News Release

Cabot Oil & Gas Announces First Quarter Results
 

HOUSTON, April 29 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced its first quarter results which included the impact of two previously disclosed (February 13, 2003) non-cash selected items. For the first three months of the year, the Company recorded a net loss of $39.2 million, or $1.23 per share, and a near doubling of discretionary cash flow to $67.6 million. These figures compare to a net loss of $0.8 million, or $.03 per share, and discretionary cash flow of $34.4 million in the first quarter of 2002. Cash flow from operations was $59.5 million in the first quarter of 2003 versus $29.5 million in the comparable period for last year.

Selected Items Detail

The 2003 first quarter includes the effects of the Kurten field impairment ($54.4 million after tax) and the adoption of SFAS No. 143 "Accounting for Asset Retirement Obligations" ($6.8 million after tax). Excluding the impact of these selected items Cabot's net income was $22.1 million, or $.69 per share. A detailed reconciliation between this reporting and the GAAP results can be found in the attached statements.

Discussion of Results

Higher realized commodity prices drove revenues up 81 percent over last year's comparable quarter. Realized natural gas prices averaged $2.53 per Mcf in the first quarter of 2002 and $4.55 per Mcf during this year's first quarter. Oil prices exhibited strong gains with a $30.88 per barrel realization for the 2003 first quarter versus $20.55 per barrel during last year's comparable period.

The Company increased its exploration expense with a $5 million additional investment in Gulf Coast seismic over last year's level. Additionally, the significantly higher realized commodity prices resulted in a higher level of production related taxes.

Consistent with the Company's first quarter guidance, production was 3 percent below the level reported in the first quarter of last year. Comparing the fourth quarter of 2002 to the first quarter of 2003, Cabot's daily production was 242.9 Mmcfe per day in the first quarter of 2003 versus 243.9 Mmcfe per day in the fourth quarter of 2002, essentially flat between periods.

Commenting on the quarter, Dan O. Dinges, Chairman, President and Chief Executive Officer stated, "Operationally we continued to make progress through our accelerated development drilling program that yielded a 96 percent success rate and the Hayworth exploration project (Ellender #1, net revenue interest 36.5 percent) that is now producing 13 Mmcfe per day (gross). We have also positioned the Company for future opportunities in the Gulf Coast with our success at the recent offshore lease sale and in Canada with the first quarter opening of our office in Calgary, Alberta." Dinges added, "In terms of our financial position, we were able to absorb the impairment and not adversely impact our balance sheet, which still has a debt to total capitalization ratio of 53 percent."

In response to the nuances of Regulation G and other SEC requirements, Cabot has posted on its website at www.cabotog.com in the investor relations section its latest financial guidance for the remaining three quarters of 2003. Additionally, the replay of the webcast will now be archived for one year.

Listen in live to Cabot Oil & Gas Corporation's first quarter earnings discussion with financial analysts on Wednesday, April 30 at 9:30 AM EDT (8:30 AM CDT) at www.cabotog.com . A teleconference replay will also be available at (888) 203-1112 (international (719) 457-0820), reservation number 405510. The audio webcast and teleconference replay will be available beginning April 30 at 12:30 PM EDT.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; and the East. For additional information, visit the Company's Internet homepage 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 (including regional basis differentials) 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,
                                                      2003              2002
    NATURAL GAS (Bcf) & OIL (MBbl)
    Produced Natural Gas
      Gulf Coast                                       6.7               7.5
      West                                             6.1               6.4
      East                                             4.4               4.5
      Total                                           17.2              18.4

    Crude/Condensate
      Gulf Coast                                       696               610
      West                                              48                50
      East                                               6                 8
      Total                                            750               668

    Natural Gas Liquids                                 29                15

    Equivalent Production (Bcfe)                      21.9              22.5

    PRICES
    Average Produced Gas Sales Price ($/Mcf)
      Gulf Coast                                     $4.88             $2.67
      West                                           $3.61             $2.14
      East                                           $5.35             $2.85
      Total                                          $4.55             $2.53

    Crude/Condensate Price ($/Bbl)
      Gulf Coast                                    $30.84            $20.57
      West                                          $32.05            $20.97
      East                                          $25.79            $16.41
      Total                                         $30.88            $20.55

    WELLS DRILLED
      Gross                                             25                21
      Net                                             18.5              12.3
      Gross Success Rate                                88%               95%


