HOUSTON, July 27, 2017 /PRNewswire/ -- Cabot Oil
& Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today
reported financial and operating results for the second quarter of
2017.
Second Quarter 2017 Highlights
- Equivalent daily production growth of 14 percent relative to
the prior-year comparable quarter
- Net income of $21.5 million
compared to a net loss of $62.9
million in the prior-year comparable quarter
- Net income excluding selected items of $64.0 million compared to a net loss of
$30.2 million in the prior-year
comparable quarter
- Cash flow from operating activities of $260.6 million, an increase of 206 percent
relative to the prior-year comparable quarter
- EBITDAX of $274.4 million, an
increase of 115 percent relative to the prior-year comparable
quarter
- Generated positive free cash flow (cash flow from operating
activities less capital expenditures) for the fifth consecutive
quarter
- Natural gas price realizations improved by 46 percent relative
to the prior-year comparable quarter
- Operating expenses per unit improved by nine percent relative
to the prior-year comparable quarter
- Previously announced a 150 percent increase in the quarterly
dividend, effective during the second quarter
- Repurchased 3.0 million shares during the second quarter at a
weighted-average share price of $22.41
"Our second quarter results demonstrate what our high-quality
asset base can continue to deliver, highlighted by double-digit
year-over-year production growth while generating positive free
cash flow for the fifth consecutive quarter," said Dan O. Dinges, Chairman, President and Chief
Executive Officer. "We continue to focus our capital allocation
efforts not only on driving returns-focused growth from our deep
inventory base, but also on increasing our return of capital to
shareholders as evidenced by our dividend increase and share
repurchases during the quarter. Year-to-date we have returned over
$100 million of our free cash flow to
shareholders."
Second Quarter 2017 Financial Results
Equivalent production for the second quarter of 2017 was 173.1
billion cubic feet equivalent (Bcfe), consisting of 166.2 billion
cubic feet (Bcf) of natural gas, 1,014.0 thousand barrels (Mbbls)
of crude oil and condensate, and 132.4 Mbbls of natural gas liquids
(NGLs).
Net income for the second quarter of 2017 was $21.5 million, or $0.05 per share, compared to a net loss of
$62.9 million, or $0.14 per share, for the second quarter of 2016.
Net income for the second quarter of 2017 included the impact of a
non-cash, after-tax impairment charge of $43.2 million primarily associated with non-core
oil and gas properties and related pipeline assets in West Virginia, Virginia and Ohio that were classified as held for sale as
of June 30, 2017. Excluding the
effect of this impairment and other selected items (detailed in the
supplemental table below), net income was $64.0 million, or $0.14 per share, compared to a net loss of
$30.2 million, or $0.07 per share, for the second quarter of 2016.
Cash flow from operating activities for the second quarter of 2017
was $260.6 million, compared to
$85.2 million for the second quarter
of 2016. Discretionary cash flow for the second quarter of 2017 was
$255.7 million, compared to
$97.6 million for the second quarter
of 2016. EBITDAX for the second quarter of 2017 was $274.4 million, compared to $127.6 million for the second quarter of 2016.
See the supplemental tables at the end of this press release for a
reconciliation of non-GAAP measures including discretionary cash
flow, net income (loss) excluding selected items, EBITDAX and net
debt to adjusted capitalization ratio.
Natural gas price realizations, including the impact of
derivatives, were $2.38 per thousand
cubic feet (Mcf) for the second quarter of 2017, a 46 percent
improvement compared to second quarter of 2016. The Company's
natural gas price realizations for the quarter represented an
$0.80 discount to NYMEX settlement
prices. Oil price realizations, including the impact of
derivatives, were $44.96 per barrel
(Bbl), an increase of 12 percent compared to the second quarter of
2016. NGL price realizations were $16.59 per Bbl, an increase of 33 percent
compared to the second quarter of 2016.
Operating expenses (including financing) decreased to
$2.02 per thousand cubic feet
equivalent (Mcfe) in the second quarter of 2017, a nine percent
improvement compared to $2.22 per
Mcfe in the second quarter of 2016. Cash operating expenses
(excluding depreciation, depletion and amortization; stock-based
compensation; exploratory dry hole cost; and amortization of debt
issuance costs) decreased to $1.12
per Mcfe in the second quarter of 2017, a six percent improvement
over the second quarter of 2016.
