0.03
|
|
|
(0.02)
|
|
|
0.05
|
|
|
0.03
|
|
Interest
expense
|
0.14
|
|
|
0.17
|
|
|
0.15
|
|
|
0.16
|
|
|
$
|
2.14
|
|
|
$
|
2.35
|
|
|
$
|
2.21
|
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WELLS
DRILLED
|
|
|
|
|
|
|
|
Gross
|
11
|
|
|
27
|
|
|
28
|
|
|
114
|
|
Net
|
11
|
|
|
27
|
|
|
28
|
|
|
105
|
|
Gross success
rate
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
WELLS
COMPLETED
|
|
|
|
|
|
|
|
Gross
|
23
|
|
|
21
|
|
|
55
|
|
|
96
|
|
Net
|
23
|
|
|
18
|
|
|
55
|
|
|
90
|
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
REVENUES
|
|
|
|
|
|
|
|
Natural
gas
|
$
|
260,200
|
|
|
$
|
222,963
|
|
|
$
|
711,010
|
|
|
$
|
807,960
|
|
Crude
oil and condensate
|
37,777
|
|
|
59,014
|
|
|
114,610
|
|
|
202,804
|
|
Gain
(loss) on derivative instruments
|
6,904
|
|
|
17,364
|
|
|
(1,286)
|
|
|
44,668
|
|
Brokered
natural gas
|
3,641
|
|
|
4,010
|
|
|
9,417
|
|
|
12,650
|
|
Other
|
1,907
|
|
|
1,945
|
|
|
5,435
|
|
|
8,277
|
|
|
310,429
|
|
|
305,296
|
|
|
839,186
|
|
|
1,076,359
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Direct
operations
|
24,626
|
|
|
34,818
|
|
|
77,139
|
|
|
106,947
|
|
Transportation and
gathering
|
105,671
|
|
|
102,121
|
|
|
322,883
|
|
|
321,652
|
|
Brokered natural
gas
|
2,939
|
|
|
3,020
|
|
|
7,526
|
|
|
9,643
|
|
Taxes other than
income
|
8,771
|
|
|
11,407
|
|
|
23,737
|
|
|
34,298
|
|
Exploration
|
2,988
|
|
|
4,930
|
|
|
13,109
|
|
|
18,960
|
|
Depreciation,
depletion and amortization
|
139,490
|
|
|
144,326
|
|
|
448,910
|
|
|
472,335
|
|
General and
administrative (excluding stock-based compensation)
|
14,667
|
|
|
14,015
|
|
|
45,383
|
|
|
41,989
|
|
Stock-based
compensation(1)
|
5,109
|
|
|
(2,913)
|
|
|
23,016
|
|
|
11,622
|
|
|
304,261
|
|
|
311,724
|
|
|
961,703
|
|
|
1,017,446
|
|
Earnings (loss) on
equity method investments
|
(1,727)
|
|
|
1,648
|
|
|
208
|
|
|
4,581
|
|
Gain (loss) on sale
of assets
|
(1,245)
|
|
|
3,756
|
|
|
(768)
|
|
|
3,814
|
|
INCOME (LOSS) FROM
OPERATIONS
|
3,196
|
|
|
(1,024)
|
|
|
(123,077)
|
|
|
67,308
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
4,709
|
|
|
—
|
|
Interest
expense
|
21,483
|
|
|
24,510
|
|
|
67,821
|
|
|
72,244
|
|
Income (loss) before
income taxes
|
(18,287)
|
|
|
(25,534)
|
|
|
(195,607)
|
|
|
(4,936)
|
|
Income tax expense
(benefit)
|
(8,027)
|
|
|
(10,020)
|
|
|
(71,243)
|
|
|
(2,169)
|
|
NET INCOME
(LOSS)
|
$
|
(10,260)
|
|
|
$
|
(15,514)
|
|
|
$
|
(124,364)
|
|
|
$
|
(2,767)
|
|
Earnings (loss) per
share - Basic
|
$
|
(0.02)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.01)
|
|
Weighted-average
common shares outstanding
|
465,149
|
|
|
413,846
|
|
|
454,060
|
|
|
413,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes the impact of the Company's performance share awards,
restricted stock, stock appreciation rights and expense associated
with the Supplemental Employee Incentive Plan.
