HOUSTON, Feb. 24, 2017 /PRNewswire/ -- Cabot Oil
& Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today reported
financial and operating results for the fourth quarter and
full-year ended December 31, 2016.
Highlights
- Equivalent production growth of four percent
year-over-year
- Proved reserves growth of five percent year-over-year including
proved developed reserves growth of 16 percent
- Total company all-sources finding and development costs of
$0.37 per thousand cubic feet
equivalent (Mcfe) and Marcellus-only all-sources finding and
development costs of $0.26 per
thousand cubic feet (Mcf)
- Generated positive free cash flow (cash flow from operating
activities less capital expenditures) for the full-year
- Improved operating expenses per unit by eight percent and cash
operating expenses per unit by 11 percent year-over-year
- Reduced outstanding debt by $497
million and ended the year with approximately $2.2 billion of liquidity
- Increased Marcellus estimated ultimate recovery (EUR) per 1,000
feet of lateral to 4.4 billion cubic feet (Bcf)
"Our 2016 performance demonstrates Cabot's ability to deliver strong operational
and financial results despite lower commodity prices for the
majority of the year," said Dan O.
Dinges, Chairman, President and Chief Executive Officer.
"The Company delivered production and reserves growth while
spending within operating cash flow during a year in which we
realized record-low natural gas prices, highlighting Cabot's world-class asset base and the
consistent execution by our employees." Dinges added, "Based on our
current outlook for 2017, we anticipate another year of production
and reserves growth while generating positive free cash flow."
Full-Year 2016 Financial Results
Equivalent production was 627.1 billion cubic feet equivalent
(Bcfe) in 2016, consisting of 600.4 Bcf of natural gas, 4,013.1
thousand barrels (Mbbls) of crude oil and condensate, and 441.2
Mbbls of natural gas liquids (NGLs).
Cash flow from operations was $392.4
million in 2016, compared to $740.7
million in 2015. Discretionary cash flow in 2016 was
$460.7 million, compared to
$699.1 million in 2015. Net loss in
2016 was $417.1 million, or
$0.91 per share, compared to net loss
of $113.9 million, or $0.28 per share, in 2015. Net loss for the year
included the impact of a non-cash, after-tax impairment charge of
$274.7 million associated with our
oil and gas properties and related pipeline assets in West Virginia and Virginia. Excluding the effect of this
impairment and other selected items (detailed in the table below),
net loss was $97.4 million, or
$0.21 per share, in 2016, compared to
net income of $55.4 million, or
$0.13 per share, in 2015. EBITDAX in
2016 was $554.4 million, compared to
$815.2 million in 2015. Significant
reductions in realized prices for both natural gas and oil were the
primary drivers for the lower results during the year, partially
offset by higher equivalent production and lower overall expenses.
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 $1.70 per Mcf in
2016, down 21 percent compared to 2015. Excluding the impact of
derivatives, natural gas price realizations for 2016 implied a
$0.76 discount to NYMEX settlement
prices. Oil price realizations, including the impact of
derivatives, were $37.30 per barrel
(Bbl), down 18 percent compared to 2015. NGL price realizations
were $11.74 per Bbl, down seven
percent compared to 2015.
Operating expenses (including financing) decreased to
$2.17 per Mcfe in 2016, an
improvement of eight percent from $2.37 per Mcfe in 2015. Cash operating
expenses (excluding depreciation, depletion and amortization;
stock-based compensation; exploratory dry hole cost; and
amortization of debt issuance costs) decreased to $1.16 per Mcfe in 2016, an 11 percent improvement
over 2015.
Cabot drilled 40 gross (38.0
net) wells and completed 76 gross (76.0 net) wells in 2016 and
exited the year with 51 gross (45.2 net) drilled and uncompleted
wells, of which 29 gross (26.2 net) were in the Marcellus Shale and
22 gross (19.0 net) were in the Eagle Ford Shale.
