HOUSTON, April 28 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today reported that for the first quarter of 2009 the Company had net income of $47.6 million, or $0.46 per share, compared to $46.0 million, or $0.47 per share, for last year's first quarter. The 2009 earnings figure benefited from a gain on the sale of assets and a gain on derivatives in 2009, while both periods were negatively impacted by charges related to stock compensation. Removing these selected items for both first quarter periods, the comparison for net income is $42.2 million, or $0.41 per share, for 2009 versus $57.0 million, or $0.58 per share, in 2008.
The Company also reported cash flow from operations for the quarter of $152.5 million, up almost $20 million from the $132.7 million recorded in last year's first quarter. Discretionary cash flow was relatively flat between comparable periods at $138.0 million for 2009, compared to $138.4 million for 2008.
'The key drivers for the quarter's results were a 16 percent increase in equivalent production and solid price realizations aided by our hedge position,' said Dan O. Dinges, Chairman, President and Chief Executive Officer. 'For the quarter, Cabot reported 25.6 Bcfe of production, compared to last year's first quarter figure of 22.2 Bcfe. This increase represents a combination of growth in our organic program and from production related to last summer's acquisition,' commented Dinges. 'Roughly half was the result of acquired wells and half from our drilling effort.'
Natural gas price realizations were $7.51 per Mcf in 2009 versus $7.92 per Mcf in 2008 for the quarter comparisons. This year's quarter experienced a $3.34 per Mcf pick-up from the Company's hedge position, where last year's impact was only a positive $0.03 per Mcf. While oil comprises a small portion of Cabot's production, the hedge per unit impact was much more dramatic, moving realized oil prices up $39.07 per barrel for the first quarter 2009 versus a decline of $8.60 per barrel in the first quarter 2008.
'Expenses between comparable quarters trended higher but within expectations,' added Dinges. 'DD&A increased due to higher production, costs related to the acquisition and leasehold amortizations.
'In light of the business environment, I am pleased with the quarter results, the areas we have to allocate our capital and the stronger financial position we possess,' said Dinges. 'Even with the current economic conditions, I believe 2009 will be another growth year for Cabot.'
Conference Call
Listen in live to Cabot Oil & Gas Corporation's first quarter financial and operating results discussion with financial analysts on Wednesday, April 29, 2009 at 9:30 a.m. EDT (8:30 a.m. CDT) at www.cabotog.com. A teleconference replay will also be available at (800) 642-1687, (U.S./Canada) or (706) 645-9291 (International), pass code 93093519. The replay will be available through Friday, May 1, 2009. The latest financial guidance, including the Company's hedge positions, along with a replay of the web cast, which will be archived for one year, are available in the investor relations 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 substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; and in the East. For additional information, visit the Company's Internet 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.