Cabot incurred a total of $195.1
million of capital expenditures during the second quarter of
2017 including $168.3 million of
drilling and facilities capital associated with drilling 27 gross
(21.1 net) wells and completing 26 gross (24.0 net) wells;
$23.6 million of leasehold
acquisition capital primarily associated with the Company's
grassroots leasing efforts in two new exploratory operating areas;
and $3.2 million of other capital.
Additionally, the Company contributed $5.9
million to its equity pipeline investments in the Atlantic
Sunrise and Constitution projects during the second quarter of
2017.
See the supplemental table at the end of this press release
reconciling the capital expenditures for the quarter.
Year-To-Date 2017 Financial Results
Equivalent production for the six-month period ended
June 30, 2017 was 343.1 Bcfe,
consisting of 330.0 Bcf of natural gas, 1,934.6 Mbbls of crude oil
and condensate, and 255.9 Mbbls of NGLs.
For the six-month period ended June 30,
2017, net income was $127.2
million, or $0.27 per share,
compared to a net loss of $114.1
million, or $0.25 per share,
for the six-month period ended June 30,
2016. Excluding the effect of selected items (detailed in
the supplemental table below), net income was $153.1 million, or $0.33 per share, compared to a net loss of
$85.6 million, or $0.19 per share, for the six-month period ended
June 30, 2016. For the six-month
period ended June 30, 2017, cash flow
from operations was $529.9 million,
compared to $152.3 million for the
six-month period ended June 30, 2016.
Discretionary cash flow was $528.7
million for the six-month period ended June 30, 2017, compared to $168.8 million for the six-month period ended
June 30, 2016. EBITDAX for the
six-month period ended June 30, 2017
was $580.7 million, compared to
$229.1 million for the six-month
period ended June 30, 2016.
Natural gas price realizations, including the impact of
derivatives, were $2.51 per Mcf for
the six-month period ended June 30,
2017, a 62 percent improvement compared to the six-month
period ended June 30, 2016. Oil price
realizations, including the impact of derivatives, were
$45.80 per Bbl, an increase of 34
percent compared to the six-month period ended June 30, 2016. NGL price realizations were
$18.58 per Bbl, an increase of 84
percent compared to the six-month period ended June 30, 2016.
Operating expenses (including financing) decreased to
$2.01 per Mcfe for the six-month
period ended June 30, 2017, a 10
percent improvement compared to $2.24
per Mcfe for the six-month period ended June
30, 2016. Cash operating expenses (excluding depreciation,
depletion and amortization; stock-based compensation; exploratory
dry hole cost; and amortization of debt issuance costs) decreased
to $1.13 per Mcfe for the six-month
period ended June 30, 2017, a four
percent improvement compared to the six-month period ended
June 30, 2016.
Cabot incurred a total of $407.3
million of capital expenditures during the six-month period
ended June 30, 2017 including
$310.3 million of drilling and
facilities capital associated with drilling 48 gross (42.1 net)
wells and completing 51 gross (48.0 net) wells; $91.5 million of leasehold acquisition capital
primarily associated with the Company's grassroots leasing efforts
in two new exploratory operating areas; and $5.5 million of other capital. Additionally, the
Company contributed $13.6 million to
its equity pipeline investments in the Atlantic Sunrise and
Constitution projects during the six-month period ended
June 30, 2017.
Second Quarter 2017 Operational Highlights
Marcellus Shale
During the second quarter of 2017, Cabot averaged 1,771 million
cubic feet (Mmcf) per day of net Marcellus production (2,079 gross
operated Mmcf per day). During the second quarter, the Company
drilled 13.7 net wells, completed 8.0 net wells and placed 6.0 net
wells on production. "The average cumulative production for the 26
fourth generation wells that we placed on production during the
first half of 2017 continues to outperform our 4.4 Bcf per 1,000
lateral feet type curve," noted Dinges.
