HOUSTON, Nov. 20 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced that the Company has initiated an additional hedge position covering approximately 20% of its anticipated natural gas production for the period January through December 2003. The hedge is in the form of a straight swap based on a NYMEX equivalent of $4.01 per Mmbtu. In aggregate, Cabot now has price protection in place for approximately 32% of next year's expected gas volumes at a combined price of $4.30 per Mcf.
Taking into account regional basis differentials, the following table summarizes by operating area the volumes and swap prices (per Mmbtu) of the new hedge position.
Location Mmbtu/day Swap Price/Mmbtu Gulf Coast 15,000 $4.03 East 10,000 4.25 Mid-Continent 20,000 3.82 Total 45,000 $3.99
"With realizations for the last five years averaging just over $3.00 per Mmbtu, it makes tremendous sense to continue to layer in additional hedges that lock-in both operational and financial flexibility for the Company," stated Dan O. Dinges, Chairman and Chief Executive Officer. "We will continue to look for opportunities to add to this position."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests on the Gulf Coast, including onshore Texas and Louisiana; the West, with the Rocky Mountains and the Mid-Continent; and the East. For additional information, visit the Company's Internet 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.
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SOURCE Cabot Oil & Gas Corporation