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CABOT OIL & GAS REPORTS SECOND QUARTER NET RESULTS

 CABOT OIL & GAS REPORTS SECOND QUARTER NET RESULTS
 HOUSTON, July 28 /PRNewswire/ -- Cabot Oil & Gas Corporation


(NYSE: COG) today reported a net loss for the second quarter of $2.4 million, or 12 cents per share, after taking into account a charge of $2.7 million, or 13 cents per share, for settlement of a previously announced tax dispute between the company and its former parent, Cabot Corporation. Net income for the first six months was $0.4 million, or 2 cents per share, net of the charge for the tax settlement. Excluding this charge, net income for the second quarter would have been $0.3 million, or 1 cent per share, compared with a net loss of $1.9 million, or 9 cents per share, in the prior year. Net income for six months would have been $3.1 million, or 15 cents per share, compared with $2.4 million, or 12 cents per share, in the prior year.
 Cabot Oil & Gas Chairman and Chief Executive Officer Charles P. Seiss, Jr. said, "We are very pleased with the improved results for the quarter although they are obscured by the 13 cent per share charge for the tax settlement. The improvement resulted from higher production, slightly higher prices, and lower operating and administrative costs."
 Natural gas production volumes for the quarter were up 9 percent over last year, to 11.3 billion cubic feet (Bcf), or 0.9 Bcf higher than in the prior year. For the six-month period, natural gas production was up 10 percent, to 23.6 Bcf compared with 21.4 Bcf during the same period last year. The increase in production volume is attributable to the company's Anadarko region.
 The company's average natural gas price for the second quarter increased to $1.95 per thousand cubic feet (Mcf) from $1.91 per Mcf in 1991. Prices increased 9 cents per Mcf from the prior year's quarter in both the Appalachia and Anadarko regions. However, due to increased sales from the company's Anadarko region, where prices are lower than in Appalachia, the company's weighted average price increased only 4 cents per Mcf. The average natural gas price for the first six months was down 9 percent at $1.96 per Mcfd compared with $2.16 per Mcf during the same period in 1991 principally as a result of depressed natural gas prices in the first quarter.
 "We are very optimistic about future gas prices. U.S. demand for natural gas grew at the rate of 4.7 percent during the first five months of this year. Prediction are that natural gas drilling in the U.S. will only replace approximately 50 percent of domestic 1992 production," Seiss said.
 As a ret? of the company's previously announced cost reduction program, operating and administrative costs were down 11 percent, or $1.4 million for the second quarter. For the first six months, cost were down 9 percent, or $2.3 million, compared with 1991.
 Discretionary cash flow for the quarter was $5.2 million. Without the tax settlement charge, die?tionary cash flow would have been $7.9 million compared with $5.5 million in 1991. Discretionary cash flow for the first six months of the year, without the tax settlement charge, would have been $21.3 million compared with $21.9 million last year.
 Cabot Oil & Gas is a leading U.S. independent natural gas producer and marketer, headquartered in Houston, with regional offices in Pittsburgh; Charleston W.Va.; and Oklahoma City, Okla.
 CABOT OIL & GAS RESULTS
 OPERATING DATA
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Produced Natural Gas
 Volumes (Bcf)
