Delaware | 1-10447 | 04-3072771 | ||
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||
of incorporation) | Identification No.) |
Three Memorial City Plaza | ||
840 Gessner Road, Suite 1400 | ||
Houston, Texas | 77024 | |
(Address of principal executive offices) | (Zip Code) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
99.1 | Press release issued by Cabot Oil & Gas Corporation dated February 19, 2016 |
CABOT OIL & GAS CORPORATION | |||
By: | /S/ TODD M. ROEMER | ||
Todd M. Roemer | |||
Controller | |||
Date: | February 19, 2016 |
February 19, 2016 | FOR MORE INFORMATION CONTACT |
Matt Kerin (281) 589-4642 |
• | Total company all-sources finding and development costs of $0.57 per Mcfe |
• | Marcellus-only all-sources finding and development costs of $0.31 per Mcf |
• | Total company all-sources reserve replacement of 231 percent |
• | Marcellus-only all-sources reserve replacement of 278 percent |
Proved Reserves Reconciliation (in Bcfe) | ||
Balance at December 31, 2014 | 7,401 | |
Revisions of prior estimates | 426 | |
Extensions, discoveries and other additions | 966 | |
Production | (603 | ) |
Balance at December 31, 2015 | 8,190 |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
PRODUCTION | |||||||||||||||
VOLUMES | |||||||||||||||
Natural Gas (Bcf) | |||||||||||||||
Appalachia | 140.4 | 141.0 | 556.0 | 495.6 | |||||||||||
Other | 2.4 | 2.8 | 10.0 | 12.4 | |||||||||||
Total | 142.8 | 143.8 | 566.0 | 508.0 | |||||||||||
Liquids (Mbbl) | |||||||||||||||
Crude/Condensate | 1,203 | 1,242 | 5,429 | 3,588 | |||||||||||
Natural Gas Liquids (NGLs) | 175 | 112 | 667 | 373 | |||||||||||
Equivalent Production (Bcfe) | 151.0 | 151.9 | 602.5 | 531.8 | |||||||||||
PRICES(1) | |||||||||||||||
Average Natural Gas Sales Price ($/Mcf) | |||||||||||||||
Appalachia | $ | 1.94 | $ | 2.94 | $ | 2.15 | $ | 3.26 | |||||||
Other | $ | 2.20 | $ | 3.85 | $ | 2.61 | $ | 4.34 | |||||||
Total | $ | 1.94 | $ | 2.96 | $ | 2.15 | $ | 3.28 | |||||||
Average Crude/Condensate Price ($/Bbl) | $ | 37.74 | $ | 72.35 | $ | 45.72 | $ | 88.50 | |||||||
Average NGL Price ($/Bbl) | $ | 11.69 | $ | 26.44 | $ | 12.56 | $ | 31.81 | |||||||
WELLS DRILLED | |||||||||||||||
Gross | 28 | 75 | 142 | 200 | |||||||||||
Net | 27 | 68 | 133 | 177 | |||||||||||
Gross success rate | 100 | % | 100 | % | 100 | % | 100 | % |
(1) | These realized prices include the realized impact of derivative instrument settlements. |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Realized Impacts to Gas Pricing | $ | 0.42 | $ | 0.16 | $ | 0.34 | $ | (0.13 | ) | ||||||
Realized Impacts to Oil Pricing | $ | — | $ | 3.54 | $ | — | $ | 0.85 |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
OPERATING REVENUES | |||||||||||||||
Natural gas | $ | 217,084 | $ | 372,085 | $ | 1,025,044 | $ | 1,590,625 | |||||||
Crude oil and condensate | 45,407 | 85,842 | 248,211 | 313,889 | |||||||||||
Gain (loss) on derivative instruments | 12,018 | 149,742 | 56,686 | 219,319 | |||||||||||
Brokered natural gas | 3,733 | 6,622 | 16,383 | 34,416 | |||||||||||
Other | 2,550 | 3,713 | 10,826 | 14,762 | |||||||||||
280,792 | 618,004 | 1,357,150 | 2,173,011 | ||||||||||||
OPERATING EXPENSES | |||||||||||||||
Direct operations | 33,867 | 36,288 | 140,814 | 145,529 | |||||||||||
Transportation and gathering | 105,936 | 101,614 | 427,588 | 349,321 | |||||||||||
Brokered natural gas | 2,949 | 5,459 | 12,592 | 30,030 | |||||||||||
