HOUSTON, Aug. 13 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that its Board of Directors has authorized the repurchase of up to two million shares of the Company's common stock in the open market or in negotiated transactions. Cabot Oil & Gas has approximately 25 million shares outstanding.
Ray R. Seegmiller, President and CEO commented, "The current market for Cabot Oil & Gas Corporation stock offers the Company the unique opportunity to acquire gas reserves at a cost consistent with our historical finding costs, which has been in the $0.70 per Mmcfe range. This is below the cost we have seen in recent purchase transactions." Seegmiller stated, "Presently, with our net asset value per share substantially above current market, an opportunity to buy at a significant discount warrants our investment."
"With the Company's solid financial position, we intend to maintain our 1998 capital program in order to continue the track record of growth in production established in 1997. As a result, the Company plans to fund the stock buyback through borrowings, in addition to utilizing excess cash flow when available." added Seegmiller. Also, some of the shares repurchased will be used to fund the stock compensation programs presently in existence, reducing the dilution impact of these plans.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachia, Anadarko, Rocky Mountains, and Gulf Coast regions. For additional information about Cabot Oil & Gas Corporation, visit the Company's homepage at http://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
SOURCE Cabot Oil & Gas Corporation
Web site: http: //www.cabotog.com
Company News On-Call: http: //www.prnewswire.com or fax, 800-758-5804, ext. 129660
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993