Cabot is currently operating two rigs and utilizing one 24-hour
completion crew in the Marcellus Shale and plans to remain at this
level for the remainder of the year.
Eagle Ford Shale
Cabot's net production in the Eagle Ford Shale during the second
quarter of 2017 was 13,146 barrels of oil equivalent (Boe) per day
(84% oil), an increase of nine percent sequentially compared to the
first quarter of 2017. During the second quarter, the Company
drilled 7.4 net wells and completed and placed on production 16.0
net wells. "Despite lower oil production volumes than originally
anticipated for the quarter primarily due to operational delays and
an extended clean up period for our longer lateral wells, we are
confident that we will generate double-digit oil production growth
for the year," commented Dinges.
Cabot is currently operating one rig and utilizing one 24-hour
completion crew in the Eagle Ford Shale. The Company plans to
maintain one rig for the remainder of the year and cease its
completion activity for the year in October.
Share Repurchase Program Update
During the second quarter of 2017, Cabot repurchased 3.0 million
shares at a weighted-average share price of $22.41. The Company has approximately 7.1 million
shares remaining under its share repurchase program. "We will
remain opportunistic with our share repurchase program as we
continue to become more confident in the timing of infrastructure
additions and the resulting increased level of positive free cash
flow that we are anticipating in the coming years," stated
Dinges.
Non-Core Asset Sale
During the second quarter of 2017, the Company entered into a
purchase and sale agreement to sell certain legacy conventional oil
and gas properties located in West
Virginia, Virginia and
Ohio for $41.3 million, subject to customary purchase
price adjustments. Year-to-date 2017 production from these
properties was 38.8 million cubic feet equivalent (Mmcfe) per day
(99% gas). This transaction is expected to close by the end of the
third quarter of 2017. Cabot will retain the deep rights across
this approximately 780,000 net acre position. "Since we first began
leasing in the Marcellus Shale in 2006, we have made efforts to
high-grade our portfolio by opportunistically monetizing non-core
assets and focusing our drilling activity in our lower-cost
assets," said Dinges. "We have not allocated drilling capital to
this legacy asset position since 2009 and had no plans to allocate
capital to these assets in the future given our substantial
drilling inventory in the Marcellus and Eagle Ford and our
increased focus on returning capital to shareholders."
Financial Position and Liquidity
As of June 30, 2017, Cabot had
total debt of $1.5 billion and cash
on hand of $516.5 million. The
Company's net debt to adjusted capitalization ratio and net debt to
trailing twelve months EBITDAX ratio were 27.6 percent and 1.1x,
respectively, compared to 28.5 percent and 1.8x as of December 31, 2016.
Total commitments under the Company's credit facility remain
unchanged at $1.8 billion, with
approximately $1.7 billion currently
available to Cabot. The Company currently has no debt outstanding
under the credit facility, resulting in approximately $2.2 billion of liquidity.
Third Quarter and Full-Year 2017 Guidance Update
Cabot has provided third quarter 2017 net production guidance of
1,750 to 1,800 Mmcf per day for natural gas; 13,000 to 13,750 Bbls
per day for crude oil and condensate; and 1,350 to 1,450 Bbls per
day for NGLs. "The mid-point of our natural gas production guidance
for the third quarter implies a three percent sequential decline
relative to the second quarter primarily due to mechanical issues
at a third-party compressor station that began in late June and are
expected to continue until late August; however, we anticipate
sequential growth of natural gas volumes in the fourth quarter,"
noted Dinges.
The Company has reaffirmed its 2017 production growth guidance
range of 8 - 12 percent (including 10 - 15 percent oil production
growth) and its total 2017 program spending of $845 million, which is comprised of $775 million of exploration and production
(E&P) spending and $70 million of
contributions to its equity pipeline investments.
For further disclosure on Cabot's natural gas pricing exposure
by index and cost guidance, please see the current Guidance slide
in the Investor Relations section of the Company's website.
Conference Call Webcast
A conference call is scheduled for Friday, July 28, 2017, at 9:30 a.m. Eastern Time to discuss second quarter
2017 financial and operating results. To access the live audio
webcast, please visit the Investor Relations section of the
Company's website. A replay of the call will also be available on
the Company's website.
