HOUSTON, April 28 /PRNewswire-FirstCall/ -- Cabot Oil & Gas
Corporation (NYSE:COG) today reported that for the first quarter of
2009 the Company had net income of $47.6 million, or $0.46 per
share, compared to $46.0 million, or $0.47 per share, for last
year's first quarter. The 2009 earnings figure benefited from a
gain on the sale of assets and a gain on derivatives in 2009, while
both periods were negatively impacted by charges related to stock
compensation. Removing these selected items for both first quarter
periods, the comparison for net income is $42.2 million, or $0.41
per share, for 2009 versus $57.0 million, or $0.58 per share, in
2008. The Company also reported cash flow from operations for the
quarter of $152.5 million, up almost $20 million from the $132.7
million recorded in last year's first quarter. Discretionary cash
flow was relatively flat between comparable periods at $138.0
million for 2009, compared to $138.4 million for 2008. "The key
drivers for the quarter's results were a 16 percent increase in
equivalent production and solid price realizations aided by our
hedge position," said Dan O. Dinges, Chairman, President and Chief
Executive Officer. "For the quarter, Cabot reported 25.6 Bcfe of
production, compared to last year's first quarter figure of 22.2
Bcfe. This increase represents a combination of growth in our
organic program and from production related to last summer's
acquisition," commented Dinges. "Roughly half was the result of
acquired wells and half from our drilling effort." Natural gas
price realizations were $7.51 per Mcf in 2009 versus $7.92 per Mcf
in 2008 for the quarter comparisons. This year's quarter
experienced a $3.34 per Mcf pick-up from the Company's hedge
position, where last year's impact was only a positive $0.03 per
Mcf. While oil comprises a small portion of Cabot's production, the
hedge per unit impact was much more dramatic, moving realized oil
prices up $39.07 per barrel for the first quarter 2009 versus a
decline of $8.60 per barrel in the first quarter 2008. "Expenses
between comparable quarters trended higher but within
expectations," added Dinges. "DD&A increased due to higher
production, costs related to the acquisition and leasehold
amortizations. "In light of the business environment, I am pleased
with the quarter results, the areas we have to allocate our capital
and the stronger financial position we possess," said Dinges. "Even
with the current economic conditions, I believe 2009 will be
another growth year for Cabot." Conference Call Listen in live to
Cabot Oil & Gas Corporation's first quarter financial and
operating results discussion with financial analysts on Wednesday,
April 29, 2009 at 9:30 a.m. EDT (8:30 a.m. CDT) at
http://www.cabotog.com/. A teleconference replay will also be
available at (800) 642-1687, (U.S./Canada) or (706) 645-9291
(International), pass code 93093519. The replay will be available
through Friday, May 1, 2009. The latest financial guidance,
including the Company's hedge positions, along with a replay of the
web cast, which will be archived for one year, are available in the
investor relations section of the Company's website at
http://www.cabotog.com/. Cabot Oil & Gas Corporation,
headquartered in Houston, Texas is a leading independent natural
gas producer with substantial interests in the Gulf Coast,
including Texas and Louisiana; the West, with the Rocky Mountains
and Mid-Continent; and in the East. For additional information,
visit the Company's Internet homepage at http://www.cabotog.com/.
The statements regarding future financial performance and results
and the other statements which are not historical facts contained
in this release are forward-looking statements that involve risks
and uncertainties, including, but not limited to, market factors,
the market price (including regional basis differentials) of
natural gas and oil, results of future drilling and marketing
activity, future production and costs, and other factors detailed
in the Company's Securities and Exchange Commission filings.
OPERATING DATA Quarter Ended March 31, ------------- 2009 2008
----- ----- PRODUCED NATURAL GAS (Bcf) & OIL (MBbl) Natural Gas
East 7.3 6.0 Gulf Coast 10.4 7.4 West 6.2 6.4 Canada 0.6 1.2 -----
----- Total 24.5 21.0 ===== ===== Crude/Condensate/Ngl East 4 6
Gulf Coast 153 144 West 35 36 Canada 4 6 ----- ----- Total 196 192
===== ===== Equivalent Production (Bcfe) 25.6 22.2 PRICES Average
Produced Gas Sales Price ($/Mcf) East $8.34 $8.28 Gulf Coast $8.34
$8.30 West $5.54 $7.26 Canada $3.51 $7.38 Total (1) $7.51 $7.92
Average Crude/Condensate Price ($/Bbl) East $37.25 $90.04 Gulf
Coast $87.02 $84.58 West $32.22 $95.66 Canada $32.01 $79.38 Total
(1) $75.25 $86.55 WELLS DRILLED Gross 49 85 Net 37 65 Gross Success
Rate 96% 98% (1) These realized prices include the realized impact
of derivative instrument settlements. Quarter Ended March 31,
------------- 2009 2008 ------ ------ Realized Impacts to Gas
Pricing $3.34 $0.03 Realized Impacts to Oil Pricing $39.07 $(8.60)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In
thousands, except per share amounts) Quarter Ended March 31,
----------------- 2009 2008 -------- -------- Operating Revenues
Natural Gas Production $184,522 $166,559 Brokered Natural Gas
33,381 35,620 Crude Oil and Condensate 14,242 16,487 Other 1,794
985 -------- -------- 233,939 219,651 Operating Expenses Brokered
Natural Gas Cost 29,749 30,290 Direct Operations - Field and
Pipeline 25,479 17,491 Exploration 6,466 5,061 Depreciation,