|
CONDENSED
CONSOLIDATED BALANCE SHEET (Unaudited)
|
(In
thousands)
|
|
|
September 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Current
assets
|
$
|
655,645
|
|
|
$
|
144,786
|
|
Properties and
equipment, net (Successful efforts method)
|
4,722,598
|
|
|
4,976,879
|
|
Other
assets
|
153,678
|
|
|
131,373
|
|
|
$
|
5,531,921
|
|
|
$
|
5,253,038
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
$
|
196,763
|
|
|
$
|
235,552
|
|
Long-term debt, net
(excluding current maturities)
|
1,520,190
|
|
|
1,996,139
|
|
Deferred income
taxes
|
749,976
|
|
|
807,236
|
|
Other
liabilities
|
201,742
|
|
|
204,923
|
|
Stockholders'
equity
|
2,863,250
|
|
|
2,009,188
|
|
|
$
|
5,531,921
|
|
|
$
|
5,253,038
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
|
(In
thousands)
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(10,260)
|
|
|
$
|
(15,514)
|
|
|
$
|
(124,364)
|
|
|
$
|
(2,767)
|
|
Deferred income tax
expense (benefit)
|
4,880
|
|
|
1,066
|
|
|
(59,413)
|
|
|
8,226
|
|
(Gain) loss on sale
of assets
|
1,245
|
|
|
(3,756)
|
|
|
768
|
|
|
(3,814)
|
|
Exploratory dry hole
cost
|
—
|
|
|
6
|
|
|
18
|
|
|
184
|
|
(Gain) loss on
derivative instruments
|
(6,904)
|
|
|
(17,364)
|
|
|
1,286
|
|
|
(44,668)
|
|
Net cash received
(paid) in settlement of derivative instruments
|
(8,101)
|
|
|
45,097
|
|
|
3,204
|
|
|
133,827
|
|
Income charges not
requiring cash
|
147,502
|
|
|
140,823
|
|
|
475,641
|
|
|
482,771
|
|
Changes in assets and
liabilities
|
(22,957)
|
|
|
(3,996)
|
|
|
(44,491)
|
|
|
11,195
|
|
Net cash provided by
operating activities
|
105,405
|
|
|
146,362
|
|
|
252,649
|
|
|
584,954
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Capital
expenditures
|
(85,634)
|
|
|
(174,747)
|
|
|
(245,033)
|
|
|
(819,839)
|
|
Acquisitions
|
—
|
|
|
(12)
|
|
|
—
|
|
|
(16,312)
|
|
Proceeds from sale of
assets
|
(760)
|
|
|
4,378
|
|
|
49,068
|
|
|
7,380
|
|
Investment in equity
method investments
|
(6,005)
|
|
|
(10,684)
|
|
|
(24,176)
|
|
|
(20,798)
|
|
Net cash used in
investing activities
|
(92,399)
|
|
|
(181,065)
|
|
|
(220,141)
|
|
|
(849,569)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Net borrowings
(repayments) of debt
|
(20,000)
|
|
|
42,000
|
|
|
(497,000)
|
|
|
285,000
|
|
Sale of common stock,
net
|
—
|
|
|
—
|
|
|
995,279
|
|
|
—
|
|
Dividends
paid
|
(9,303)
|
|
|
(8,275)
|
|
|
(26,885)
|
|
|
(24,812)
|
|
Stock-based
compensation tax benefit
|
—
|
|
|
(5,486)
|
|
|
—
|
|
|
—
|
|
Capitalized debt
issuance costs
|
—
|
|
|
—
|
|
|
(3,223)
|
|
|
(7,838)
|
|
Other
|
—
|
|
|
5
|
|
|
—
|
|
|
84
|
|
Net cash provided by
(used in) financing activities
|
(29,303)
|
|
|
28,244
|
|
|
468,171
|
|
|
252,434
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
(16,297)
|
|
|
$
|
(6,459)
|
|
|
$
|
500,679
|
|
|
$
|
(12,181)
|
|
Selected Item
Review and Reconciliation of Net Income and Earnings Per
Share
|
(In thousands, except
per share amounts)
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
As reported - net
income (loss)
|
$
|
(10,260)
|
|
|
$
|
(15,514)
|
|
|
$
|
(124,364)
|
|
|
$
|
(2,767)
|
|
Reversal of selected
items:
|
|
|
|
|
|
|
|
(Gain) loss on sale
of assets
|
1,245
|
|
|
(3,756)
|
|
|
768
|
|
|
(3,814)
|
|
(Gain) loss on
derivative instruments (1)
|
(15,005)
|
|
|
27,733
|
|
|
4,490
|
|
|
89,159
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
4,709
|
|
|
—
|
|
Drilling rig
termination fees
|
(1,532)
|
|
|
—
|
|
|
1,655
|
|
|
5,095
|
|
Stock-based
compensation expense
|
5,109
|
|
|
(2,913)
|
|
|
23,016
|
|
|
11,622
|
|
Tax effect on
selected items
|
3,696
|
|
|
(7,725)
|
|
|
(12,572)
|
|
|
(36,841)
|
|
Net income (loss)
excluding selected items
|
$
|
(16,747)
|
|
|
$
|
(2,175)
|
|
|
$
|
(102,298)
|
|
|
$
|
62,454
|
|
As reported -
earnings (loss) per share
|
$
|
(0.02)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.01)
|
|
Per share impact of
selected items
|
(0.02)
|
|
|
0.03
|
|
|
0.04
|
|
|
0.16
|
|
Earnings (loss) per
share excluding selected items
|
$
|
(0.04)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.23)
|
|
|
$
|
0.15
|
|
Weighted-average
common shares outstanding
|
465,149
|
|
|
413,846
|
|
|
454,060
|
|
|
413,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This amount represents the
non-cash mark-to-market changes of our commodity derivative
instruments recorded in gain (loss) on derivative instruments in
the Condensed Consolidated Statement of Operations.
