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Cabot Oil & Gas Announces Third Quarter Results
Oct 24, 2002

HOUSTON, Oct. 24 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced third quarter net income of $6.1 million, or
$.19 per share, and discretionary cash flow of $45.5 million, or $1.43 per share.  These results compare to net income of $10.0 million, or $.33 per share, and discretionary cash flow of $64.3 million, or $2.10 per share, during last year's third quarter.  The primary factor impacting results between the two reported quarterly periods was a $1.00 per Mcf lower natural gas price realization that was partially offset by an increase in oil production volumes and lower exploration expense.

Total production of 23,376 Mmcfe during the third quarter was 5% higher than the 22,246 Mmcfe recorded in the corresponding period last year.  This increase was driven by a full quarter impact from the August 2001 acquisition of Cody and by results from the Company's drilling program.  Production was up 2% between the second and third quarters of this year.

Our calculated moves with the drillbit and the acquisition market have provided the Company with a growing production profile, said Dan O. Dinges, Chairman and Chief Executive Officer.  With the fourth quarter outlook promising, as well as a positive view for 2003, we have expanded capital plans in the fourth quarter to get a jumpstart on the new year.  Presently we are adding about $15 to $20 million to this year's program and are tentatively planning for a $150 million program in 2003.

Year-to-Date

For the nine months ended September 30, 2002, Cabot reported net income of $7.4 million, or $.23 per share, versus $62.7 million, or $2.10 per share, in last year's comparable period.  Discretionary cash flow comparisons faired similarly, with $120.7 million, or $3.81 per share, in 2002, compared to $196.6 million, or $6.59 per share, in 2001.  Affecting these results was a 44% decline in realized natural gas prices combined with a 13% decrease in realized oil prices.  An 18.9% increase in production could not offset the magnitude of the drop in commodity prices.

As of September 30, 2002, the Company's total debt stood at $395 million, reflecting a $2 million decrease during the quarter.  This compares to

$393 million at December 31, 2001.  We continue our efforts to lower our overall debt levels by year end, said Dinges.  We have been aggressively focusing on all components of our balance sheet, including working capital. By September 30, 2002, our working capital position had improved to a positive $1.9 million, from a negative $25.3 million at year end.

Selected Items

Third quarter results included the impact of two selected items, both of which were additive to reported figures.  FAS 133, Accounting for Derivatives, added $1.1 million, or $.034 per share, reflecting an increase in value to certain oil swaps for 2003, and a revision to acquisition tax basis related to the Cody transaction added $.8 million, or $.025 per share.  Excluding these benefits, reported net income would have been $4.2 million, or $.13 per share, for the quarter.

In the nine months ended September 30, 2002, the selected items included a smaller FAS 133 gain, in addition to charges related to an executive officer retirement and an impairment.  For the nine months, taking into account these selected items, net income would be $9.1 million, or $.29 per share.

New Hedge Position

Cabot has entered into a fixed price hedge position covering approximately 25,000 Mmbtu per day (12%) of the Company's anticipated daily natural gas production for November 2002 through December 2003.  The swap is based on a Henry Hub average price of $4.01 per Mmbtu (or about $4.30 per Mcf).  This position allows us to capture what is historically a high price and we will look for other opportunities to expand this position, said Dinges.

Other News

In response to the new era ushered in by Sarbanes-Oxley, commencing in 2003 Cabot will adjust its board meeting and financial reporting schedule (for quarterly press releases and Securities and Exchange Commission filings) to coincide with each other.  We are doing this to achieve full compliance with the new law and best practice, while at the same time managing the resulting incremental costs, commented Dinges.  We will release year-end 2002 and fourth quarter results on February 18, 2003.

Listen in live to Cabot Oil & Gas Corporation's third quarter earnings discussion with financial analysts on Friday, October 25 at 9:30 AM EDT

(8:30 AM CDT) at www.cabotog.com .  A teleconference replay is also available at (888) 203-1112 (international (719) 457-0820), reservation number 488719. The audio webcast and teleconference replay will be available from October 25 at 12:30 PM Eastern time until November 1 at 5 PM Eastern time.

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.

OPERATING DATA

Quarter Ended     Nine Months Ended

                                              Sept. 30,          Sept. 30,

2002      2001      2002      2001

NATURAL GAS (Bcf) & OIL (MBbl)

Produced Natural Gas

      Gulf Coast                           8.0       7.9      23.2      17.3
      West                                 6.2       6.4      18.9      19.4
      East                                 4.5       4.6      13.5      12.9
      Total                               18.7      18.9      55.6      49.6

Crude/Condensate

      Gulf Coast                           697       434     1,963     1,086
      West                                  61        64       164       194
      East                                   8        11        24        27
      Total                                766       509     2,151     1,307
    Natural Gas Liquids                     10        46        30        74
    Equivalent Production (Bcfe)          23.4      22.2      68.7      57.8

PRICES

Average Produced Gas Sales Price

($/Mcf)

      Gulf Coast                         $3.27     $3.91     $3.07     $5.19
      West                               $2.00     $3.10     $2.18     $4.43
      East                               $3.04     $4.56     $3.07     $5.45
      Total                              $2.77     $3.77     $2.76     $4.95

Crude/Condensate Price ($/Bbl)

