HOUSTON, April 29, 2021 /PRNewswire/ -- Cabot Oil &
Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today reported
financial and operating results for the first quarter of 2021.
"Relative to the prior-year period, Cabot's free cash flow and adjusted net income
both grew by over 175 percent, highlighting the Company's ability
to deliver robust financial results in a more normalized natural
gas price environment," said Dan O.
Dinges, Chairman, President and Chief Executive Officer. "We
remain on track to deliver strong growth in our earnings, return on
capital employed, and free cash flow this year, which supports our
focus on increasing our capital returns and further enhancing
shareholder value."
First Quarter 2021 Highlights
- Net income of $126.4 million (or
$0.32 per share); adjusted net income
(non-GAAP) of $150.0 million (or
$0.38 per share)
- Net cash provided by operating activities of $290.5 million; free cash flow (non-GAAP) of
$137.6 million
- Return on capital employed (ROCE) (non-GAAP) for the trailing
12 months of 10.4 percent
- Repaid $88.0 million
of senior notes that matured in January 2021
- Announced a 10 percent increase in the Company's quarterly base
dividend to $0.11 per share
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 2021 Financial Results
First quarter 2021 daily production was 2,287 million cubic feet
equivalent (Mmcfe) per day (100 percent natural gas). During
the first quarter of 2021, the Company drilled 25.1 net wells,
completed 13.0 net wells, and placed 21.0 net wells on
production.
First quarter 2021 net income was $126.4
million, or $0.32 per share,
compared to $53.9 million, or
$0.14 per share, in the prior-year
period. First quarter 2021 adjusted net income (non-GAAP) was
$150.0 million, or $0.38 per share, compared to $54.0 million, or $0.14 per share, in the prior-year period. First
quarter 2021 EBITDAX (non-GAAP) was $300.4
million, compared to $189.0
million in the prior-year period.
First quarter 2021 net cash provided by operating activities was
$290.5 million, compared to
$204.9 million in the prior-year
period. First quarter 2021 discretionary cash flow (non-GAAP) was
$261.2 million, compared to
$198.5 million in the prior-year
period. First quarter 2021 free cash flow (non-GAAP) was
$137.6 million, compared to
$49.8 million in the prior-year
period.
First quarter 2021 natural gas price realizations, including the
impact of derivatives, were $2.31 per
thousand cubic feet (Mcf), an increase of 34 percent compared to
the prior-year period. First quarter 2021 natural gas price
realizations represented a $0.39
discount to NYMEX settlement prices compared to a $0.23 discount in the prior-year period. First
quarter 2021 operating expenses (including interest expense)
decreased to $1.44 per thousand cubic
feet equivalent (Mcfe), a one percent improvement compared to the
prior-year period.
Cabot incurred a total of
$124.0 million of capital
expenditures in the first quarter of 2021, including $123.0 million of drilling and facilities
capital, $0.6 million of leasehold
acquisition capital, and $0.4 million
of other capital. See the supplemental table at the end of this
press release reconciling the capital expenditures during the first
quarter of 2021.
Financial Position and Liquidity
As of March 31, 2021, Cabot had total debt of $1.0 billion and cash on hand of $173.7 million. The Company's net debt to
adjusted capitalization ratio (non-GAAP) and net debt to trailing
twelve months EBITDAX ratio (non-GAAP) were 27.4 percent and 1.1x,
respectively, compared to 31.0 percent and 1.4x as of December 31, 2020.
On April 21, 2021, Cabot's lender group unanimously reaffirmed
the $3.2 billion borrowing base under
the Company's revolving credit facility. Aggregate bank commitments
under the credit facility remain at $1.5
billion. The Company currently has no debt outstanding under
its revolving credit facility, resulting in approximately
$1.7 billion of liquidity.
Dividend Increase
Cabot's Board of Directors has
approved a 10 percent increase in the quarterly base dividend
to $0.11 per share on the Company's
common stock, resulting in the sixth dividend increase since
May 2017. The dividend will be paid
on May 27, 2021 to all shareholders
of record as of the close of business on May
13, 2021. "The increase in the quarterly base dividend
highlights our confidence in the Company's sustainable free cash
flow generation throughout the natural gas price cycle, which is
underpinned by our long-lived inventory of low-cost natural gas
assets in the core of the Marcellus Shale in northeast Pennsylvania," stated Dinges. "Based on the
current natural gas price outlook for 2021, we expect to deliver
excess free cash flow after our minimum capital return target of 50
percent of annual free cash flow from our 'base plus supplemental'
dividend approach and our debt repayment. This excess free cash
flow is anticipated to be earmarked for additional capital returns,
including opportunistic share repurchases or incremental
supplemental dividends."
