HOUSTON, April 30, 2020 /PRNewswire/ -- Cabot Oil &
Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today
reported financial and operating results for the first quarter of
2020.
"During these unprecedented times, I am reminded of the strength
of our company and the resiliency of our business model, which are
a result of our low cost structure, our strong balance sheet, and
the tireless hard work of our employees," stated Dan O. Dinges, Chairman, President and Chief
Executive Officer. "We have implemented preventative measures
intended to minimize unnecessary risk of exposure and prevent
infection among our employees and the communities in which we
operate. Our operations team—in conjunction with our service and
midstream providers—has continued to execute on our plan with
little disruption. While natural gas prices are expected to remain
challenged in the near-term as we manage through an oversupplied
market exiting the winter heating season and the unexpected loss in
demand resulting from COVID-19, we expect a much healthier supply
and demand balance for natural gas later this year and in 2021. Our
improved outlook for the natural gas markets is primarily driven by
our expectation for significant declines in natural gas supply in
2020 and 2021 due to a continued reduction in natural gas-directed
drilling and completion activity and less associated gas production
from reduced operating activity in oil basins driven by the
COVID-19 pandemic and recent production disagreements among members
of OPEC+ and other producer countries."
First Quarter 2020 Highlights
- Net income of $53.9 million (or
$0.14 per share); adjusted net income
(non-GAAP) of $54.0 million (or
$0.14 per share)
- Free cash flow (non-GAAP) of $49.8
million
- Return on capital employed (ROCE) (non-GAAP) for the trailing
twelve months of 14.1 percent
- Daily production of 2,363 million cubic feet equivalent (Mmcfe)
per day, a four percent increase relative to the prior-year
period
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 2020 Financial Results
First quarter 2020 daily production was 2,363 Mmcfe per day (100
percent natural gas), representing a four percent increase relative
to the first quarter of 2019.
First quarter 2020 net income was $53.9
million, or $0.14 per share,
compared to $262.8 million, or
$0.62 per share, in the prior-year
period. First quarter 2020 adjusted net income (non-GAAP) was
$54.0 million, or $0.14 per share, compared to $307.8 million, or $0.73 per share, in the prior-year period. First
quarter 2020 EBITDAX (non-GAAP) was $189.0
million, compared to $513.7
million in the prior-year period.
First quarter 2020 net cash provided by operating activities was
$204.9 million, compared to
$585.3 million in the prior-year
period. First quarter 2020 discretionary cash flow (non-GAAP) was
$198.5 million, compared to
$505.9 million in the prior-year
period. First quarter 2020 free cash flow (non-GAAP) was
$49.8 million, compared to
$308.4 million in the prior-year
period.
First quarter 2020 natural gas price realizations, including the
impact of derivatives, were $1.72 per
thousand cubic feet (Mcf), a decrease of 49 percent compared to the
prior-year period. First quarter 2020 natural gas price
realizations represented a $0.23
discount to NYMEX settlement prices compared to a $0.06 discount in the prior-year period. First
quarter 2020 operating expenses (including interest expense)
decreased to $1.46 per thousand cubic
feet equivalent (Mcfe), a one percent improvement compared to the
prior-year period.
Cabot incurred a total of $160.3
million of capital expenditures in the first quarter of 2020
including $158.0 million of drilling
and facilities capital, $0.9 million
of leasehold acquisition capital, and $1.4
million of other capital. See the supplemental table at the
end of this press release reconciling the capital expenditures
during the first quarter of 2020.
Financial Position and Liquidity
As of March 31, 2020, Cabot had
total debt of $1.2 billion and cash
on hand of $202.8 million. The
Company's net debt-to-adjusted capitalization ratio (non-GAAP) and
net debt-to-trailing twelve months EBITDAX ratio (non-GAAP) were
31.9 percent and 0.9x, respectively, compared to 32.2 percent and
0.7x as of December 31,
2019.
On April 23, 2020, the Company's
lender group unanimously reaffirmed the $3.2 billion borrowing
base under its revolving credit facility. Aggregate bank
commitments under the credit facility remain at $1.5 billion. The Company currently has no debt
outstanding under its credit facility, resulting in approximately
$1.7 billion of liquidity.