Fourth Quarter 2016 Financial Results
Equivalent production in the fourth quarter of 2016 was 164.2
Bcfe, consisting of 158.6 Bcf of natural gas, 822.7 Mbbls of crude
oil and condensate, and 106.5 Mbbls of NGLs. Equivalent production
increased nine percent sequentially compared to the third quarter
of 2016 and was in line with the high-end of the Company's guidance
range for the quarter.
Cash flow from operations in the fourth quarter of 2016 was
$139.7 million, compared to
$155.8 million in the fourth quarter
of 2015. Discretionary cash flow in the fourth quarter of 2016 was
$163.6 million, compared to
$125.3 million in the fourth quarter
of 2015. Net loss in the fourth quarter of 2016 was $292.8 million, or $0.63 per share, compared to a net loss of
$111.1 million, or $0.27 per share, in the fourth quarter of 2015.
Excluding the effect of the impairment and other selected items
(detailed in the table below), net income was $5.1 million, or $0.01 per share, compared to net loss of
$6.4 million, or $0.02 per share, for the fourth quarter of 2015.
EBITDAX for the fourth quarter of 2016 was $187.4 million, compared to $164.2 million for the fourth quarter of
2015.
Natural gas price realizations, including the impact of
derivatives, were $1.94 per Mcf both
in the fourth quarter of 2016 and the fourth quarter of 2015.
Excluding the impact of derivatives, natural gas price realizations
for the quarter were $1.96 per Mcf,
representing a $1.02 discount to
NYMEX settlement prices. Oil price realizations, including the
impact of derivatives, were $42.94
per Bbl, up 14 percent compared to the fourth quarter of 2015. NGL
price realizations were $13.84 per
Bbl, up 18 percent compared to the fourth quarter of 2015. "Fourth
quarter natural gas and crude oil price realizations excluding the
impact of derivatives posted a sequential increase of 9 percent and
11 percent, respectively, when compared to the third quarter,
highlighting the improving commodity price backdrop," commented
Dinges.
Operating expenses (including financing) decreased to
$2.05 per Mcfe in the fourth quarter
of 2016, an 11 percent improvement compared to $2.30 per Mcfe in the fourth 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 $1.11 per Mcfe in the fourth quarter of 2016, a
12 percent improvement over the fourth quarter of 2015.
Cabot drilled 12 gross (10.0
net) wells and completed 25 gross (25.0 net) wells in the fourth
quarter of 2016.
Year-End 2016 Financial Position and Liquidity
As of December 31, 2016,
Cabot had total debt of
$1.5 billion and cash on hand of
$498.5 million. The Company's net
debt to adjusted capitalization ratio and net debt to trailing
twelve months EBITDAX ratio were 28.5 percent and 1.8x,
respectively, compared to 50.1 percent and 2.5x as of December 31, 2015.
Total commitments under the Company's 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.
Year-End 2016 Proved Reserves
Cabot reported year-end proved
reserves of 8.6 trillion cubic feet equivalent (Tcfe), an increase
of five percent over year-end 2015. Specific highlights from the
Company's year-end reserve report include:
- Total company all-sources finding and development costs of
$0.37 per Mcfe
- Marcellus-only all-sources finding and development costs of
$0.26 per Mcf
- Total company all-sources reserve replacement of 168
percent
- Marcellus-only all-sources reserve replacement of 183
percent
"Despite our lowest level of capital spending since 2004,
Cabot grew proved reserves and
proved developed reserves by five percent and 16 percent,
respectively, at record-low finding and development costs,"
explained Dinges. "We expect a return to double-digit reserve
growth in 2017 as the Company increases its capital spending in
anticipation of new takeaway capacity out of the Marcellus
Shale."
The table below reconciles the components driving the 2016
reserve increase:
Proved Reserves
Reconciliation (in Bcfe)
|
Balance at
December 31, 2015
|
8,190
|
Revisions of prior
estimates
|
370
|
Extensions,
discoveries and other additions
|
684
|
Sales
|
(41)
|
Production
|
(627)
|
Balance at
December 31, 2016
|
8,576
|
As of December 31, 2016, 97
percent of Cabot's year-end proved
reserves were natural gas and 93 percent were located in the
Marcellus Shale. Approximately 66 percent of the year-end proved
reserves were classified as proved developed and 34 percent were
classified as proved undeveloped (PUD), including six percent of
drilled and uncompleted PUDs.
