Cabot Oil & Gas Corporation Announces First Quarter 2013 Results, Equivalent Production Grew 50 Percent Year-Over-Year

 Cabot Oil & Gas Corporation Announces First Quarter 2013 Results, Equivalent
                  Production Grew 50 Percent Year-Over-Year

PR Newswire

HOUSTON, April 24, 2013

HOUSTON, April 24, 2013 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE:
COG) today reported its financial results for the first quarter of 2013.
Highlights for the quarter include:

  oProduction of 89.3 billion cubic feet equivalent (Bcfe), an increase of 50
    percent over last year's comparable quarter and 13 percent over the fourth
    quarter of 2012.
  oNet income of $42.8 million, or $0.20 per share.
  oNet income excluding selected items of $54.2 million, or $0.26 per share.
  oCash flow from operations of $212.7 million and discretionary cash flow of
    $234.4 million.

"The success of our drilling program in the Marcellus continues to drive
record operating and financial metrics for the Company, including all-time
highs for quarterly production, revenues, operating cash flows and
discretionary cash flows, despite historically low realized natural gas
prices," said Dan O. Dinges, Chairman, President and Chief Executive Officer.

Equivalent production in the first quarter of 2013 was 89.3 Bcfe, with 85.2
Bcf of natural gas production and 691,000 barrels of liquids production. These
figures represent a 50 percent increase in equivalent production compared to
the first quarter of 2012 and an increase of 13 percent sequentially over the
fourth quarter of 2012. "Gross Marcellus production during the first quarter
of approximately one Bcf per day, resulted in the double-digit sequential
production growth rate for the quarter," commented Dinges. "As additional
infrastructure projects throughout our Marcellus position come online during
the year, it will afford us further increases in production."

Cash flow from operations in the first quarter of 2013 was $212.7 million,
compared to cash flow from operations of $131.8 million in the first quarter
of 2012. Discretionary cash flow in the first quarter of 2013 was $234.4
million, compared to discretionary cash flow of $138.5 million in the first
quarter of 2012. Higher equivalent production and, to a lesser extent, higher
realized crude oil prices drove the quarter's overall improvement, partially
offset by lower realized natural gas prices and increased operating expenses
associated with higher production.

Net income in the first quarter of 2013 was $42.8 million, or $0.20 per share,
compared to net income of $18.3 million, or $0.09 per share, in the first
quarter of 2012. Excluding the effect of selected items (detailed in the table
below), net income was $54.2 million, or $0.26 per share, in the first quarter
of 2013, compared to $28.5 million, or $0.14 per share, in the first quarter
of 2012.

Natural gas price realizations, including the effect of hedges, were $3.45 per
Mcf in the first quarter of 2013, down 5 percent compared to the first quarter
of 2012. "More recently, the momentum in the natural gas market has shifted
positively, as unhedged gas price realizations improved 24 percent between
comparable first quarters," added Dinges. Oil price realizations, including
the effect of hedges, were $104.03 per Bbl, up 8 percent compared to the first
quarter of 2012.

Total per unit costs (including financing) decreased to $3.29 per thousand
cubic feet equivalent (Mcfe) in the first quarter of 2013, down 15 percent
from $3.85 per Mcfe in the first quarter of 2012. All operating expense
categories decreased on a per unit basis relative to last year's comparable
quarter, except for transportation and gathering expense and general and
administrative expense. Transportation and gathering expense per unit was
$0.52 per Mcfe in the first quarter of 2013, up 2 percent from $0.51 per Mcfe
in the first quarter of 2012. General and administrative expense per unit was
$0.40 per Mcfe in the first quarter of 2013, up 5 percent from $0.38 per Mcfe
in the first quarter of 2012, due primarily to an increase in stock-based
compensation expense.

Financial Position and Liquidity

At March 31, 2013, the Company's total debt was $1.1 billion, of which $365
million is outstanding under the Company's credit facility. Effective April
17, 2013, the lenders under the Company's revolving credit facility approved
an increase in the Company's borrowing base from $1.7 billion to $2.3 billion
as part of the annual redetermination under the terms of the credit facility.
Total lender commitments under the Company's credit facility remained at $900
million, with $534 million of available credit under its facility at March 31,
2013.