"Despite the lowest average quarterly NYMEX settlement price
since the first quarter of 1999, Cabot was still able to deliver
positive corporate returns and generate positive free cash flow
while fully funding our dividend and maintaining an ironclad
balance sheet," added Dinges. "I am proud of our team and these
results given the unprecedented environment we are operating in
today."
Second Quarter and Full-Year 2020 Guidance
Cabot has provided its second quarter 2020 production guidance
range of 2,175 to 2,225 Mmcfe per day. As the Company previously
disclosed, this sequential production decline in the second quarter
is primarily driven by a lighter turn-in-line schedule during the
first four and a half months of the year with only thirteen wells
expected to be placed on production between the beginning of the
year and mid-May. This is primarily a result of longer cycle times
for larger pads with longer laterals during the first and second
quarters. Additionally, the Company is forecasting modest
price-related curtailments during the natural gas shoulder season.
The Company's second quarter production guidance range also
reflects the impact of unplanned downtime related to remedial work
on one well on a large pad that resulted in the deferral of over
230 completed stages from the first quarter to the second quarter,
which led to lower capital spending levels in the first quarter.
Based on the current turn-in-line schedule for the year,
approximately two-thirds of the Company's wells are expected to be
placed on production between mid-May and late August, resulting in
a significant sequential production increase in the third quarter
of 2020.
Cabot has updated its full-year production guidance from 2,400
Mmcfe per day to a range of 2,350 to 2,375 Mmcfe per day to reflect
the previously mentioned operational changes and has reaffirmed its
capital program of $575 million. "The
midpoint of our updated production guidance range implies flat
production levels year-over-year, with fourth quarter 2020 exit
volumes expected to be flat to the fourth quarter of 2019," said
Dinges. Based on the current NYMEX futures curve, this plan is
currently expected to generate enough free cash flow to fully fund
the Company's dividend in 2020. For further information 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.
"As it relates to our outlook for 2021, we are extremely
encouraged by the increase in the NYMEX natural gas futures for
2021 from a low of $2.28 per Mmbtu in
early March to approximately $2.75
per Mmbtu today," commented Dinges. "Under a maintenance capital
program in 2021, every $0.10
improvement in annual NYMEX price is expected to result in
approximately $55 million of
incremental free cash flow, highlighting our belief in our ability
to deliver a significant expansion in free cash flow next year. We
will continue to assess the natural gas market dynamics, including
the impact of COVID-19 and lower crude oil prices on the natural
gas supply and demand outlook, before formalizing our plans for
2021; however, we are optimistic that our improving outlook for
free cash flow, return on capital employed, and return of capital
to shareholders will further differentiate Cabot through these
challenging times."
Conference Call Webcast
A conference call is scheduled for Friday, May 1, 2020, at 9:30 a.m. Eastern Time to discuss first quarter
2020 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, the
effects of the COVID-19 pandemic and the impact thereof on the
Company's business, financial condition and results of operations,
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 other Securities and Exchange Commission
(SEC) filings. See "Risk Factors" in Item 1A of the Form 10-K and
Form 10-Q 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,
|
|
2020
|
|
2019
|
PRODUCTION
VOLUMES
|
|
|
|
Natural gas
(Bcf)
|
215.0
|
|
|
204.8
|
|
Equivalent production
(Bcfe)
|
215.0
|
|
|
204.8
|
|
Daily equivalent
production (Mmcfe/day)
|
2,363
|
|
|
2,276
|
|
|
|
|
|
AVERAGE SALES
PRICE
|
|
|
|
Natural gas,
including hedges ($/Mcf)
|
$
|
1.72
|
|
|
$
|
3.35
|
|
Natural gas,
excluding hedges ($/Mcf)
|
$
|
1.72
|
|
|
$
|
3.09
|
|
|
|
|
|
AVERAGE UNIT COSTS
($/Mcfe)(1)
|
|
|
|
Direct
operations
|
$
|
0.08
|
|
|
$
|
0.09
|
|
Transportation and
gathering
|
0.67
|
|
|
0.67
|
|
Taxes other than
income
|
0.02
|
|
|
0.03
|
|
Exploration
|
0.01
|
|
|
0.03
|
|
Depreciation,
depletion and amortization
|
0.47
|
|
|
0.45
|
|
General and
administrative (excluding stock-based compensation)
|
0.08
|
|
|
0.08
|
|
Stock-based
compensation
|
0.08
|
|
|
0.07
|
|
Interest
expense
|
0.07
|
|
|
0.06
|
|
|
$
|
1.46
|
|
|
$
|
1.48
|
|
|
|
|
|
|
|
|
|
WELLS DRILLED
(2)
|
|
|
|
Gross
|
22
|
|
|
25
|
|
Net
|
22.0
|
|
|
25.0
|
|
|
|
|
|
WELLS COMPLETED
(2)
|
|
|
|
Gross
|
13
|
|
|
14
|
|
Net
|
13.0
|
|
|
14.0
|
|
_______________________________________________________________________________
|
(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)
|
2020
|
|
2019
|
OPERATING
REVENUES
|
|
|
|
Natural
gas
|
$
|
370,340
|
|
|
$
|
633,174
|
|
Gain on
derivative instruments
|
16,062
|
|
|
8,257
|
|
Other
|
55
|
|
|
250
|
|
|
386,457
|
|
|
641,681
|
|
OPERATING
EXPENSES
|
|
|
|
Direct
operations
|
17,244
|
|
|
18,334
|
|
Transportation and
gathering
|
143,332
|
|
|
137,333
|
|
Taxes other than
income
|
3,738
|
|
|
5,847
|
|
Exploration
|
2,190
|
|
|
6,044
|
|
Depreciation,
depletion and amortization
|
100,135
|
|
|
92,258
|
|
General and
administrative (excluding stock-based compensation)
|
17,126
|
|
|
15,958
|
|
Stock-based
compensation(1)
|
16,303
|
|
|
15,132
|
|
|
300,068
|
|
|
290,906
|
|
Earnings (loss) on
equity method investments
|
(59)
|
|
|
3,684
|
|
Gain (loss) on sale
of assets
|
71
|
|
|
(1,500)
|
|
INCOME FROM
OPERATIONS
|
86,401
|
|
|
352,959
|
|
Interest expense,
net
|
14,211
|
|
|
12,181
|
|
Other
expense
|
66
|
|
|
144
|
|
Income before income
taxes
|
72,124
|
|
|
340,634
|
|
Income tax
expense
|
18,214
|
|
|
77,871
|
|
NET
INCOME
|
$
|
53,910
|
|
|
$
|
262,763
|
|
Earnings per share -
Basic
|
$
|
0.14
|
|
|
$
|
0.62
|
|
Weighted-average
common shares outstanding
|
398,343
|
|
|
423,116
|
|
_______________________________________________________________________________
|
(1)
|
Includes the
impact of our performance share awards and restricted
stock.
|
CONDENSED
CONSOLIDATED BALANCE SHEET (Unaudited)
|
|
(In
thousands)
|
March 31,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Current
assets
|
$
|
541,789
|
|
|
$
|
568,248
|
|
Properties and
equipment, net (Successful efforts method)
|
3,920,497
|
|
|
3,855,706
|
|
Other
assets
|
59,889
|
|
|
63,291
|
|
|
$
|
4,522,175
|
|
|
$
|
4,487,245
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
$
|
212,177
|
|
|
$
|
241,034
|
|
Current portion of
long-term debt
|
175,000
|
|
|
87,000
|
|
Long-term debt, net
(excluding current maturities)
|
1,045,260
|
|
|
1,133,025
|
|
Deferred income
taxes
|
746,108
|
|
|
702,104
|
|
Other
liabilities
|
175,235
|
|
|
172,595
|
|
Stockholders'
equity
|
2,168,395
|
|
|
2,151,487
|
|
|
$
|
4,522,175
|
|
|
$
|
4,487,245
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net
income
|
$
|
53,910
|
|
|
$
|
262,763
|
|
Depreciation,
depletion and amortization
|
100,135
|
|
|
92,258
|
|
Deferred income tax
expense
|
44,044
|
|
|
88,002
|
|
(Gain) loss on sale
of assets
|
(71)
|
|
|
1,500
|
|
Gain on derivative
instruments
|
(16,062)
|
|
|
(8,257)
|
|
Net cash received in
settlement of derivative instruments
|
—
|
|
|
52,980
|
|
Stock-based
compensation and other
|
15,765
|
|
|
14,487
|
|
Income charges not
requiring cash
|
809
|
|
|
2,134
|
|
Changes in assets and
liabilities
|
6,367
|
|
|
79,420
|
|
Net cash provided by
operating activities
|
204,897
|
|
|
585,287
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Capital
expenditures
|
(148,702)
|
|
|
(195,650)
|
|
Proceeds from sale of
assets
|
48
|
|
|
2,346
|
|
Investment in equity
method investments
|
(35)
|
|
|
(1,828)
|
|
Proceeds from sale of
equity method investments
|
(9,424)
|
|
|
—
|
|
Net cash used in
investing activities
|
(158,113)
|
|
|
(195,132)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Net borrowings
(repayments) of debt
|
—
|
|
|
(7,000)
|
|
Treasury stock
repurchases
|
—
|
|
|
(31,378)
|
|
Dividends
paid
|
(39,817)
|
|
|
(29,605)
|
|
Tax withholdings on
vesting of stock awards
|
(6,313)
|
|
|
(9,570)
|
|
Net cash used in
financing activities
|
(46,130)
|
|
|
(77,553)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
$
|
654
|
|
|
$
|
312,602
|
|
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 belief that these non-GAAP measures enable a
user of the financial information to understand the impact of these
items 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, interest
expense related to income tax reserves and tax effect on selected
items. 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)
|
2020
|
|
2019
|
As reported - net
income
|
$
|
53,910
|
|
|
$
|
262,763
|
|
Reversal of selected
items:
|
|
|
|
(Gain) loss on sale
of assets
|
(71)
|
|
|
1,500
|
|
(Gain) loss on
derivative instruments(1)
|
(16,062)
|
|
|
44,723
|
|
Stock-based
compensation expense
|
16,303
|
|
|
15,132
|
|
Interest expense
related to income tax reserves
|
—
|
|
|
(3,052)
|
|
Tax effect on
selected items
|
(39)
|
|
|
(13,313)
|
|
Adjusted net
income
|
$
|
54,041
|
|
|
$
|
307,753
|
|
As reported -
earnings per share
|
$
|
0.14
|
|
|
$
|
0.62
|
|
Per share impact of
selected items
|
—
|
|
|
0.11
|
|
Adjusted earnings per
share
|
$
|
0.14
|
|
|
$
|
0.73
|
|
Weighted-average
common shares outstanding
|
398,343
|
|
|
423,116
|
|
_______________________________________________________________________________
|
(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
evaluating our profitability and the efficiency with which we have
employed capital over time. 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)
|
2020
|
|
2019
|
Interest expense,
net
|
$
|
56,982
|
|
|
$
|
65,324
|
|
Interest expense
related to income tax reserves (1)
|
—
|
|
|
(64)
|
|
Tax
benefit
|
(13,005)
|
|
|
(15,140)
|
|
After-tax interest
expense, net (A)
|
43,977
|
|
|
50,120
|
|
|
|
|
|
As reported - net
income
|
472,217
|
|
|
702,575
|
|
Adjustments to as
reported - net income, net of tax
|
(27,164)
|
|
|
7,753
|
|
Adjusted net income
(B)
|
445,053
|
|
|
710,328
|
|
|
|
|
|
Adjusted net income
before interest expense, net (A + B)
|
$
|
489,030
|
|
|
$
|
760,448
|
|
|
|
|
|
Total debt -
beginning of twelve month period
|
$
|
1,219,338
|
|
|
$
|
1,522,231
|