Taxes other than income | 8,511 | 10,218 | 42,809 | 47,012 | |||||||||||
Exploration | 8,500 | 8,783 | 27,460 | 28,746 | |||||||||||
Depreciation, depletion and amortization | 149,876 | 173,765 | 622,211 | 632,760 | |||||||||||
Impairment of oil and gas properties(1) | 114,875 | 771,037 | 114,875 | 771,037 | |||||||||||
General and administrative (excluding stock-based compensation) | 13,777 | 14,919 | 55,764 | 61,134 | |||||||||||
Stock-based compensation(2) | 2,058 | 6,333 | 13,680 | 21,456 | |||||||||||
440,349 | 1,128,416 | 1,457,793 | 2,087,025 | ||||||||||||
Earnings (loss) on equity method investments | 1,834 | 1,262 | 6,415 | 3,080 | |||||||||||
Gain (loss) on sale of assets | 52 | 19,855 | 3,866 | 17,120 | |||||||||||
INCOME (LOSS) FROM OPERATIONS | (157,671 | ) | (489,295 | ) | (90,362 | ) | 106,186 | ||||||||
Interest expense | 24,666 | 23,471 | 96,911 | 73,785 | |||||||||||
Income (loss) before income taxes | (182,337 | ) | (512,766 | ) | (187,273 | ) | 32,401 | ||||||||
Income tax expense (benefit)(3) | (71,213 | ) | (290,995 | ) | (73,382 | ) | (72,067 | ) | |||||||
NET INCOME (LOSS) | $ | (111,124 | ) | $ | (221,771 | ) | $ | (113,891 | ) | $ | 104,468 | ||||
Earnings (loss) per share - Basic | $ | (0.27 | ) | $ | (0.54 | ) | $ | (0.28 | ) | $ | 0.25 | ||||
Weighted-average common shares outstanding | 413,875 | 413,035 | 413,696 | 415,840 |
(1) | Includes the impairment of oil and gas properties in the fourth quarter of 2015 in certain non-core fields in south Texas, east Texas and Louisiana due to a significant decline in commodity prices in late 2015. Includes the impairment of oil and gas properties in the fourth quarter of 2014 in certain non-core fields, primarily in east Texas, due to a significant decline in commodity prices in late 2014 and management's decision not to pursue further activity in these non-core areas in the current price environment. |
(2) | Includes the impact of the Company's performance share awards, restricted stock, stock appreciation rights and expense associated with the Supplemental Employee Incentive Plan. |
(3) | Includes the impact of incremental deferred income tax (benefit) expense due to a change in state income tax rates used in establishing deferred state income taxes based on updated state apportionment factors in states in which it operates as a result of the composition and location of the Company’s asset base and the location of the Company’s customers. In the fourth quarter of 2015 and 2014, the Company recorded a deferred income tax expense of $2.8 million and deferred income tax benefit of $102.5 million, respectively. |
December 31, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Current assets | $ | 144,786 | $ | 413,447 | |||
Properties and equipment, net (Successful efforts method) | 4,976,879 | 4,925,711 | |||||
Other assets | 140,234 | 98,558 | |||||
Total assets | $ | 5,261,899 | $ | 5,437,716 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | $ | 235,552 | $ | 499,018 | |||
Long-term debt, excluding current maturities | 2,005,000 | 1,752,000 | |||||
Deferred income taxes | 807,236 | 843,876 | |||||
Other liabilities | 204,923 | 200,089 | |||||
Stockholders’ equity | 2,009,188 | 2,142,733 | |||||
Total liabilities and stockholders’ equity | $ | 5,261,899 | $ | 5,437,716 |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net income (loss) | $ | (111,124 | ) | $ | (221,771 | ) | $ | (113,891 | ) | $ | 104,468 | ||||
