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News Release

Cabot Oil & Gas Corporation Announces First Quarter Results
 

HOUSTON, April 25 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced first quarter net income available to common shareholders of $4.5 million, or $.18 per share. This included a net benefit, resulting primarily from a contract settlement, which added $1.7 million, or $.07 per share, to the quarter's results. This compares to a loss of $3.3 million, or $.13 per share, in last year's first quarter. Discretionary cash flow for the quarter totaled $24.5 million, or $.99 per share, ($22.2 million, or $.90 per share excluding the net benefit resulting primarily from the contract settlement) versus $12.6 million, or $.51 per share, in the comparable period last year.

Higher realized prices for both natural gas and oil contributed to the improved quarterly results. Natural gas prices in the quarter improved by 34% over the comparable period last year, while oil prices increased 92% between comparable quarters. Also adding to the improved quarterly results was lower year-over-year interest expense.

As of March 31, 2000, Cabot Oil & Gas had reduced its total debt level by $15 million from year-end to $278 million. This is $85 million less debt than at the end of last year's first quarter. The reduction was driven primarily by asset sales and the monetization of two long-term gas sales contracts, along with the additional cash flow generated from the recent strengthening in gas prices.

Production of 16.5 Bcfe during the first three months of 2000 was 300 Mmcfe less than the fourth quarter of 1999. This reduction resulted primarily from the additional time required to modify the production facilities at the southern Louisiana Etouffee discovery to handle the higher than expected liquids production levels. Compared to last year's first quarter, production was down 1.0 Bcfe primarily due to asset sales at the end of the 1999 third quarter that removed about 14 Mmcfe of daily production.

"The reduction in leverage, along with the initial drilling progress on our expanding Gulf Coast prospect inventory, has repositioned Cabot for the future," stated Ray Seegmiller, Chairman and CEO. "We expect our production to increase throughout the remainder of the year as we pursue the significant exploration and development opportunities in southern Louisiana on the acquired Oryx properties and Continental Land & Fur acreage as well as in south Texas."

Seegmiller added, "It is quite obvious that the fundamentals of the natural gas market are changing as evidenced by the current NYMEX 12-month strip. With Cabot's production profile being over 90% natural gas and a large prospect inventory in each core area, we anticipate further improvements in our rates of return."

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Gulf Coast, Rocky Mountains, Appalachian and Mid-Continent basins. For additional information, visit the Company's internet home page at www.cabotog.com.

Listen in live to Cabot Oil & Gas Corporation's first quarter 2000 earnings discussion with financial analysts on Wednesday, April 26 at 9:30 am EDT at http://www.streetevents.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,
                                                    2000          1999
    NATURAL GAS (Bcf) & OIL (MBbl)
    Produced Natural Gas
      Appalachia                                     4.5           5.6
      West                                           7.3           7.4
      Gulf Coast                                     3.4           3.1
      Total                                         15.2          16.1

    Crude/Condensate                                 195           230

    Natural Gas Liquids                                7             9

    Equivalent Production (Bcfe)                    16.5          17.5

    PRICES
    Average Produced Gas Sales Price ($/Mcf)
      Appalachia                                 $  3.07       $  2.25
      West                                       $  2.26       $  1.71
      Gulf Coast                                 $  2.55       $  1.75
      Total                                      $  2.56       $  1.91

    Crude/Condensate Price ($/Bbl)               $ 22.19       $ 11.53

    WELLS DRILLED
      Gross                                           25            15
      Net                                           14.7           9.4
      Gross Success Rate                              88%           80%

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

                                                    Quarter Ended
                                                       March 31,
                                                  2000          1999
    Net Operating Revenues
      Natural Gas Production                   $  39,086     $  30,619
      Crude Oil and Condensate                     4,325         2,650
      Brokered Natural Gas Margin                  1,451           883
      Other                                        4,772         1,128
                                                  49,634        35,280
    Operating Expenses
      Operations                                   8,511         7,847
      Exploration                                  3,233         2,425
      Taxes Other Than Income                      4,601         3,638
      Administrative                               4,887         4,291
      Depreciation, Depletion and Amortization    13,608        14,236
    Gain (Loss) on Sale of Assets                    (21)            1
    Income from Operations                        14,773         2,844
    Interest Expense                               5,971         6,718
    Income (Loss) Before Income Taxes              8,802        (3,874)
    Income Tax Expense (Benefit)                   3,457        (1,432)
    Net Income (Loss)                              5,345        (2,442)
    Dividend Requirement on Preferred Stock          851           851
    Net Income (Loss) Applicable to Common     $   4,494     $  (3,293)
    Net Income (Loss) Per Common Share - Basic $    0.18     $   (0.13)
    Average Common Shares Outstanding             24,798        24,666

                 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                  (In Thousands)
                                                March 31,     Dec. 31,
                                                  2000          1999
    Assets
    Current Assets                             $  57,409     $  66,640
    Property, Equipment and Other Assets         594,683       592,840
       Total Assets                            $ 652,092     $ 659,480

    Liabilities and Stockholders' Equity
    Current Liabilities                        $  88,799     $  89,938
    Long-Term Debt                               262,000       277,000
    Deferred Income Taxes                         97,613        95,012
    Other Liabilities                             12,232        11,034
    Stockholders' Equity                         191,448       186,496
       Total Liabilities and Stockholders'
        Equity                                 $ 652,092     $ 659,480

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

                                                    Quarter Ended
                                                       March 31,
                                                  2000          1999
    Cash Flows From Operating Activities
    Net Income (Loss)                          $   5,345     $  (2,442)
    Income Charges Not Requiring Cash             14,124        14,976
    (Gain) Loss on Sale of Assets                     21            (1)
    Deferred Income Taxes                          2,601        (1,472)
    Changes in Assets and Liabilities             10,111        (3,420)
    Exploration Expense                            3,233         2,425
    Net Cash Provided by Operations               35,435        10,066

    Cash Flows From Investing Activities
    Capital Expenditures                         (18,945)      (26,513)
    Proceeds from Sale of Assets                   1,523             1
    Exploration Expense                           (3,233)       (2,425)
    Net Cash Used by Investing                   (20,655)      (28,937)

    Cash Flows From Financing Activities
    Sale of Common Stock                           1,231          187
    Increase (Decrease) in Debt                  (15,000)      20,000
    Preferred Dividends                             (851)        (851)
    Common Dividends and Other                    (1,003)        (986)
    Net Cash Provided (Used) by Financing        (15,623)      18,350

    Net Decrease in Cash and
      Cash Equivalents                         $    (843)   $    (521)

    Discretionary Cash Flow (*)                $  24,474    $  12,635

    (*)  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