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.
This press release includes forward‐looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The statements regarding future financial and operating
performance and results, strategic pursuits and goals, market
prices, future hedging and risk management activities, and other
statements that are not historical facts contained in this report
are forward-looking statements. The words "expect", "project",
"estimate", "believe", "anticipate", "intend", "budget", "plan",
"forecast", "target", "predict", "may", "should", "could", "will"
and similar expressions are also intended to identify
forward-looking statements. Such statements involve risks and
uncertainties, including, but not limited to, market factors,
market prices (including geographic basis differentials) of natural
gas and crude oil, results of future drilling and marketing
activity, future production and costs, legislative and regulatory
initiatives, electronic, cyber or physical security breaches and
other factors detailed herein and in our other Securities and
Exchange Commission (SEC) filings. See "Risk Factors" in Item 1A of
the Form 10-K and subsequent public filings for additional
information about these risks and uncertainties. Should one or more
of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially
from those indicated. Any forward-looking statement speaks
only as of the date on which such statement is made, and the
Company does not undertake any obligation to correct or update any
forward-looking statement, whether as the result of new
information, future events or otherwise, except as required by
applicable law.
OPERATING
DATA
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
PRODUCTION
VOLUMES
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
166.2
|
|
|
144.3
|
|
|
330.0
|
|
|
297.4
|
|
Crude oil and
condensate (Mbbl)
|
1,014.0
|
|
|
1,139.3
|
|
|
1,934.6
|
|
|
2,248.9
|
|
Natural gas liquids
(NGLs) (Mbbl)
|
132.4
|
|
|
112.9
|
|
|
255.9
|
|
|
205.0
|
|
Equivalent production
(Bcfe)
|
173.1
|
|
|
151.8
|
|
|
343.1
|
|
|
312.1
|
|
|
|
|
|
|
|
|
|
AVERAGE SALES
PRICE
|
|
|
|
|
|
|
|
Natural gas,
including hedges ($/Mcf)
|
$
|
2.38
|
|
|
$
|
1.63
|
|
|
$
|
2.51
|
|
|
$
|
1.55
|
|
Natural gas,
excluding hedges ($/Mcf)
|
$
|
2.38
|
|
|
$
|
1.55
|
|
|
$
|
2.51
|
|
|
$
|
1.52
|
|
Crude oil and
condensate, including hedges ($/Bbl)
|
$
|
44.96
|
|
|
$
|
40.30
|
|
|
$
|
45.80
|
|
|
$
|
34.06
|
|
Crude oil and
condensate, excluding hedges ($/Bbl)
|
$
|
44.03
|
|
|
$
|
40.51
|
|
|
$
|
45.29
|
|
|
$
|
34.16
|
|
NGL
($/Bbl)
|
$
|
16.59
|
|
|
$
|
12.43
|
|
|
$
|
18.58
|
|
|
$
|
10.09
|
|
|
|
|
|
|
|
|
|
AVERAGE UNIT COSTS
($/Mcfe)
|
|
|
|
|
|
|
|
Direct
operations
|
$
|
0.16
|
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
$
|
0.17
|
|
Transportation and
gathering
|
0.70
|
|
|
0.71
|
|
|
0.71
|
|
|
0.70
|
|
Taxes other than
income
|
0.05
|
|
|
0.06
|
|
|
0.05
|
|
|
0.05
|
|
Exploration
|
0.02
|
|
|
0.02
|
|
|
0.03
|
|
|
0.03
|
|
Depreciation,
depletion and amortization
|
0.83
|
|
|
0.97
|
|
|
0.81
|
|
|
0.99
|
|
General and
administrative (excluding stock-based compensation)
|
0.08
|
|
|
0.09
|
|
|
0.09
|
|
|
0.10
|
|
Stock-based
compensation
|
0.06
|
|
|
0.05
|
|
|
0.05
|
|
|
0.06
|
|
Interest
expense
|
0.12
|
|
|
0.14
|
|
|
0.12
|
|
|
0.15
|
|
|
$
|
2.02
|
|
|
$
|
2.22
|
|
|
$
|
2.01
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WELLS DRILLED
(1)
|
|
|
|
|
|
|
|
Gross
|
27
|
|
|
7
|
|
|
48
|
|
|
17
|
|
Net
|
21.1
|
|
|
7.0
|
|
|
42.1
|
|
|
17.0
|
|
|
|
|
|
|
|
|
|
WELLS COMPLETED
(1)
|
|
|
|
|
|
|
|
Gross
|
26
|
|
|
13
|
|
|
51
|
|
|
28
|
|
Net
|
24.0
|
|
|
13.0
|
|
|
48.0
|
|
|
28.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Wells
drilled represents wells drilled to total depth during the period.
