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Cabot Oil & Gas Announces Third Quarter Earnings
Oct 21, 1999

HOUSTON, Oct. 21 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced third quarter normalized net income available to common shareholders of $1.2 million, or $.05 per share, after the elimination of certain gains related to asset sales. This compares to a loss of $2.5 million, or $.10 per share, in last year's third quarter. Actual reported net income for 1999's third quarter totaled $3.7 million, or $.15 per share. Discretionary cash flow for the period was $20.3 million, or $.82 per share, compared to $17.9 million, or $.72 per share, in the third quarter last year.

Contributing to the improved results were increased production levels, complemented by improved prices. Production during the 1999 third quarter was 18.5 Bcfe, 5% above last year's third quarter and flat with this year's second quarter. Realized natural gas prices in the quarter improved by 17% over the comparable period last year. The gas price improvement combined with a 64% increase in realized oil prices increased production related revenue by 27%.

As of September 30, 1999, Cabot Oil & Gas had reduced its total debt by $8 million since last year-end to $335 million ($319 million long-term, $16 million current portion). Additionally Cabot Oil & Gas has escrowed $36.8 million as a result of its recent property purchase and sale activity. In these transactions the Company executed a tax-deferred exchange involving a portion of the sales proceeds. The remaining cash, after the partial exchange, is included in current assets. During the fourth quarter, this restricted cash is targeted for debt repayment, unless the Company can identify another exchange opportunity. Assuming no new opportunity arises this would lower the third quarter debt level on a pro forma basis to $297 million.

"We are pleased with our growth in production so far this year that has been accomplished with a limited capital budget, as well as the reduction in our long-term debt," commented Ray R. Seegmiller, Chairman and CEO. "This has been accomplished by targeting higher rate of return drilling prospects while disposing of lower return properties, or properties with limited upside. Year-to-date we have sold a net 5% of our daily production volume while eliminating 25% of our well count."

For the nine months ended September 30, 1999, Cabot Oil & Gas has a net loss before including the gains associated with property sales. The nine month net loss applicable to common shareholders totaled $2.6 million, or $.10 per share compared to last year's net income available to common shareholders of $2.8 million, or $.11 per share. After taking into account the gains on asset sales, Cabot's 1999 nine month results show a profit of $496,000, or $.02 per share. Discretionary cash flow for the 1999 year-to- date period totaled $50.8 million, or $2.05 per share, down from $57.3 million, or $2.31 per share, last year.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachia, Mid-Continent, Rocky Mountains and Gulf Coast basins. For additional information, visit the Company's internet home page 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        Nine Months Ended
                                       September 30,          September 30,
                                     1999         1998      1999         1998
    NATURAL GAS (Bcf) & OIL (MBbl)
    Produced Natural Gas
     Appalachia                      5.3           5.9      16.1         16.6
     West                            7.6           7.9      22.3         23.0
     Gulf Coast                      4.2           2.7      11.7          9.0
     Total                          17.1          16.5      50.1         48.6

    Crude/Condensate                 237           174       705          471

    Natural Gas Liquids                5            16        19           71

    Equivalent Production (Bcfe)    18.5          17.7      54.5         51.9

    PRICES
    Average Produced Gas Sales Price ($/Mcf)
     Appalachia                   $ 2.43        $ 2.19    $ 2.33       $ 2.51
     West                         $ 2.14        $ 1.79    $ 1.91       $ 1.90
     Gulf Coast                   $ 2.49        $ 2.07    $ 2.17       $ 2.21
     Total                        $ 2.32        $ 1.98    $ 2.10       $ 2.16

    Crude/Condensate Price
      ($/Bbl)                     $20.23        $12.35    $16.04       $13.58

    WELLS DRILLED
     Gross                            23            67        49          151
     Net                            16.0          48.2      30.9        108.1
     Gross Success Rate               87%           91%       86%          88%


            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
                     (In Thousands, Except Per Share Amounts)