Depletion and Amortization 65,092 46,267 General and Administrative
(excluding Stock-Based Compensation) 11,936 9,997 Stock-Based
Compensation (1) 5,129 17,576 Taxes Other Than Income 12,898 16,897
-------- -------- 156,749 143,579 Gain on Sale of Assets (2) 12,707
- -------- -------- Income from Operations 89,897 76,072 Interest
Expense and Other 14,226 5,991 -------- -------- Income Before
Income Taxes 75,671 70,081 Income Tax Expense 28,091 24,106
-------- -------- Net Income $47,580 $45,975 ======== ======== Net
Earnings Per Share - Basic $0.46 $0.47 Weighted Average Common
Shares Outstanding 103,521 97,716 (1) Includes the impact of the
Company's performance share awards and restricted stock
amortization as well as expense related to stock options and stock
appreciation rights. Also includes expense for the Supplemental
Employee Incentive Plans which commenced in 2008. (2) The gain on
sale of assets primarily relates to the sale of the Thornwood
properties in the East. CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited) (In thousands) March 31, December 31, 2009 2008
---------- ---------- Assets Current Assets $457,074 $460,551
Property, Equipment and Other Assets 3,291,697 3,241,113 ----------
---------- Total Assets $3,748,771 $3,701,664 ========== ==========
Liabilities and Stockholders' Equity Current Liabilities $312,314
$378,913 Long-Term Debt, excluding Current Maturities 840,286
831,143 Deferred Income Taxes 623,340 599,106 Other Liabilities
103,937 101,940 Stockholders' Equity 1,868,894 1,790,562 ----------
---------- Total Liabilities and Stockholders' Equity $3,748,771
$3,701,664 ========== ========== CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS (Unaudited) (In thousands) Quarter Ended March 31,
------------------ 2009 2008 -------- -------- Cash Flows From
Operating Activities Net Income $47,580 $45,975 Unrealized Gain on
Derivatives (941) - Income Charges Not Requiring Cash 71,292 63,806
Gain on Sale of Assets (12,707) - Deferred Income Tax Expense
26,349 23,560 Changes in Assets and Liabilities 14,495 (1,056)
Stock-Based Compensation Tax Benefit - (4,642) Exploration Expense
6,466 5,061 -------- -------- Net Cash Provided by Operations
152,534 132,704 -------- -------- Cash Flows From Investing
Activities Capital Expenditures (171,029) (128,101) Proceeds from
Sale of Assets 15,063 - Exploration Expense (6,466) (5,061)
-------- -------- Net Cash Used in Investing (162,432) (133,162)
-------- -------- Cash Flows From Financing Activities Sale of
Common Stock Proceeds 149 2,240 Net Increase in Debt 10,000 20,000
Stock-Based Compensation Tax Benefit - 4,642 Dividends Paid (3,103)
(2,930) -------- -------- Net Cash Provided by Financing 7,046
23,952 -------- -------- Net Increase / (Decrease) in Cash and Cash
Equivalents $(2,852) $23,494 ======== ======== Selected Item Review
and Reconciliation of Net Income and Earnings Per Share (In
thousands, except per share amounts) Quarter Ended March 31,
---------------- 2009 2008 ------- ------- As Reported - Net Income
$47,580 $45,975 Reversal of Selected Items, Net of Tax: Gain on
Sale of Assets (2) (7,967) - Stock-Based Compensation Expense 3,216
11,055 Unrealized Gain on Derivatives (1) (590) - ------- -------
Net Income Excluding Selected Items $42,239 $57,030 ======= =======
As Reported - Net Earnings Per Share $0.46 $0.47 Per Share Impact
of Reversing Selected Items (0.05) 0.11 ------- ------- Net
Earnings Per Share Including Reversal of Selected Items $0.41 $0.58
======= ======= Weighted Average Common Shares Outstanding 103,521
97,716 (1) This unrealized gain is included in Natural Gas
Production Revenues in the Condensed Consolidated Statement of
Operations and represents the mark to market change related to the
Company's natural gas basis swaps. (2) The gain on sale of assets
primarily relates to the sale of the Thornwood properties in the
East. Discretionary Cash Flow Calculation and Reconciliation (In
thousands) Quarter Ended March 31, ----------------- 2009 2008
-------- -------- Discretionary Cash Flow As Reported - Net Income
$47,580 $45,975 Plus / (Less): Unrealized Gain on Derivatives (941)
- Income Charges Not Requiring Cash 71,292 63,806 Gain on Sale of
Assets (12,707) - Deferred Income Tax Expense 26,349 23,560
Exploration Expense 6,466 5,061 -------- -------- Discretionary
Cash Flow 138,039 138,402 Changes in Assets and Liabilities 14,495
(1,056) Stock-Based Compensation Tax Benefit - (4,642) --------
-------- Net Cash Provided by Operations $152,534 $132,704 ========
======== Net Debt Reconciliation (In thousands) March 31, December
31, 2009 2008 ---------- ---------- Current Portion of Long-Term
Debt $36,714 $35,857 Long-Term Debt 840,286 831,143 ----------
---------- Total Debt $877,000 $867,000 Stockholders' Equity
1,868,894 1,790,562 ---------- ---------- Total Capitalization
$2,745,894 $2,657,562 Total Debt $877,000 $867,000 Less: Cash and
Cash Equivalents (25,249) (28,101) ---------- ---------- Net Debt
$851,751 $838,899 Net Debt $851,751 $838,899 Stockholders' Equity
1,868,894 1,790,562 ---------- ---------- Total Adjusted
Capitalization $2,720,645 $2,629,461 Total Debt to Total
Capitalization Ratio 31.9% 32.6% Less: Impact of Cash and Cash
Equivalents 0.6% 0.7% ---------- ---------- Net Debt to Adjusted
Capitalization Ratio 31.3% 31.9% DATASOURCE: Cabot Oil & Gas
Corporation CONTACT: Scott Schroeder, +1-281-589-4993, for Cabot
Oil & Gas Corporation Web Site: http://www.cabotog.com/
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