HOUSTON, April 26, 2019 /PRNewswire/ -- Cabot Oil
& Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today
reported financial and operating results for the first-quarter of
2019.
"For the quarter, Cabot generated record levels of operating
cash flow, free cash flow, adjusted net income, and production,
resulting from continued operational success, disciplined capital
allocation and cost control, and strong price realizations," stated
Dan O. Dinges, Chairman, President
and Chief Executive Officer. "For the full-year, we remain on track
to deliver earnings per share growth, return on capital employed,
and a free cash flow yield that are extremely attractive when
compared across all sectors of the market."
First-Quarter 2019 Highlights
- Net income of $262.8 million (or
$0.62 per share); adjusted net income
(non-GAAP) of $307.8 million (or
$0.73 per share)
- Net cash provided by operating activities of $585.3 million; discretionary cash flow
(non-GAAP) of $505.9 million
- Free cash flow (non-GAAP) of $308.4
million
- Return on capital employed (ROCE) (non-GAAP) for the trailing
twelve months of 20.4 percent
- Daily equivalent production of 2,276 million cubic feet
equivalent (Mmcfe) per day, an increase of 21 percent relative to
the prior-year comparable quarter (25 percent on a
divestiture-adjusted basis)
- Improved operating expenses per unit by six percent relative to
the prior-year comparable quarter
- Announced a 29 percent dividend increase, the Company's fourth
dividend increase in the last two years
See the supplemental tables at the end of this press release for
a reconciliation of non-GAAP measures including adjusted net
income, discretionary cash flow, EBITDAX, free cash flow, net debt
to adjusted capitalization ratio, and ROCE.
First-Quarter 2019 Financial Results
First-quarter 2019 daily equivalent production was 2,276 Mmcfe
per day (100 percent natural gas), exceeding the high-end of the
Company's guidance range and representing a 21 percent increase
relative to the first-quarter of 2018. On a divestiture-adjusted
basis, first-quarter 2019 daily equivalent production increased 25
percent relative to the prior-year comparable quarter.
First-quarter 2019 net income was $262.8
million, or $0.62 per share,
compared to net income of $117.2
million, or $0.26 per share,
in the prior-year period. First-quarter 2019 adjusted net income
(non-GAAP) was $307.8 million, or
$0.73 per share, compared to adjusted
net income of $128.5 million, or
$0.28 per share, in the prior-year
period. First-quarter 2019 EBITDAX (non-GAAP) was $513.7 million, compared to $278.6 million in the prior-year period.
First-quarter 2019 net cash provided by operating activities was
$585.3 million, compared to
$272.8 million in the prior-year
period. First-quarter 2019 discretionary cash flow (non-GAAP) was
$505.9 million, compared to
$280.3 million in the prior-year
period. First-quarter 2019 free cash flow (non-GAAP) was
$308.4 million, compared to
$88.6 million in the prior-year
period.
First-quarter 2019 natural gas price realizations, including the
impact of derivatives, were $3.35 per
thousand cubic feet (Mcf), an increase of 37 percent compared to
the prior-year period. Excluding the impact of derivatives,
first-quarter 2019 natural gas price realizations were $3.09 per Mcf, representing a $0.06 discount to NYMEX settlement prices
compared to a $0.50 discount in the
prior-year comparable quarter. "Given our access to high seasonal
demand in the Mid-Atlantic market and improving regional basis
differentials, Cabot recognized its best corporate-wide
differential since the second-quarter of 2013," commented
Dinges.
First-quarter 2019 operating expenses (including financing)
decreased to $1.48 per thousand cubic
feet equivalent (Mcfe), a six percent improvement compared to the
prior-year period.
Cabot incurred a total of $204.3
million of capital expenditures in the first-quarter of 2019
including $202.4 million of drilling
and facilities capital, $0.6 million
of leasehold acquisition capital, and $1.3
million of other capital. Additionally, the Company
contributed $1.8 million to its
equity method pipeline investments. See the supplemental table at
the end of this press release reconciling the capital expenditures
during the first-quarter of 2019.