Second Quarter and Full-Year 2021 Guidance
Cabot today reaffirmed its
guidance for 2021. The Company's operating plan for the year is
expected to deliver an average net production rate of 2,350 Mmcfe
per day from a capital program of $530 to $540
million. Cabot has also
provided its second quarter 2021 production guidance range of 2,225
to 2,275 Mmcfe per day. "Our production guidance for the second
quarter implies a slight sequential decline relative to the first
quarter, which is a result of lower activity levels and capital
spending during the winter season," commented Dinges. "Activity
levels are expected to increase in the second and third quarters,
resulting in sequential growth during the second half of the year,
primarily during the fourth quarter in anticipation of higher
natural gas prices and the in-service of the Leidy South expansion
project."
For further information on Cabot's natural gas pricing exposure by index
and cost guidance, please see the current investor
presentation in the Investor Relations section of the
Company's website.
Conference Call Webcast
A conference call is scheduled for Friday, April 30, 2021, at 9:30 a.m. Eastern Time to discuss first quarter
2021 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, activity levels 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", and similar expressions are
also intended to identify forward-looking statements. Such
statements involve risks and uncertainties, including, but not
limited to, the continuing effects of the COVID-19 pandemic and the
impact thereof on the Company's business, financial condition and
results of operations, the availability of cash on hand and other
sources of liquidity to fund our capital expenditures, the
repayment of our debt maturities and our dividends, actions by, or
disputes among or between, the Organization of Petroleum Exporting
Countries and other producer countries, 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, pipeline projects, legislative and
regulatory initiatives, electronic, cyber or physical security
breaches and other factors detailed herein and in our Securities
and Exchange Commission (SEC) filings. In addition, the declaration
and payment of any future dividends, whether regular quarterly base
dividends or annual supplemental dividends, will depend on the
Company's financial results, cash requirements, future prospects
and other factors deemed relevant by the Board. See "Risk Factors"
in Item 1A of the Company's most recent Annual Report on Form 10-K
and subsequent Quarterly Reports on Form 10-Q 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
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
PRODUCTION
VOLUMES
|
|
|
|
|
Natural gas
(Bcf)
|
|
205.8
|
|
|
215.0
|
|
Equivalent production
(Bcfe)
|
|
205.8
|
|
|
215.0
|
|
Daily equivalent
production (Mmcfe/day)
|
|
2,287
|
|
|
2,363
|
|
|
|
|
|
|
AVERAGE SALES
PRICE
|
|
|
|
|
Natural gas, including
hedges ($/Mcf)
|
|
$
|
2.31
|
|
|
$
|
1.72
|
|
Natural gas, excluding
hedges ($/Mcf)
|
|
$
|
2.30
|
|
|
$
|
1.72
|
|
|
|
|
|
|
AVERAGE UNIT COSTS
($/Mcfe)(1)
|
|
|
|
|
Direct
operations
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
Transportation and
gathering
|
|
0.66
|
|
|
0.67
|
|
Taxes other than
income
|
|
0.02
|
|
|
0.02
|
|
Exploration
|
|
0.01
|
|
|
0.01
|
|
Depreciation,
depletion and amortization
|
|
0.46
|
|
|
0.47
|
|
General and
administrative (excluding stock-based compensation)
|
|
0.09
|
|
|
0.08
|
|
Stock-based
compensation
|
|
0.06
|
|
|
0.08
|
|
Interest
expense
|
|
0.06
|
|
|
0.07
|
|
|
|
$
|
1.44
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
WELLS DRILLED
(2)
|
|
|
|
|
Gross
|
|
28
|
|
|
22
|
|
Net
|
|
25.1
|
|
|
22.0
|
|
|
|
|
|
|
WELLS COMPLETED
(2)
|
|
|
|
|
Gross
|
|
14
|
|
|
13
|
|
Net
|
|
13.0
|
|
|
13.0
|
|
_______________________________________________________________________________
(1)
|
Total unit cost
may differ from the sum of the individual costs due to
rounding.