Wells completed includes wells completed during the period,
regardless of when they were drilled.
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
(In thousands,
except per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
OPERATING
REVENUES
|
|
|
|
|
|
|
|
Natural
gas
|
$
|
395,328
|
|
|
$
|
223,232
|
|
|
$
|
828,770
|
|
|
$
|
450,811
|
|
Crude
oil and condensate
|
44,625
|
|
|
46,156
|
|
|
87,616
|
|
|
76,833
|
|
Gain
(loss) on derivative instruments
|
13,805
|
|
|
(27,184)
|
|
|
47,190
|
|
|
(8,190)
|
|
Brokered
natural gas
|
4,037
|
|
|
2,596
|
|
|
8,732
|
|
|
5,776
|
|
Other
|
2,662
|
|
|
2,016
|
|
|
5,994
|
|
|
3,527
|
|
|
460,457
|
|
|
246,816
|
|
|
978,302
|
|
|
528,757
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Direct
operations
|
27,262
|
|
|
26,477
|
|
|
51,903
|
|
|
52,513
|
|
Transportation and
gathering
|
120,544
|
|
|
107,560
|
|
|
244,018
|
|
|
217,213
|
|
Brokered natural
gas
|
3,419
|
|
|
2,021
|
|
|
7,465
|
|
|
4,587
|
|
Taxes other than
income
|
8,310
|
|
|
8,973
|
|
|
17,368
|
|
|
14,967
|
|
Exploration
|
3,959
|
|
|
3,738
|
|
|
10,157
|
|
|
10,121
|
|
Depreciation,
depletion and amortization
|
144,322
|
|
|
147,533
|
|
|
279,422
|
|
|
309,420
|
|
Impairment of oil and
gas properties
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
—
|
|
General and
administrative (excluding stock-based compensation)
|
13,882
|
|
|
12,644
|
|
|
29,331
|
|
|
29,911
|
|
Stock-based
compensation(1)
|
10,075
|
|
|
7,301
|
|
|
18,328
|
|
|
17,906
|
|
|
400,328
|
|
|
316,247
|
|
|
726,547
|
|
|
656,638
|
|
Earnings (loss) on
equity method investments
|
(1,286)
|
|
|
(73)
|
|
|
(2,569)
|
|
|
1,935
|
|
Gain (loss) on sale
of assets
|
(1,403)
|
|
|
(878)
|
|
|
(1,626)
|
|
|
477
|
|
INCOME (LOSS) FROM
OPERATIONS
|
57,440
|
|
|
(70,382)
|
|
|
247,560
|
|
|
(125,469)
|
|
Interest
expense
|
20,619
|
|
|
21,963
|
|
|
41,390
|
|
|
46,338
|
|
Loss on debt
extinguishment
|
—
|
|
|
4,709
|
|
|
—
|
|
|
4,709
|
|
Other (income)
expense
|
(315)
|
|
|
302
|
|
|
109
|
|
|
804
|
|
Income (loss) before
income taxes
|
37,136
|
|
|
(97,356)
|
|
|
206,061
|
|
|
(177,320)
|
|
Income tax expense
(benefit)
|
15,609
|
|
|
(34,446)
|
|
|
78,814
|
|
|
(63,216)
|
|
NET INCOME
(LOSS)
|
$
|
21,527
|
|
|
$
|
(62,910)
|
|
|
$
|
127,247
|
|
|
$
|
(114,104)
|
|
Earnings (loss) per
share - Basic
|
$
|
0.05
|
|
|
$
|
(0.14)
|
|
|
$
|
0.27
|
|
|
$
|
(0.25)
|
|
Weighted-average
common shares outstanding
|
464,768
|
|
|
465,068
|
|
|
465,057
|
|
|
448,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes the impact of the Company's performance share awards,
restricted stock and expense associated with the Supplemental
Employee Incentive Plan.