As of March 31, 2013, the Company's net debt to adjusted capitalization ratio
was 34.3 percent, compared to 33.2 percent at December 31, 2012 (see attached
table for the calculation).

Conference Call

Listen in live to Cabot Oil & Gas Corporation's first quarter financial and
operating results discussion with financial analysts on Thursday, April 25,
2013, at 9:30 a.m. EST (8:30 a.m. CST) at www.cabotog.com. 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 Info 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 its entire resource base located in the
continental United States. For additional information, 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 (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.

FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642

OPERATING DATA
                                             Three Months Ended
                                             March 31,
                                             2013              2012
PRODUCED NATURAL GAS (Bcf) & OIL (MBbl)
Natural Gas
Appalachia                                   79.9              49.6
Other                                        5.3               6.8
 Total                                      85.2              56.4
Crude/Condensate/NGL                         691               538
Equivalent Production (Bcfe)                 89.3              59.7
PRICES^(1)
Average Produced Gas Sales Price ($/Mcf)
Appalachia                                 $ 3.49            $ 3.77
Other                                      $ 2.79            $ 2.82
 Total                                    $ 3.45            $ 3.65
Average Crude/Condensate Price ($/Bbl)     $ 104.03          $ 96.67
WELLS DRILLED
 Gross                                      32                31
 Net                                        26                23
 Gross success rate                         97%               100%
^(1) These realized prices include the realized impact of derivative
instrument settlements.
                                             Three Months Ended
                                             March 31,
                                             2013              2012
 Realized impacts to gas pricing         $     0.16   $     1.00
 Realized impacts to oil pricing         $     3.24   $    
                                                               (2.57)





CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
                                            Three Months Ended
                                            March 31,
                                            2013              2012
Operating Revenues
 Natural gas                               $    293,793  $    206,782
 Crude oil and condensate                  65,655            49,981
 Brokered natural gas                      10,893            13,444
 Other                                     2,944             1,929
                                            373,285           272,136
Operating Expenses
 Direct operations                         31,497            27,320
 Transportation and gathering              46,221            30,258
 Brokered natural gas                      8,389             11,872
 Taxes other than income                   11,687            18,583
 Exploration                               4,024             4,001
 Depreciation, depletion and amortization  148,653           110,357
 General and administrative (excluding     17,035            20,894
stock-based compensation)
 Stock-based compensation^(1)              18,669            1,655
                                            286,175           224,940
Gain (loss) on sale of assets               (96)              (535)
Income from Operations                      87,014            46,661
Interest expense and other                 16,255            16,917
Income before income taxes                  70,759            29,744
Income tax expense                          27,935            11,426
Net Income                                  $             $    
                                            42,824           18,318
Earnings per share - Basic                  $           $      
                                            0.20             0.09
Weighted average common shares outstanding  210,150           209,128

^(1) Includes the impact of the Company's performance share awards, restricted
stock, stock appreciation rights and expense associated with the Supplemental
Employee Incentive Plan. The increase in the expense is due to the Company's
higher stock price and the resulting mark-to-market for liability awards.





CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 (In thousands)
                                            March 31,        December 31,
                                            2013             2012
Assets
Current assets                              $            $     
                                            238,880         270,310
Properties and equipment, net               4,412,772        4,310,977
Other assets                                36,184           35,026
 Total assets                             $             $   
                                            4,687,836        4,616,313
Liabilities and Stockholders' Equity
Current liabilities                         $            $     
                                            447,264         444,139
Long-term debt, excluding current           1,052,000        1,012,000
maturities
Deferred income taxes                       910,608          882,672
Other liabilities                           154,750          146,055
Stockholders' equity                        2,123,214        2,131,447
 Total liabilities and stockholders'      $             $   
equity                                      4,687,836        4,616,313
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
 (In thousands)
                                            Three Months Ended
                                            March 31,
                                            2013             2012
Cash Flows From Operating Activities
Net income                                  $           $      
                                            42,824          18,318
Deferred income tax expense                 23,574           9,724
Loss (gain) on sale of assets               96               535
Exploration expense                         666              49
Unrealized (gain) loss on derivatives       -                (42)
Income charges not requiring cash           167,205          109,951
Changes in assets and liabilities           (21,680)         (6,755)
Net cash provided by operations             212,685          131,780
Cash Flows From Investing Activities
Capital expenditures                        (260,169)        (188,547)
Proceeds from sale of assets                486              1,280
Investment in equity method investment      (1,250)          -
Net cash used in investing                  (260,933)        (187,267)
Cash Flows From Financing Activities
Net increase (decrease) in debt             40,000           62,000
Stock-based compensation tax benefit        2,138            -
Dividends paid                              (4,201)          (4,177)
Other                                       32               81
Net cash provided by financing              37,969           57,904
Net increase (decrease) in cash and cash    $            $       
equivalents                                 (10,279)        2,417





