HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation today reported third quarter net income of $38.9 million, or $0.38 per share. Removing the selected items (which are detailed in the Selected Items Table), the quarter's net income was $42.6 million, or $0.41 per share. These figures compare to the 2008 third quarter numbers (for the reported results and after the removal of selected items) of $67.0 million, or $0.65 per share, and $60.1 million, or $0.58 per share, respectively.
Cash flow from operations for the 2009 third quarter totaled $116.7 million, while discretionary cash flow was $158.9 million. Comparatively, 2008 third quarter cash flow from operations was $148.3 million, and discretionary cash flow was $161 million.
"In light of the general market conditions for natural gas, the metrics are very good," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "These results include a five percent increase in third quarter 2009 equivalent production over the third quarter of 2008." The production growth rate was driven by a 24.2 percent increase in the North region production for comparable year over year quarters. Dinges added, "Weighing on the overall growth rate was the sale of our Canadian assets." Pricing, as expected, offset the benefit from increased production. Realized natural gas prices were $7.40 per Mcf in the 2009 third quarter versus $8.66 per Mcf in the 2008 third quarter. Realized oil prices fell 12 percent to $87.49 per barrel. The production and price information have been adjusted to reflect the new North and South regional split for the Company.
Overall costs were up only slightly and were flat on a per unit basis. The largest increases occurred in stock-based compensation and exploration, with the largest declines coming from brokered gas costs and taxes other than income.
Year-to-Date
For the nine months ended September 30, 2009, Cabot reported net income of $112 million, or $1.08 per share, compared to $167.6 million, or $1.68 per share, for the same period last year. The cash flow comparisons for the nine months ended September 30, 2009 and September 30, 2008, respectively, are cash flow from operations of $417.1 million versus $424.7 million and discretionary cash flow of $430.6 million versus $446.5 million. The 2009 nine-month net income figure, after removal of the selected items, was $123.9 million, or $1.20 per share, versus $187.0 million, or $1.87 per share for the nine-month period ended September 30, 2008.
"The same dynamic that drove the quarter results apply to the year-to-date periods - increased production and lower price realizations," stated Dinges. "Production was up approximately ten percent while natural gas and oil prices fell by 14 and 13 percent, respectively."
Conference Call
Listen in live to Cabot Oil & Gas Corporation's third quarter financial and operating results discussion with financial analysts on Tuesday, October 27, 2009 at 9:30 a.m. EDT (8:30 a.m. CDT) at http://www.cabotog.com/. A teleconference replay will also be available at (800) 642-1687, (U.S./Canada) or (706) 645-9291 (International), pass code 33459517. The replay will be available through Thursday, October 29, 2009. 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 http://www.cabotog.com/.
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 Internet homepage 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 (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 Nine Months Ended September 30, September 30, -------------- ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- PRODUCED NATURAL GAS (Bcf) & OIL (Mbbl) --------------------------------------- Natural Gas North 12.2 9.8 34.8 29.3 South 12.0 12.4 37.2 33.4 Canada - 0.8 1.0 3.4 ---- ---- ---- ---- Total 24.2 23.0 73.0 66.1 ==== ==== ==== ==== Crude/Condensate/Ngl North 33 32 92 88 South 198 169 526 484 Canada - 6 7 17 ---- ---- ---- ---- Total 231 207 625 589 ==== ==== ==== ==== Equivalent Production (Bcfe) 25.5 24.2 76.7 69.6 PRICES Average Produced Gas Sales Price ($/Mcf) North $6.28 $7.89 $6.56 $8.14 South $8.53 $9.34 $8.25 $9.17 Canada $ - $7.60 $3.56 $7.84 Total (1) $7.40 $8.66 $7.39 $8.64 Average Crude/Condensate Price ($/Bbl) North $58.49 $109.50 $48.22 $107.21 South $92.12 $97.37 $88.75 $92.89 Canada $ - $100.46 $33.97 $92.03 Total (1) $87.49 $99.34 $82.48 $94.93 WELLS DRILLED Gross 37 132 119 333 Net 32 115 97 277 Gross Success Rate 97% 99% 98% 99% (1) These realized prices include the realized impact of derivative instrument settlements. Quarter Ended Nine Months Ended September 30, September 30, -------------- ----------------- 2009 2008 2009 2008 ------ ------- ------ ------- Realized Impacts to Gas Pricing $4.25 $(0.30) $3.91 $(0.42) Realized Impacts to Oil Pricing $23.40 $(15.39) $30.64 $(15.05) CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Quarter Ended Nine Months Ended September 30, September 30, ---------------- ----------------- 2009 2008 2009 2008 ------- ------- ------- ------- Operating Revenues Natural Gas Production $177,807 $200,279 $538,542 $569,527 Brokered Natural Gas 9,032 23,855 54,117 86,663 Crude Oil and Condensate 19,574 20,002 50,026 55,089 Other 608 684 3,099 2,046 ------- ------- ------- ------- 207,021 244,820 645,784 713,325 Operating Expenses Brokered Natural Gas Cost 7,786 20,891 48,219 75,321 Direct Operations - Field and Pipeline 23,012 24,974 71,564 65,101 Exploration 14,395 6,413 31,258 18,764 Depreciation, Depletion and Amortization 62,037 57,407 188,967 152,075 General and Administrative (excluding Stock-Based Compensation) 9,629 9,486 32,511 31,265 Stock-Based Compensation (1) 5,292 (9,695) 16,592 29,576 Taxes Other Than Income 10,719 20,627 34,531 56,749 ------- ------- ------- ------- 132,870 130,103 423,642 428,851 Gain / (Loss) on Sale of Assets (2) 572 - (3,283) 401 ------- ------- ------- ------- Income from Operations 74,723 114,717 218,859 284,875 Interest Expense and Other 14,857 10,486 44,129 22,684 ------- ------- ------- ------- Income Before Income Taxes 59,866 104,231 174,730 262,191 Income Tax Expense 20,969 37,241 62,751 94,601 ------- ------- ------- ------- Net Income $38,897 $66,990 $111,979 $167,590 ======= ======= ======== ======== Net Earnings Per Share - Basic $0.38 $0.65 $1.08 $1.68 Weighted-Average Common Shares Outstanding 103,647 103,351 103,603 99,858 (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 Plans which commenced in 2008. (2) The loss on sale of assets in 2009 primarily relates to a loss on our April 2009 sale of our Canadian properties, partially offset by a gain on sale of assets from the first quarter 2009 sale of the Thornwood properties in the East. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (In thousands) September 30, December 31, 2009 2008 ---------- ---------- Assets Current Assets $335,007 $460,551 Property, Equipment and Other Assets 3,254,047 3,241,113 --------- --------- Total Assets $3,589,054 $3,701,664 ========== ========== Liabilities and Stockholders' Equity Current Liabilities $247,172 $378,913 Long-Term Debt, excluding Current Maturities 790,000 831,143 Deferred Income Taxes 623,946 599,106 Other Liabilities 104,122 101,940 Stockholders' Equity 1,823,814 1,790,562 ---------- ---------- Total Liabilities and Stockholders' Equity $3,589,054 $3,701,664 ========== ========== CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (In thousands) Quarter Ended Nine Months Ended September 30, September 30, ------------------ -------------------- 2009 2008 2009 2008 -------- -------- -------- ---------- Cash Flows From Operating Activities Net Income $38,897 $66,990 $111,979 $167,590 Unrealized (Gain) / Loss on Derivatives 1,233 (1,260) 418 1,649 Income Charges Not Requiring Cash 68,418 47,948 208,861 162,446 (Gain) / Loss on Sale of Assets (572) - 3,283 (401) Deferred Income Tax Expense 36,521 40,944 74,773 96,459 Changes in Assets and Liabilities (29,062) (1,707) (357) (10,768) Stock-Based Compensation Tax Benefit (13,085) (11,011) (13,085) (11,011) Exploration Expense 14,395 6,413 31,258 18,764 -------- -------- -------- ---------- Net Cash Provided by Operations 116,745 148,317 417,130 424,728 -------- -------- -------- ---------- Cash Flows From Investing Activities Capital Expenditures (101,949) (791,728) (394,919) (1,164,339) Proceeds from Sale of Assets 513 - 80,180 1,150 Exploration Expense (14,395) (6,413) (31,258) (18,764) -------- -------- -------- ---------- Net Cash Used in Investing (115,831) (798,141) (345,997) (1,181,953) -------- -------- -------- ---------- Cash Flows From Financing Activities Sale of Common Stock Proceeds (67) 122 83 316,229 Net Increase / (Decrease) in Debt (5,000) 555,000 (57,000) 470,000 Capitalized Debt Issuance Costs - (2,166) (10,409) (2,166) Stock-Based Compensation Tax Benefit 13,085 11,011 13,085 11,011 Dividends Paid (3,110) (3,100) (9,323) (8,973) -------- -------- -------- ---------- Net Cash Provided by / (Used in) Financing 4,908 560,867 (63,564) 786,101 -------- -------- -------- ---------- Net Increase / (Decrease) in Cash and Cash Equivalents $5,822 $(88,957) $7,569 $28,876 ======== ======== ======== ========== Selected Item Review and Reconciliation of Net Income and Earnings Per Share (In thousands, except per share amounts) Quarter Ended Nine Months Ended September 30, September 30, ----------------- ----------------- 2009 2008 2009 2008 ------- -------- -------- -------- As Reported - Net Income $38,897 $66,990 $111,979 $167,590 Reversal of Selected Items, Net of Tax: (Gain) / Loss on Sale of Assets (1) (359) - 1,270 (253) Stock-Based Compensation Expense 3,323 (6,098) 10,414 18,625 Unrealized (Gain) / Loss on Derivatives (2) 774 (793) 263 1,040 ------- -------- -------- -------- Net Income Excluding Selected Items $42,635 $60,099 $123,926 $187,002 ======= ======== ======== ======== As Reported - Net Earnings Per Share $0.38 $0.65 $1.08 $1.68 Per Share Impact of Reversing Selected Items 0.03 (0.07) 0.12 0.19 ------- -------- -------- -------- Net Earnings Per Share Including Reversal of Selected Items $0.41 $0.58 $1.20 $1.87 ======= ======== ======== ======== Weighted-Average Common Shares Outstanding 103,647 103,351 103,603 99,858 (1) The loss on sale of assets in 2009 primarily relates to a loss on our April 2009 sale of our Canadian properties, partially offset by a gain on sale of assets from the first quarter 2009 sale of the Thornwood properties in the East. The loss on sale of assets for the three and nine months ended September 30, 2009 considers a tax benefit associated with foreign tax credits. (2) This unrealized (gain) / loss is included in Natural Gas Production Revenues in the Condensed Consolidated Statement of Operations and represents the mark to market change related to the Company's natural gas basis swaps. Discretionary Cash Flow Calculation and Reconciliation (In thousands) Quarter Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- Discretionary Cash Flow As Reported - Net Income $38,897 $66,990 $111,979 $167,590 Plus / (Less): Unrealized (Gain) / Loss on Derivatives 1,233 (1,260) 418 1,649 Income Charges Not Requiring Cash 68,418 47,948 208,861 162,446 (Gain) / Loss on Sale of Assets (572) - 3,283 (401) Deferred Income Tax Expense 36,521 40,944 74,773 96,459 Exploration Expense 14,395 6,413 31,258 18,764 -------- -------- -------- -------- Discretionary Cash Flow 158,892 161,035 430,572 446,507 Changes in Assets and Liabilities (29,062) (1,707) (357) (10,768) Stock-Based Compensation Tax Benefit (13,085) (11,011) (13,085) (11,011) -------- -------- -------- -------- Net Cash Provided by Operations $116,745 $148,317 $417,130 $424,728 ======== ======== ======== ======== Net Debt Reconciliation (In thousands) September 30, December 31, 2009 2008 ---------- ---------- Current Portion of Long-Term Debt $20,000 $35,857 Long-Term Debt 790,000 831,143 ---------- ---------- Total Debt $810,000 $867,000 Stockholders' Equity 1,823,814 1,790,562 ---------- ---------- Total Capitalization $2,633,814 $2,657,562 Total Debt $810,000 $867,000 Less: Cash and Cash Equivalents (35,670) (28,101) ---------- ---------- Net Debt $774,330 $838,899 Net Debt $774,330 $838,899 Stockholders' Equity 1,823,814 1,790,562 ---------- ---------- Total Adjusted Capitalization $2,598,144 $2,629,461 Total Debt to Total Capitalization Ratio 30.8% 32.6% Less: Impact of Cash and Cash Equivalents 1.0% 0.7% ---------- ---------- Net Debt to Adjusted Capitalization Ratio 29.8% 31.9%
Cabot Oil & Gas Corporation
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation,
+1-281-589-4993
Web Site: http://www.cabotog.com/
