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News Release

Cabot Oil & Gas Announces Organizational Changes
 

HOUSTON, May 28 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced that in response to the macro outlook for the energy business, the focus of its current and anticipated future capital allocations and its desire to improve efficiency, the Company has decided to close both its Charleston, WV and Denver, CO regional offices by the end of summer. The Company will open a new regional office in Pittsburgh, PA to handle its Pennsylvania and West Virginia assets, along with overseeing the Rocky Mountain area, from this newly designated North Region office. Phil Stalnaker, the previous West Region (Rocky Mountain and Mid-continent areas) manager, has accepted the North Regional Manager position. At this same time, the Company's Gulf Coast assets will be combined with its Mid-Continent assets to form a new South Region. This region will be managed by Matt Reid, who is currently the Gulf Coast Regional Manager.

"Decisions that disrupt our employee's lives are never easy, but we feel these organizational changes will provide Cabot Oil & Gas the best and most efficient structure long-term," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "With our West Region drilling program already complete for the year and our expanding Marcellus program in need of technical personnel, it was a natural progression to better utilize our talented work force. Current plans include providing transfers to more than half the impacted staff, with the majority being asked to move to Pittsburgh to assist in furthering our Marcellus effort." Dinges added, "While the region office is moving from West Virginia, a number of the North Region operations personnel will remain in West Virginia. Also, the natural question resulting from such a strategic shift is, are you exiting the West?" Dinges responded, "I firmly believe there is a future for conventional natural gas resources and as such we have no plans to sell either our Rocky Mountain or Mid-Continent reserves. My optimism for the future of natural gas is rooted in my belief that when all the rhetoric ends, the result will be a desire for a clean energy resource readily available in the United States that can meet the energy demands of a growing nation. Natural gas meets all the criteria and is the most immediate solution to a clean energy source. That is why I am optimistic that reality will rule ultimate energy policy.

"To cover the cost of this strategic shift, Cabot currently estimates that it will reserve between $3.5 to $5.0 million (pre-tax), all of which will be recouped in a timely manner," said Dinges.

Additionally, with the consolidation of three regions into two, Thomas Liberatore has resigned as Vice President, East Region. Dinges commented, "We want to thank Tom for his assistance in the transition of our East Region and wish him success in his future endeavors."

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 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.

SOURCE Cabot Oil & Gas Corporation

CONTACT: Scott Schroeder,
+1-281-589-4993,
for Cabot Oil & Gas Corporation