Dividend Increase
Cabot's Board of Directors has approved a 29 percent increase in
its quarterly cash dividend to $0.09
per share on the Company's common stock, resulting in the fourth
dividend increase in the last two years. The dividend will be
paid on May 29, 2019 to all
shareholders of record as of the close of business on May 15, 2019. "Our capital allocation strategy
remains focused on returning at least 50 percent of our free cash
flow to shareholders annually through the combination of a growing
dividend and share repurchases," highlighted Dinges. "Even when
stress-testing our five-year plan to natural gas prices that are
significantly below the current forward curve, Cabot's anticipated
free cash flow profile would enable the Company to continue to grow
its dividend over time to a yield that is competitive relative to
the broader equity market."
Financial Position and Liquidity
As of March 31, 2019, Cabot had
total debt of $1.2 billion and cash
on hand of $314.9 million. The
Company's debt-to-total capitalization ratio and debt-to-trailing
twelve months EBITDAX ratio were 34.4 percent and 0.8x,
respectively, compared to 37.0 percent and 1.0x as of December 31, 2018.
On April 22, 2019, the Company
closed on an amended and restated unsecured revolving credit
facility (the "Credit Facility") that matures in April 2024, with an additional one year extension
provision. The borrowing base under the Credit Facility remained
unchanged from the Company's prior revolving credit facility at
$3.2 billion, while the Company
elected to reduce its available commitments to $1.5 billion. The Company currently has no debt
outstanding under the Credit Facility, resulting in over
$1.8 billion of liquidity as of the
closing of this Credit Facility.
Second-Quarter and Full-Year 2019 Guidance Update
Cabot has provided its second-quarter 2019 production guidance
range of 2,300 to 2,350 Mmcfe per day. The Company has also
reiterated its 2019 production growth guidance of 20 percent and
its capital budget of $800 million.
Additionally, the Company has updated its guidance on estimated key
financial metrics for 2019 in the table below.
Estimated 2019 Key
Financial Metrics (1)
|
|
$2.50
NYMEX
|
|
$2.75
NYMEX
|
|
$3.00
NYMEX
|
Adjusted Earnings Per
Share Growth (%)
|
|
25% - 35%
|
|
45% - 55%
|
|
65% - 75%
|
Free Cash Flow
($mm)
|
|
$500 -
$550
|
|
$600 -
$650
|
|
$700 -
$750
|
Return on Capital
Employed (%)
|
|
20% - 21%
|
|
22% - 23%
|
|
24% - 25%
|
|
|
(1)
|
Ranges for
estimated key financial metrics based on guidance ranges for
operating expenses
|
For further disclosure on Cabot's natural gas pricing exposure
by index and cost guidance, please see the current Guidance slide
in the Investor Relations section of the Company's website.
Conference Call Webcast
A conference call is scheduled for Friday, April 26, 2019, at 9:30 a.m. Eastern Time to discuss first-quarter
2019 financial and operating results. 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, 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", "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
|
|
|
|
Three Months
Ended March 31,
|
|
|
2019
|
|
2018
|
PRODUCTION
VOLUMES
|
|
|
|
|
Natural gas
(Bcf)
|
|
204.8
|
|
|
164.6
|
|
Crude oil and
condensate (Mbbl)
|
|
—
|
|
|
754.0
|
|
Natural gas liquids
(NGLs) (Mbbl)
|
|
—
|
|
|
75.1
|
|
Equivalent production
(Bcfe)
|
|
204.8
|
|
|
169.6
|
|
Daily equivalent
production (Mmcfe/day)
|
|
2,276
|
|
|
1,884
|
|
|
|
|
|
|
AVERAGE SALES
PRICE
|
|
|
|
|
Natural gas,
including hedges ($/Mcf)
|
|
$
|
3.35
|
|
|
$
|
2.44
|
|
Natural gas,
excluding hedges ($/Mcf)
|
|
$
|
3.09
|
|
|
$
|
2.50
|
|
Crude oil and
condensate, including hedges ($/Bbl)
|
|
$
|
—
|
|
|
$
|
63.61
|
|
Crude oil and
condensate, excluding hedges ($/Bbl)
|
|
$
|
—
|
|
|
$
|
64.61
|
|
NGL
($/Bbl)
|
|
$
|
—
|
|
|
$
|
23.75
|
|
|
|
|
|
|
AVERAGE UNIT COSTS
($/Mcfe)
|
|
|
|
|
Direct
operations
|
|
$
|
0.09
|
|
|
$
|
0.12
|
|
Transportation and
gathering
|
|
0.67
|
|
|
0.66
|
|
Taxes other than
income
|
|
0.03
|
|
|
0.04
|
|
Exploration
|
|
0.03
|
|
|
0.02
|
|
Depreciation,
depletion and amortization
|
|
0.45
|
|
|
0.48
|
|
General and
administrative (excluding stock-based compensation)
|
|
0.08
|
|
|
0.11
|
|
Stock-based
compensation
|
|
0.07
|
|
|
0.03
|
|
Interest
expense
|
|
0.06
|
|
|
0.12
|
|
|
|
$
|
1.48
|
|
|
$
|
1.58
|
|
|
|
|
|
|
|
|
|
|
|
WELLS DRILLED
(1)
|
|
|
|
|
Gross
|
|
25
|
|
|
15
|
|
Net
|
|
25.0
|
|
|
15.0
|
|
|
|
|
|
|
WELLS COMPLETED
(1)
|
|
|
|
|
Gross
|
|
14
|
|
|
11
|
|
Net
|
|
14.0
|
|
|
11.0
|
|
___________________________________________________________
|
(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)
|
|
|
Three Months
Ended
March 31,
|
(In thousands,
except per share amounts)
|
2019
|
|
2018
|
OPERATING
REVENUES
|
|
|
|
Natural
gas
|
$
|
633,174
|
|
|
$
|
412,108
|
|
Crude
oil and condensate
|
—
|
|
|
48,722
|
|
Gain on
derivative instruments
|
8,257
|
|
|
5,577
|
|
Brokered
natural gas
|
—
|
|
|
4,950
|
|
Other
|
250
|
|
|
1,870
|
|
|
641,681
|
|
|
473,227
|
|
OPERATING
EXPENSES
|
|
|
|
Direct
operations
|
18,334
|
|
|
20,070
|
|
Transportation and
gathering
|
137,333
|
|
|
112,125
|
|
Brokered natural
gas
|
—
|
|
|
4,950
|
|
Taxes other than
income
|
5,847
|
|
|
7,190
|
|
Exploration
|
6,044
|
|
|
3,617
|
|
Depreciation,
depletion and amortization
|
92,258
|
|
|
82,128
|
|
General and
administrative (excluding stock-based compensation)
|
15,958
|
|
|
18,613
|
|
Stock-based
compensation(1)
|
15,132
|
|
|
5,447
|
|
|
290,906
|
|
|
254,140
|
|
Earnings (loss) on
equity method investments
|
3,684
|
|
|
(994)
|
|
Loss on sale of
assets
|
(1,500)
|
|
|
(41,049)
|
|
INCOME FROM
OPERATIONS
|
352,959
|
|
|
177,044
|
|
Interest expense,
net
|
12,181
|
|
|
20,058
|
|
Other
expense
|
144
|
|
|
114
|
|
Income before income
taxes
|
340,634
|
|
|
156,872
|
|
Income tax
expense
|
77,871
|
|
|
39,641
|
|
NET
INCOME
|
$
|
262,763
|
|
|
$
|
117,231
|
|
Earnings per share -
Basic
|
$
|
0.62
|
|
|
$
|
0.26
|
|
Weighted-average
common shares outstanding
|
423,116
|
|
|
459,715
|
|
_____________________________________________________________
|
(1)
|
Includes the
impact of our performance share awards and restricted
stock.