Total costs incurred during 2016 were $389.8 million, which included $359.5 million for development costs,
$27.6 million for exploration costs,
and $2.7 million for unproved
property acquisition costs.
The SEC prices used for reporting Cabot's year-end 2016 proved reserves, which
have been adjusted for basis and quality differentials, were
$1.74 per Mcf for natural gas and
$37.54 per Bbl for crude oil,
representing a 4 percent and 20 percent year-over-year decrease,
respectively. Assuming the SEC prices, the pre-tax present value of
future net cash flows discounted at 10% ("pre-tax PV–10") of the
year-end 2016 proved reserves was $2.6
billion. Assuming future strip benchmark pricing as of
December 31, 2016 for the first five
years and held flat thereafter, adjusted for basis and quality
differentials, the pre-tax PV–10 value was $5.2 billion, representing a 100 percent increase
over the corresponding SEC pre-tax PV–10.
Marcellus Shale Estimated Ultimate Recovery (EUR)
Update
Based on Cabot's year-end
reserve bookings for 21 producing Lower Marcellus wells that were
completed with the Company's fourth generation completion design,
Cabot has increased its guidance
for Lower Marcellus EUR per 1,000 feet of lateral from 3.8 Bcf to
4.4 Bcf. "The EURs for our fourth generation wells further
highlight the peer-leading productivity from our Marcellus assets
in the core of the dry gas window in Northeast Pennsylvania," stated Dinges. "Based
on our current well design and current commodity prices, we believe
our project-level economics in the Marcellus are unrivaled across
North American resource plays; however, we continue to test new
initiatives to further enhance our economics."
2017 Derivative Position Update
For 2017 the Company has 51.7 Bcf of natural gas swaps at a
weighted-average price of $3.23 per Mcf and 35.5 Bcf of
natural gas collars at a weighted-average floor and ceiling price
of $3.09 per Mcf and $3.43 per Mcf, respectively. Additionally,
Cabot currently has 36 percent of
its 2017 natural gas volumes under fixed-price physical contracts
at a weighted-average price of $2.29
per Mcf.
The Company also has 1,825 Mbbls of crude oil collars at a
weighted-average floor and ceiling price of $50.00 per Bbl and $56.39 per Bbl, respectively.
First Quarter and Full-Year 2017 Guidance Update
Cabot has provided first
quarter 2017 net production guidance of 1,780 to 1,820 million
cubic feet (Mmcf) per day for natural gas; 10,000 to 10,500 Bbls
per day for crude oil and condensate; and 1,200 to 1,250 Bbls per
day for NGLs.
The Company has reiterated its 2017 production growth guidance
range of 5 to 10 percent and initiated crude oil production growth
guidance of 15 percent, which represents a substantial increase
from the zero percent oil growth contained in the preliminary 2017
budget issued in October 2016. Based
on the expectation for higher operating cash flow due to an
improvement in the commodity price outlook, the Company is
increasing its exploration and production (E&P) capital budget
from $575 million to $650 million.
This incremental capital will fund additional drilling and
completion activity, primarily in the Eagle Ford. "Cabot has seen a significant improvement in
project-level returns in our Eagle Ford asset due to increased
productivity from enhanced completions, continued cost reductions,
and higher crude oil prices," said Dinges. "Accordingly, we plan to
allocate additional capital to this asset to grow exit-to-exit
crude oil volumes by 50 percent in 2017." Dinges added, "Even with
this modest increase in capital for 2017, we are forecasting
approximately $250 million of
positive free cash flow for the year based on recent strip prices."
