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CABOT OIL & GAS REPORTS 1991 YEAR-END RESULTS

 CABOT OIL & GAS REPORTS 1991 YEAR-END RESULTS
 HOUSTON, Jan. 31 /PRNewswire/ -- Cabot Oil & Gas Corporation


(NYSE: COG) today reported financial results for the fourth quarter and the year ended Dec. 31, 1991.
 The company reported net income available to all common shareholders of $0.2 million, or 1 cent per share, for the year 1991, compared to pro forma net income of $10.0 million, or 49 cents per share, for the year 1990 -- adjusted as though the company's initial public offering (IPO) of stock had been completed on Jan. 1, 1990.
 Comparatively, earnings for calendar year 1990, reflecting the company's actual IPO date of Feb. 14, 1990, were $13.1 million, or 64 cents per share, which included 9 cents for a FERC Order No. 451 reserve reversal.
 Cabot Oil & Gas followed its February 1990 IPO with a successful stock exchange by Cabot Corporation in March 1991 at which time COG became a 100 percent publicly-owned comany.
 According to Charles P. Siess Jr., chairman of the board and chief executive officer, "The reduction in earnings can be attributed to declining natural gas prices and increased exploration costs, along with the non-recurring expenses associated with the stock exchange transaction, a non-cash income tax charge, and the company's recently- announced cost reduction program.
 "With these various non-recurring charges now behind us, and with our company-wide cost reduction program moving ahead, we continue to have great confidence in the long-term outlook for Cabot Oil & Gas," said Siess.
 Average 1991 natural gas sales prices declined 13 cents per thousand cubic feet (Mcf), or 6 percent, from 1990 to $2.12 per Mcf.
 Yet, Siess noted, the effect on production revenues was somewhat offset by a natural gas production volume increase of 5 percent -- primarily from its Anadarko properties -- as Cabot Oil & Gas produced 43.7 Bcf of gas in 1991, compared to 41.5 Bcf in 1990. Total gas sales volume increased 5.3 Bcf, or 9 percent, up to 62.3 Bcf for the year.
 As a result, 1991 operating revenues increased $4.8 million to $140.5 million, from $135.7 million in calendar year 1990.
 COG drilled a total of 137.2 net gas and oil wells in 1991, slightly up from 126.8 net wells in 1990. Gross well counts were 144 for both years.
 Total 1991 administrative costs included non-recurring charges of $1.4 million associated with the stock exchange transaction, and another $2.4 million associated with the company's cost reduction program (announced Jan. 21, 1992). The program is designed to reduce costs by $4 million annually after 1992.
 In addition, 1991 earnings were adversely affected by a non-cash income tax charge of $3.1 million, or 15 cents per share, due to a required adjustment to deferred taxes caused by a change in Pennsylvania state income tax law.
 After the $1.5 million one-time year-end charge for the cost reduction program, discretionary cash flow for 1991 was $38.4 million, or $1.88 per share, a decline from $42.4 million, or $2.07 per share. Comparatively, 1990 discretionary cash flow on a pro forma basis would have been $40.4 million, or $1.97 per share, had the IPO occurred on Jan. 1, 1990.
 Fourth Quarter 1991
 For the most recent three-month period, Cabot Oil & Gas reported a net loss of $0.3 million, or 2 cents per share, as compared to a net income of $7.2 million, or 35 cents per share, in the fourth quarter of 1990.
 Once again, the decrease was a result of declining gas prices which fell 8 cents per Mcf on a period-to-period basis to an average of $2.30, resulting in a $1.4 million revenue impact to the company.
 In the fourth quarter, COG also recorded non-recurring costs of $2.4 million (7 cents per share) for the cost reduction program, and $3.1 million (15 cents per share) resulting from the income tax law change in Pennsylvania.
 Last year's fourth quarter included additional income of $4.6 million (14 cents per share) attributable to the FERC Order No. 451 reserve reversal.
 Operating revenues for the fourth quarter of 1991 were $42.8 million, relatively flat from $43.8 million for the same period of 1990.