|
CONDENSED
CONSOLIDATED BALANCE SHEET (Unaudited)
|
|
(In
thousands)
|
March 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets
|
$
|
680,191
|
|
|
$
|
544,545
|
|
Properties and
equipment, net (Successful efforts method)
|
3,574,622
|
|
|
3,463,606
|
|
Other
assets
|
226,734
|
|
|
190,678
|
|
|
$
|
4,481,547
|
|
|
$
|
4,198,829
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
$
|
240,315
|
|
|
$
|
287,264
|
|
Long-term debt,
net
|
1,219,338
|
|
|
1,226,104
|
|
Deferred income
taxes
|
546,559
|
|
|
458,597
|
|
Other
liabilities
|
154,396
|
|
|
138,705
|
|
Stockholders'
equity
|
2,320,939
|
|
|
2,088,159
|
|
|
$
|
4,481,547
|
|
|
$
|
4,198,829
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net
income
|
$
|
262,763
|
|
|
$
|
117,231
|
|
Deferred income tax
expense
|
88,002
|
|
|
64,287
|
|
Loss on sale of
assets
|
1,500
|
|
|
41,049
|
|
Exploratory dry hole
cost
|
13
|
|
|
(60)
|
|
Gain on derivative
instruments
|
(8,257)
|
|
|
(5,577)
|
|
Net cash received
(paid) in settlement of derivative instruments
|
52,980
|
|
|
(26,131)
|
|
Income charges not
requiring cash
|
108,866
|
|
|
89,501
|
|
Changes in assets and
liabilities
|
79,420
|
|
|
(7,540)
|
|
Net cash provided by
operating activities
|
585,287
|
|
|
272,760
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Capital
expenditures
|
(195,650)
|
|
|
(156,257)
|
|
Proceeds from sale of
assets
|
2,346
|
|
|
646,545
|
|
Investment in equity
method investments
|
(1,828)
|
|
|
(35,418)
|
|
Net cash provided by
(used in) investing activities
|
(195,132)
|
|
|
454,870
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Net borrowings
(repayments) of debt
|
(7,000)
|
|
|
—
|
|
Treasury stock
repurchases
|
(31,378)
|
|
|
(207,134)
|
|
Dividends
paid
|
(29,605)
|
|
|
(27,647)
|
|
Tax withholdings on
vesting of stock awards
|
(9,570)
|
|
|
(7,968)
|
|
Net cash used in
financing activities
|
(77,553)
|
|
|
(242,749)
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
$
|
312,602
|
|
|
$
|
484,881
|
|
Explanation and Reconciliation of Non-GAAP
Financial Measures
We report our financial results in accordance with accounting
principles generally accepted in the
United States (GAAP). However, we believe certain non-GAAP
performance measures may provide financial statement users with
additional meaningful comparisons between current results, the
results of our peers and of prior periods. In addition, we believe
these measures are used by analysts and others in the valuation,
rating and investment recommendations of companies within the oil
and natural gas exploration and production industry. See the
reconciliations throughout this release of GAAP financial measures
to non-GAAP financial measures for the periods indicated.
We have also included herein certain forward-looking non-GAAP
financial measures. Due to the forward-looking nature of these
non-GAAP financial measures, we cannot reliably predict certain of
the necessary components of the most directly comparable
forward-looking GAAP measures, such as future impairments and
future changes in capital. Accordingly, we are unable to present a
quantitative reconciliation of such forward-looking non-GAAP
financial measures to their most directly comparable
forward-looking GAAP financial measures. Reconciling items in
future periods could be significant.
Reconciliation of Net Income to Adjusted Net
Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted Earnings per Share are
presented based on our belief that these non-GAAP measures enable a
user of the financial information to understand the impact of these
items on reported results. Additionally, this presentation provides
a beneficial comparison to similarly adjusted measurements of prior
periods. Adjusted Net Income and Adjusted Earnings per Share
are not measures of financial performance under GAAP and should not
be considered as alternatives to net income and earnings per share,
as defined by GAAP.
|
|
Three Months
Ended
March 31,
|
(In thousands,
except per share amounts)
|
|
2019
|
|
2018
|
As reported - net
income
|
|
$
|
262,763
|
|
|
$
|
117,231
|
|
Reversal of selected
items:
|
|
|
|
|
Loss on sale of
assets
|
|
1,500
|
|
|
41,049
|
|
(Gain) loss on
derivative instruments(1)
|
|
44,723
|
|
|
(31,708)
|
|
Stock-based
compensation expense
|
|
15,132
|
|
|
5,447
|
|
Interest expense
related to income tax reserves
|
|
(3,052)
|
|
|
—
|
|
Tax effect on
selected items
|
|
(13,313)
|
|
|
(3,481)
|
|
Adjusted net
income
|
|
$
|
307,753
|
|
|
$
|
128,538
|
|
As reported -
earnings per share
|
|
$
|
0.62
|
|
|
$
|
0.26
|
|
Per share impact of
selected items
|
|
0.11
|
|
|
0.02
|
|
Adjusted earnings per
share
|
|
$
|
0.73
|
|
|
$
|
0.28
|
|
Weighted-average
common shares outstanding
|
|
423,116
|
|
|
459,715
|
|
______________________________________________________________
|
(1)
|
This amount
represents the non-cash mark-to-market changes of our commodity
derivative instruments recorded in Gain on derivative instruments
in the Condensed Consolidated Statement of
Operations.