Selected Item Review and Reconciliation of Net Income and Earnings Per Share
(In thousands, except per share amounts)
                                                Three Months Ended
                                                March 31,
                                                2013             2012
As reported - net income                        $           $     
                                                42,824           18,318
Reversal of selected items, net of tax:
 (Gain) loss on sale of assets              58               327
 Stock-based compensation expense           11,337           1,013
 Pension expense^(1)                        -                3,824
 Unrealized loss (gain) on derivatives      -                (26)
 Pennsylvania impact fee^(2)                -                5,067
Net income excluding selected items             $           $     
                                                54,219           28,523
As reported - earnings per share               $         $      
                                                0.20              0.09
 Per share impact of reversing selected items 0.06             0.05
Earnings per share including reversal
 of selected items                          $         $      
                                                0.26              0.14
Weighted average common sharesoutstanding      210,150          209,128

     On July 28, 2010, the Company notified its employees of its plan to
     terminate its qualified and non-qualified pension plans, effective
     September 30, 2010. These amounts represent pension expenses related to
     the plan termination, including settlement costs and expenses related to
^(1) the acceleration of amortization of prior service costs and actuarial
     losses over the period. Final distribution of the pension plan occurred
     as of the end of the second quarter 2012. Pension expense is included in
     General and administrative expense in the Condensed Consolidated
     Statement of Operations.
     In February 2012, the Pennsylvania state legislature authorized the
     assessment of an impact fee on Marcellus shale production. This amount
^(2) represents the initial year accrual related to our 2011 and prior wells.
     Expenses associated with the impact fee are included in Taxes other than
     income in the Condensed Consolidated Statement of Operations.





Discretionary Cash Flow Calculation and Reconciliation
(In thousands)
                                            Three Months Ended
                                            March 31,
                                            2013              2012
 Discretionary Cash Flow
 As reported - net income                 $            $     
                                            42,824            18,318
 Plus / (less):
 Deferred income tax expense              23,574            9,724
 Loss (gain) on sale of assets            96                535
 Exploration expense                      666               49
 Unrealized loss (gain) on derivatives    -                 (42)
 Income charges not requiring cash        167,205           109,951
 Discretionary Cash Flow                  234,365           138,535
 Changes in assets and liabilities        (21,680)          (6,755)
 Net cash provided by operations          $             $    
                                            212,685           131,780
Net Debt Reconciliation
(In thousands)
                                            March 31,         December 31,
                                            2013              2012
 Current portion of long-term debt        $            $     
                                            75,000            75,000
 Long-term debt                           1,052,000         1,012,000
 Total debt                               1,127,000         1,087,000
 Stockholders' equity                     2,123,214         2,131,447
 Total Capitalization                $  3,250,214    $  3,218,447
 Total debt                               $   1,127,000  $   1,087,000
 Less: Cash and cash equivalents         (20,457)          (30,736)
 Net Debt                            $  1,106,543    $  1,056,264
 Net debt                                 $   1,106,543  $   1,056,264
 Stockholders' equity                     2,123,214         2,131,447
 Total Adjusted Capitalization       $  3,229,757    $  3,187,711
 Total debt to total capitalization ratio  34.7%             33.8%
 Less: Impact of cash and cash           0.4%              0.5%
equivalents
 Net Debt to Adjusted Capitalization 34.3%             33.2%
Ratio



SOURCE Cabot Oil & Gas Corporation

Website: http://www.cabotog.com
 
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