Drilling, completion and facility capital will account for
approximately 94 percent of the E&P budget, with approximately
67 percent allocated to the Marcellus Shale and 33 percent
allocated to the Eagle Ford Shale. The Company expects to drill an
additional 20 net wells (15 in the Eagle Ford and 5 in the
Marcellus) for total of 90 net wells drilled in 2017. The Company
plans to complete an additional 15 net wells (14 in the Eagle Ford
and 1 in the Marcellus) for a total of 90 net wells completed in
2017. In addition, Cabot
anticipates approximately $70 million
of contributions to its equity pipeline investments resulting in
total 2017 program spending of $720
million. The capital associated with the equity pipeline
investments assumes a more favorable outlook on the construction
timing for Atlantic Sunrise and assumes minimal capital for
Constitution Pipeline in 2017; however, the amount of pipeline
investments will ultimately be dependent on the regulatory approval
processes and the corresponding impact on the timing of
construction activities.
For further disclosure on Cabot's natural gas pricing exposure by index
and updated cost guidance, please see the current Guidance slide in
the Investor Relations section of the Company's website.
Conference Call Webcast and Supplemental Earnings
Materials
A conference call is scheduled for Friday, February 24, 2017, at 9:30 a.m. Eastern Time to discuss fourth quarter
and full-year 2016 financial and operating results. 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.
FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642
OPERATING
DATA
|
|
|
Quarter Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
PRODUCTION
VOLUMES
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
158.6
|
|
|
142.8
|
|
|
600.4
|
|
|
566.0
|
|
Crude oil and
condensate (Mbbl)
|
822.7
|
|
|
1,203.2
|
|
|
4,013.1
|
|
|
5,428.7
|
|
Natural gas liquids
(NGLs) (Mbbl)
|
106.5
|
|
|
174.7
|
|
|
441.2
|
|
|
667.7
|
|
Equivalent production
(Bcfe)
|
164.2
|
|
|
151.0
|
|
|
627.1
|
|
|
602.5
|
|
|
|
|
|
|
|
|
|
AVERAGE SALES
PRICE
|
|
|
|
|
|
|
|
Natural gas,
including hedges ($/Mcf)
|
$
|
1.94
|
|
|
$
|
1.94
|
|
|
$
|
1.70
|
|
|
$
|
2.15
|
|
Natural gas,
excluding hedges ($/Mcf)
|
$
|
1.96
|
|
|
$
|
1.52
|
|
|
$
|
1.70
|
|
|
$
|
1.81
|
|
Crude oil and
condensate, including hedges ($/Bbl)
|
$
|
42.94
|
|
|
$
|
37.74
|
|
|
$
|
37.30
|
|
|
$
|
45.72
|
|
Crude oil and
condensate, excluding hedges ($/Bbl)
|
$
|
44.36
|
|
|
$
|
37.74
|
|
|
$
|
37.65
|
|
|
$
|
45.72
|
|
NGL
($/Bbl)
|
$
|
13.84
|
|
|
$
|
11.69
|
|
|
$
|
11.74
|
|
|
$
|
12.56
|
|
|
|
|
|
|
|
|
|
AVERAGE UNIT COSTS
($/Mcfe)
|
|
|
|
|
|
|
|
Direct
operations
|
$
|
0.14
|
|
|
$
|
0.22
|
|
|
$
|
0.16
|
|
|
$
|
0.23
|
|
Transportation and
gathering
|
0.69
|
|
|
0.70
|
|
|
0.70
|
|
|
0.71
|
|
Taxes other than
income
|
0.03
|
|
|
0.06
|
|
|
0.05
|
|
|
0.07
|
|
Exploration
|
0.09
|
|
|
0.06
|
|
|
0.04
|
|
|
0.05
|
|
Depreciation,
depletion and amortization
|
0.86
|
|
|
0.99
|
|
|
0.94
|
|
|
1.03
|
|
General and
administrative (excluding stock-based compensation)
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
Stock-based
compensation
|
0.02
|
|
|
0.01
|
|
|
0.04
|
|
|
0.02
|
|
Interest
expense
|
0.12
|
|
|
0.16
|
|
|
0.14
|
|
|
0.16
|
|
|
$
|
2.05
|
|
|
$
|
2.30
|
|
|
$
|
2.17
|
|
|
$
|
2.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WELLS
DRILLED(1)
|
|
|
|
|
|
|
|
Gross
|
12
|
|
|
26
|
|
|
40
|
|
|
138
|
|
Net
|
10.0
|
|
|
25.2
|
|
|
38.0
|
|
|
130.5
|
|
|
|
|
|
|
|
|
|
WELLS
COMPLETED(1)
|
|
|
|
|
|
|
|
Gross
|
25
|
|
|
17
|
|
|
76
|
|
|
107
|
|
Net
|
25.0
|
|
|
13.3
|
|
|
76.0
|
|
|
98.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Wells drilled
represents wells drilled to total depth during the period. Wells
completed includes wells completed during the period, regardless of
when they were drilled.