|
Return on Capital Employed
Return on Capital Employed (ROCE) is defined as adjusted net
income (defined above) plus after-tax net interest expense divided
by average capital employed, which is defined as total debt plus
stockholders' equity. ROCE is presented based on our belief that
this non-GAAP measure is useful information to investors when
comparing our profitability and the efficiency with which we have
employed capital over time relative to other companies. ROCE is not
a measure of financial performance under GAAP and should not be
considered an alternative to net income.
|
|
Twelve Months
Ended March 31,
|
(In
thousands)
|
|
2019
|
|
2018
|
Interest expense,
net
|
|
$
|
65,324
|
|
|
$
|
81,418
|
|
Interest expense
related to income tax reserves (1)
|
|
(64)
|
|
|
—
|
|
Tax
benefit
|
|
(15,140)
|
|
|
(27,393)
|
|
After-tax interest
expense, net (A)
|
|
50,120
|
|
|
54,025
|
|
|
|
|
|
|
As reported - net
income (loss)
|
|
702,575
|
|
|
111,904
|
|
Adjustments to as
reported - net income, net of tax
|
|
7,753
|
|
|
172,096
|
|
Adjusted net income
(B)
|
|
710,328
|
|
|
284,000
|
|
|
|
|
|
|
Adjusted net income
before interest expense, net (A + B)
|
|
$
|
760,448
|
|
|
$
|
338,025
|
|
|
|
|
|
|
Total debt -
beginning of twelve month period
|
|
$
|
1,522,231
|
|
|
$
|
1,520,870
|
|
Stockholders' equity
- beginning of twelve month period
|
|
2,406,516
|
|
|
2,707,179
|
|
Capital employed -
beginning of twelve month period
|
|
3,928,747
|
|
|
4,228,049
|
|
|
|
|
|
|
Total debt - end of
twelve month period
|
|
1,219,338
|
|
|
1,522,231
|
|
Stockholders' equity
- end of twelve month period
|
|
2,320,939
|
|
|
2,406,516
|
|
Capital employed -
end of twelve month period
|
|
3,540,277
|
|
|
3,928,747
|
|
|
|
|
|
|
Average capital
employed (C)
|
|
$
|
3,734,512
|
|
|
$
|
4,078,398
|
|
|
|
|
|
|
Return on average
capital employed (ROCE) (A+B) / C
|
|
20.4
|
%
|
|
8.3
|
%
|
______________________________________________________________
|
(1)
|
Interest expense
related to income tax reserves is included in the adjustments to as
reported - net income, net of tax.
|
Discretionary Cash Flow and Free Cash Flow
Calculation and Reconciliation
Discretionary Cash Flow is defined as net cash provided by
operating activities excluding changes in assets and
liabilities. Discretionary Cash Flow is widely accepted as a
financial indicator of an oil and gas company's ability to generate
cash which is used to internally fund exploration and development
activities, pay dividends and service debt. Discretionary Cash
Flow is presented based on our belief that this non-GAAP measure is
useful information to investors when comparing our cash flows with
the cash flows of other companies that use the full cost method of
accounting for oil and gas producing activities or have different
financing and capital structures or tax rates. Discretionary
Cash Flow is not a measure of financial performance under GAAP and
should not be considered as an alternative to cash flows from
operating activities, as defined by GAAP, or as a measure of
liquidity, or an alternative to net income.
Free Cash Flow is defined as Discretionary Cash Flow (defined
above) less capital expenditures and investment in equity method
investments. Free Cash Flow is an indicator of a company's ability
to generate cash flow after spending the money required to maintain
or expand its asset base. Free Cash Flow is presented based on our
belief that this non-GAAP measure is useful information to
investors when comparing our cash flows with the cash flows of
other companies. Free Cash Flow is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating activities, as defined by
GAAP, or as a measure of liquidity, or an alternative to net
income.
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
|
2019
|
|
2018
|
Net cash provided by
operating activities
|
|
$
|
585,287
|
|
|
$
|
272,760
|
|
Changes in assets and
liabilities
|
|
(79,420)
|
|
|
7,540
|
|
Discretionary cash
flow
|
|
505,867
|
|
|
280,300
|
|
Capital
expenditures
|
|
(195,650)
|
|
|
(156,257)
|
|
Investment in equity
method investments
|
|
(1,828)
|
|
|
(35,418)
|
|
Free cash
flow
|
|
$
|
308,389
|
|
|
$
|
88,625
|
|
EBITDAX Calculation and Reconciliation
EBITDAX is defined as net income plus interest expense, other
expense, income tax expense, depreciation, depletion and
amortization (including impairments), exploration expense, loss on
sale of assets, non-cash gain and loss on derivative instruments,
earnings and loss on equity method investments, cash distributions
received from equity method investments, and stock-based
compensation expense. EBITDAX is presented based on our belief that
this non-GAAP measure is useful information to investors when
evaluating our ability to internally fund exploration and
development activities and to service or incur debt without regard
to financial or capital structure. EBITDAX is not a measure of
financial performance under GAAP and should not be considered as
alternative to cash flows from operating activities or net income,
as defined by GAAP, or as a measure of liquidity.