|
Stockholders' equity
- beginning of twelve month period
|
2,320,939
|
|
|
2,406,516
|
|
Capital employed -
beginning of twelve month period
|
3,540,277
|
|
|
3,928,747
|
|
|
|
|
|
Total debt - end of
twelve month period
|
1,220,260
|
|
|
1,219,338
|
|
Stockholders' equity
- end of twelve month period
|
2,168,395
|
|
|
2,320,939
|
|
Capital employed -
end of twelve month period
|
3,388,655
|
|
|
3,540,277
|
|
|
|
|
|
Average capital
employed (C)
|
$
|
3,464,466
|
|
|
$
|
3,734,512
|
|
|
|
|
|
Return on average
capital employed (ROCE) (A + B) / C
|
14.1
|
%
|
|
20.4
|
%
|
_______________________________________________________________________________
|
(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, return capital to shareholders through dividends and
share repurchases, 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)
|
2020
|
|
2019
|
Net cash provided by
operating activities
|
$
|
204,897
|
|
|
$
|
585,287
|
|
Changes in assets and
liabilities
|
(6,367)
|
|
|
(79,420)
|
|
Discretionary cash
flow
|
198,530
|
|
|
505,867
|
|
Capital
expenditures
|
(148,702)
|
|
|
(195,650)
|
|
Investment in equity
method investments
|
(35)
|
|
|
(1,828)
|
|
Free cash
flow
|
$
|
49,793
|
|
|
$
|
308,389
|
|
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, gain and
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 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)
|
2020
|
|
2019
|
Net income
|
$
|
53,910
|
|
|
$
|
262,763
|
|
Plus
(less):
|
|
|
|
Interest expense,
net
|
14,211
|
|
|
12,181
|
|
Other
expense
|
66
|
|
|
144
|
|
Income tax
expense
|
18,214
|
|
|
77,871
|
|
Depreciation,
depletion and amortization
|
100,135
|
|
|
92,258
|
|
Exploration
|
2,190
|
|
|
6,044
|
|
(Gain) loss on sale
of assets
|
(71)
|
|
|
1,500
|
|
Non-cash (gain) loss
on derivative instruments
|
(16,062)
|
|
|
44,723
|
|
(Earnings) loss on
equity method investments
|
59
|
|
|
(3,684)
|
|
Equity method
investment distributions
|
—
|
|
|
4,729
|
|
Stock-based
compensation
|
16,303
|
|
|
15,132
|
|
EBITDAX
|
$
|
188,955
|
|
|
$
|
513,661
|
|
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,
2020
|
|
December 31,
2019
|
Current portion of
long-term debt
|
$
|
175,000
|
|
|
$
|
87,000
|
|
Long-term debt,
net
|
1,045,260
|
|
|
1,133,025
|
|
Total debt
|
$
|
1,220,260
|
|
|
$
|
1,220,025
|
|
Stockholders'
equity
|
2,168,395
|
|
|
2,151,487
|
|
Total
capitalization
|
$
|
3,388,655
|
|
|
$
|
3,371,512
|
|
|
|
|
|
Total debt
|
$
|
1,220,260
|
|
|
$
|
1,220,025
|
|
Less: Cash and cash
equivalents
|
(202,842)
|
|
|
(200,227)
|
|
Net debt
|
$
|
1,017,418
|
|
|
$
|
1,019,798
|
|
|
|
|
|
Net debt
|
$
|
1,017,418
|
|
|
$
|
1,019,798
|
|
Stockholders'
equity
|
2,168,395
|
|
|
2,151,487
|
|
Total adjusted
capitalization
|
$
|
3,185,813
|
|
|
$
|
3,171,285
|
|
|
|
|
|
Total debt to total
capitalization ratio
|
36.0
|
%
|
|
36.2
|
%
|
Less: Impact of cash
and cash equivalents
|
4.1
|
%
|
|
4.0
|
%
|
Net debt to adjusted
capitalization ratio
|
31.9
|
%
|
|
32.2
|
%
|
Capital
Expenditures
|
|
|
Three Months
Ended
March 31,
|
(In
thousands)
|
2020
|
|
2019
|
Cash paid for capital
expenditures
|
$
|
148,702
|
|
|
$
|
195,650
|
|
Change in accrued
capital costs
|
11,546
|
|
|
8,634
|
|
Exploratory dry hole
cost
|
57
|
|
|
(13)
|
|
Capital
expenditures
|
$
|
160,305
|
|
|
$
|
204,271
|
|
View original
content:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-reports-first-quarter-2020-results-announces-reaffirmation-of-borrowing-base-301050453.html
SOURCE Cabot Oil & Gas Corporation