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