 Appalachia 6.2 6.7 13.1 13.5
 Anadarko 5.1 3.7 10.5 7.9
 Total 11.3 10.4 23.6 21.4
 Purchased Natural Gas
 Volumes (Bcf)
 Appalachia 3.3 4.3 6.6 8.7
 Anadarko 1.0 1.0 2.0 2.0
 Total 4.3 5.3 8.6 10.7
 Purchased Gas Costs
 ($/Mcf) $1.64 $1.44 $1.61 $1.73
 Natural Gas Sales
 Volumes (Bcf)
 Appalachia 8.7 9.1 20.5 22.1
 Anadarko 6.0 4.8 12.5 9.9
 Total 14.7 13.9 33.0 32.0
 Average Gas Sales Prices
 ($/Mcf)
 Appalachia $2.30 $2.21 $2.32 $2.46
 Anadarko $1.44 $1.35 $1.36 $1.49
 Total $1.95 $1.91 $1.96 $2.16
 Crude/Condensate Volumes
 (MBbl) 38 39 79 73
 Crude/Condensate Price
 (MBbl) $19.11 $19.23 $18.39 $19.13
 Number of Wells Drilled
 Gross 20 21 33 77
 Net 18.0 19.6 26.6 72.6
 CABOT OIL & GAS
 Condensed Consolidated Statement of Income
 (in millions, except per share amount)
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues:
 Natural gas $28.7 $26.4 $64.6 $69.1
 Crude Oil and Condensate 0.7 0.8 1.4 1.4
 Other 1.3 1.0 3.0 2.2
 Total 30.7 28.2 69.0 72.7
 Costs and Expenses:
 Costs of natural gas 6.6 7.3 16.7 19.9
 Operations 7.7 8.0 15.6 16.1
 Exploration 1.5 1.8 3.0 3.6
 Administrative and other 4.2 5.3 8.3 10.1
 Depreciation, depletion
 and amortization 7.7 7.3 16.0 14.9
 Total 27.7 29.7 59.6 64.6
 Other income (expense) --- --- 0.1 0.2
 Income (loss) from operations 3.0 (1.5) 9.5 8.3
 Interest income --- 0.1 --- 1.8
 Interest expense (2.4) (2.3) (4.8) (4.6)
 Income (loss) before
 income taxes 0.6 (3.7) 4.7 5.5
 Income tax expense (benefit)(a) 3.0 (1.8) 4.3 2.0
 Net income (loss) (2.4) (1.9) 0.4 3.5
 Earnings dedicated to
 Class B common stock --- --- --- 1.1
 Net income (loss) available
 to all common stockholders $(2.4) $(1.9) $0.4 $2.4
 Earnings (loss) per share(a) $(0.12) $(0.09) $0.02 $0.12
 Common shares outstanding
 (in thousands) 20,465 20,465 20,465 20,465
 Condensed Consolidated Balance Sheet
 (Unaudited)
 June 30, Dec. 31,
 1992 1991
 (in millions)
 Current assets $23.0 $32.9
 Property, equipment and
 other assets 301.1 301.4
 Total assets $324.1 $334.3
 Current liabilities $33.4 $35.9
 Long-term debt 98.0 105.0
 Deferred income taxes 71.3 71.9
 Other Liabilities 3.4 2.3
 Stockholders' equity 118.0 119.2
 Total liabilities and
 stockholders' equity $324.1 $334.3
 Condensed Consolidated Statement of Cash Flows
 (Unaudited)
 Three Months Ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 (in millions) (in millions)
 Net income (loss) (a) $(2.4) $(1.9) $0.4 $3.5
 Income charges
 not requiring cash 6.1 5.7 15.2 14.8
 Changes in assets and
 liabilities, net 1.2 2.8 7.5 8.2
 Exploration expense 1.5 1.8 3.0 3.6
 Cash provided by
 operations 6.4 8.4 26.1 30.1
 Capital expenditures (7.7) (9.9) (15.6) (24.4)
 Proceeds from sale
 of assets -- (0.1) 0.1 0.6
 Exploration expense (1.5) (1.8) (3.0) (3.6)
 Cash used by investing (9.2) (11.8) (18.5) (27.4)
 Increase (decrease)
 in debt 4.0 2.3 (7.0) (3.0)
 Dividends and other
 net (0.8) (0.8) (1.6) (1.6)
 Cash provided (used)
 by financing 3.2 1.5 (8.6) (4.6)
 Net increase (decrease)
 in cash and cash
 equivalents $0.4 $(1.9) $(1.0) $(1.9)
 Discretionary cash
 flow- (a)(b) $5.2 $5.5 $18.6 $21.9
 Note(a)-1992 includes $2.7 million expense for settlement of prior
 period taxes
 (b)-Net income plus non-cash charges and exploration.
 -0- 7/28/92
 /CONTACT: Roger Klatt, 713-589-4636, or Steve Tholen, 713-589-4696, of Cabot Oil & Gas/
 (COG) CO: Cabot Oil & Gas Corporation ST: Texas IN: OIL SU: ERN


TM -- NE008 -- 4001 07/28/92 10:51 EDT
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Date:Jul 28, 1992
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