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News Release

Cabot Oil & Gas Announces First Quarter Results
 

HOUSTON, April 22 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced a first quarter net loss applicable to common shareholders of $3.3 million, or $.13 per share, compared to net income available to common shareholders of $3.0 million, or $.12 per share, for the same period last year. First quarter discretionary cash flow was $12.6 million, or $0.51 per share for 1999, versus $19.6 million, or $.79 per share, in the comparable period last year.

Production for the period reached 17.5 Bcfe, up 5% over last year's first quarter and up 5% over the 4th quarter of 1998. The production increase is due primarily to the Oryx acquisition, which was effective December 1, 1998, and continued drilling success in the Company's Gulf Coast region. For the quarter, Gulf Coast production averaged 43 Mmcfe per day, an increase of 22% over the first quarter of 1998.

Contributing to the lower financial results was a 16% decline in realized natural gas prices along with a 23% reduction in oil prices compared to last year. The impact of these lower prices resulted in a $6.6 million decrease in revenue which was partially offset by higher production between comparable periods. Also adding to the lower results were higher interest expense and increased depreciation, depletion and amortization expense, largely attributable to the Oryx acquisition and the increased 1998 finding costs related to the mechanical problems incurred in the Gulf Coast region.

"Even though the first quarter fell short of our financial objectives due to energy prices, the operational turnaround in the Gulf Coast has exceeded expectations," said Ray Seegmiller, President and CEO. "The new production from the Kacee field and the Oryx properties has taken production to unprecedented levels in this region. Additionally, the workover and drilling opportunities being generated from the Oryx acquisition and the UPR joint venture (that was initiated in February 1998) have provided us with even greater upside growth potential," Seegmiller added. "With the recent improvement in gas prices, we are positioned to increase our drilling activity on short notice. The current 1999 drilling program has been front-end loaded which allows us the flexibility to accelerate our activity later in the year if cash flow improves."

Debt increased $20 million since year-end as a result of the timing of both the 1999 capital program and working capital changes. "We anticipate that our full year 1999 capital expenditures will approximate the year's discretionary cash flow," explained Seegmiller.

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


                                            1999             1998
    NATURAL GAS (Bcf) & OIL (MBbl)
    Produced Natural Gas
     Appalachia                             5.6               5.1
     West                                   7.4               7.6
     Gulf Coast                             3.1               2.8
     Total                                 16.1              15.5

    Crude/Condensate                        230               156
    Natural Gas Liquids                       9                26
    Equivalent Production (Bcfe)           17.5              16.6

    PRICES
    Average Produced Gas
     Sales Price ($/Mcf)
     Appalachia                           $2.25             $2.78
     West                                 $1.71             $1.94
     Gulf Coast                           $1.75             $2.24
     Total                                $1.91             $2.27

    Crude/Condensate Price ($/Bbl)       $11.53            $14.98

    WELLS DRILLED
     Gross                                   15                33
     Net                                    9.4              23.7
     Gross Success Rate                      80%               82%

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

                                                           Quarter Ended
                                                              March 31,
                                                        1999           1998
    Net Operating Revenues
      Natural Gas Production                        $  30,619      $  35,176
      Crude Oil and Condensate                          2,650          2,338
      Brokered Natural Gas Margin                         883          1,387
      Other                                             1,128          1,890
                                                       35,280         40,791
    Operating Expenses
      Operations                                        7,847          6,964
      Exploration                                       2,425          3,401
      Taxes Other Than Income                           3,638          3,799
      Administrative                                    4,291          5,501
      Depreciation, Depletion and Amortization         14,236         10,464
                                                       32,437         30,129
    Gain on Sale of Assets                                  1             52
    Income from Operations                              2,844         10,714
    Interest Expense                                    6,718          4,255
    Income/(Loss) Before Income Taxes                  (3,874)         6,459
    Income Tax Expense/(Benefit)                       (1,432)         2,616
    Net Income/(Loss)                                  (2,442)         3,843
    Dividend Requirement on Preferred Stock               851            850
    Net Income/(Loss) Applicable to Common          $  (3,293)     $   2,993
    Net Income/(Loss) Per Common Share - Basic      $   (0.13)     $    0.12
    Average Common Shares Outstanding                  24,666         24,683


               CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                 (In Thousands)
                                                       March 31,      Dec. 31,
                                                        1999            1998
    Assets
    Current Assets                                  $  60,475      $  71,116
    Property, Equipment and Other Assets              634,263        633,045
       Total Assets                                 $ 694,738      $ 704,161
    Liabilities and Stockholders' Equity
    Current Liabilities                             $  73,536      $  99,034
    Long-Term Debt                                    347,000        327,000
    Deferred Income Taxes                              84,480         85,952
    Other Liabilities                                  10,870          9,507
    Stockholders' Equity                              178,852        182,668
       Total Liabilities and Stockholders' Equity   $ 694,738      $ 704,161


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

                                                            Quarter Ended
                                                              March 31,
                                                        1999           1998
    Cash Flows From Operating Activities
    Net Income/(Loss)                               $  (2,442)     $   3,843
    Income Charges Not Requiring Cash                  14,975         10,901
    Deferred Income Taxes                              (1,472)         2,289
    Changes in Assets and Liabilities                  (3,420)         8,519
    Exploration Expense                                 2,425          3,401
    Net Cash Provided by Operations                    10,066         28,953

    Cash Flows From Investing Activities
    Capital Expenditures                              (26,513)       (31,385)
    Proceeds from Sale of Assets                            1            511
    Exploration Expense                                (2,425)        (3,401)
    Net Cash Used by Investing                        (28,937)       (34,275)

    Cash Flows From Financing Activities
    Sale of Common Stock                                  187            896
    Increase in Debt                                   20,000          8,000
    Preferred Dividends                                  (851)          (850)
    Common Dividends and Other                           (986)          (988)
    Net Cash Provided by Financing                     18,350          7,058

    Net Increase (Decrease) in Cash and
      Cash Equivalents                               $   (521)     $   1,736

    Discretionary Cash Flow (*)                      $ 12,635      $  19,583

    (*)  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/comp/129660.html or fax, 800-758-5804, ext. 129660
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993