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Cabot Oil & Gas Corporation Reports 36 Percent Increase in Proved Reserves to 7.4 Tcfe
Feb 20, 2015

HOUSTON, Feb. 20, 2015 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today reported year-end proved reserves of 7.4 trillion cubic feet equivalent (Tcfe), an increase of 36 percent over year-end 2013.  Specific highlights from the Company's year-end reserve report include:

  • Total company all-sources finding and development cost of $0.71 per thousand cubic feet equivalent (Mcfe)
  • Total company finding and development cost excluding purchases of reserves in place of $0.65 per Mcfe
  • Marcellus-only all-sources finding and development cost of $0.43 per thousand cubic feet (Mcf)
  • Total company all-sources reserve replacement of 466 percent, representing the third consecutive year over 400 percent
  • Increase in proved developed reserves by 39 percent to 4.5 Tcfe, resulting in a year-over-year increase in the Company's proved developed percentage from 59 percent to 61 percent
  • Increase in liquids proved reserves (crude oil/condensate/natural gas liquids) by 100 percent year-over-year
  • Increase in before-tax PV-10 by 38 percent year-over-year to $8.6 billion

"Cabot's proved reserve growth for 2014 represents the Company's fifth consecutive year of double-digit reserve growth, resulting in a five-year compounded annual growth rate of 29 percent," said Dan O. Dinges, Chairman, President and Chief Executive Officer.  "The Company's finding and development costs are truly impressive when taking into consideration that 43 percent of the 2014 investment program was directed toward oil initiatives in the Eagle Ford Shale that by nature are more capital intensive.  In addition, this initiative resulted in a 100 percent increase in our liquids proved reserve base year-over-year."  Dinges added, "Our reserve growth continues to be driven primarily by our organic drilling programs in the Marcellus Shale and Eagle Ford Shale, where we have an extensive inventory of future drilling projects that will continue to allow for reserve growth in 2015 despite reduced activity levels."

The table below reconciles the components driving the 2014 reserve increase:

Proved Reserves Reconciliation (in Bcfe)




Balance at December 31, 2013

5,454

Revisions of prior estimates 

493

Extensions, discoveries and other additions 

1,911

Production 

(532)

Purchases of reserves in place 

77

Sales of reserves in place 

(2)



Balance at December 31, 2014 

7,401

As of December 31, 2014, 96 percent of Cabot's proved reserves were natural gas, down from 97 percent in 2013, and 61 percent were classified as proved developed reserves, an increase from 59 percent in 2013.  Approximately 89 percent of the Company's proved reserves at year-end were located in the Marcellus Shale.

The average prices used for reporting Cabot's 2014 proved reserves, which have been adjusted for basis and quality differentials, were $3.52 per Mcf for natural gas and $93.32 per barrel for crude oil, representing a 2 percent and 8 percent year-over-year decrease, respectively.  Despite this decrease in the average prices used to calculate year-end reserves, the Company's before-tax present value of future net cash flows discounted at 10 percent (PV-10) increased 38 percent year-over-year to $8.6 billion as a result of the strong growth in proved reserves.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer, with its entire resource base located in the continental United States.  For additional information, visit the Company's website 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.

FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-reports-36-percent-increase-in-proved-reserves-to-74-tcfe-300038865.html

SOURCE Cabot Oil & Gas Corporation