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
|
|
|
Quarter Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
(In thousands,
except per share amounts)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
REVENUES
|
|
|
|
|
|
|
|
Natural
gas
|
$
|
311,580
|
|
|
$
|
217,084
|
|
|
$
|
1,022,590
|
|
|
$
|
1,025,044
|
|
Crude oil and
condensate
|
36,496
|
|
|
45,407
|
|
|
151,106
|
|
|
248,211
|
|
Gain (loss) on
derivative instruments
|
(37,664)
|
|
|
12,018
|
|
|
(38,950)
|
|
|
56,686
|
|
Brokered natural
gas
|
4,152
|
|
|
3,733
|
|
|
13,569
|
|
|
16,383
|
|
Other
|
1,927
|
|
|
2,550
|
|
|
7,362
|
|
|
10,826
|
|
|
316,491
|
|
|
280,792
|
|
|
1,155,677
|
|
|
1,357,150
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Direct
operations
|
23,557
|
|
|
33,867
|
|
|
100,696
|
|
|
140,814
|
|
Transportation and
gathering
|
113,659
|
|
|
105,936
|
|
|
436,542
|
|
|
427,588
|
|
Brokered natural
gas
|
3,259
|
|
|
2,949
|
|
|
10,785
|
|
|
12,592
|
|
Taxes other than
income
|
5,486
|
|
|
8,511
|
|
|
29,223
|
|
|
42,809
|
|
Exploration
|
14,553
|
|
|
8,500
|
|
|
27,662
|
|
|
27,460
|
|
Depreciation,
depletion and amortization
|
141,218
|
|
|
149,876
|
|
|
590,128
|
|
|
622,211
|
|
Impairment of oil and
gas properties and other assets(1)
|
435,619
|
|
|
114,875
|
|
|
435,619
|
|
|
114,875
|
|
General and
administrative (excluding stock-based compensation)
|
15,891
|
|
|
13,777
|
|
|
61,274
|
|
|
55,764
|
|
Stock-based
compensation(2)
|
2,952
|
|
|
2,058
|
|
|
25,968
|
|
|
13,680
|
|
|
756,194
|
|
|
440,349
|
|
|
1,717,897
|
|
|
1,457,793
|
|
Earnings (loss) on
equity method investments
|
(2,685)
|
|
|
1,834
|
|
|
(2,477)
|
|
|
6,415
|
|
Gain (loss) on sale
of assets
|
(1,089)
|
|
|
52
|
|
|
(1,857)
|
|
|
3,866
|
|
LOSS FROM
OPERATIONS
|
(443,477)
|
|
|
(157,671)
|
|
|
(566,554)
|
|
|
(90,362)
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
4,709
|
|
|
—
|
|
Interest
expense
|
20,515
|
|
|
24,666
|
|
|
88,336
|
|
|
96,911
|
|
Loss before income
taxes
|
(463,992)
|
|
|
(182,337)
|
|
|
(659,599)
|
|
|
(187,273)
|
|
Income tax
benefit
|
(171,232)
|
|
|
(71,213)
|
|
|
(242,475)
|
|
|
(73,382)
|
|
NET
LOSS
|
$
|
(292,760)
|
|
|
$
|
(111,124)
|
|
|
$
|
(417,124)
|
|
|
$
|
(113,891)
|
|
Loss per share -
Basic
|
$
|
(0.63)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.28)
|
|
Weighted-average
common shares outstanding
|
465,150
|
|
|
413,875
|
|
|
456,847
|
|
|
413,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the
impairment of oil and gas properties and the related pipeline
assets in West Virginia and Virginia in the fourth quarter of 2016.
