HOUSTON, Sept. 25 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today it is converting all of the 692,439 outstanding shares of COG's $3.125 Convertible Preferred Stock into approximately 1,649,000 COG common shares. The preferred stock became convertible at Cabot Oil & Gas Corporation's option when the Company's common shares closed at or above the $21.00 conversion price of the preferred stock for twenty consecutive days. The impact on Cabot Oil & Gas Corporation going forward is a $2.2 million annual increase in net income available to common shareholders (bottom line income) as a result of eliminating the preferred dividend. This improvement translates into a $.09 per share increase after giving effect to the issuance of nearly 1,649,000 common shares upon conversion.
The conversion is expected to be completed on October 13, 1997. The Company issued the $3.125 Convertible Preferred Stock in 1993 to acquire certain properties in the Anadarko region. After this conversion, the Company will still have one remaining issue of outstanding preferred stock related to its 1994 acquisition of Washington Energy Resources Company.
Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "I am pleased to see that our drilling results and acquisition efforts are beginning to be rewarded in the market. The value generated by these successes led to our ability to convert the preferred shares which further improves our financial position."
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 Mountain and Gulf Coast regions. For additional information about the Company, visit COG's internet home page 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
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993