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Cabot Oil & Gas Corporation Discusses Deferred Income Tax Presentation
Aug 9, 2004

HOUSTON, Aug. 9 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that the Company is filing amendments to its 2003 Form 10-K and its first quarter 2004 Form 10-Q to expand the disclosure of the components of deferred income taxes on its balance sheets. The revised presentation only impacts the balance sheet and does not impact reported earnings or cash flows for any periods.

The revision presents deferred income taxes on a "gross" basis split between current and non-current assets and liabilities (versus the previous net presentation in the non-current deferred income tax liability). The tables below show the numerical impact to the sub-totals and totals for the year-end and first quarter balance sheets.

Commenting on the new presentation Dan O. Dinges, Chairman, President and CEO stated, "Our financial statements have and continue to clearly reflect the financial position of the Company. Deferred taxes were completely recorded in the previously reported financial statements. This is simply a presentation adjustment which provides additional detail of the components of deferred income taxes." Dinges added, "The result of the change is an improvement in our working capital and a 3% increase in total year-end assets (4% increase in total assets for the first quarter) with most of the offsetting liability increase occurring in the non-current deferred income tax liability, where everything was previously reported."


                                                   As of December 31, 2003
                                                   Previously         As
             Balance Sheet Line Item                Reported       Restated

     Deferred Income Taxes - Current Assets              $--        $21,935
     Total Current Assets                           $121,396       $143,331

     Deferred Income Taxes - Non-Current Assets          $--         $8,920
     Total Assets                                 $1,024,201     $1,055,056

     Deferred Income Taxes - Current
      Liabilities (1)                                    $--         $1,826
     Total Current Liabilities                      $154,701       $156,527

     Deferred Income Taxes - Non-Current
      Liabilities                                   $179,926       $208,955
     Total Liabilities and Stockholders' Equity   $1,024,201     $1,055,056

     (1)  This amount has been reported as an accrued liability on the
          Consolidated Balance Sheet.


                                                    As of March 31, 2004
                                                   Previously         As
            Balance Sheet Line Item                 Reported       Restated

     Deferred Income Taxes - Current Assets              $--        $30,233
     Total Current Assets                           $148,539       $178,772

     Deferred Income Taxes - Non-Current Assets          $--        $10,896
     Total Assets                                 $1,065,241     $1,106,370

     Deferred Income Taxes - Current
      Liabilities (1)                                    $--         $1,520
     Total Current Liabilities                      $184,581       $186,101

     Deferred Income Taxes - Non-Current
      Liabilities                                   $175,685       $215,294
     Total Liabilities and Stockholders' Equity   $1,065,241     $1,106,370

     (1)  This amount has been reported as an accrued liability on the
          Consolidated Balance Sheet.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; the East and an expansion effort in Canada. For additional information, visit the Company's Internet homepage at www.cabotog.com.

SOURCE  Cabot Oil & Gas Corporation
    -0-                             08/09/2004
    /CONTACT:  Scott Schroeder of Cabot Oil & Gas Corporation,
+1-281-589-4993/
    /Web site:  http://www.cabotog.com /
    (COG)

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

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9152 08/09/2004 17:00 EDT http://www.prnewswire.com