|
CONDENSED
CONSOLIDATED BALANCE SHEET (Unaudited)
|
|
(In
thousands)
|
June
30, 2017
|
|
December
31, 2016
|
ASSETS
|
|
|
|
Current
assets
|
$
|
735,824
|
|
|
$
|
715,881
|
|
Properties and
equipment, net (Successful efforts method)
|
4,202,985
|
|
|
4,250,125
|
|
Other
assets
|
280,650
|
|
|
156,563
|
|
|
$
|
5,219,459
|
|
|
$
|
5,122,569
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
$
|
234,422
|
|
|
$
|
257,812
|
|
Long-term debt,
net
|
1,521,211
|
|
|
1,520,530
|
|
Deferred income
taxes
|
617,332
|
|
|
579,447
|
|
Other
liabilities
|
204,463
|
|
|
197,113
|
|
Stockholders'
equity
|
2,642,031
|
|
|
2,567,667
|
|
|
$
|
5,219,459
|
|
|
$
|
5,122,569
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
(In
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
21,527
|
|
|
$
|
(62,910)
|
|
|
$
|
127,247
|
|
|
$
|
(114,104)
|
|
Deferred income tax
expense (benefit)
|
20,104
|
|
|
(35,322)
|
|
|
73,394
|
|
|
(64,294)
|
|
Impairment of oil and
gas properties
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
—
|
|
(Gain) loss on sale
of assets
|
1,403
|
|
|
878
|
|
|
1,626
|
|
|
(477)
|
|
Exploratory dry hole
cost
|
—
|
|
|
18
|
|
|
2,842
|
|
|
18
|
|
(Gain) loss on
derivative instruments
|
(13,805)
|
|
|
27,184
|
|
|
(47,190)
|
|
|
8,190
|
|
Net cash received
(paid) in settlement of derivative instruments
|
1,204
|
|
|
11,305
|
|
|
(319)
|
|
|
11,305
|
|
Income charges not
requiring cash
|
156,719
|
|
|
156,465
|
|
|
302,573
|
|
|
328,140
|
|
Changes in assets and
liabilities
|
4,861
|
|
|
(12,440)
|
|
|
1,218
|
|
|
(16,488)
|
|
Net cash provided by
operating activities
|
260,568
|
|
|
85,178
|
|
|
529,946
|
|
|
152,290
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Capital
expenditures
|
(184,949)
|
|
|
(67,162)
|
|
|
(393,333)
|
|
|
(159,399)
|
|
Proceeds from sale of
assets
|
1,101
|
|
|
—
|
|
|
1,475
|
|
|
49,828
|
|
Investment in equity
method investments
|
(5,884)
|
|
|
(6,519)
|
|
|
(13,626)
|
|
|
(18,171)
|
|
Net cash used in
investing activities
|
(189,732)
|
|
|
(73,681)
|
|
|
(405,484)
|
|
|
(127,742)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Net borrowings
(repayments) of debt
|
—
|
|
|
(64,000)
|
|
|
—
|
|
|
(477,000)
|
|
Treasury stock
repurchases
|
(68,255)
|
|
|
—
|
|
|
(68,255)
|
|
|
—
|
|
Sale of common stock,
net
|
—
|
|
|
1
|
|
|
—
|
|
|
995,279
|
|
Dividends
paid
|
(23,276)
|
|
|
(9,300)
|
|
|
(32,582)
|
|
|
(17,582)
|
|
Tax withholdings on
stock award vestings
|
(258)
|
|
|
(24)
|
|
|
(5,672)
|
|
|
(5,046)
|
|
Capitalized debt
issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,223)
|
|
Other
|
2
|
|
|
—
|
|
|
39
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
(91,787)
|
|
|
(73,323)
|
|
|
(106,470)
|
|
|
492,428
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
$
|
(20,951)
|
|
|
$
|
(61,826)
