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Cabot Oil & Gas Reports First Quarter Financial Results
Apr 30, 2008

HOUSTON, April 30 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced results from its first quarter of 2008. "The quarter was marked by positive momentum in production and commodity prices, along with new highs for our stock price," said Dan O. Dinges, Chairman, President and Chief Executive Officer.

For the quarter, the Company reported net income (after removal of stock compensation expense and gain on asset sale), of $57.0 million, or $0.58 per share, compared to $47.7 million, or $0.49 per share last year. The 2008 first quarter selected items related to stock-based compensation expense, while the 2007 first quarter selected items included both stock-based compensation expense and a gain on the sale of assets (see attached table for details). Including the impact of these items, the reported numbers for the quarter were $46.0 million, or $0.47 per share, for the first quarter of 2008 versus $48.5 million, or $0.50 per share in the 2007 first quarter. Discretionary cash flow and cash flow from operations first quarter comparisons were $138.4 million versus $106.7 million and $132.7 million versus $135.9 million for 2008 and 2007, respectively.

Higher produced equivalent volumes, together with stronger prices, increased revenues. The Company reported 22.2 Bcfe of production, which is the highest quarterly level Cabot has reported since its asset sale in 2006. "After a slow start to the year, we experienced increasing production levels throughout the quarter, exiting the quarter with in excess of 255 Mmcfe per day," commented Dinges. "Part of the delay was retooling of the drilling program to focus more on specific objectives than had been identified in the original program. This is evidenced by the lower well activity in the first quarter versus one year ago." Dinges added, "Even with this adjustment, our daily production volumes increased over ten percent between the start and the end of the first quarter."

This higher production was complemented by a seven percent increase in total natural gas price realizations and a 62 percent increase in total oil price realizations between first quarter comparative periods. On the expenses side, the significant move in the share price increased stock compensation expense, while the level of activity and inflation in the industry over recent years increased the DD&A expense. At the same time, the higher commodity prices increased production taxes, and the higher debt levels resulted in higher interest costs.

"Several years ago, we set out to align our compensation plans with shareholder interests," stated Dinges. "The first quarter move in the stock of 26 percent created much of the $17.6 million recorded expense; however, it also resulted in a one billion dollar increase in shareholder value. On the debt side, our book capitalization remains around the mid 20 percent level, affording Cabot extensive flexibility to pursue all of its projects."

Conference Call

Listen in live to Cabot Oil & Gas Corporation's first quarter financial and operating results discussion with financial analysts on Thursday, May 1, 2008 at 9:30 a.m. EDT (8:30 a.m. CDT) at A teleconference replay will also be available at (800) 642-1687, (U.S./Canada) or (706) 645-9291 (International), pass code 42873469. A replay will be available through Saturday, May 3, 2008. The latest financial guidance, including the Company's hedge positions, along with a replay of the web cast, which will be archived for one year, are available in the investor relations section of the Company's website at

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 in Canada. For additional information, visit the Company's Internet homepage at

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
                                                               March 31,
                                                          2008        2007
    Natural Gas
      East                                                 6.0         5.8
      Gulf Coast                                           7.4         6.5
      West                                                 6.4         6.4
      Canada                                               1.2         1.1
      Total                                               21.0        19.8

      East                                                   6           6
      Gulf Coast                                           144         148
      West                                                  36          47
      Canada                                                 6           6
      Total                                                192         207

    Equivalent Production (Bcfe)                          22.2        21.0

    Average Produced Gas Sales Price ($/Mcf)
      East                                               $8.28       $8.08
      Gulf Coast                                         $8.30       $7.75
      West                                               $7.26       $6.51
      Canada                                             $7.38       $7.46
      Total (1)                                          $7.92       $7.42

    Average Crude/Condensate Price ($/Bbl)
      East                                              $90.04      $53.49
      Gulf Coast                                        $84.58      $53.07
      West                                              $95.66      $54.17
      Canada                                            $79.38      $54.44
      Total (1)                                         $86.55      $53.36

      Gross                                                 85         100
      Net                                                   65          92
      Gross Success Rate                                    98%         99%

    (1)  These realized prices include the realized impact of derivative
         instrument settlements.

                                              Quarter Ended
                                                 March 31,
                                             2008        2007

    Realized Impacts to Gas Pricing         $0.03       $0.89
    Realized Impacts to Oil Pricing        $(8.60)      $0.89

                   (In thousands, except per share amounts)

                                                           Quarter Ended
                                                             March 31,
                                                        2008           2007
    Operating Revenues
      Natural Gas Production                          $166,559       $146,750
      Brokered Natural Gas                              35,620         33,177
      Crude Oil and Condensate                          16,487         10,942
      Other                                                985            704
                                                       219,651        191,573
    Operating Expenses
      Brokered Natural Gas Cost                         30,290         28,699
      Direct Operations - Field and Pipeline            17,491         17,131
      Exploration                                        5,061          5,652
      Depreciation, Depletion and Amortization          46,267         37,381
      General and Administrative (excluding
       Stock-Based Compensation)                         9,997         11,645
      Stock-Based Compensation (1)                      17,576          6,635
      Taxes Other Than Income                           16,897         13,165
                                                       143,579        120,308
    Gain on Sale of Assets (2)                             -            7,920
    Income from Operations                              76,072         79,185
    Interest Expense and Other                           5,991          3,924
    Income Before Income Taxes                          70,081         75,261
    Income Tax Expense                                  24,106         26,714
    Net Income                                         $45,975        $48,547
    Net Earnings Per Share - Basic                       $0.47          $0.50
    Weighted Average Common Shares Outstanding          97,716         96,695

    (1)  Includes the impact of the Company's performance share awards and
         restricted stock amortization as well as expense related to stock
         options and stock appreciation rights.  Also includes expense for the
         Supplemental Employee Incentive Plan which commenced in January 2008.

