News Release

Cabot Oil & Gas Reports First Quarter Results
 

HOUSTON, April 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced first quarter results, including net income of $20.8 million, or $.43 per share, cash flow from operations of $108.0 million and discretionary cash flow of $82.7 million. Each of these compares favorably to the prior year's first quarter when the Company recorded net income totaling $19.0 million, or $.39 per share, cash flow from operations of $97.6 million and discretionary cash flow of $72.3 million. The per share results reflect the three-for-two split of the Company's common stock on March 31, 2005.

"Due to the significant rise in the forward curve for oil prices at March 31, 2005, the current quarter net income figure was reduced for this future impact (that includes the expectation of continued high oil prices)," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "The mark-to-market requirement for derivatives had a $4.6 million, or approximately $.09 per share, after-tax impact on the results," (see attached table on mark-to-market matters).

Continued high commodity prices combined with production increases year-over-year drove Company realizations. For natural gas prices Cabot realized $5.71 per mcf, up 10 percent over last year's comparable period. Crude oil prices during the same time period rose 36 percent to an overall realization of $42.11 per barrel. Also contributing to the improved results were increased production levels versus last year's first quarter. Total equivalent production increased 1 percent driven by a 0.7 Bcf increase in natural gas production, primarily from advances in the East region. "In addition to the year-over-year production gains, the daily volume improved over those realized in the fourth quarter of 2004," said Dinges.

Overall operating expenses were up 5 percent between reporting periods, due primarily to increases in DD&A, exploration, operations and G&A expenses. "Employee-related cost was the main factor in the increases for operations and G&A expense as cost associated with retirement benefits continue to escalate," commented Dinges.

Dinges added, "Overall I am pleased with our progress that includes a diversified drilling program across North America and a balance sheet that affords us a high degree of flexibility. Our transition towards longer-lived, more predictable opportunities is well underway. Combine this with $59.6 million of cash on the balance sheet that results in a net debt to total capitalization of 31.2 percent, and you have a platform for further value creation."

Conference Call

Listen in live to Cabot Oil & Gas Corporation's 2005 first quarter financial and operating results discussion with financial analysts on Friday, April 29, at 9:30am EDT (8:30am CDT) at www.cabotog.com. A teleconference replay will also be available at (800) 642-1687, (U.S./Canada) or (706) 645-9291 (International), passcode 5486532. A replay will be available from Friday, April 29 through Friday, May 6, 2005. The latest financial guidance, including the Company's hedge positions, along with a replay of the webcast, which will be archived for one year, are available in the investor relations section of the Company's website at www.cabotog.com.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; the East and an expansion effort in Canada. For additional information, visit the Company's Internet homepage at www.cabotog.com.

Forward-Looking Statements

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,
                                               2005          2004
     PRODUCED NATURAL GAS (Bcf) & OIL (MBbl)
     Natural Gas
      Gulf Coast                                7.4           7.7
      West                                      5.7           5.6
      East                                      5.1           4.4
      Canada                                    0.2            --
      Total                                    18.4          17.7

     Crude/Condensate/Ngl
      Gulf Coast                                406           494
      West                                       37            41
      East                                        5             7
      Canada                                      4            --
      Total                                     452           542

     Equivalent Production (Bcfe)              21.1          20.9

     PRICES
     Average Produced Gas Sales Price ($/Mcf)
      Gulf Coast                              $6.03         $5.14
      West                                    $4.73         $4.83
      East                                    $6.35         $5.80
      Canada                                  $5.57         $  --
      Total                                   $5.71         $5.21

     Crude/Condensate Price ($/Bbl)
      Gulf Coast                             $41.50        $30.70
      West                                   $48.57        $34.34
      East                                   $48.06        $31.86
      Canada                                 $38.64        $   --
      Total                                  $42.11        $30.99

     WELLS DRILLED
      Gross                                      44            38
      Net                                        28            29
      Gross Success Rate                         86%          100%



          CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
                   (In thousands, except per share amounts)

                                                    Quarter Ended
                                                       March 31,
                                                2005              2004
     Operating Revenues
      Natural Gas Production (1)              $104,272          $90,379
      Brokered Natural Gas                      26,492           31,559
      Crude Oil and Condensate (1)              11,978           12,767
      Other                                      1,332            1,899
                                               144,074          136,604
     Operating Expenses
      Brokered Natural Gas Cost                 23,298           28,721
      Direct Operations - Field and Pipeline    14,618           12,078
      Exploration                               19,369           16,144
      Depreciation, Depletion and
       Amortization                             30,067           26,812
     General and Administrative (excluding
      Stock-based Compensation)                  7,925            6,245
      Stock-based Compensation (2)               1,035              471
      Taxes Other Than Income                    9,718           10,102
                                               106,030          100,573
     Gain on Sale of Assets                         --               59
     Income from Operations                     38,044           36,090
     Interest Expense and Other                  4,988            5,377
     Income Before Income Taxes                 33,056           30,713
     Income Tax Expense                         12,294           11,702
     Net Income                                $20,762          $19,011
     Net Earnings Per Share - Basic (3)          $0.43            $0.39
     Average Common Shares Outstanding (3)      48,724           48,597

     (1)  See the "Impact of Mark-to-Market Accounting Requirements" table for
          additional information.

     (2)  Includes the impact of the Company's performance share
          mark-to-market requirement and restricted stock amortization.

     (3)  Reflects the 3-for-2 split of the Company's Common Stock on
          March 31, 2005.



               CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                (In thousands)

                                                March 31,        December 31,
                                                  2005               2004
     Assets
     Current Assets                             $218,040           $194,679
     Property, Equipment and Other Assets      1,018,887          1,001,422
     Deferred Income Taxes                        15,163             14,855
      Total Assets                            $1,252,090         $1,210,956

     Liabilities and Stockholders' Equity
     Current Liabilities                        $222,313           $196,889
     Long-Term Debt                              250,000            250,000
     Deferred Income Taxes                       255,005            247,376
     Other Liabilities                            61,728             61,029
     Stockholders' Equity                        463,044            455,662
      Total Liabilities and Stockholders'
       Equity                                 $1,252,090         $1,210,956



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

                                                       Quarter Ended
                                                          March 31,
                                                  2005                 2004
     Cash Flows From Operating Activities
     Net Income                                 $20,762              $19,011
     Change in Derivative Fair Value              7,512                5,619
     Income Charges Not Requiring Cash           31,990               27,076
     Gain on Sale of Assets                          --                  (59)
     Deferred Income Tax Expense                  3,022                4,549
     Changes in Assets and Liabilities           25,362               25,230
     Exploration Expense                         19,369               16,144
     Net Cash Provided by Operations            108,017               97,570

     Cash Flows From Investing Activities
     Capital Expenditures                       (41,070)             (35,711)
     Proceeds from Sale of Assets                   588                   --
     Exploration Expense                        (19,369)             (16,144)
     Net Cash Used by Investing                 (59,851)             (51,855)

     Cash Flows From Financing Activities
     Sale of Common Stock Proceeds                2,731                6,656
     Dividends Paid                              (1,339)              (1,296)
     Net Cash Provided by Financing               1,392                5,360

     Net Increase in Cash and Cash Equivalents  $49,558              $51,075
Selected Item Review and Reconciliation of Net Income and Earnings Per Share
(In thousands, except per share amounts)

                                                        Quarter Ended
                                                           March 31,
                                                     2005             2004
     As Reported - Net Income                      $20,762          $19,011
     Reversal of Selected Items, Net of Tax:
      Gain on Sale of Assets                            --              (37)
      Change in Derivative Fair Value                4,647            3,478
     Net Income Including Reversal of Selected
      Items                                        $25,409          $22,452
     As Reported - Net Earnings Per Share            $0.43            $0.39
     Per Share Impact of Reversing Selected Items     0.09             0.07
     Net Earnings Per Share Including Reversal
      of Selected Items                              $0.52            $0.46
     Average Common Shares Outstanding              48,724           48,597