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

                                                          Quarter Ended
                                                             March 31,
                                                      2003              2002
    Operating Revenues
      Natural Gas Production                        $78,173           $46,506
      Brokered Natural Gas                           31,850            13,698
      Crude Oil and Condensate                       23,174            13,718
      Change in Derivative Fair Value                  (544)             (616)
      Other                                           3,263             1,767
                                                    135,916            75,073
    Operating Expenses
      Brokered Natural Gas Cost                      28,261            12,267
      Production and Pipeline Operations             10,926            12,235
      Exploration                                    13,391             7,056
      Taxes Other Than Income                        10,224             6,152
      Administrative                                  6,595             5,739
      Depreciation, Depletion and Amortization       25,844            25,547
      Impairment of Long-Lived Assets                87,926             1,063
                                                    183,167            70,059
    Gain (Loss) on Sale of Assets                       560               (18)
    Income (Loss) from Operations                   (46,691)            4,996
    Interest Expense and Other                        5,625             6,226
    Loss Before Income Taxes                        (52,316)           (1,230)
    Income Tax Benefit                              (19,940)             (432)
    Net Loss Before Cumulative Effect of
       Accounting Change                            (32,376)             (798)
    Cumulative Effect of Accounting Change (1)       (6,847)              ---
    Net Loss                                       $(39,223)            $(798)
    Net Loss Per Share - Basic                       $(1.23)           $(0.03)
    Average Common Shares Outstanding                31,837            31,604

    (1)  Cumulative effect of accounting change relates to the adoption of
         SFAS 143, "Accounting for Asset Retirement Obligations."


                CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                  (In Thousands)
                                                   March 31,        Dec. 31,
                                                     2003             2002
    Assets
    Current Assets                                 $124,829          $93,121
    Property, Equipment and Other Assets            888,997          978,767
       Total Assets                              $1,013,826       $1,071,888

    Liabilities and Stockholders' Equity
    Current Liabilities                            $159,695         $121,890
    Long-Term Debt                                  338,000          365,000
    Deferred Income Taxes                           161,641          200,207
    Other Liabilities                                55,452           34,134
    Stockholders' Equity                            299,038          350,657
       Total Liabilities and Stockholders'
        Equity                                   $1,013,826       $1,071,888


           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                  (In Thousands)

                                                        Quarter Ended
                                                          March 31,
                                                    2003               2002
    Cash Flows From Operating Activities
    Net Loss                                     $(39,223)             $(798)
    Cumulative Effect of Accounting Change          6,847                ---
    Change in Derivative Fair Value                   544                616
    Impairment of Long-Lived Assets                87,926              1,063
    Income Charges Not Requiring Cash              25,705             26,911
    (Gain) Loss on Sale of Assets                    (560)                18
    Deferred Income Taxes                         (27,010)              (471)
    Changes in Assets and Liabilities              (8,073)            (4,846)
    Exploration Expense                            13,391              7,056
    Net Cash Provided by Operations                59,547             29,549

    Cash Flows From Investing Activities
    Capital Expenditures                          (21,321)           (41,062)
    Proceeds from Sale of Assets                    1,602                 (2)
    Exploration Expense                           (13,391)            (7,056)
    Net Cash Used by Investing                    (33,110)           (48,120)

    Cash Flows From Financing Activities
    Sale of Common Stock                              498                105
    Increase (Decrease) in Debt                   (27,000)            19,000
    Common Dividends and Other                     (1,273)            (1,264)
    Net Cash Provided (Used) by Financing         (27,775)            17,841

    Net Decrease in Cash and Cash Equivalents     $(1,338)             $(730)


    Selected Item Review and Reconciliation of Net Income (Loss) and Earnings
                                (Loss) Per Share
                       (In Thousands, Except Per Share Amounts)
                                                          Quarter Ended
                                                             March 31,
                                                      2003              2002
       As Reported - Net Loss                      $(39,223)           $(798)
       Reversal of Selected Items, Net of Tax:
         Impairment of Long-Lived Assets             54,426              657
         Cumulative Effect of Accounting Change       6,847              ---
       Net Income Including Reversal of
        Selected Items                              $22,050            $(141)
       As Reported - Net Loss Per Share              $(1.23)          $(0.03)
       Per Share Impact of Reversing Selected Items    1.92             0.02
       Net Income (Loss) Per Share
        Including Reversal of Selected Items          $0.69           $(0.01)
       Average Common Shares Outstanding             31,837           31,604


             Discretionary Cash Flow Calculation and Reconciliation
                                    (In Thousands)
                                                         Quarter Ended
                                                            March 31,
                                                     2003              2002
       Discretionary Cash Flow
       As Reported - Net Loss                     $(39,223)            $(798)
       Plus:
       Cumulative Effect of Accounting Change        6,847               ---
       Change in Derivative Fair Value                 544               616
       Impairment of Long-Lived Assets              87,926             1,063
       Income Charges Not Requiring Cash            25,705            26,911
       (Gain) Loss on Sale of Assets                  (560)               18
       Deferred Income Taxes                       (27,010)             (471)
       Exploration Expense                          13,391             7,056
       Discretionary Cash Flow                      67,620            34,395
       Plus:  Changes in Assets and Liabilities     (8,073)           (4,846)
       Net Cash Provided by Operations             $59,547           $29,549

SOURCE Cabot Oil & Gas Corporation