                                  Quarter Ended            Nine Months Ended
                                   September 30,              September 30,
                                1999          1998         1999          1998
    Net Operating Revenues
     Natural Gas Production   $39,508       $32,740     $105,466      $105,214
     Crude Oil and Condensate   4,805         2,146       11,297         6,394
     Brokered Natural Gas Margin  905         1,095        2,844         3,580
     Other                        472         1,405        2,424         4,656
                               45,690        37,386      122,031       119,844

    Operating Expenses
     Operations                 8,502         7,529       24,111        22,026
     Exploration                2,993         7,195        7,433        13,574
     Taxes Other Than Income    4,767         3,776       12,570        11,610
     Administrative             4,918         4,919       13,635        16,244
     Depreciation, Depletion
      and Amortization         14,493        12,343       44,241        34,233
                               35,673        35,762      101,990        97,687
    Gain on Sale of Assets      4,044            77        5,019           133
    Income from Operations     14,061         1,701       25,060        22,290
    Interest Expense            6,506         4,423       19,674        13,256
    Income/(Loss) Before
      Income Taxes              7,555        (2,722)       5,386         9,034
    Income Tax Expense/
      (Benefit)                 3,025        (1,049)       2,338         3,730
    Net Income/(Loss)           4,530        (1,673)       3,048         5,304
    Dividend Requirement on
      Preferred Stock             851           851        2,552         2,551
    Net Income/(Loss) Applicable
      to Common               $ 3,679       $(2,524)     $   496       $ 2,753
    Net Income/(Loss) Per
      Common Share - Basic    $  0.15       $ (0.10)     $  0.02       $  0.11
    Average Common Shares
      Outstanding              24,757        24,780       24,709        24,764


               CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                (In Thousands)
                                               Sept. 30,       Dec. 31,
                                                 1999            1998
    Assets
    Current Assets                        $    104,649     $    71,116
    Property, Equipment and Other
      Assets                                   590,068         633,045
       Total Assets                       $    694,717     $   704,161
    Liabilities and Stockholders' Equity
    Current Liabilities                   $     90,590     $    99,034
    Long-Term Debt                             319,000         327,000
    Deferred Income Taxes                       92,383          85,952
    Other Liabilities                           10,440           9,507
    Stockholders' Equity                       182,304         182,668
       Total Liabilities and
        Stockholders' Equity              $    694,717     $   704,161


            CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                  (In Thousands)

                                 Quarter Ended           Nine Months Ended
                                    Sept. 30,                Sept. 30,
                               1999          1998        1999          1998
    Cash Flows From Operating
      Activities
    Net Income/(Loss)      $  4,530     $  (1,673)    $  3,048   $    5,304
    Income Charges Not
      Requiring Cash         14,909        12,448       45,913       35,614
    Gain on Sale of Assets   (4,044)          (77)      (5,019)        (133)
    Deferred Income Taxes     7,233           864        6,431        5,442
    Changes in Assets and
      Liabilities             2,151        (1,330)       1,868        4,104
    Exploration Expense       2,993         7,195        7,433       13,574
    Net Cash Provided by
      Operations             27,772        17,427       59,674       63,905

    Cash Flows From Investing Activities
    Capital Expenditures    (19,617)      (25,921)     (60,980)     (94,032)
    Proceeds from Sale
      of Assets              47,597           283       56,973          953
    Restricted Cash         (36,812)            0      (36,812)           0
    Exploration Expense      (2,993)       (7,195)      (7,433)     (13,574)
    Net Cash Used
      by Investing          (11,825)      (32,833)     (48,252)    (106,653)

    Cash Flows From Financing Activities
    Sale of Common Stock        467           762        1,384        2,896
    Treasury Stock Transactions   0        (4,309)           0       (4,309)
    Increase (Decrease)
      in Debt               (15,000)       19,000       (8,000)      50,000
    Preferred Dividends        (851)         (851)      (2,553)      (2,551)
    Common Dividends and
      Other                  (1,002)         (994)      (2,988)      (2,976)
    Net Cash Provided (Used)
      by Financing          (16,386)       13,608      (12,157)      43,060

    Net Increase (Decrease)
      in Cash and Cash
      Equivalents         $    (439)  $    (1,798)   $    (735)    $    312

    Discretionary Cash
      Flow (A)            $  20,277   $    17,906    $  50,761     $ 57,251

    (A)  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