 Discretionary cash flow for the quarter was $9.3 million, down $2.2 million from the corresponding quarter of the previous year, due primarily to the provision for the company's cost reduction program.
 Cabot Oil & Gas is one of the nation's largest independent domestic natural gas producers in terms of natural gas reserves; with corporate headquarters in Houston and regional offices located in Pittsburgh, Pa., Charleston, W.Va., and Oklahoma City, Okla.
 CABOT OIL & GAS CORPORATION
 Operating Data
 (Unaudited)
 Periods ended Three Months 12 Months
 Dec. 31 1991 1990 1991 1990
 Produced natural gas
 volumes (Bcf):
 Appalachia 6.9 7.4 26.6 26.2
 Anadarko 5.1 4.1 17.1 15.3
 Total 12.0 11.5 43.7 41.5
 Purchased natural gas
 volumes (Bcf):
 Appalachia 4.0 4.4 16.8 13.3
 Anadarko 0.9 0.8 3.8 1.8
 Total 4.9 5.2 20.6 15.1
 Purchased gas cost ($/Mcf) $2.07 $2.06 $1.75 $1.85
 Natural gas sales
 volumes (Bcf):
 Appalachia 11.4 12.2 41.7 39.9
 Anadarko 5.9 5.0 20.6 17.1
 Total 17.3 17.2 62.3 57.0
 Average gas sales
 prices ($/Mcf):
 Appalachia $2.58 $2.72 $2.43 $2.60
 Anadarko $1.75 $1.54 $1.49 $1.44
 Weighted average $2.30 $2.38 $2.12 $2.25
 Crude/condensate
 volumes (MBbl) 37 40 148 181
 Crude/condensate
 price ($/Bbl) $20.95 $34.49 $19.80 $23.34
 Number wells drilled:
 Gross 22 52 144 144
 Net 19.7 48.2 137.2 126.8
 CABOT OIL & GAS CORPORATION
 Condensed Consolidated Statement of Income
 (Unaudited)
 (In millions except per share amount)
 Periods ended Three Months 12 Months
 Dec. 31 1991 1990 1991 1990
 Revenues:
 Natural gas $39.7 $40.8 $132.1 $126.8
 Crude oil and condensate 0.7 1.4 2.9 4.2
 Other 2.4 1.6 5.5 4.7
 Total 42.8 43.8 140.5 135.7
 Costs and expenses:
 Costs of natural gas 11.6 11.6 36.4 32.5
 Operations 8.8 7.5 32.3 31.7
 Exploration 2.0 1.2 8.1 5.7
 Administrative and other 8.2 7.6 22.7 21.8
 Depreciation, depletion
 and amortization 5.8 7.6 27.2 26.3
 Total 36.4 35.5 126.7 118.0
 Other income (expense) (0.3) 4.7 (0.1) 7.9
 Income from operations 6.1 13.0 13.7 25.6
 Interest income -- 2.0 1.8 8.4
 Interest expense (2.4) (2.3) (9.4) (7.7)
 Income before income taxes 3.7 12.7 6.1 26.3
 Income tax expense 4.0 4.3 4.8 9.1
 Net income (loss) (0.3) 8.4 1.3 17.2
 Earnings dedicated to
 Class B common stock -- 1.2 1.1 4.1
 Net income (loss) available
 to all common stockholders $(0.3) $ 7.2 $0.2 $13.1
 Earnings (loss) per share $(0.02) $0.35 $0.01 $0.64
 Pro forma (A):
 Net income (loss) $10.0
 Earnings (loss) per share $0.49
 Common shares outstg. (A) 20,465 20,465 20,465 20,465
 (A) -- Amounts and shares for the periods ended Dec. 31, 1990, reflect results as though the company's initial public offering had been completed on Jan. 1, 1990.
 CABOT OIL & GAS CORPORATION
 Condensed Consolidated Balance Sheet
 (Unaudited)
 (In millions)
 12/31/91 12/31/90
 Current assets $ 32.9 $ 35.8
 Other assets 301.4 284.9
 Total assets 334.3 320.7
 Current liabilities 35.9 37.4
 Long-term debt 105.0 91.5
 Deferred income taxes 71.9 66.3
 Other deferred liabilities 2.3 3.6
 Stockholders' equity 119.2 121.9
 Total liabilities and stockholders' equity $334.3 $320.7
 CABOT OIL & GAS CORPORATION
 Condensed Consolidated Statement of Cash Flows
 (Unaudited)
 (In millions)
 Periods ended Three Months 12 Months
 Dec. 31 1991 1990 1991 1990
 Discretionary cash flow (A) $ 9.3 $11.5 $ 38.4 $42.4
 Changes in assets and
 liabilities, net (8.5) (8.1) 0.7 7.1
 Cash provided by operations 0.8 3.4 39.1 49.5
 Capital expenditures (9.0) (15.6) (46.0) (46.9)
 Proceeds from sale of assets 1.3 -- 2.0 4.5
 Exploration expense (2.0) (1.2) (8.1) (5.7)
 Increase in debt 6.7 11.5 13.5 91.5
 Dividends paid - regular (0.8) (0.8) (3.3) (2.4)
 Dividends paid - special -- -- (93.4) (140.0)
 Proceeds from sale of stock -- -- -- 55.7
 Other financing activities -- -- 93.4 (7.5)
 Net increase (decrease) in
 cash and cash equivalents $(3.0) $(2.7) $(2.8) $ (1.3)
 (A) -- Net income plus non-cash charges and exploration.
 -0- 1/31/92
 /CONTACT: Roger Klatt, 713-589-4636, or Steve Tholen, 713-589-4696, both of Cabot Oil & Gas; or Lou Resweber of Hill and Knowlton, 713-623-5033, for Cabot Oil & Gas/
 (COG) CO: Cabot Oil & Gas Corporation ST: Texas IN: OIL SU: ERN


GK -- NY041 -- 5663 01/31/92 13:41 EST
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