HOUSTON, Sept. 30, 2019 /PRNewswire/ -- Cabot Oil
& Gas Corporation (NYSE: COG) ("Cabot" or the "Company")
announced today that it has reached an agreement to sell its 20
percent ownership interest in Meade Pipeline Co LLC ("Meade") to a
subsidiary of NextEra Energy Partners, LP (NYSE: NEP) for
$256 million, or over 13 times
expected 2019 EBITDAX (non-GAAP). Meade owns approximately 39
percent of the Central Penn Line, the greenfield pipeline segment
of the Atlantic Sunrise project. This transaction is expected to
close during the fourth quarter of 2019, subject to customary
closing conditions and adjustments. Proceeds from this transaction,
in addition to the Company's ongoing operating free cash flow, will
allow Cabot to continue to enhance shareholder value by returning
capital to shareholders through a combination of a growing dividend
and an opportunistic share repurchase program.
BMO Capital Markets served as financial advisor to Cabot on this
transaction.
Share Repurchase Program Update
During the third quarter of 2019, Cabot repurchased 10.5 million
shares at a weighted-average share price of $18.21. Since reactivating the share repurchase
program in the second quarter of 2017, Cabot has reduced its shares
outstanding by over 12 percent to 407.9 million shares. The Company
currently has 21.0 million remaining shares authorized under its
share repurchase program (or approximately five percent of its
current shares outstanding). "Based on our year-to-date share
repurchases and our anticipated dividend payments for the
year, the Company expects to return a minimum
of approximately $490 million of
capital to shareholders in 2019, far exceeding our minimum return
of capital target of 50 percent of annual free cash flow," stated
Dan O. Dinges, Chairman, President
and Chief Executive Officer.
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.
Non-GAAP Financial Measures
EBITDAX is defined as net income plus loss on debt
extinguishment, interest expense, other expense, income tax
expense, depreciation, depletion and amortization (including
property impairments), exploration expense, gain and loss on sale
of assets, non-cash gain and loss on derivative instruments, gains
and loss on equity method investments, cash distributions received
from equity method investment and stock-based compensation expense.
EBITDAX is presented based on management's 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.
Forward‐Looking Statements
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
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SOURCE Cabot Oil & Gas Corporation