|
|
Three Months
Ended March 31,
|
(In
thousands)
|
|
2019
|
|
2018
|
Net income
|
|
$
|
262,763
|
|
|
$
|
117,231
|
|
Plus
(less):
|
|
|
|
|
Interest expense,
net
|
|
12,181
|
|
|
20,058
|
|
Other
expense
|
|
144
|
|
|
114
|
|
Income tax
expense
|
|
77,871
|
|
|
39,641
|
|
Depreciation,
depletion and amortization
|
|
92,258
|
|
|
82,128
|
|
Exploration
|
|
6,044
|
|
|
3,617
|
|
Loss on sale of
assets
|
|
1,500
|
|
|
41,049
|
|
Non-cash (gain) loss
on derivative instruments
|
|
44,723
|
|
|
(31,708)
|
|
(Earnings) loss on
equity method investments
|
|
(3,684)
|
|
|
994
|
|
Equity method
investment distributions
|
|
4,729
|
|
|
—
|
|
Stock-based
compensation
|
|
15,132
|
|
|
5,447
|
|
EBITDAX
|
|
$
|
513,661
|
|
|
$
|
278,571
|
|
Net Debt Reconciliation
The total debt to total capitalization ratio is calculated by
dividing total debt by the sum of total debt and total
stockholders' equity. This ratio is a measurement which is
presented in our annual and interim filings and we believe this
ratio is useful to investors in determining our leverage. Net Debt
is calculated by subtracting cash and cash equivalents from total
debt. Net Debt and the Net Debt to Adjusted Capitalization
ratio are non-GAAP measures which we believe are also useful to
investors since we have the ability to and may decide to use a
portion of our cash and cash equivalents to retire debt.
Additionally, as we may incur additional expenditures without
increasing debt, it is appropriate to apply cash and cash
equivalents to debt in calculating the Net Debt to Adjusted
Capitalization ratio.
(In
thousands)
|
March 31,
2019
|
|
December 31,
2018
|
Total debt
|
$
|
1,219,338
|
|
|
$
|
1,226,104
|
|
Stockholders'
equity
|
2,320,939
|
|
|
2,088,159
|
|
Total
capitalization
|
$
|
3,540,277
|
|
|
$
|
3,314,263
|
|
|
|
|
|
Total debt
|
$
|
1,219,338
|
|
|
$
|
1,226,104
|
|
Less: Cash and cash
equivalents
|
(314,889)
|
|
|
(2,287)
|
|
Net debt
|
$
|
904,449
|
|
|
$
|
1,223,817
|
|
|
|
|
|
Net debt
|
$
|
904,449
|
|
|
$
|
1,223,817
|
|
Stockholders'
equity
|
2,320,939
|
|
|
2,088,159
|
|
Total adjusted
capitalization
|
$
|
3,225,388
|
|
|
$
|
3,311,976
|
|
|
|
|
|
Total debt to total
capitalization ratio
|
34.4
|
%
|
|
37.0
|
%
|
Less: Impact of cash
and cash equivalents
|
6.4
|
%
|
|
—
|
%
|
Net debt to adjusted
capitalization ratio
|
28.0
|
%
|
|
37.0
|
%
|
|
Capital
Expenditures
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2019
|
|
2018
|
Cash paid for capital
expenditures
|
$
|
195,650
|
|
|
$
|
156,257
|
|
Change in accrued
capital costs
|
8,634
|
|
|
11,032
|
|
Exploratory dry hole
cost
|
(13)
|
|
|
60
|
|
Capital
expenditures
|
$
|
204,271
|
|
|
$
|
167,349
|
|
View original
content:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-announces-first-quarter-2019-results-increases-dividend-by-29-percent-300838825.html
SOURCE Cabot Oil & Gas Corporation