Also includes the impairment of oil and gas properties in the
fourth quarter of 2015 in south Texas, east Texas and
Louisiana.
|
|
(2)
|
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)
|
December 31,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Current
assets
|
$
|
715,881
|
|
|
$
|
144,786
|
|
Properties and
equipment, net (Successful efforts method)
|
4,250,125
|
|
|
4,976,879
|
|
Other
assets
|
156,563
|
|
|
131,373
|
|
|
$
|
5,122,569
|
|
|
$
|
5,253,038
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
$
|
257,812
|
|
|
$
|
235,552
|
|
Long-term debt, net
(excluding current maturities)
|
1,520,530
|
|
|
1,996,139
|
|
Deferred income
taxes
|
579,447
|
|
|
807,236
|
|
Other
liabilities
|
197,113
|
|
|
204,923
|
|
Stockholders'
equity
|
2,567,667
|
|
|
2,009,188
|
|
|
$
|
5,122,569
|
|
|
$
|
5,253,038
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
|
|
|
Quarter Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
(In
thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net loss
|
$
|
(292,760)
|
|
|
$
|
(111,124)
|
|
|
$
|
(417,124)
|
|
|
$
|
(113,891)
|
|
Deferred income tax
benefit
|
(171,294)
|
|
|
(81,194)
|
|
|
(230,707)
|
|
|
(72,968)
|
|
Impairment of oil and
gas properties and other assets
|
435,619
|
|
|
114,875
|
|
|
435,619
|
|
|
114,875
|
|
(Gain) loss on sale
of assets
|
1,089
|
|
|
(52)
|
|
|
1,857
|
|
|
(3,866)
|
|
Exploratory dry hole
cost
|
10,102
|
|
|
3,268
|
|
|
10,120
|
|
|
3,452
|
|
(Gain) loss on
derivative instruments
|
37,664
|
|
|
(12,018)
|
|
|
38,950
|
|
|
(56,686)
|
|
Net cash received
(paid) in settlement of derivative instruments
|
(4,886)
|
|
|
60,462
|
|
|
(1,682)
|
|
|
194,289
|
|
Income charges not
requiring cash
|
148,029
|
|
|
151,124
|
|
|
623,670
|
|
|
633,895
|
|
Changes in assets and
liabilities
|
(23,835)
|
|
|
30,442
|
|
|
(68,326)
|
|
|
41,637
|
|
Net cash provided by
operating activities
|
139,728
|
|
|
155,783
|
|
|
392,377
|
|
|
740,737
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Capital
expenditures
|
(130,120)
|
|
|
(135,763)
|
|
|
(375,153)
|
|
|
(955,602)
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,312)
|
|
Proceeds from sale of
assets
|
1,351
|
|
|
273
|
|
|
50,419
|
|
|
7,653
|
|
Investment in equity
method investments
|
(4,308)
|
|
|
(8,275)
|
|
|
(28,484)
|
|
|
(29,073)
|
|
Net cash used in
investing activities
|
(133,077)
|
|
|
(143,765)
|
|
|
(353,218)
|
|
|
(993,334)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Net borrowings
(repayments) of debt
|
—
|
|
|
(12,000)
|
|
|
(497,000)
|
|
|
273,000
|
|
Sale of common stock,
net
|
—
|
|
|
—
|
|
|
995,279
|
|
|
—
|
|
Dividends
paid
|
(9,302)
|
|
|
(8,278)
|
|
|
(36,187)
|
|
|
(33,090)
|
|
Capitalized debt
issuance costs
|
—
|
|
|
—
|
|
|
(3,223)
|
|
|
(7,838)
|
|
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
85
|
|
Net cash provided by
