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Cabot Oil & Gas Corporation Provides Corporate Update, Announces Agreement to Provide Natural Gas to the Dominion Cove Point LNG



Cabot Oil & Gas Corporation Provides Corporate Update, Announces Agreement to
         Provide Natural Gas to the Dominion Cove Point LNG Terminal

PR Newswire

HOUSTON, Dec. 19, 2013

HOUSTON, Dec. 19, 2013 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG)
today reported the execution of a definitive gas sale and purchase agreement
with Pacific Summit Energy LLC, a wholly owned subsidiary of Sumitomo
Corporation, under which Cabot has agreed to sell 350,000 MMBtu per day of
natural gas from its Marcellus Shale position for a term of 20 years
commencing on the in-service date of the Dominion Cove Point LNG liquefaction
project currently scheduled for 2017.

"We are extremely excited to be partnering with Sumitomo to provide a
long-term source of natural gas to the Cove Point LNG facility and ultimately
to the people of Japan," said Dan O. Dinges, Chairman, President and Chief
Executive Officer. "This long-term firm sales agreement is another milestone
for Cabot's marketing efforts and ensures the continuing development of our
Marcellus Shale position in Northeast Pennsylvania for years to come."

Production Highlights

Cabot recently achieved a new gross production record in the Marcellus of 1.5
billion cubic feet (Bcf) per day. "This week marks the one-year anniversary of
surpassing the one Bcf per day milestone in the Marcellus, highlighting a 50
percent year-over-year increase," commented Dinges. "As such, we are
increasing our 2013 production growth guidance range from 44 to 54 percent to
50 to 55 percent. 2014 production growth guidance for the Company remains
unchanged at 30 to 50 percent."

2014 Hedging Program

During the fourth quarter of 2013, Cabot added 55 natural gas hedge contracts
for 2014. The Company now has approximately 970 million cubic feet (Mmcf) per
day of natural gas volumes hedged for 2014 at a weighted average floor of
$4.12 per thousand cubic feet (Mcf). "Given the recent uptick in the natural
gas strip for 2014, we have opportunistically added these hedge contracts to
protect downside risk and lock-in pricing that provides best-in-class rates of
return," explained Dinges. "Additionally, these hedging initiatives, combined
with our continued marketing efforts, mitigate a portion of potential summer
pricing volatility."

Firm Transportation Contracts

During the fourth quarter of 2013, Cabot added 280 Mmcf per day of additional
firm transport capacity, with 130 Mmcf per day beginning in October 2013 and
150 Mmcf per day beginning in September 2014. "We continue to analyze
opportunities to strategically add to our portfolio of firm transportation
contracts and long-term firm sales contracts for our Marcellus production,
with the focus on improving our netbacks and flexibility," stated Dinges.

Constitution Pipeline

The Federal Energy Regulatory Commission (FERC) recently issued its planned
schedule for the completion of its environmental review of Constitution
Pipeline. The FERC schedule established June 13, 2014 as the date of issuance
of the final Environmental Impact Statement and September 11, 2014 as the
90-day federal authorization decision deadline for the project. "We are
pleased that the FERC is moving forward with its review of the Constitution
Pipeline project and this notice from the FERC is the next important step in
receiving a final order," affirmed Dinges. "As a result of this new schedule,
the in-service date for Constitution Pipeline could potentially be pushed
until later in 2015; however, any delay in the timing of in-service will not
affect Cabot's anticipated production growth in 2015 due to our diversity of
takeaway options and the ample amount of lead time we have to plan around any
schedule changes. As noted above, we will continue to evaluate all
opportunities to add incremental takeaway capacity, regardless of whether the
timing of Constitution Pipeline's in-service date is altered."

Financial Update

The Company completed the previously announced sale of its Marmaton assets to
Chaparral Energy Inc. as anticipated. Additionally, Cabot recently exercised
the $500 million accordion feature on its credit facility, increasing the
total commitments to $1.4 billion. "While our 2014 program is expected to
generate free cash flow under current commodity price assumptions, these new
commitments provide additional liquidity and increase our overall financial
flexibility," noted Dinges.

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 regarg 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

 

SOURCE Cabot Oil & Gas Corporation

Website: http://www.cabotog.com
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