|
|
|
$
|
17,992
|
|
|
$
|
516,976
|
|
Selected Item
Review and Reconciliation of Net Income and Earnings Per
Share
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
(In thousands,
except per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
As reported - net
income (loss)
|
$
|
21,527
|
|
|
$
|
(62,910)
|
|
|
$
|
127,247
|
|
|
$
|
(114,104)
|
|
Reversal of selected
items:
|
|
|
|
|
|
|
|
Impairment of oil and
gas properties
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
—
|
|
(Gain) loss on sale
of assets
|
1,403
|
|
|
878
|
|
|
1,626
|
|
|
(477)
|
|
(Gain) loss on
derivative instruments(1)
|
(12,601)
|
|
|
38,489
|
|
|
(47,509)
|
|
|
19,495
|
|
Loss on debt
extinguishment
|
—
|
|
|
4,709
|
|
|
—
|
|
|
4,709
|
|
Drilling rig
termination fees
|
—
|
|
|
—
|
|
|
—
|
|
|
3,188
|
|
Stock-based
compensation expense
|
10,075
|
|
|
7,301
|
|
|
18,328
|
|
|
17,906
|
|
Tax effect on
selected items
|
(24,916)
|
|
|
(18,647)
|
|
|
(15,150)
|
|
|
(16,268)
|
|
Net income (loss)
excluding selected items
|
$
|
64,043
|
|
|
$
|
(30,180)
|
|
|
$
|
153,097
|
|
|
$
|
(85,551)
|
|
As reported -
earnings (loss) per share
|
$
|
0.05
|
|
|
$
|
(0.14)
|
|
|
$
|
0.27
|
|
|
$
|
(0.25)
|
|
Per share impact of
selected items
|
0.09
|
|
|
0.07
|
|
|
0.06
|
|
|
0.06
|
|
Earnings (loss) per
share excluding selected items
|
$
|
0.14
|
|
|
$
|
(0.07)
|
|
|
$
|
0.33
|
|
|
$
|
(0.19)
|
|
Weighted-average
common shares outstanding
|
464,768
|
|
|
465,068
|
|
|
465,057
|
|
|
448,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This amount represents the
non-cash mark-to-market changes of our commodity derivative
instruments recorded in gain (loss) on derivative instruments in
the Condensed Consolidated Statement of Operations.
|
Discretionary Cash
Flow Calculation and Reconciliation
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
(In
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
21,527
|
|
|
$
|
(62,910)
|
|
|
$
|
127,247
|
|
|
$
|
(114,104)
|
|
Plus
(less):
|
|
|
|
|
|
|
|
Deferred income tax
expense (benefit)
|
20,104
|
|
|
(35,322)
|
|
|
73,394
|
|
|
(64,294)
|
|
Impairment of oil and
gas properties
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
—
|
|
(Gain) loss on sale
of assets
|
1,403
|
|
|
878
|
|
|
1,626
|
|
|
(477)
|
|
Exploratory dry hole
cost
|
—
|
|
|
18
|
|
|
2,842
|
|
|
18
|
|
(Gain) loss on
derivative instruments
|
(13,805)
|
|
|
27,184
|
|
|
(47,190)
|
|
|
8,190
|
|
Net cash received
(paid) in settlement of derivative instruments
|
1,204
|
|
|
11,305
|
|
|
(319)
|
|
|
11,305
|
|
Income charges not
requiring cash
|
156,719
|
|
|
156,465
|
|
|
302,573
|
|
|
328,140
|
|
Discretionary cash
flow
|
255,707
|
|
|
97,618
|
|
|
528,728
|
|
|
168,778
|
|
Changes in assets and
liabilities
|
4,861
|
|
|
(12,440)
|
|
|
1,218
|
|
|
(16,488)
|
|