(used in) financing activities
|
(9,302)
|
|
|
(20,277)
|
|
|
458,869
|
|
|
232,157
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
(2,651)
|
|
|
$
|
(8,259)
|
|
|
$
|
498,028
|
|
|
$
|
(20,440)
|
|
Selected Item
Review and Reconciliation of Net Income and Earnings Per
Share
|
|
|
Quarter Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
(In thousands,
except per share amounts)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
As reported - net
loss
|
$
|
(292,760)
|
|
|
$
|
(111,124)
|
|
|
$
|
(417,124)
|
|
|
$
|
(113,891)
|
|
Reversal of selected
items:
|
|
|
|
|
|
|
|
Impairment of oil and
gas properties and other assets
|
435,619
|
|
|
114,875
|
|
|
435,619
|
|
|
114,875
|
|
(Gain) loss on sale
of assets
|
1,089
|
|
|
(52)
|
|
|
1,857
|
|
|
(3,866)
|
|
(Gain) loss on
derivative instruments(1)
|
32,778
|
|
|
48,444
|
|
|
37,268
|
|
|
137,603
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
4,709
|
|
|
—
|
|
Drilling rig
termination fees
|
—
|
|
|
—
|
|
|
1,655
|
|
|
5,084
|
|
Stock-based
compensation expense
|
2,952
|
|
|
2,058
|
|
|
25,968
|
|
|
13,680
|
|
Tax effect on
selected items
|
(174,567)
|
|
|
(60,646)
|
|
|
(187,366)
|
|
|
(98,081)
|
|
Net income (loss)
excluding selected items
|
$
|
5,111
|
|
|
$
|
(6,445)
|
|
|
$
|
(97,414)
|
|
|
$
|
55,404
|
|
As reported - loss
per share
|
$
|
(0.63)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.28)
|
|
Per share impact of
selected items
|
0.64
|
|
|
0.25
|
|
|
0.70
|
|
|
0.41
|
|
Earnings (loss) per
share excluding selected items
|
$
|
0.01
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.21)
|
|
|
$
|
0.13
|
|
Weighted-average
common shares outstanding
|
465,150
|
|
|
413,875
|
|
|
456,847
|
|
|
413,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
Quarter
Ended
December
31,
|
|
Twelve Months Ended
December 31,
|
(In
thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net loss
|
$
|
(292,760)
|
|
|
$
|
(111,124)
|
|
|
$
|
(417,124)
|
|
|
$
|
(113,891)
|
|
Plus
(less):
|
|
|
|
|
|
|
|
Deferred income tax
benefit
|
(171,294)
|
|
|
(81,194)
|
|
|
(230,707)
|
|
|
(72,968)
|
|
Impairment of oil and
gas properties and other assets
|
435,619
|
|
|
114,875
|
|
|
435,619
|
|
|
114,875
|
|
(Gain) loss on sale
of assets
|
1,089
|
|
|
(52)
|
|
|
1,857
|
|
|
(3,866)
|
|
Exploratory dry hole
cost
|
10,102
|
|
|
3,268
|
|
|
10,120
|
|
|
3,452
|
|
(Gain) loss on
derivative instruments
|
37,664
|
|
|
(12,018)
|
|
|
38,950
|
|
|
(56,686)
|
|
Net cash received
(paid) in settlement of derivative instruments
|
(4,886)
|
|
|
60,462
|
|
|
(1,682)
|
|
|
194,289
|
|
Income charges not
requiring cash
|
148,029
|
|
|
151,124
|
|
|
623,670
|
|
|
633,895
|
|
Discretionary cash
flow
|
163,563
|
|
|
125,341
|
|
|
460,703
|
|
|
699,100
|
|
Changes in assets and
liabilities
|
(23,835)
|
|
|
30,442
|
|
|
(68,326)
|
|
|
41,637
|
|
Net cash provided by
operations
|
$
|
139,728
