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Cabot Oil & Gas Corporation – COG – Financial results for the third quarter of 2012

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Cabot Oil & Gas Corporation (NYSE: COG) reported financial results for the third quarter of 2012. Highlights for the third quarter of 2012 include:

  • Production of 66.5 billion cubic feet equivalent (Bcfe), an increase of 33 percent over last year’s comparable quarter.
  • Net income of $36.6 million, or $0.17 per share.
  • Net income excluding selected items of $43.1 million, or $0.21 per share.
  • Cash flow from operations of $164.0 million and discretionary cash flow of $175.7 million.

“Our year-to-date production growth relative to last year further highlights the prolific nature of our wells in the Marcellus, even in the face of continued delays in permitting for gathering lines,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “Based on our plans to connect (or begin producing) 45 additional wells in the fourth quarter, we expect a ramp in production above our previous highs.”

COG – Third Quarter 2012

Production during the third quarter of 2012 was 66.5 Bcfe, with 62.7 Bcf of natural gas production and 629 thousand barrels of liquids production. These figures represent a 31 percent increase in gas production and a 61 percent increase in liquids production compared to the third quarter of 2011.

COG reported net income of $36.6 million, or $0.17 per share, for the third quarter of 2012, compared to $28.5 million, or $0.14 per share, for the third quarter of 2011. Excluding the effect of selected items (which are detailed in the table below), net income was $43.1 million, or $0.21 per share, for the third quarter of 2012, compared to $35.3 million, or $0.17 per share, for the third quarter of 2011. Higher equivalent production and 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.

Cash flow from operations for the third quarter of 2012 was $164.0 million, compared to the third quarter of 2011 when cash flow from operations was $154.7 million. Discretionary cash flow for the third quarter of 2012 was $175.7 million, compared to the third quarter of 2011 when discretionary cash flow was $165.4 million.

Including the effect of hedges, natural gas price realizations were $3.68 per thousand cubic feet (Mcf) for the third quarter of 2012, down 20 percent compared to the third quarter of 2011. Oil price realizations were $101.34 per barrel, up 17 percent compared to the third quarter of 2011.

About Cabot Oil & Gas Corporation – COG

Cabot Oil & Gas Corporation (COG), headquartered in Houston, Texas is a leading independent natural gas producer, with its entire resource base located in the continental United States.

COG is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. COG’s primary areas of operation include Appalachia, east and south Texas, and Oklahoma. The Company operates in one segment, natural gas and oil development, exploitation and exploration, exclusively in the continental United States. The Company produced 187.5 billion cubic feet of natural gas equivalent, or 513.7 million cubic feet of natural gas equivalent per day, during the year ended December 31, 2011. Its proved reserves totaled approximately 3,033 billion cubic feet of natural gas equivalent at December 31, 2011. During 2011, it drilled 161 gross wells. In October 2011, it sold certain proved oil and gas properties located in Colorado, Utah and Wyoming to Breitburn Energy Partners, L.P. In May 2011, it sold certain of its unproved Haynesville and Bossier Shale oil and gas properties in east Texas to a third party.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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