News Release

Cabot Oil & Gas Corporation Announces Fourth Quarter and Full-Year 2016 Results, Reports Five Percent Proved Reserves Growth to 8.6 Tcfe, Provides Marcellus EUR Update
 

HOUSTON, Feb. 24, 2017 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today reported financial and operating results for the fourth quarter and full-year ended December 31, 2016.  

Highlights

  • Equivalent production growth of four percent year-over-year
  • Proved reserves growth of five percent year-over-year including proved developed reserves growth of 16 percent
  • Total company all-sources finding and development costs of $0.37 per thousand cubic feet equivalent (Mcfe) and Marcellus-only all-sources finding and development costs of $0.26 per thousand cubic feet (Mcf)
  • Generated positive free cash flow (cash flow from operating activities less capital expenditures) for the full-year
  • Improved operating expenses per unit by eight percent and cash operating expenses per unit by 11 percent year-over-year
  • Reduced outstanding debt by $497 million and ended the year with approximately $2.2 billion of liquidity
  • Increased Marcellus estimated ultimate recovery (EUR) per 1,000 feet of lateral to 4.4 billion cubic feet (Bcf)

"Our 2016 performance demonstrates Cabot's ability to deliver strong operational and financial results despite lower commodity prices for the majority of the year," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "The Company delivered production and reserves growth while spending within operating cash flow during a year in which we realized record-low natural gas prices, highlighting Cabot's world-class asset base and the consistent execution by our employees." Dinges added, "Based on our current outlook for 2017, we anticipate another year of production and reserves growth while generating positive free cash flow."

Full-Year 2016 Financial Results

Equivalent production was 627.1 billion cubic feet equivalent (Bcfe) in 2016, consisting of 600.4 Bcf of natural gas, 4,013.1 thousand barrels (Mbbls) of crude oil and condensate, and 441.2 Mbbls of natural gas liquids (NGLs).  

Cash flow from operations was $392.4 million in 2016, compared to $740.7 million in 2015. Discretionary cash flow in 2016 was $460.7 million, compared to $699.1 million in 2015. Net loss in 2016 was $417.1 million, or $0.91 per share, compared to net loss of $113.9 million, or $0.28 per share, in 2015. Net loss for the year included the impact of a non-cash, after-tax impairment charge of $274.7 million associated with our oil and gas properties and related pipeline assets in West Virginia and Virginia. Excluding the effect of this impairment and other selected items (detailed in the table below), net loss was $97.4 million, or $0.21 per share, in 2016, compared to net income of $55.4 million, or $0.13 per share, in 2015. EBITDAX in 2016 was $554.4 million, compared to $815.2 million in 2015. Significant reductions in realized prices for both natural gas and oil were the primary drivers for the lower results during the year, partially offset by higher equivalent production and lower overall expenses. See the supplemental tables at the end of this press release for a reconciliation of non-GAAP measures including discretionary cash flow, net income (loss) excluding selected items, EBITDAX and net debt to adjusted capitalization ratio.

Natural gas price realizations, including the impact of derivatives, were $1.70 per Mcf in 2016, down 21 percent compared to 2015. Excluding the impact of derivatives, natural gas price realizations for 2016 implied a $0.76 discount to NYMEX settlement prices. Oil price realizations, including the impact of derivatives, were $37.30 per barrel (Bbl), down 18 percent compared to 2015. NGL price realizations were $11.74 per Bbl, down seven percent compared to 2015.

Operating expenses (including financing) decreased to $2.17 per Mcfe in 2016, an improvement of eight percent from $2.37 per Mcfe in 2015.  Cash operating expenses (excluding depreciation, depletion and amortization; stock-based compensation; exploratory dry hole cost; and amortization of debt issuance costs) decreased to $1.16 per Mcfe in 2016, an 11 percent improvement over 2015.

Cabot drilled 40 gross (38.0 net) wells and completed 76 gross (76.0 net) wells in 2016 and exited the year with 51 gross (45.2 net) drilled and uncompleted wells, of which 29 gross (26.2 net) were in the Marcellus Shale and 22 gross (19.0 net) were in the Eagle Ford Shale.

