|Cabot Oil & Gas Sells Gas Supply Contract|
HOUSTON, Jan. 5 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the monetization and termination of a gas supply contract with Puget Sound Energy, Inc. (NYSE: PSD). In this transaction, Cabot sold the remaining eight years of the obligation to Puget for $12 million. The deal closed December 31, 1999.
"Proceeds from this sale, in addition to other transactions completed throughout the year, have helped reduce our year-end total debt level to $293 million, compared to $343 million at the end of 1998," said Ray R. Seegmiller, Chairman and CEO. "We are pleased with the considerable progress we have made in lowering our leverage during 1999. We are now closer to our desired coverage ratio of between two to three years, and we have improved dramatically our financial flexibility."
Seegmiller added, "In anticipation of this contract settlement we took advantage of market conditions this fall for 18 months by selling forward a similar volume of natural gas at prices comparable to those we were receiving under the contract. We will continue to take advantage of future market opportunities to match or exceed the contract prices through the remainder of the original contract term."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in Appalachia, the Mid-Continent, Rocky Mountains and Gulf Coast basins. For additional information, visit the Company's internet home page at 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