            Discretionary Cash Flow Calculation and Reconciliation
                                (In thousands)

                                                        Quarter Ended
                                                           March 31,
                                                     2005            2004
     Discretionary Cash Flow
     As Reported - Net Income                      $20,762         $19,011
     Plus:
     Change in Derivative Fair Value                 7,512           5,619
     Income Charges Not Requiring Cash              31,990          27,076
     Gain on Sale of Assets                             --             (59)
     Deferred Income Tax Expense                     3,022           4,549
     Exploration Expense                            19,369          16,144
     Discretionary Cash Flow                        82,655          72,340
     Plus:  Changes in Assets and Liabilities       25,362          25,230
     Net Cash Provided by Operations              $108,017         $97,570



                           Net Debt Reconciliation
                                (In thousands)

                                                  March 31,      December 31,
                                                    2005             2004

     Current Portion of Long-Term Debt            $20,000          $20,000
     Long-Term Debt                               250,000          250,000
      Total Debt                                 $270,000         $270,000
     Stockholders' Equity                         463,044          455,662
      Total Capital                              $733,044         $725,662

     Total Debt                                  $270,000         $270,000
     Less:  Cash and Cash Equivalents             (59,584)         (10,026)
      Net Debt                                   $210,416         $259,974

     Net Debt                                    $210,416         $259,974
     Stockholders' Equity                         463,044          455,662
      Total Adjusted Capital                     $673,460         $715,636

     Total Debt to Total Capital Ratio               36.8%            37.2%
     Less:  Impact of Cash and Cash Equivalents       5.6%             0.9%
              Net Debt to Capitalization Ratio       31.2%            36.3%



               Impact of Mark-to-Market Accounting Requirements
                                (In thousands)

                                                         Quarter Ended
                                                           March 31,
                                                     2005            2004
     Unrealized Loss on Derivatives (1)
      Natural Gas                                   $(560)         $(1,724)
      Crude Oil                                    (6,952)          (3,895)

     Incentive Stock Compensation Expense (2)
      Performance Shares                             (412)              --
     Mark-to-Market Impact, Before Income Tax     $(7,924)         $(5,619)
     Mark-to-Market Impact, Income Tax              3,022            2,141
     Mark-to-Market Impact on Net Income          $(4,902)         $(3,478)

     (1)  These amounts represent the unrealized loss associated with the
          mark-to-market valuation of open positions which do not qualify for
          hedge accounting or are ineffective.  These amounts are reflected in
          the respective line items of Operating Revenues.  Therefore, the
          computation of our reported realized commodity prices can be
          obtained by adding the loss from the respective Operating Revenues
          line item and dividing by reported production.

     (2)  This amount relates to the mark-to-market valuation of the Company's
          performance share incentive stock compensation awards that is
          reflected in general and administrative expense.  At March 31, 2005
          the Company recognized stock compensation expense based on Cabot's
          ranking against a predetermined peer group based on total
          shareholder return.  Cabot must calculate its liability at the
          balance sheet date under the assumption that its relative ranking
          remains constant throughout the measurement period (January 1, 2004
          - December 31, 2006), creating an assumed ultimate liability which
          is then amortized over the measurement period (percent payout
          multiplied by shares multiplied by stock price at reported balance
          sheet date multiplied by the pro-rata time expired in the
          measurement period).  Expense recognition will fluctuate between
          reporting periods due to the valuation of the performance shares at
          the reported balance sheet date.

SOURCE Cabot Oil & Gas Corporation

Scott Schroeder of Cabot Oil & Gas Corporation
1-281-589-4993

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