Fourth Quarter 2016 Financial Results

Equivalent production in the fourth quarter of 2016 was 164.2 Bcfe, consisting of 158.6 Bcf of natural gas, 822.7 Mbbls of crude oil and condensate, and 106.5 Mbbls of NGLs. Equivalent production increased nine percent sequentially compared to the third quarter of 2016 and was in line with the high-end of the Company's guidance range for the quarter.

Cash flow from operations in the fourth quarter of 2016 was $139.7 million, compared to $155.8 million in the fourth quarter of 2015. Discretionary cash flow in the fourth quarter of 2016 was $163.6 million, compared to $125.3 million in the fourth quarter of 2015. Net loss in the fourth quarter of 2016 was $292.8 million, or $0.63 per share, compared to a net loss of $111.1 million, or $0.27 per share, in the fourth quarter of 2015. Excluding the effect of the impairment and other selected items (detailed in the table below), net income was $5.1 million, or $0.01 per share, compared to net loss of $6.4 million, or $0.02 per share, for the fourth quarter of 2015. EBITDAX for the fourth quarter of 2016 was $187.4 million, compared to $164.2 million for the fourth quarter of 2015.

Natural gas price realizations, including the impact of derivatives, were $1.94 per Mcf both in the fourth quarter of 2016 and the fourth quarter of 2015. Excluding the impact of derivatives, natural gas price realizations for the quarter were $1.96 per Mcf, representing a $1.02 discount to NYMEX settlement prices. Oil price realizations, including the impact of derivatives, were $42.94 per Bbl, up 14 percent compared to the fourth quarter of 2015. NGL price realizations were $13.84 per Bbl, up 18 percent compared to the fourth quarter of 2015. "Fourth quarter natural gas and crude oil price realizations excluding the impact of derivatives posted a sequential increase of 9 percent and 11 percent, respectively, when compared to the third quarter, highlighting the improving commodity price backdrop," commented Dinges.

Operating expenses (including financing) decreased to $2.05 per Mcfe in the fourth quarter of 2016, an 11 percent improvement compared to $2.30 per Mcfe in the fourth quarter of 2015. Cash operating expenses (excluding depreciation, depletion and amortization; stock-based compensation; exploratory dry hole cost; and amortization of debt issuance costs) decreased to $1.11 per Mcfe in the fourth quarter of 2016, a 12 percent improvement over the fourth quarter of 2015.

Cabot drilled 12 gross (10.0 net) wells and completed 25 gross (25.0 net) wells in the fourth quarter of 2016.

Year-End 2016 Financial Position and Liquidity

As of December 31, 2016, Cabot had total debt of $1.5 billion and cash on hand of $498.5 million. The Company's net debt to adjusted capitalization ratio and net debt to trailing twelve months EBITDAX ratio were 28.5 percent and 1.8x, respectively, compared to 50.1 percent and 2.5x as of December 31, 2015.

Total commitments under the Company's credit facility remain unchanged at $1.8 billion, with approximately $1.7 billion currently available to the Company.  The Company currently has no debt outstanding under the credit facility, resulting in approximately $2.2 billion of liquidity.

Year-End 2016 Proved Reserves

Cabot reported year-end proved reserves of 8.6 trillion cubic feet equivalent (Tcfe), an increase of five percent over year-end 2015. Specific highlights from the Company's year-end reserve report include:

  • Total company all-sources finding and development costs of $0.37 per Mcfe
  • Marcellus-only all-sources finding and development costs of $0.26 per Mcf
  • Total company all-sources reserve replacement of 168 percent
  • Marcellus-only all-sources reserve replacement of 183 percent

"Despite our lowest level of capital spending since 2004, Cabot grew proved reserves and proved developed reserves by five percent and 16 percent, respectively, at record-low finding and development costs," explained Dinges. "We expect a return to double-digit reserve growth in 2017 as the Company increases its capital spending in anticipation of new takeaway capacity out of the Marcellus Shale."

The table below reconciles the components driving the 2016 reserve increase:

Proved Reserves Reconciliation (in Bcfe)

Balance at December 31, 2015

8,190

Revisions of prior estimates 

370

Extensions, discoveries and other additions 

684

Sales 

(41)

Production 

(627)

Balance at December 31, 2016

8,576

 

As of December 31, 2016, 97 percent of Cabot's year-end proved reserves were natural gas and 93 percent were located in the Marcellus Shale. Approximately 66 percent of the year-end proved reserves were classified as proved developed and 34 percent were classified as proved undeveloped (PUD), including six percent of drilled and uncompleted PUDs.