|
(2)
|
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)
|
|
2021
|
|
2020
|
OPERATING
REVENUES
|
|
|
|
|
Natural
gas
|
|
$
|
472,859
|
|
|
$
|
370,340
|
|
(Loss)
gain on derivative instruments
|
|
(13,238)
|
|
|
16,062
|
|
Other
|
|
59
|
|
|
55
|
|
|
|
459,680
|
|
|
386,457
|
|
OPERATING
EXPENSES
|
|
|
|
|
Direct
operations
|
|
16,876
|
|
|
17,244
|
|
Transportation and
gathering
|
|
136,702
|
|
|
143,332
|
|
Taxes other than
income
|
|
4,805
|
|
|
3,738
|
|
Exploration
|
|
2,627
|
|
|
2,190
|
|
Depreciation,
depletion and amortization
|
|
94,148
|
|
|
100,135
|
|
General and
administrative (excluding stock-based
compensation)(1)
|
|
17,504
|
|
|
17,126
|
|
Stock-based
compensation(2)
|
|
11,651
|
|
|
16,303
|
|
|
|
284,313
|
|
|
300,068
|
|
Loss on equity method
investments
|
|
—
|
|
|
(59)
|
|
Gain on sale of
assets
|
|
71
|
|
|
71
|
|
INCOME FROM
OPERATIONS
|
|
175,438
|
|
|
86,401
|
|
Interest expense,
net
|
|
12,377
|
|
|
14,211
|
|
Other
expense
|
|
46
|
|
|
66
|
|
Income before income
taxes
|
|
163,015
|
|
|
72,124
|
|
Income tax
expense
|
|
36,661
|
|
|
18,214
|
|
NET
INCOME
|
|
$
|
126,354
|
|
|
$
|
53,910
|
|
Earnings per share -
Basic
|
|
$
|
0.32
|
|
|
$
|
0.14
|
|
Weighted-average
common shares outstanding
|
|
399,121
|
|
|
398,343
|
|
_______________________________________________________________________________
(1)
|
Includes severance
expense of $2.4 million for the quarter ended March 31, 2021
related to early retirements under the Company's 2021 Early
Retirement Program.
|
|
|
(2)
|
Includes the
impact of our performance share awards and restricted
stock.
|
CONDENSED
CONSOLIDATED BALANCE SHEET (Unaudited)
|
|
(In
thousands)
|
March 31,
2021
|
|
December
31,
2020
|
ASSETS
|
|
|
|
Current
assets
|
$
|
411,915
|
|
|
$
|
415,715
|
|
Properties and
equipment, net (Successful efforts method)
|
4,075,428
|
|
|
4,044,606
|
|
Other
assets
|
63,509
|
|
|
63,211
|
|
|
$
|
4,550,852
|
|
|
$
|
4,523,532
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
$
|
215,092
|
|
|
$
|
202,226
|
|
Current portion of
long-term debt
|
100,000
|
|
|
188,000
|
|
Long-term debt, net
(excluding current maturities)
|
946,123
|
|
|
945,924
|
|
Deferred income
taxes
|
786,526
|
|
|
774,195
|
|
Other
liabilities
|
197,141
|
|
|
197,480
|
|
Stockholders'
equity
|
2,305,970
|
|
|
2,215,707
|
|
|
$
|
4,550,852
|
|
|
$
|
4,523,532
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
|
|
|
|
|
Three Months
Ended
March
31,
|
(In
thousands)
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net
income
|
|
$
|
126,354
|
|
|
$
|
53,910
|
|
Depreciation,
depletion and amortization
|
|
94,148
|
|
|
100,135
|
|
Deferred income tax
expense
|
|
12,371
|
|
|
44,044
|
|
Gain on sale of
assets
|
|
(71)
|
|
|
(71)
|
|
Loss (gain) on
derivative instruments
|
|
13,238
|
|
|
(16,062)
|
|
Net cash received in
settlement of derivative instruments
|
|
3,397
|
|
|
—
|
|
Stock-based
compensation and other
|
|
11,076
|
|
|
15,765
|
|
Income charges not
requiring cash
|
|
715
|
|
|
809
|
|
Changes in assets and
liabilities
|
|
29,299
|
|
|
6,367
|
|
Net cash provided by
operating activities
|
|
290,527
|
|
|
204,897
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital
expenditures
|
|
(123,617)
|
|
|
(148,702)
|
|
Proceeds from sale of
assets
|
|
92
|
|
|
48
|
|
Investment in equity
method investments
|
|
—
|
|
|
(35)
|
|
Proceeds from sale of
equity method investments
|
|
—
|
|
|
(9,424)
|
|
Net cash used in
investing activities
|
|
(123,525)
|
|
|
(158,113)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Net borrowings
(repayments) of debt
|
|
(88,000)
|
|
|
—
|
|
Dividends
paid
|
|
(39,887)
|
|
|
(39,817)
|
|
Tax withholdings on
vesting of stock awards
|
|
(5,569)
|
|
|
(6,313)
|
|
Net cash used in
financing activities
|
|
(133,456)
|
|
|
(46,130)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
$
|
33,546
|
|
|
$
|
654
|
|
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 and
results 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 management's belief that these non-GAAP
measures enable a user of the financial information to understand
the impact of identified adjustments on reported results. Adjusted
Net Income is defined as net income plus gain and loss on sale of
assets, gain and loss on derivative instruments, stock-based
compensation expense, severance expense and tax effect on selected
items. Adjusted Earnings per Share is defined as Adjusted Net
Income divided by weighted-average common shares outstanding.