|
|
|
$
|
155,783
|
|
|
$
|
392,377
|
|
|
$
|
740,737
|
|
EBITDAX
Calculation and Reconciliation
|
|
|
Quarter
Ended
December
31,
|
|
Twelve Months Ended
December 31,
|
(In
thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net loss
|
$
|
(292,760)
|
|
|
$
|
(111,124)
|
|
|
$
|
(417,124)
|
|
|
$
|
(113,891)
|
|
Plus
(less):
|
|
|
|
|
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
4,709
|
|
|
—
|
|
Interest
expense
|
20,515
|
|
|
24,666
|
|
|
88,336
|
|
|
96,911
|
|
Income tax
benefit
|
(171,232)
|
|
|
(71,213)
|
|
|
(242,475)
|
|
|
(73,382)
|
|
Depreciation,
depletion and amortization
|
141,218
|
|
|
149,876
|
|
|
590,128
|
|
|
622,211
|
|
Impairment of oil and
gas properties and other assets
|
435,619
|
|
|
114,875
|
|
|
435,619
|
|
|
114,875
|
|
Exploration
|
14,553
|
|
|
8,500
|
|
|
27,662
|
|
|
27,460
|
|
(Gain) loss on sale
of assets
|
1,089
|
|
|
(52)
|
|
|
1,857
|
|
|
(3,866)
|
|
Non-cash (gain) loss
on derivative instruments
|
32,778
|
|
|
48,444
|
|
|
37,268
|
|
|
137,603
|
|
(Earnings) loss on
equity method investments
|
2,685
|
|
|
(1,834)
|
|
|
2,477
|
|
|
(6,415)
|
|
Stock-based
compensation
|
2,952
|
|
|
2,058
|
|
|
25,968
|
|
|
13,680
|
|
EBITDAX
|
$
|
187,417
|
|
|
$
|
164,196
|
|
|
$
|
554,425
|
|
|
$
|
815,186
|
|
Net Debt
Reconciliation
|
|
(In
thousands)
|
December 31,
2016
|
|
December 31,
2015
|
Current portion of
long-term debt
|
$
|
—
|
|
|
$
|
20,000
|
|
Long-term debt,
net
|
1,520,530
|
|
|
1,996,139
|
|
Total debt
|
$
|
1,520,530
|
|
|
$
|
2,016,139
|
|
Stockholders'
equity
|
2,567,667
|
|
|
2,009,188
|
|
Total
capitalization
|
$
|
4,088,197
|
|
|
$
|
4,025,327
|
|
|
|
|
|
Total debt
|
$
|
1,520,530
|
|
|
$
|
2,016,139
|
|
Less: Cash and cash
equivalents
|
(498,542)
|
|
|
(514)
|
|
Net debt
|
$
|
1,021,988
|
|
|
$
|
2,015,625
|
|
|
|
|
|
Net debt
|
$
|
1,021,988
|
|
|
$
|
2,015,625
|
|
Stockholders'
equity
|
2,567,667
|
|
|
2,009,188
|
|
Total adjusted
capitalization
|
$
|
3,589,655
|
|
|
$
|
4,024,813
|
|
|
|
|
|
Total debt to total
capitalization ratio
|
37.2
|
%
|
|
50.1
|
%
|
Less: Impact of cash
and cash equivalents
|
8.7
|
%
|
|
—
|
%
|
Net debt to adjusted
capitalization ratio
|
28.5
|
%
|
|
50.1
|
%
|
Pre-tax Present
Value of Future Net Cash Flows Calculation and
Reconciliation
|
|
(In
thousands)
|
December 31,
2016
|
|
December 31,
2015
|
Standardized Measure
of Discounted Future Net Cash Flows
|
$
|
2,234,767
|
|
|
$
|
2,858,832
|
|
Plus: Future Income
Tax Expenses, discounted at 10% annual rate
|
380,276
|
|
|
—
|
|
Pre-tax Present Value
of Future Net Cash Flows, discounted at 10% annual rate
|
$
|
2,615,043
|
|
|
$
|
2,858,832
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-announces-fourth-quarter-and-full-year-2016-results-reports-five-percent-proved-reserves-growth-to-86-tcfe-provides-marcellus-eur-update-300413115.html
SOURCE Cabot Oil & Gas Corporation