    (2)  Gain on Sale of Assets is primarily related to the sale in the third
         quarter of 2006 of offshore and certain south Louisiana properties.

                                (In thousands)
                                                   March 31,    December 31,
                                                     2008           2007

    Current Assets                                  $272,004       $221,413
    Property, Equipment and Other Assets           2,004,084      1,939,334
    Deferred Income Taxes                             53,902         47,847
      Total Assets                                $2,329,990     $2,208,594

    Liabilities and Stockholders' Equity
    Current Liabilities                             $321,626       $252,266
    Long-Term Debt, excluding Current Maturities     350,000        330,000
    Deferred Income Taxes                            508,138        481,770
    Other Liabilities                                 85,980         74,301
    Stockholders' Equity                           1,064,246      1,070,257
      Total Liabilities and Stockholders' Equity  $2,329,990     $2,208,594

                                (In thousands)
                                                         Quarter Ended
                                                           March 31,
                                                      2008           2007

    Cash Flows From Operating Activities
    Net Income                                       $45,975        $48,547
    Income Charges Not Requiring Cash                 63,806         44,551
    Gain on Sale of Assets                               -           (7,920)
    Deferred Income Tax Expense                       23,560         15,874
    Changes in Assets and Liabilities                 (1,056)        33,289
    Stock-Based Compensation Tax Benefit              (4,642)        (4,135)
    Exploration Expense                                5,061          5,652
    Net Cash Provided by Operations                  132,704        135,858

    Cash Flows From Investing Activities
    Capital Expenditures                            (128,101)      (113,748)
    Proceeds from Sale of Assets                         -            5,784
    Exploration Expense                               (5,061)        (5,652)
    Net Cash Used in Investing                      (133,162)      (113,616)

    Cash Flows From Financing Activities
    Sale of Common Stock Proceeds                      2,240          1,144
    Net Increase / (Decrease) in Debt                 20,000        (10,000)
    Stock-Based Compensation Tax Benefit               4,642          4,135
    Dividends Paid                                    (2,930)        (1,933)
    Net Cash Provided by / (Used in) Financing        23,952         (6,654)

    Net Increase in Cash and Cash Equivalents        $23,494        $15,588

    Selected Item Review and Reconciliation of Net Income and Earnings Per
                   (In thousands, except per share amounts)

                                                        Quarter Ended
                                                          March 31,
                                                      2008           2007

    As Reported - Net Income                         $45,975        $48,547
    Reversal of Selected Items, Net of Tax:
        Gain on Sale of Assets                           -           (4,926)
        Stock-Based Compensation Expense              11,055          4,127
    Net Income Excluding Selected Items              $57,030        $47,748
    As Reported - Net Earnings Per Share               $0.47          $0.50
    Per Share Impact of Reversing Selected Items        0.11          (0.01)
    Net Earnings Per Share Including Reversal
     of Selected Items                                 $0.58          $0.49
    Weighted Average Common Shares Outstanding        97,716         96,695

            Discretionary Cash Flow Calculation and Reconciliation
                                (In thousands)

                                                         Quarter Ended
                                                            March 31,
                                                      2008           2007

    Discretionary Cash Flow
    As Reported - Net Income                         $45,975        $48,547
    Plus / (Less):
    Income Charges Not Requiring Cash                 63,806         44,551
    Gain on Sale of Assets                               -           (7,920)
    Deferred Income Tax Expense                       23,560         15,874
    Exploration Expense                                5,061          5,652
    Discretionary Cash Flow                          138,402        106,704
    Changes in Assets and Liabilities                 (1,056)        33,289
    Stock-Based Compensation Tax Benefit              (4,642)        (4,135)
    Net Cash Provided by Operations                 $132,704       $135,858

                           Net Debt Reconciliation
                                (In thousands)

                                                     March 31,    December 31,
                                                       2008          2007

    Current Portion of Long-Term Debt                $20,000        $20,000
    Long-Term Debt                                   350,000        330,000
      Total Debt                                    $370,000       $350,000
    Stockholders' Equity                           1,064,246      1,070,257
      Total Capitalization                        $1,434,246     $1,420,257

    Total Debt                                      $370,000       $350,000
    Less: Cash and Cash Equivalents                  (41,992)       (18,498)
      Net Debt                                      $328,008       $331,502

    Net Debt                                        $328,008       $331,502
    Stockholders' Equity                           1,064,246      1,070,257
      Total Adjusted Capitalization               $1,392,254     $1,401,759

    Total Debt to Total Capitalization Ratio            25.8%          24.6%
    Less: Impact of Cash and Cash Equivalents            2.2%           1.0%
      Net Debt to Adjusted Capitalization Ratio         23.6%          23.6%

SOURCE Cabot Oil & Gas Corporation 04/30/2008
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation,
Web site: