Cabot Oil & Gas Corporation Announces New Agreements for Long-Term Sales and
Pipeline Takeaway Capacity
HOUSTON, Feb. 20, 2014
HOUSTON, Feb. 20, 2014 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG)
today reported the execution of a definitive Gas Sale and Purchase Agreement
with a subsidiary of WGLHoldings (NYSE: WGL) and the execution of a binding
Precedent Agreement with Transcontinental Gas Pipe Line Company, LLC (Transco)
for a new pipeline with committed takeaway capacity from Cabot's acreage
position in Susquehanna County, Pennsylvania. "This project is very unique in
that the producer, the pipeline and the market have collectively combined
resources to accomplish the individual goals of each party," stated Dan O.
Dinges, Chairman, President and Chief Executive Officer. "Specifically for
Cabot, we secure the optimal path for our previously announced Cove Point
volumes (350,000 MMBtu per day) and add another sizeable agreement to our
portfolio of long-term sales contracts, while utilizing a portion of our
future anticipated free cash flow to invest in another infrastructure
The Gas Sale and Purchase Agreement will provide for 500,000 MMBtu per day of
natural gas to be sold to WGL for a primary term of 15 years, commencing with
the in-service date of Transco's Atlantic Sunrise expansion project currently
scheduled for in-service in the second half of 2017.
The Precedent Agreement will allow for Transco to construct and operate
approximately 177 miles of new pipeline, referred to as the Central Penn
Line,from the Zick area of Susquehanna County to an interconnect with
Transco's mainline in Lancaster County, Pennsylvania. These new facilities are
an integral part of Transco's recently announced Atlantic Sunrise project.
Cabot will own 850,000 MMBtu per day of firm capacity on Atlantic Sunrise and
will also be participating as an equity owner.
"We are extremely excited to combine this new long-term sales agreement with
our previously announced deal with Sumitomo for delivery to Cove Point,"
commented Dinges. "Collectively, we are adding 850,000 MMBtu per day of
baseload sales to our marketing effort while securing a firm path for these
volumes through the 850,000 MMBtu per day of firm capacity on this newly
announced pipeline. We have achieved a significant goal of securing new
takeaway capacity from the basin with the construction of a new large diameter
pipeline that connects our operating area directly to multiple new markets
including new pricing opportunities."
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
SOURCE Cabot Oil & Gas Corporation
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