Additionally, our management believes these measures provide
beneficial comparisons to similarly adjusted measurements of prior
periods, and uses these measures for that purpose. 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)
|
|
2021
|
|
2020
|
As reported - net
income
|
|
$
|
126,354
|
|
|
$
|
53,910
|
|
Reversal of selected
items:
|
|
|
|
|
Gain on sale of
assets
|
|
(71)
|
|
|
(71)
|
|
Loss (gain) on
derivative instruments(1)
|
|
16,635
|
|
|
(16,062)
|
|
Stock-based
compensation expense
|
|
11,651
|
|
|
16,303
|
|
Severance
expense
|
|
2,376
|
|
|
—
|
|
Tax effect on selected
items
|
|
(6,990)
|
|
|
(39)
|
|
Adjusted net
income
|
|
$
|
149,955
|
|
|
$
|
54,041
|
|
As reported -
earnings per share
|
|
$
|
0.32
|
|
|
$
|
0.14
|
|
Per share impact of
selected items
|
|
0.06
|
|
|
—
|
|
Adjusted earnings per
share
|
|
$
|
0.38
|
|
|
$
|
0.14
|
|
Weighted-average
common shares outstanding
|
|
399,121
|
|
|
398,343
|
|
_______________________________________________________________________________
(1)
|
This amount
represents the non-cash mark-to-market changes of our commodity
derivative instruments recorded in (Loss) 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 management's
belief that this non-GAAP measure is useful information to
investors when evaluating our profitability and the efficiency with
which management has employed capital over time. Our management
uses ROCE for that purpose. ROCE is not a measure of financial
performance under GAAP and should not be considered an alternative
to net income, as defined by GAAP.
|
Twelve Months
Ended March 31,
|
(In
thousands)
|
2021
|
|
2020
|
Interest expense,
net
|
$
|
52,290
|
|
|
$
|
56,982
|
|
Tax
benefit
|
(11,948)
|
|
|
(13,005)
|
|
After-tax interest
expense, net (A)
|
40,342
|
|
|
43,977
|
|
|
|
|
|
As reported - net
income
|
272,973
|
|
|
472,217
|
|
Adjustments to as
reported - net income, net of tax
|
36,952
|
|
|
(27,164)
|
|
Adjusted net income
(B)
|
309,925
|
|
|
445,053
|
|
|
|
|
|
Adjusted net income
before interest expense, net (A + B)
|
$
|
350,267
|
|
|
$
|
489,030
|
|
|
|
|
|
Total debt -
beginning of 12-month period
|
$
|
1,220,260
|
|
|
$
|
1,219,338
|
|
Stockholders' equity
- beginning of 12-month period
|
2,168,395
|
|
|
2,320,939
|
|
Capital employed -
beginning of 12-month period
|
3,388,655
|
|
|
3,540,277
|
|
|
|
|
|
Total debt - end of
12-month period
|
1,046,123
|
|
|
1,220,260
|
|
Stockholders' equity
- end of 12-month period
|
2,305,970
|
|
|
2,168,395
|
|
Capital employed -
end of 12-month period
|
3,352,093
|
|
|
3,388,655
|
|
|
|
|
|
Average capital
employed (C)
|
$
|
3,370,374
|
|
|
$
|
3,464,466
|
|
|
|
|
|
Return on average
capital employed (ROCE) (A + B) / C
|
10.4
|
%
|
|
14.1
|
%
|
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 and is
used by our management 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, return capital to
shareholders through dividends and share repurchases, and service
debt. Discretionary Cash Flow is presented based on our
management's 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 or net income, as defined by GAAP, or as a
measure of liquidity.
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, and is used by our management for that
purpose. Free Cash Flow is presented based on our management's
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 or net income,
as defined by GAAP, or as a measure of liquidity.
|
|
Three Months
Ended
March
31,
|
(In
thousands)
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
|
$
|
290,527
|
|
|
$
|
204,897
|
|
Changes in assets and
liabilities
|
|
(29,299)
|
|
|
(6,367)
|
|
Discretionary cash
flow
|
|
261,228
|
|
|
198,530
|
|
Capital
expenditures
|
|
(123,617)
|
|
|
(148,702)
|
|
Investment in equity
method investments
|
|
—
|
|
|
(35)
|
|
Free cash
flow
|
|
$
|
137,611
|
|
|
$
|
49,793
|
|
EBITDAX Calculation and
Reconciliation
EBITDAX is defined as net income plus interest expense, other
expense, income tax expense and benefit, depreciation, depletion
and amortization (including impairments), exploration expense, gain
and loss on sale of assets, non-cash gain and loss on derivative
instruments, earnings and loss on equity method investments, and
stock-based compensation expense. EBITDAX is presented based on our
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. Our
management uses EBITDAX for that purpose. EBITDAX is not a measure
of financial performance under GAAP and should not be considered as
an 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)
|
|
2021
|
|
2020
|
Net income
|
|
$
|
126,354
|
|
|
$
|
53,910
|
|
Plus
(less):
|
|
|
|
|
Interest expense,
net
|
|
12,377
|
|
|
14,211
|
|
Other
expense
|
|
46
|
|
|
66
|
|
Income tax
expense
|
|
36,661
|
|
|
18,214
|
|
Depreciation,
depletion and amortization
|
|
94,148
|
|
|
100,135
|
|
Exploration
|
|
2,627
|
|
|
2,190
|
|
Gain on sale of
assets
|
|
(71)
|
|
|
(71)
|
|
Non-cash (gain) loss
on derivative instruments
|
|
16,635
|
|
|
(16,062)
|
|
Loss on equity method
investments
|
|
—
|
|
|
59
|
|
Stock-based
compensation
|
|
11,651
|
|
|
16,303
|
|
EBITDAX
|
|
$
|
300,428
|
|
|
$
|
188,955
|
|
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 our management
believes this ratio is useful to investors in determining our
leverage. Net Debt is calculated by subtracting cash and cash
equivalents from total debt. The Net Debt to Adjusted
Capitalization ratio is calculated by dividing Net Debt by the sum
of Net Debt and total stockholders' equity. Net Debt and the
Net Debt to Adjusted Capitalization ratio are non-GAAP measures
which our management believes 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. Our management uses these measures
for that purpose. Additionally, as we may incur additional
expenditures without increasing debt, our management believes it is
appropriate to apply cash and cash equivalents to debt in
calculating the Net Debt to Adjusted Capitalization ratio.
(In
thousands)
|
March 31,
2021
|
|
December
31,
2020
|
Current portion of
long-term debt
|
$
|
100,000
|
|
|
$
|
188,000
|
|
Long-term debt,
net
|
946,123
|
|
|
945,924
|
|
Total debt
|
$
|
1,046,123
|
|
|
$
|
1,133,924
|
|
Stockholders'
equity
|
2,305,970
|
|
|
2,215,707
|
|
Total
capitalization
|
$
|
3,352,093
|
|
|
$
|
3,349,631
|
|
|
|
|
|
Total debt
|
$
|
1,046,123
|
|
|
$
|
1,133,924
|
|
Less: Cash and cash
equivalents
|
(173,659)
|
|
|
(140,113)
|
|
Net debt
|
$
|
872,464
|
|
|
$
|
993,811
|
|
|
|
|
|
Net debt
|
$
|
872,464
|
|
|
$
|
993,811
|
|
Stockholders'
equity
|
2,305,970
|
|
|
2,215,707
|
|
Total adjusted
capitalization
|
$
|
3,178,434
|
|
|
$
|
3,209,518
|
|
|
|
|
|
Total debt to total
capitalization ratio
|
31.2
|
%
|
|
33.9
|
%
|
Less: Impact of cash
and cash equivalents
|
3.8
|
%
|
|
2.9
|
%
|
Net debt to adjusted
capitalization ratio
|
27.4
|
%
|
|
31.0
|
%
|
Capital
Expenditures
|
|
|
|
Three Months
Ended
March
31,
|
(In
thousands)
|
|
2021
|
|
2020
|
Cash paid for capital
expenditures
|
|
$
|
123,617
|
|
|
$
|
148,702
|
|
Change in accrued
capital costs
|
|
408
|
|
|
11,546
|
|
Exploratory dry hole
cost
|
|
—
|
|
|
57
|
|
Capital
expenditures
|
|
$
|
124,025
|
|
|
$
|
160,305
|
|
View original
content:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-reports-first-quarter-2021-results-increases-quarterly-base-dividend-by-10-percent-301280723.html
SOURCE Cabot Oil & Gas Corporation