Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Gulf Coast, including onshore Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; and the East.

Cabot Oil & Gas Reports Second Quarter Financial Results and Double-Digit Pro-Forma Production Growth
HOUSTON, July 25 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced second quarter net income of $41.4 million, or $0.43 per share, along with cash flow from operations of $105.9 million and discretionary cash flow of $112.5 million. "These results compare to last year's record second quarter that included higher commodity prices and flush production from several new wells related to the south Louisiana and offshore assets that were sold in the third quarter of 2006," said Dan O. Dinges, Chairman, President and Chief Executive Officer. Net income in the 2006 second quarter was $46.9 million, or $0.48 per share, while cash flow from operations totaled $114.4 million and discretionary cash flow was $111.6 million.
Equivalent production levels in the second quarter grew 13 percent from last year's second quarter with all regions making advances, excluding the benefit of the south Louisiana and offshore production in 2006. "The Company produced 21.2 Bcfe in the 2007 second quarter on the strength of a very successful (98% success rate) organic drilling program," stated Dinges. "When including the sold production for 2006, the Company produced 23.5 Bcfe in last year's second quarter."
The Company's second quarter natural gas price realization benefited from its hedges, adding $0.66 per Mcf, resulting in a $7.24 per Mcf realization for the quarter. This price realization was 7 percent above the comparable 2006 level. Realized oil prices were $61.98 per barrel, 9 percent below the comparable period last year.
Expense levels were generally in line with guidance levels with a slight increase in operating cost and an increase in DD&A, which included a $2.4 million pre-tax increase in amortization of unproved property related to the Company's leasehold. "The DD&A guidance has been adjusted to reflect this increase going forward," commented Dinges. The balance sheet remains strong with an 18.5 percent net debt to total adjusted capitalization rate at quarter's end.