|
Discretionary Cash
Flow Calculation and Reconciliation
|
(In
thousands)
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
(loss)
|
$
|
(10,260)
|
|
|
$
|
(15,514)
|
|
|
$
|
(124,364)
|
|
|
$
|
(2,767)
|
|
Plus
(less):
|
|
|
|
|
|
|
|
Deferred income tax
expense (benefit)
|
4,880
|
|
|
1,066
|
|
|
(59,413)
|
|
|
8,226
|
|
(Gain) loss on sale
of assets
|
1,245
|
|
|
(3,756)
|
|
|
768
|
|
|
(3,814)
|
|
Exploratory dry hole
cost
|
—
|
|
|
6
|
|
|
18
|
|
|
184
|
|
(Gain) loss on
derivative instruments
|
(6,904)
|
|
|
(17,364)
|
|
|
1,286
|
|
|
(44,668)
|
|
Net cash received
(paid) in settlement of derivative instruments
|
(8,101)
|
|
|
45,097
|
|
|
3,204
|
|
|
133,827
|
|
Income charges not
requiring cash
|
147,502
|
|
|
140,823
|
|
|
475,641
|
|
|
482,771
|
|
Discretionary cash
flow
|
128,362
|
|
|
150,358
|
|
|
297,140
|
|
|
573,759
|
|
Changes in assets and
liabilities
|
(22,957)
|
|
|
(3,996)
|
|
|
(44,491)
|
|
|
11,195
|
|
Net cash provided by
operating activities
|
$
|
105,405
|
|
|
$
|
146,362
|
|
|
$
|
252,649
|
|
|
$
|
584,954
|
|
EBITDAX
Calculation and Reconciliation
|
(In
thousands)
|
|
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
(loss)
|
$
|
(10,260)
|
|
|
$
|
(15,514)
|
|
|
$
|
(124,364)
|
|
|
$
|
(2,767)
|
|
Plus
(less):
|
|
|
|
|
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
4,709
|
|
|
—
|
|
Interest
expense
|
21,483
|
|
|
24,510
|
|
|
67,821
|
|
|
72,244
|
|
Income tax expense
(benefit)
|
(8,027)
|
|
|
(10,020)
|
|
|
(71,243)
|
|
|
(2,169)
|
|
Depreciation,
depletion and amortization
|
139,490
|
|
|
144,326
|
|
|
448,910
|
|
|
472,335
|
|
Exploration
|
2,988
|
|
|
4,930
|
|
|
13,109
|
|
|
18,960
|
|
(Gain) loss on sale
of assets
|
1,245
|
|
|
(3,756)
|
|
|
768
|
|
|
(3,814)
|
|
Non-cash (gain) loss
on derivative instruments
|
(15,005)
|
|
|
27,733
|
|
|
4,490
|
|
|
89,159
|
|
(Earnings) loss on
equity method investments
|
1,727
|
|
|
(1,648)
|
|
|
(208)
|
|
|
(4,581)
|
|
Stock-based
compensation
|
5,109
|
|
|
(2,913)
|
|
|
23,016
|
|
|
11,622
|
|
EBITDAX
|
$
|
138,750
|
|
|
$
|
167,648
|
|
|
$
|
367,008
|
|
|
$
|
650,989
|
|
Net Debt
Reconciliation
|
(In
thousands)
|
|
|
September 30,
2016
|
|
December 31,
2015
|
Current portion of
long-term debt
|
$
|
—
|
|
|
$
|
20,000
|
|
Long-term debt,
net
|
1,520,190
|
|
|
1,996,139
|
|
Total debt
|
$
|
1,520,190
|
|
|
$
|
2,016,139
|
|
Stockholders'
equity
|
2,863,250
|
|
|
2,009,188
|
|
Total
capitalization
|
$
|
4,383,440
|
|
|
$
|
4,025,327
|
|
|
|
|
|
Total debt
|
$
|
1,520,190
|
|
|
$
|
2,016,139
|
|
Less: Cash and cash
equivalents
|
(501,193)
|
|
|
(514)
|
|
Net debt
|
$
|
1,018,997
|
|
|
$
|
2,015,625
|
|
|
|
|
|
Net debt
|
$
|
1,018,997
|
|
|
$
|
2,015,625
|
|
Stockholders'
equity
|
2,863,250
|
|
|
2,009,188
|
|
Total adjusted
capitalization
|
$
|
3,882,247
|
|
|
$
|
4,024,813
|
|
|
|
|
|
Total debt to total
capitalization ratio
|
34.7
|
%
|
|
50.1
|
%
|
Less: Impact of cash
and cash equivalents
|
8.5
|
%
|
|
—
|
%
|
Net debt to adjusted
capitalization ratio
|
26.2
|
%
|
|
50.1
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-announces-third-quarter-2016-financial-and-operating-results-300353257.html
SOURCE Cabot Oil & Gas Corporation