      Gulf Coast                        $24.76    $24.89    $23.25    $26.87
      West                              $27.29    $25.96    $24.71    $27.73
      East                              $25.90    $23.61    $21.34    $25.07
      Total                             $24.97    $24.99    $23.34    $26.96

WELLS DRILLED

      Gross                                 31        58        85       154
      Net                                 19.4      49.0      55.9     119.7
      Gross Success Rate                   90%       90%       93%       88%

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

(In Thousands, Except Per Share Amounts)

Quarter Ended    Nine Months Ended

                                            Sept. 30,          Sept. 30,

2002     2001      2002      2001

Net Operating Revenues

      Natural Gas Production             $52,029  $70,805  $152,684  $246,152
      Crude Oil and Condensate            20,754   12,712    51,792    35,232
      Brokered Natural Gas                10,838   18,447    40,223    81,142
      Other                                1,928    2,262     5,508     4,198

85,549  104,226   250,207   366,724

Operating Expenses

      Brokered Natural Gas Cost            9,771   18,472    36,619    78,951

Production and Pipeline Operations  11,652   11,745    35,808    29,615

      Exploration                          9,803   14,441    27,683    39,754
      Taxes Other Than Income              5,273    4,547    18,900    21,164
      Administrative                       5,966    6,520    21,277    18,158

Depreciation, Depletion

       and Amortization                   27,757   24,948    79,094    60,001
      Impairment of Long-Lived Assets          0    1,721     1,063     1,721

70,222   82,394   220,444   249,364

    Gain (Loss) on Sale of Assets           (216)    (231)      195      (258)
    Income from Operations                15,111   21,601    29,958   117,102
    Interest Expense and Other             6,314    5,140    18,871    14,549
    Income Before Income Taxes             8,797   16,461    11,087   102,553
    Income Tax Expense                     2,672    6,430     3,638    39,868
    Net Income                            $6,125  $10,031    $7,449   $62,685
    Net Income Per Share - Basic           $0.19    $0.33     $0.23     $2.10

Average Common Shares Outstanding     31,793   30,644    31,712    29,829

Results from Operations Excluding

Selected Items

As Reported - Net Income

       Applicable to Common               $6,125  $10,031    $7,449   $62,685

After-Tax Impact for Selected

Items:

        Retirement of Executive Officer                      (2,205)

Revision of Tax Basis on

         Acquisition                         790                790
        Change in Derivative Fair Value    1,096     (259)      367       484
        Impairment of Long-Lived Assets            (1,055)     (652)   (1,055)
        Severance Tax Refund                          695                 695

Net Income Excluding Selected

       Items                              $4,239  $10,650    $9,149   $62,561
      Net Income per Common Share          $0.13    $0.35     $0.29     $2.10

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In Thousands)

                                                Sept. 30,        Dec. 31,
                                                  2002            2001

Assets

    Current Assets                               $85,845         $84,987
    Property, Equipment and Other Assets         964,957         984,044
      Total Assets                            $1,050,802      $1,069,031

Liabilities and Stockholders' Equity

    Current Liabilities                          $83,984        $110,240
    Long-Term Debt                               395,000         393,000
    Deferred Income Taxes                        202,176         200,859
    Other Liabilities                             15,235          18,380
    Stockholders' Equity                         354,407         346,552

Total Liabilities and

       Stockholders' Equity                   $1,050,802      $1,069,031

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(In Thousands)

Quarter Ended     Nine Months Ended

                                            Sept. 30,          Sept. 30,

2002      2001      2002      2001

Cash Flows From Operating Activities

    Net Income                           $6,125   $10,031    $7,449   $62,685

Income Charges Not Requiring Cash    26,831    28,030    83,317    63,253

    (Gain) Loss on Sale of Assets           216       231      (195)      258
    Deferred Income Taxes                 2,492    11,550     2,443    30,657

Changes in Assets and Liabilities   (20,215)  (16,578)  (12,416)   18,191

    Exploration Expense                   9,803    14,441    27,683    39,754

Net Cash Provided by Operations      25,252    47,705   108,281   214,798

Cash Flows From Investing Activities

    Capital Expenditures                (15,460) (213,041)  (86,649) (276,795)
    Proceeds from Sale of Assets            228     5,159     3,671     5,898
    Exploration Expense                  (9,803)  (14,441)  (27,683)  (39,754)
    Net Cash Used by Investing          (25,035) (222,323) (110,661) (310,651)

Cash Flows From Financing Activities

    Sale of Common Stock                     13       372     3,150     7,748
    Increase (Decrease) in Debt          (2,000)  180,000     2,000    98,000
    Common Dividends                     (1,272)   (1,183)   (3,808)   (3,537)

Net Cash Provided (Used)

     by Financing                        (3,259)  179,189     1,342   102,211

Net Increase (Decrease) in Cash and

      Cash Equivalents                  $(3,042)   $4,571   $(1,038)   $6,358
    Discretionary Cash Flow (*)         $45,467   $64,283  $120,697  $196,607

(*) Net income plus non-cash charges and exploration.  Excludes net

proceeds on property sales.

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SOURCE  Cabot Oil & Gas Corporation

    -0-                             10/24/2002

/CONTACT:  Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993/

/Company News On-Call:  http://www.prnewswire.com/comp/129660.html  /

/Web site:  http://www.cabotog.com  /

(COG)

CO:  Cabot Oil & Gas Corporation
ST:  Texas
IN:  OIL
SU:  ERN CCA MAV

KA-CT
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