Net cash provided by
operating activities
|
$
|
260,568
|
|
|
$
|
85,178
|
|
|
$
|
529,946
|
|
|
$
|
152,290
|
|
EBITDAX
Calculation and Reconciliation
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
(In
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
21,527
|
|
|
$
|
(62,910)
|
|
|
$
|
127,247
|
|
|
$
|
(114,104)
|
|
Plus
(less):
|
|
|
|
|
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
4,709
|
|
|
—
|
|
|
4,709
|
|
Interest
expense
|
20,619
|
|
|
21,963
|
|
|
41,390
|
|
|
46,338
|
|
Other (income)
expense
|
(315)
|
|
|
302
|
|
|
109
|
|
|
804
|
|
Income tax expense
(benefit)
|
15,609
|
|
|
(34,446)
|
|
|
78,814
|
|
|
(63,216)
|
|
Depreciation,
depletion and amortization
|
144,322
|
|
|
147,533
|
|
|
279,422
|
|
|
309,420
|
|
Impairment of oil and
gas properties
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
—
|
|
Exploration
|
3,959
|
|
|
3,738
|
|
|
10,157
|
|
|
10,121
|
|
(Gain) loss on sale
of assets
|
1,403
|
|
|
878
|
|
|
1,626
|
|
|
(477)
|
|
Non-cash (gain) loss
on derivative instruments
|
(12,601)
|
|
|
38,489
|
|
|
(47,509)
|
|
|
19,495
|
|
(Earnings) loss on
equity method investments
|
1,286
|
|
|
73
|
|
|
2,569
|
|
|
(1,935)
|
|
Stock-based
compensation
|
10,075
|
|
|
7,301
|
|
|
18,328
|
|
|
17,906
|
|
EBITDAX
|
$
|
274,439
|
|
|
$
|
127,630
|
|
|
$
|
580,708
|
|
|
$
|
229,061
|
|
Net Debt
Reconciliation
|
|
(In
thousands)
|
June
30, 2017
|
|
December
31, 2016
|
Total debt
|
$
|
1,521,211
|
|
|
$
|
1,520,530
|
|
Stockholders'
equity
|
2,642,031
|
|
|
2,567,667
|
|
Total
capitalization
|
$
|
4,163,242
|
|
|
$
|
4,088,197
|
|
|
|
|
|
Total debt
|
$
|
1,521,211
|
|
|
$
|
1,520,530
|
|
Less: Cash and cash
equivalents
|
(516,534)
|
|
|
(498,542)
|
|
Net debt
|
$
|
1,004,677
|
|
|
$
|
1,021,988
|
|
|
|
|
|
Net debt
|
$
|
1,004,677
|
|
|
$
|
1,021,988
|
|
Stockholders'
equity
|
2,642,031
|
|
|
2,567,667
|
|
Total adjusted
capitalization
|
$
|
3,646,708
|
|
|
$
|
3,589,655
|
|
|
|
|
|
Total debt to total
capitalization ratio
|
36.5
|
%
|
|
37.2
|
%
|
Less: Impact of cash
and cash equivalents
|
8.9
|
%
|
|
8.7
|
%
|
Net debt to adjusted
capitalization ratio
|
27.6
|
%
|
|
28.5
|
%
|
Capital
Expenditures
|
|
|
|
Quarter
Ended June
30,
|
|
Six Months
Ended June
30,
|
(In
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cash paid for capital
expenditures
|
|
$
|
184,949
|
|
|
$
|
67,162
|
|
|
$
|
393,333
|
|
|
$
|
159,399
|
|
Change in accrued
capital costs
|
|
10,103
|
|
|
3,716
|
|
|
16,798
|
|
|
3,167
|
|
Exploratory dry hole
cost
|
|
—
|
|
|
(18)
|
|
|
(2,842)
|
|
|
(18)
|
|
Capital
expenditures
|
|
$
|
195,052
|
|
|
$
|
70,860
|
|
|
$
|
407,289
|
|
|
$
|
162,548
|
|
View original
content:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-announces-second-quarter-2017-results-300495845.html
SOURCE Cabot Oil & Gas Corporation