News Release

Cabot Oil & Gas Posts Ninth Consecutive Profitable Quarter
 

HOUSTON, April 27 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today reported first quarter 1998 net income available to common shareholders of $3.0 million, or $.12 per share, and discretionary cash flow of $19.6 million, or $.79 per share, marking the 9th consecutive quarter of profitability.

As a result of a 27% lower average natural gas price in the first quarter of 1998 compared to the first quarter of 1997, net income decreased $6.7 million from last year's all-time record first quarter of $9.7 million, while discretionary cash flow declined $11.5 million from last year's first quarter record of $31.1 million. Significantly lower gas prices in each of the Company's three operating regions contributed to the 27% decline.

Production for the first quarter totaled 16.6 Bcfe, a 4% increase over last year's comparable period. Gains in production in the Gulf Coast and Rocky Mountains more than offset last year's fourth quarter sale of producing reserves in Appalachia and mechanical problems on three wells in the Gulf Coast. With new discoveries from the deep and shallow exploration efforts in Appalachia and most of the Gulf Coast problems now rectified, production today is currently higher than the average level experienced in the first quarter of this year.

"With the momentum established by the production gains and the success from the drill bit (82% in the quarter and 88% for all of last year), we are continuing with our largest ever drilling program," commented Charles P. Siess, Jr., Chairman and Chief Executive Officer. "Our outlook for the remainder of the year is very positive as we have seen continuing indications of a strong natural gas market. This, together with further anticipated increases in production, enhances the opportunity for Cabot Oil & Gas to have another successful year."

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachia, Anadarko, Rocky Mountains and Gulf Coast regions. For additional information about the Company, visit COG's internet home page 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 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,
                                                 1998         1997

    NATURAL GAS (Bcf) & OIL (MBbl)
    Produced Natural Gas
     Appalachia                                   5.1          6.6
     West                                         7.6          6.9
     Gulf Coast                                   2.8          1.6
     Total                                       15.5         15.1

    Crude/Condensate                              156          142

    Natural Gas Liquids                            26           13

    Equivalent Production (Bcfe)                 16.6         16.0

    PRICES
    Average Produced Gas Sales Price ($/Mcf)
     Appalachia                                $ 2.78       $ 3.71
     West                                      $ 1.94       $ 2.61
     Gulf Coast                                $ 2.24       $ 2.82
     Total                                     $ 2.27       $ 3.12

    Crude/Condensate Price ($/Bbl)            $ 14.98      $ 22.59

WELLS DRILLED

    Gross                                          33           31
    Net                                          23.7         17.6
    Gross Success Rate                             82%          87%


          CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
                   (In Thousands, Except Per Share Amounts)

                                                       Quarter Ended
                                                         March 31,
                                                     1998         1997
    Net Operating Revenues
      Natural Gas Production                     $ 35,176     $ 47,185
      Crude Oil and Condensate                      2,338        3,204
      Brokered Natural Gas Margin                   1,387          497
      Other                                         1,890        1,906
                                                   40,791       52,792
    Operating Expenses
      Operations                                    6,964        7,069
      Exploration                                   3,401        3,627
      Taxes Other Than Income                       3,799        4,082
      Administrative  (A)                           5,501        4,156
      Depreciation, Depletion and Amortization     10,464       11,227
                                                   30,129       30,161
    Gain on Sale of Assets                             52           83
    Income from Operations                         10,714       22,714
    Interest Expense                                4,255        4,561
    Income Before Income Taxes                      6,459       18,153
    Income Tax Expense                              2,616        7,069
    Net Income                                      3,843       11,084
    Dividend Requirement on Preferred Stock           850        1,391
    Net Income Applicable to Common               $ 2,993      $ 9,693
    Net Income Per Common Share - Basic (B)       $  0.12      $  0.42
    Average Common Shares Outstanding              24,683       22,855

    (A) Increase over 1997 Administrative expense is largely due to:
        (1) staffing increases in the third and fourth quarters of 1997 ($0.3
            million),
        (2) non-cash stock compensation from stock awards in the second
            quarter of 1997 ($0.4 million),
        (3) certain executive retirement and severance packages accrued in
            1998 ($0.4 million) and
        (4) higher professional fees ($0.1 million).
    (B) Basic earnings per share as defined in Statement of Financial
        Accounting Standards No. 128.


               CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                (In Thousands)

                                                    Quarter Ended
                                              March 31,        Dec. 31,
                                                1998             1997
    Assets
    Current Assets                          $ 58,965          $ 70,533
    Property, Equipment and Other Assets     489,517           471,272
       Total Assets                        $ 548,482         $ 541,805

    Liabilities and Stockholders' Equity
    Current Liabilities                     $ 79,025          $ 85,872
    Long-Term Debt                           191,000           183,000
    Deferred Income Taxes                     82,396            80,108
    Other Liabilities                          8,486             8,763
    Stockholders' Equity                     187,575           184,062
       Total Liabilities and
        Stockholders' Equity               $ 548,482         $ 541,805


            CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                  (In Thousands)
                                                   Quarter Ended
                                              March 31,        Dec. 31,
                                                1998             1997
    Cash Flows From Operating Activities
    Net Income                               $ 3,843          $ 11,084
    Income Charges Not Requiring Cash         10,901            11,177
    Deferred Income Taxes                      2,289             6,555
    Changes in Assets and Liabilities, Net     8,519            15,745
    Exploration Expense                        3,401             3,627
    Net Cash Provided by Operations           28,953            48,188

    Cash Flows From Investing Activities
    Capital Expenditures                     (31,385)          (12,349)
    Proceeds from Sale of Assets                 511               303
    Exploration Expense                       (3,401)           (3,627)
    Net Cash Used by Investing               (34,275)          (15,673)

    Cash Flows From Financing Activities
    Sale of Common Stock                         896               246
    Increase (Decrease) in Debt                8,000           (26,000)
    Preferred Dividends                         (850)           (1,391)
    Common Dividends and Other, Net             (988)             (915)
    Net Cash Provided (Used) by Financing      7,058           (28,060)

    Net Increase in Cash and Cash
     Equivalents                             $ 1,736           $ 4,455

    Discretionary Cash Flow (A)             $ 19,583          $ 31,052

    (A) Net income plus non-cash charges and exploration less preferred
        dividends.  Excludes net proceeds on property sales.

SOURCE Cabot Oil & Gas Corporation
Web site: http: //www.cabotog.com
Company News On-Call: http: //www.prnewswire.com or fax, 800-758-5804, ext. 129660
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993