HOUSTON, April 24, 2013 /PRNewswire/ -- Cabot Oil &
Gas Corporation (NYSE: COG) today reported its financial results
for the first quarter of 2013. Highlights for the quarter
include:
- Production of 89.3 billion cubic feet equivalent (Bcfe), an
increase of 50 percent over last year's comparable quarter and 13
percent over the fourth quarter of 2012.
- Net income of $42.8 million, or
$0.20 per share.
- Net income excluding selected items of $54.2 million, or $0.26 per share.
- Cash flow from operations of $212.7
million and discretionary cash flow of $234.4 million.
"The success of our drilling program in the Marcellus continues
to drive record operating and financial metrics for the Company,
including all-time highs for quarterly production, revenues,
operating cash flows and discretionary cash flows, despite
historically low realized natural gas prices," said Dan O. Dinges, Chairman, President and Chief
Executive Officer.
Equivalent production in the first quarter of 2013 was 89.3
Bcfe, with 85.2 Bcf of natural gas production and 691,000 barrels
of liquids production. These figures represent a 50 percent
increase in equivalent production compared to the first quarter of
2012 and an increase of 13 percent sequentially over the fourth
quarter of 2012. "Gross Marcellus production during the first
quarter of approximately one Bcf per day, resulted in the
double-digit sequential production growth rate for the quarter,"
commented Dinges. "As additional infrastructure projects throughout
our Marcellus position come online during the year, it will afford
us further increases in production."
Cash flow from operations in the first quarter of 2013 was
$212.7 million, compared to cash flow
from operations of $131.8 million in
the first quarter of 2012. Discretionary cash flow in the first
quarter of 2013 was $234.4 million,
compared to discretionary cash flow of $138.5 million in the first quarter of 2012.
Higher equivalent production and, to a lesser extent, higher
realized crude oil prices drove the quarter's overall improvement,
partially offset by lower realized natural gas prices and increased
operating expenses associated with higher production.
Net income in the first quarter of 2013 was $42.8 million, or $0.20 per share, compared to net income of
$18.3 million, or $0.09 per share, in the first quarter of 2012.
Excluding the effect of selected items (detailed in the table
below), net income was $54.2 million,
or $0.26 per share, in the first
quarter of 2013, compared to $28.5
million, or $0.14 per share,
in the first quarter of 2012.
Natural gas price realizations, including the effect of hedges,
were $3.45 per Mcf in the first
quarter of 2013, down 5 percent compared to the first quarter of
2012. "More recently, the momentum in the natural gas market has
shifted positively, as unhedged gas price realizations improved 24
percent between comparable first quarters," added Dinges. Oil price
realizations, including the effect of hedges, were $104.03 per Bbl, up 8 percent compared to the
first quarter of 2012.
Total per unit costs (including financing) decreased to
$3.29 per thousand cubic feet
equivalent (Mcfe) in the first quarter of 2013, down 15 percent
from $3.85 per Mcfe in the first
quarter of 2012. All operating expense categories decreased on a
per unit basis relative to last year's comparable quarter, except
for transportation and gathering expense and general and
administrative expense. Transportation and gathering expense per
unit was $0.52 per Mcfe in the first
quarter of 2013, up 2 percent from $0.51 per Mcfe in the first quarter of 2012.
General and administrative expense per unit was $0.40 per Mcfe in the first quarter of 2013, up 5
percent from $0.38 per Mcfe in the
first quarter of 2012, due primarily to an increase in stock-based
compensation expense.
Financial Position and Liquidity
At March 31, 2013, the Company's
total debt was $1.1 billion, of which
$365 million is outstanding under the
Company's credit facility. Effective April
17, 2013, the lenders under the Company's revolving credit
facility approved an increase in the Company's borrowing base from
$1.7 billion to $2.3 billion as part of the annual
redetermination under the terms of the credit facility. Total
lender commitments under the Company's credit facility remained at
$900 million, with $534 million of available credit under its
facility at March 31, 2013.
As of March 31, 2013, the
Company's net debt to adjusted capitalization ratio was 34.3
percent, compared to 33.2 percent at December 31, 2012 (see attached table for the
calculation).
Conference Call
Listen in live to Cabot Oil & Gas Corporation's first
quarter financial and operating results discussion with financial
analysts on Thursday, April 25, 2013,
at 9:30 a.m. EST (8:30 a.m. CST) at www.cabotog.com. The
latest financial guidance, including the Company's hedge positions,
along with a replay of the webcast, which will be archived for one
year, are available in the Investor Info section of the Company's
website at www.cabotog.com.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent
natural gas producer, with its entire resource base located in the
continental United States. For
additional information, visit the Company's homepage at
www.cabotog.com.
The statements regarding future financial performance and
results and the other statements which are not historical facts
contained in this release are forward-looking statements that
involve risks and uncertainties, including, but not limited to,
market factors, the market price (including regional basis
differentials) of natural gas and oil, results of future drilling
and marketing activity, future production and costs, and other
factors detailed in the Company's Securities and Exchange
Commission filings.
FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642
|
OPERATING DATA
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
PRODUCED NATURAL GAS (Bcf) & OIL
(MBbl)
|
|
|
|
|
|
Natural
Gas
|
|
|
|
|
|
Appalachia
|
|
79.9
|
|
49.6
|
|
Other
|
|
5.3
|
|
6.8
|
|
Total
|
|
85.2
|
|
56.4
|
|
|
|
|
|
|
Crude/Condensate/NGL
|
|
691
|
|
538
|
|
|
|
|
|
|
Equivalent
Production (Bcfe)
|
|
89.3
|
|
59.7
|
|
|
|
|
|
|
PRICES(1)
|
|
|
|
|
|
Average
Produced Gas Sales Price ($/Mcf)
|
|
|
|
|
|
Appalachia
|
$
|
3.49
|
$
|
3.77
|
|
Other
|
$
|
2.79
|
$
|
2.82
|
|
Total
|
$
|
3.45
|
$
|
3.65
|
|
|
|
|
|
|
Average
Crude/Condensate Price ($/Bbl)
|
$
|
104.03
|
$
|
96.67
|
|
|
|
|
|
|
WELLS
DRILLED
|
|
|
|
|
|
Gross
|
|
32
|
|
31
|
|
Net
|
|
26
|
|
23
|
|
Gross success rate
|
|
97%
|
|
100%
|
|
|
|
|
|
|
(1) These realized prices include
the realized impact of derivative instrument
settlements.
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
Realized impacts to gas
pricing
|
|
$
0.16
|
|
$
1.00
|
|
Realized impacts to oil
pricing
|
|
$
3.24
|
|
$
(2.57)
|
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
|
|
(In
thousands, except per share amounts)
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2013
|
|
2012
|
|
Operating Revenues
|
|
|
|
|
Natural gas
|
$
293,793
|
|
$
206,782
|
|
Crude oil and condensate
|
65,655
|
|
49,981
|
|
Brokered natural gas
|
10,893
|
|
13,444
|
|
Other
|
2,944
|
|
1,929
|
|
373,285
|
|
272,136
|
|
Operating Expenses
|
|
|
|
|
Direct operations
|
31,497
|
|
27,320
|
|
Transportation and gathering
|
46,221
|
|
30,258
|
|
Brokered natural gas
|
8,389
|
|
11,872
|
|
Taxes other than income
|
11,687
|
|
18,583
|
|
Exploration
|
4,024
|
|
4,001
|
|
Depreciation, depletion and amortization
|
148,653
|
|
110,357
|
|
General and administrative (excluding stock-based
compensation)
|
17,035
|
|
20,894
|
|
Stock-based compensation(1)
|
18,669
|
|
1,655
|
|
286,175
|
|
224,940
|
|
Gain
(loss) on sale of assets
|
(96)
|
|
(535)
|
|
Income
from Operations
|
87,014
|
|
46,661
|
|
Interest
expense and other
|
16,255
|
|
16,917
|
|
Income
before income taxes
|
70,759
|
|
29,744
|
|
Income tax
expense
|
27,935
|
|
11,426
|
|
Net
Income
|
$
42,824
|
|
$
18,318
|
|
Earnings per share - Basic
|
$
0.20
|
|
$
0.09
|
|
Weighted
average common shares outstanding
|
210,150
|
|
209,128
|
|
|
|
|
|
(1) Includes the impact of the Company's
performance share awards, restricted stock, stock appreciation
rights and expense associated with the
Supplemental Employee Incentive Plan. The increase in the expense
is due to the Company's higher stock price and the resulting
mark-to-market for liability
awards.
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
2013
|
|
2012
|
|
Assets
|
|
|
|
|
Current
assets
|
$
238,880
|
|
$
270,310
|
|
Properties
and equipment, net
|
4,412,772
|
|
4,310,977
|
|
Other
assets
|
36,184
|
|
35,026
|
|
Total assets
|
$
4,687,836
|
|
$
4,616,313
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current
liabilities
|
$
447,264
|
|
$
444,139
|
|
Long-term
debt, excluding current maturities
|
1,052,000
|
|
1,012,000
|
|
Deferred
income taxes
|
910,608
|
|
882,672
|
|
Other
liabilities
|
154,750
|
|
146,055
|
|
Stockholders' equity
|
2,123,214
|
|
2,131,447
|
|
Total liabilities and stockholders'
equity
|
$
4,687,836
|
|
$
4,616,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2013
|
|
2012
|
|
Cash
Flows From Operating Activities
|
|
|
|
|
Net
income
|
$
42,824
|
|
$
18,318
|
|
Deferred
income tax expense
|
23,574
|
|
9,724
|
|
Loss
(gain) on sale of assets
|
96
|
|
535
|
|
Exploration expense
|
666
|
|
49
|
|
Unrealized
(gain) loss on derivatives
|
-
|
|
(42)
|
|
Income
charges not requiring cash
|
167,205
|
|
109,951
|
|
Changes in
assets and liabilities
|
(21,680)
|
|
(6,755)
|
|
Net cash
provided by operations
|
212,685
|
|
131,780
|
|
|
|
|
|
Cash
Flows From Investing Activities
|
|
|
|
|
Capital
expenditures
|
(260,169)
|
|
(188,547)
|
|
Proceeds
from sale of assets
|
486
|
|
1,280
|
|
Investment
in equity method investment
|
(1,250)
|
|
-
|
|
Net cash
used in investing
|
(260,933)
|
|
(187,267)
|
|
|
|
|
|
Cash
Flows From Financing Activities
|
|
|
|
|
Net
increase (decrease) in debt
|
40,000
|
|
62,000
|
|
Stock-based compensation tax benefit
|
2,138
|
|
-
|
|
Dividends
paid
|
(4,201)
|
|
(4,177)
|
|
Other
|
32
|
|
81
|
|
Net cash
provided by financing
|
37,969
|
|
57,904
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
$
(10,279)
|
|
$
2,417
|
|
Selected Item Review and Reconciliation of Net
Income and Earnings Per Share
|
|
(In
thousands, except per share amounts)
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2013
|
|
2012
|
|
As
reported - net income
|
$
42,824
|
|
$
18,318
|
|
Reversal
of selected items, net of tax:
|
|
|
|
|
(Gain) loss on sale of
assets
|
58
|
|
327
|
|
Stock-based compensation
expense
|
11,337
|
|
1,013
|
|
Pension
expense(1)
|
-
|
|
3,824
|
|
Unrealized loss (gain) on
derivatives
|
-
|
|
(26)
|
|
Pennsylvania impact
fee(2)
|
-
|
|
5,067
|
|
Net income
excluding selected items
|
$
54,219
|
|
$
28,523
|
|
As
reported - earnings per share
|
$
0.20
|
|
$
0.09
|
|
Per
share impact of reversing selected items
|
0.06
|
|
0.05
|
|
Earnings
per share including reversal
|
|
|
|
|
of selected items
|
$
0.26
|
|
$
0.14
|
|
Weighted
average common shares outstanding
|
210,150
|
|
209,128
|
|
|
|
|
|
(1)
|
On July
28, 2010, the Company notified its employees of its plan to
terminate its qualified and non-qualified pension plans, effective
September 30, 2010. These amounts represent pension expenses
related to the plan termination, including settlement costs and
expenses related to the acceleration of
amortization of prior service costs and actuarial losses over the
period. Final distribution of the pension plan occurred as of the
end of the second quarter 2012. Pension expense is included in
General and administrative expense in the Condensed Consolidated
Statement of Operations.
|
|
(2)
|
In
February 2012, the Pennsylvania state legislature authorized the
assessment of an impact fee on Marcellus shale production. This
amount represents the initial year accrual related to our 2011
and prior wells. Expenses associated with the impact fee are
included in Taxes other than income in the Condensed
Consolidated Statement of Operations.
|
|
Discretionary Cash Flow Calculation and
Reconciliation
|
|
(In
thousands)
|
|
Three
Months Ended
|
|
March
31,
|
|
2013
|
|
2012
|
|
Discretionary Cash
Flow
|
|
|
|
|
As reported - net income
|
$
42,824
|
|
$
18,318
|
|
Plus / (less):
|
|
|
|
|
Deferred income tax expense
|
23,574
|
|
9,724
|
|
Loss (gain) on sale of assets
|
96
|
|
535
|
|
Exploration expense
|
666
|
|
49
|
|
Unrealized loss (gain) on
derivatives
|
-
|
|
(42)
|
|
Income charges not requiring
cash
|
167,205
|
|
109,951
|
|
Discretionary Cash
Flow
|
234,365
|
|
138,535
|
|
Changes in assets and
liabilities
|
(21,680)
|
|
(6,755)
|
|
Net cash provided by
operations
|
$
212,685
|
|
$
131,780
|
|
|
|
|
|
|
|
Net
Debt Reconciliation
|
|
(In
thousands)
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
2013
|
|
2012
|
|
|
|
|
|
Current portion of long-term
debt
|
$
75,000
|
|
$
75,000
|
|
Long-term debt
|
1,052,000
|
|
1,012,000
|
|
Total debt
|
1,127,000
|
|
1,087,000
|
|
Stockholders' equity
|
2,123,214
|
|
2,131,447
|
|
Total
Capitalization
|
$
3,250,214
|
|
$
3,218,447
|
|
|
|
|
|
Total debt
|
$
1,127,000
|
|
$
1,087,000
|
|
Less: Cash and cash
equivalents
|
(20,457)
|
|
(30,736)
|
|
Net
Debt
|
$
1,106,543
|
|
$
1,056,264
|
|
|
|
|
|
Net debt
|
$
1,106,543
|
|
$
1,056,264
|
|
Stockholders' equity
|
2,123,214
|
|
2,131,447
|
|
Total
Adjusted Capitalization
|
$
3,229,757
|
|
$
3,187,711
|
|
|
|
|
|
Total debt to total capitalization ratio
|
34.7%
|
|
33.8%
|
|
Less: Impact of cash and cash
equivalents
|
0.4%
|
|
0.5%
|
|
Net
Debt to Adjusted Capitalization Ratio
|
34.3%
|
|
33.2%
|
SOURCE Cabot Oil & Gas Corporation