Total costs incurred during 2016 were $389.8 million, which included $359.5 million for development costs, $27.6 million for exploration costs, and $2.7 million for unproved property acquisition costs.

The SEC prices used for reporting Cabot's year-end 2016 proved reserves, which have been adjusted for basis and quality differentials, were $1.74 per Mcf for natural gas and $37.54 per Bbl for crude oil, representing a 4 percent and 20 percent year-over-year decrease, respectively. Assuming the SEC prices, the pre-tax present value of future net cash flows discounted at 10% ("pre-tax PV–10") of the year-end 2016 proved reserves was $2.6 billion. Assuming future strip benchmark pricing as of December 31, 2016 for the first five years and held flat thereafter, adjusted for basis and quality differentials, the pre-tax PV–10 value was $5.2 billion, representing a 100 percent increase over the corresponding SEC pre-tax PV–10.

Marcellus Shale Estimated Ultimate Recovery (EUR) Update

Based on Cabot's year-end reserve bookings for 21 producing Lower Marcellus wells that were completed with the Company's fourth generation completion design, Cabot has increased its guidance for Lower Marcellus EUR per 1,000 feet of lateral from 3.8 Bcf to 4.4 Bcf. "The EURs for our fourth generation wells further highlight the peer-leading productivity from our Marcellus assets in the core of the dry gas window in Northeast Pennsylvania," stated Dinges. "Based on our current well design and current commodity prices, we believe our project-level economics in the Marcellus are unrivaled across North American resource plays; however, we continue to test new initiatives to further enhance our economics."

2017 Derivative Position Update

For 2017 the Company has 51.7 Bcf of natural gas swaps at a weighted-average price of $3.23 per Mcf and 35.5 Bcf of natural gas collars at a weighted-average floor and ceiling price of $3.09 per Mcf and $3.43 per Mcf, respectively. Additionally, Cabot currently has 36 percent of its 2017 natural gas volumes under fixed-price physical contracts at a weighted-average price of $2.29 per Mcf.

The Company also has 1,825 Mbbls of crude oil collars at a weighted-average floor and ceiling price of $50.00 per Bbl and $56.39 per Bbl, respectively. 

First Quarter and Full-Year 2017 Guidance Update

Cabot has provided first quarter 2017 net production guidance of 1,780 to 1,820 million cubic feet (Mmcf) per day for natural gas; 10,000 to 10,500 Bbls per day for crude oil and condensate; and 1,200 to 1,250 Bbls per day for NGLs.

The Company has reiterated its 2017 production growth guidance range of 5 to 10 percent and initiated crude oil production growth guidance of 15 percent, which represents a substantial increase from the zero percent oil growth contained in the preliminary 2017 budget issued in October 2016. Based on the expectation for higher operating cash flow due to an improvement in the commodity price outlook, the Company is increasing its exploration and production (E&P) capital budget from $575 million to $650 million. This incremental capital will fund additional drilling and completion activity, primarily in the Eagle Ford. "Cabot has seen a significant improvement in project-level returns in our Eagle Ford asset due to increased productivity from enhanced completions, continued cost reductions, and higher crude oil prices," said Dinges. "Accordingly, we plan to allocate additional capital to this asset to grow exit-to-exit crude oil volumes by 50 percent in 2017." Dinges added, "Even with this modest increase in capital for 2017, we are forecasting approximately $250 million of positive free cash flow for the year based on recent strip prices."  

Drilling, completion and facility capital will account for approximately 94 percent of the E&P budget, with approximately 67 percent allocated to the Marcellus Shale and 33 percent allocated to the Eagle Ford Shale. The Company expects to drill an additional 20 net wells (15 in the Eagle Ford and 5 in the Marcellus) for total of 90 net wells drilled in 2017. The Company plans to complete an additional 15 net wells (14 in the Eagle Ford and 1 in the Marcellus) for a total of 90 net wells completed in 2017. In addition, Cabot anticipates approximately $70 million of contributions to its equity pipeline investments resulting in total 2017 program spending of $720 million. The capital associated with the equity pipeline investments assumes a more favorable outlook on the construction timing for Atlantic Sunrise and assumes minimal capital for Constitution Pipeline in 2017; however, the amount of pipeline investments will ultimately be dependent on the regulatory approval processes and the corresponding impact on the timing of construction activities.

