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Cabot Oil & Gas Records Highest Quarterly Profit Ever
Apr 22, 1997

HOUSTON, April 22 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the best quarterly earnings in its history as a public company. First quarter net income available to common shareholders increased 84% from last year to $9.7 million, or $.42 per share, compared to $5.3 million, or $.23 per share. Discretionary cash flow was $31.1 million, or $1.36 per share, versus $20.9 million, or $.92 per share, a 49% improvement.

Contributing to the record performance levels were realized natural gas prices for January and February which were significantly above 1996 and a year-over-year production increase of 6%. In Appalachia, natural gas prices for the three months were 24% over last year, while gas prices in the West increased 47%. Production for the quarter increased to 16.0 Bcfe from 15.1 Bcfe last year. The resulting improvement in cash flow enabled COG to reduce its debt by $26 million from year end, closing the quarter with debt at $222 million.

"As we indicated in our year-end press release, we expected the first quarter of 1997 to extend the record performance of 1996," commented Charles P. Siess, Jr., Chairman and Chief Executive Officer. "With the increased first quarter prices and higher production rates, 1997 is off to an excellent start. In addition, the present NYMEX strip for natural gas and existing basis differentials, together with first quarter prices, indicate our full year price realizations could match or exceed 1996".

Mr. Siess added, "With only 12% of our planned participation in drilling 256 wells complete, there is considerable potential for new production in the second and third quarters as our drilling program accelerates. A significant portion of our drilling budget will be South Texas exploratory prospects enhanced by 3-D seismic."

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.

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
                                                          March 31,
                                                 1997                  1996
    NATURAL GAS (Bcf) & OIL (MBbl)
    Produced Natural Gas
      Appalachia                                 6.6                    6.7
      West                                       8.5                    7.5
      Total                                     15.1                   14.2

    Crude/Condensate                             142                    136

    Natural Gas Liquids                           13                     20

    Equivalent Production (Bcfe)                16.0                   15.1

    PRICES
    Average Produced Gas Sales Price ($/Mcf)
      Appalachia                            $   3.71               $   3.00
      West                                  $   2.66               $   1.81
      Total                                 $   3.12               $   2.37

    Crude/Condensate Price ($/Bbl)          $  22.59               $  19.55

    WELLS DRILLED
      Gross                                       31                     42
      Net                                       17.6                   35.8
      Net Success Rate                            83%                    91%

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

                                                        Quarter Ended
                                                          March 31,
                                                 1997                  1996
    Net Operating Revenues
      Natural Gas Production                 $  47,185             $  33,608
      Crude Oil and Condensate                   3,204                 2,659
      Brokered Natural Gas Margin                  497                 2,090
      Other                                      1,906                 2,841
                                                52,792                41,198

    Operating Expenses
      Operations                                 7,069                 6,822
      Exploration                                3,627                 2,353
      Taxes Other Than Income                    4,082                 3,404
      Administrative                             4,156                 3,737
      Depreciation, Depletion and Amortization  11,227                10,458
                                                30,161                26,774
    Other Income                                    83                 1,505
    Income from Operations                      22,714                15,929
    Interest Expense                             4,561                 4,849
    Income Before Income Taxes                  18,153                11,080
    Income Tax Expense                           7,069                 4,431
    Net Income                                  11,084                 6,649
    Dividend Requirement on Preferred Stock      1,391                 1,391
    Net Income Available to Common           $   9,693             $   5,258
    Net Income Per Common Share              $    0.42             $    0.23
    Average Common Shares Outstanding           22,855                22,793


               CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                 (In Thousands)
                                             Mar. 31,              Dec. 31,
                                               1997                  1996
    Assets
      Current Assets                      $   52,419            $   79,637
      Property, Equipment and Other Assets   481,368               481,704
        Total Assets                      $  533,787            $  561,341

    Liabilities and Stockholders' Equity
      Current Liabilities                 $   55,817            $   72,617
      Long-Term Debt                         222,000               248,000
      Deferred Income Taxes                   75,982                69,427
      Other Liabilities                       10,116                10,593
      Stockholders' Equity                   169,872               160,704
        Total Liabilities and
         Stockholders' Equity             $  533,787            $  561,341


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

                                                        Quarter Ended
                                                          March 31,
                                                 1997                  1996
    Cash Flows From Operating Activities
      Net Income                            $   11,084            $    6,649
      Income Charges Not Requiring Cash         17,732                13,292
      Changes in Assets and Liabilities, Net    14,978                (6,212)
      Exploration Expense                        3,627                 2,353
      Net Cash Provided by Operations           47,421                16,082

    Cash Flows From Investing Activities
      Capital Expenditures                     (11,582)              (14,337)
      Proceeds from Sale of Assets                 303                 4,468
      Exploration Expense                       (3,627)               (2,353)
      Net Cash Used by Investing               (14,906)              (12,222)

    Cash Flows From Financing Activities
      Sale of Common Stock                         246                   165
      Decrease in Debt                         (26,000)               (1,000)
      Preferred Dividends Paid                  (1,391)               (1,391)
      Dividends and Other, Net                    (915)                 (912)
      Net Cash Used By Financing               (28,060)               (3,138)

    Net Increase in Cash and
      Cash Equivalents                      $    4,455            $      722

    Discretionary Cash Flow (*)             $   31,052            $   20,903


    (*)  Net income plus non-cash charges and exploration expense less
         preferred dividends.


SOURCE Cabot Oil & Gas Corporation
CONTACT: Scott Schroeder, 281-589-4993, or Ray Seegmiller, 281-589-4696, both of Cabot Oil & Gas Corporation