For further disclosure on Cabot's natural gas pricing exposure by index and updated cost guidance, please see the current Guidance slide in the Investor Relations section of the Company's website.

Conference Call Webcast and Supplemental Earnings Materials

A conference call is scheduled for Friday, February 24, 2017, at 9:30 a.m. Eastern Time to discuss fourth quarter and full-year 2016 financial and operating results. A supplemental presentation is also available in the Investor Relations section of the Company's website at www.cabotog.com. 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, 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", "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



Quarter Ended

December 31,


Twelve Months Ended

December 31,


2016


2015


2016


2015

PRODUCTION VOLUMES








Natural gas (Bcf)

158.6



142.8



600.4



566.0


Crude oil and condensate (Mbbl)

822.7



1,203.2



4,013.1



5,428.7


Natural gas liquids (NGLs) (Mbbl)

106.5



174.7



441.2



667.7


Equivalent production (Bcfe)

164.2



151.0



627.1



602.5










AVERAGE SALES PRICE








Natural gas, including hedges ($/Mcf)

$

1.94



$

1.94



$

1.70



$

2.15


Natural gas, excluding hedges ($/Mcf)

$

1.96



$

1.52



$

1.70



$

1.81


Crude oil and condensate, including hedges ($/Bbl)

$

42.94



$

37.74



$

37.30



$

45.72


Crude oil and condensate, excluding hedges ($/Bbl)

$

44.36



$

37.74



$

37.65



$

45.72


NGL ($/Bbl)

$

13.84



$

11.69



$

11.74



$

12.56










AVERAGE UNIT COSTS ($/Mcfe)








Direct operations

$

0.14



$

0.22



$

0.16



$

0.23


Transportation and gathering

0.69



0.70



0.70



0.71


Taxes other than income

0.03



0.06



0.05



0.07


Exploration

0.09



0.06



0.04



0.05


Depreciation, depletion and amortization

0.86



0.99



0.94



1.03


General and administrative (excluding stock-based compensation)

0.10



0.10



0.10



0.10


Stock-based compensation

0.02



0.01



0.04



0.02


Interest expense

0.12



0.16



0.14



0.16



$

2.05



$

2.30



$

2.17



$

2.37


















WELLS DRILLED(1)








Gross

12



26



40



138


Net

10.0



25.2



38.0



130.5










WELLS COMPLETED(1)








Gross

25



17



76



107


Net

25.0



13.3



76.0



98.9















(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)



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands, except per share amounts)

2016


2015


2016


2015

OPERATING REVENUES








Natural gas

$

311,580



$

217,084



$

1,022,590



$

1,025,044


Crude oil and condensate

36,496



45,407



151,106



248,211


Gain (loss) on derivative instruments

(37,664)



12,018



(38,950)



56,686


Brokered natural gas

4,152



3,733



13,569



16,383


Other

1,927



2,550



7,362



10,826



316,491



280,792



1,155,677



1,357,150


OPERATING EXPENSES








Direct operations

23,557



33,867



100,696



140,814


Transportation and gathering

113,659



105,936



436,542



427,588


Brokered natural gas

3,259



2,949



10,785



12,592


Taxes other than income

5,486



8,511



29,223



42,809


Exploration

14,553



8,500



27,662



27,460


Depreciation, depletion and amortization

141,218



149,876



590,128



622,211


Impairment of oil and gas properties and other assets(1)

435,619



114,875



435,619



114,875


General and administrative (excluding stock-based compensation)

15,891



13,777



61,274



55,764


Stock-based compensation(2)

2,952



2,058



25,968



13,680



756,194



440,349



1,717,897



1,457,793


Earnings (loss) on equity method investments

(2,685)



1,834



(2,477)



6,415


Gain (loss) on sale of assets

(1,089)



52



(1,857)



3,866


LOSS FROM OPERATIONS

(443,477)



(157,671)



(566,554)



(90,362)


Loss on debt extinguishment





4,709




Interest expense

20,515



24,666



88,336



96,911


Loss before income taxes

(463,992)



(182,337)



(659,599)



(187,273)


Income tax benefit

(171,232)



(71,213)



(242,475)



(73,382)


NET LOSS

$

(292,760)



$

(111,124)



$

(417,124)



$

(113,891)


Loss per share - Basic

$

(0.63)



$

(0.27)



$

(0.91)



$

(0.28)


Weighted-average common shares outstanding

465,150



413,875



456,847



413,696














(1)

Includes the impairment of oil and gas properties and the related pipeline assets in West Virginia and Virginia in the fourth quarter of 2016. Also includes the impairment of oil and gas properties in the fourth quarter of 2015 in south Texas, east Texas and Louisiana.


(2)

Includes the impact of the Company's performance share awards, restricted stock, stock appreciation rights and expense associated with the Supplemental Employee Incentive Plan.

 


CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)


(In thousands)

December 31,
 2016


December 31,
 2015

ASSETS




Current assets

$

715,881



$

144,786


Properties and equipment, net (Successful efforts method)

4,250,125



4,976,879


Other assets

156,563



131,373



$

5,122,569



$

5,253,038






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities

$

257,812



$

235,552


Long-term debt, net (excluding current maturities)

1,520,530



1,996,139


Deferred income taxes

579,447



807,236


Other liabilities

197,113



204,923


Stockholders' equity

2,567,667



2,009,188



$

5,122,569



$

5,253,038


 


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands)

2016


2015


2016


2015

CASH FLOWS FROM OPERATING ACTIVITIES








Net loss

$

(292,760)



$

(111,124)



$

(417,124)



$

(113,891)


Deferred income tax benefit

(171,294)



(81,194)



(230,707)



(72,968)


Impairment of oil and gas properties and other assets

435,619



114,875



435,619



114,875


(Gain) loss on sale of assets

1,089



(52)



1,857



(3,866)


Exploratory dry hole cost

10,102



3,268



10,120



3,452


(Gain) loss on derivative instruments

37,664



(12,018)



38,950



(56,686)


Net cash received (paid) in settlement of derivative instruments

(4,886)



60,462



(1,682)



194,289


Income charges not requiring cash

148,029



151,124



623,670



633,895


Changes in assets and liabilities

(23,835)



30,442



(68,326)



41,637


Net cash provided by operating activities

139,728



155,783



392,377



740,737










CASH FLOWS FROM INVESTING ACTIVITIES








Capital expenditures

(130,120)



(135,763)



(375,153)



(955,602)


Acquisitions







(16,312)


Proceeds from sale of assets

1,351



273



50,419



7,653


Investment in equity method investments

(4,308)



(8,275)



(28,484)



(29,073)


Net cash used in investing activities

(133,077)



(143,765)



(353,218)



(993,334)










CASH FLOWS FROM FINANCING ACTIVITIES








Net borrowings (repayments) of debt



(12,000)



(497,000)



273,000


Sale of common stock, net





995,279




Dividends paid

(9,302)



(8,278)



(36,187)



(33,090)


Capitalized debt issuance costs





(3,223)



(7,838)


Other



1





85


Net cash provided by (used in) financing activities

(9,302)



(20,277)



458,869



232,157










Net increase (decrease) in cash and cash equivalents

$

(2,651)



$

(8,259)



$

498,028



$

(20,440)


 

Selected Item Review and Reconciliation of Net Income and Earnings Per Share



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands, except per share amounts)

2016


2015


2016


2015

As reported - net loss

$

(292,760)



$

(111,124)



$

(417,124)



$

(113,891)


Reversal of selected items:








Impairment of oil and gas properties and other assets

435,619



114,875



435,619



114,875


(Gain) loss on sale of assets

1,089



(52)



1,857



(3,866)


(Gain) loss on derivative instruments(1)

32,778



48,444



37,268



137,603


Loss on debt extinguishment





4,709




Drilling rig termination fees





1,655



5,084


Stock-based compensation expense

2,952



2,058



25,968



13,680


Tax effect on selected items

(174,567)



(60,646)



(187,366)



(98,081)


Net income (loss) excluding selected items

$

5,111



$

(6,445)



$

(97,414)



$

55,404


As reported - loss per share

$

(0.63)



$

(0.27)



$

(0.91)



$

(0.28)


Per share impact of selected items

0.64



0.25



0.70



0.41


Earnings (loss) per share excluding selected items

$

0.01



$

(0.02)



$

(0.21)



$

0.13


Weighted-average common shares outstanding

465,150



413,875



456,847



413,696














(1)

This amount represents the non-cash mark-to-market changes of our commodity derivative instruments recorded in gain (loss) on derivative instruments in the Condensed Consolidated Statement of Operations.

 

Discretionary Cash Flow Calculation and Reconciliation



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands)

2016


2015


2016


2015

Net loss

$

(292,760)



$

(111,124)



$

(417,124)



$

(113,891)


Plus (less):








Deferred income tax benefit

(171,294)



(81,194)



(230,707)



(72,968)


Impairment of oil and gas properties and other assets

435,619



114,875



435,619



114,875


(Gain) loss on sale of assets

1,089



(52)



1,857



(3,866)


Exploratory dry hole cost

10,102



3,268



10,120



3,452


(Gain) loss on derivative instruments

37,664



(12,018)



38,950



(56,686)


Net cash received (paid) in settlement of derivative instruments

(4,886)



60,462



(1,682)



194,289


Income charges not requiring cash

148,029



151,124



623,670



633,895


Discretionary cash flow

163,563



125,341



460,703



699,100


Changes in assets and liabilities

(23,835)



30,442



(68,326)



41,637


Net cash provided by operations

$

139,728



$

155,783



$

392,377



$

740,737


 

EBITDAX Calculation and Reconciliation



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands)

2016


2015


2016


2015

Net loss

$

(292,760)



$

(111,124)



$

(417,124)



$

(113,891)


Plus (less):








Loss on debt extinguishment





4,709




Interest expense

20,515



24,666



88,336



96,911


Income tax benefit

(171,232)



(71,213)



(242,475)



(73,382)


Depreciation, depletion and amortization

141,218



149,876



590,128



622,211


Impairment of oil and gas properties and other assets

435,619



114,875



435,619



114,875


Exploration

14,553



8,500



27,662



27,460


(Gain) loss on sale of assets

1,089



(52)



1,857



(3,866)


Non-cash (gain) loss on derivative instruments

32,778



48,444



37,268



137,603


(Earnings) loss on equity method investments

2,685



(1,834)



2,477



(6,415)


Stock-based compensation

2,952



2,058



25,968



13,680


EBITDAX

$

187,417



$

164,196



$

554,425



$

815,186


 

Net Debt Reconciliation


(In thousands)

December 31,
 2016


December 31,
 2015

Current portion of long-term debt

$



$

20,000


Long-term debt, net

1,520,530



1,996,139


Total debt

$

1,520,530



$

2,016,139


Stockholders' equity

2,567,667



2,009,188


Total capitalization

$

4,088,197



$

4,025,327






Total debt

$

1,520,530



$

2,016,139


Less: Cash and cash equivalents

(498,542)



(514)


Net debt

$

1,021,988



$

2,015,625






Net debt

$

1,021,988



$

2,015,625


Stockholders' equity

2,567,667



2,009,188


Total adjusted capitalization

$

3,589,655



$

4,024,813






Total debt to total capitalization ratio

37.2

%


50.1

%

Less: Impact of cash and cash equivalents

8.7

%


%

Net debt to adjusted capitalization ratio

28.5

%


50.1

%

 

Pre-tax Present Value of Future Net Cash Flows Calculation and Reconciliation


(In thousands)

December 31,
 2016


December 31,
 2015

Standardized Measure of Discounted Future Net Cash Flows

$

2,234,767



$

2,858,832


Plus: Future Income Tax Expenses, discounted at 10% annual rate

380,276




Pre-tax Present Value of Future Net Cash Flows, discounted at 10% annual rate

$

2,615,043



$

2,858,832


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-announces-fourth-quarter-and-full-year-2016-results-reports-five-percent-proved-reserves-growth-to-86-tcfe-provides-marcellus-eur-update-300413115.html

SOURCE Cabot Oil & Gas Corporation