Deferred income tax expense (benefit) | (81,194 | ) | (294,006 | ) | (72,968 | ) | (112,567 | ) | |||||||
Impairment of oil and gas properties | 114,875 | 771,037 | 114,875 | 771,037 | |||||||||||
(Gain) loss on sale of assets | (52 | ) | (19,855 | ) | (3,866 | ) | (17,120 | ) | |||||||
Exploratory dry hole cost | 3,268 | 1,453 | 3,452 | 7,907 | |||||||||||
(Gain) loss on derivative instruments | (12,018 | ) | (149,742 | ) | (56,686 | ) | (219,319 | ) | |||||||
Net cash received (paid) in settlement of derivative instruments | 60,462 | 56,905 | 194,289 | 81,716 | |||||||||||
Income charges not requiring cash | 151,124 | 180,186 | 633,895 | 655,863 | |||||||||||
Changes in assets and liabilities | 30,442 | (31,022 | ) | 41,637 | (35,550 | ) | |||||||||
Net cash provided by operating activities | 155,783 | 293,185 | 740,737 | 1,236,435 | |||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Capital expenditures | (135,763 | ) | (514,891 | ) | (955,602 | ) | (1,479,632 | ) | |||||||
Acquisitions | — | (198,911 | ) | (16,312 | ) | (214,737 | ) | ||||||||
Proceeds from sale of assets | 273 | 35,579 | 7,653 | 39,492 | |||||||||||
Restricted cash | — | — | — | 28,094 | |||||||||||
Investment in equity method investments | (8,275 | ) | (9,273 | ) | (29,073 | ) | (38,057 | ) | |||||||
Net cash used in investing activities | (143,765 | ) | (687,496 | ) | (993,334 | ) | (1,664,840 | ) | |||||||
Cash Flows From Financing Activities | |||||||||||||||
Net increase (decrease) in debt | (12,000 | ) | 140,000 | 273,000 | 605,000 | ||||||||||
Treasury stock repurchases | — | (19,085 | ) | — | (138,852 | ) | |||||||||
Dividends paid | (8,278 | ) | (8,260 | ) | (33,090 | ) | (33,278 | ) | |||||||
Stock-based compensation tax benefit | — | (7,376 | ) | — | (1,375 | ) | |||||||||
Capitalized debt issuance costs | — | — | (7,838 | ) | (5,626 | ) | |||||||||
Other | 1 | (1 | ) | 85 | 90 | ||||||||||
Net cash provided by (used in) financing activities | (20,277 | ) | 105,278 | 232,157 | 425,959 | ||||||||||
Net decrease in cash and cash equivalents | $ | (8,259 | ) | $ | (289,033 | ) | $ | (20,440 | ) | $ | (2,446 | ) |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
As reported - net income (loss) | $ | (111,124 | ) | $ | (221,771 | ) | $ | (113,891 | ) | $ | 104,468 | ||||
Reversal of selected items, net of tax: | |||||||||||||||
Impairment of oil and gas properties | 72,736 | 486,669 | 72,736 | 486,669 | |||||||||||
(Gain) loss on sale of assets | (33 | ) | (12,525 | ) | (2,448 | ) | (10,800 | ) | |||||||
(Gain) loss on derivative instruments(1) | 30,673 | (58,564 | ) | 87,126 | (86,803 | ) | |||||||||
Drilling rig termination fees | — | — | 3,219 | — | |||||||||||
Stock-based compensation expense | 1,303 | 3,995 | 8,662 | 13,535 | |||||||||||
Deferred income tax expense (benefit)(2) | — | (102,490 | ) | — | (102,490 | ) | |||||||||
Net income (loss) excluding selected items | $ | (6,445 | ) | $ | 95,314 | $ | 55,404 | $ | 404,579 | ||||||
As reported - earnings (loss) per share | $ | (0.27 | ) | $ | (0.54 | ) | $ | (0.28 | ) | $ | 0.25 | ||||
Per share impact of reversing selected items | 0.25 | 0.77 | 0.41 | 0.72 | |||||||||||
Earnings per share including reversal of selected items | $ | (0.02 | ) | $ | 0.23 | $ | 0.13 | $ | 0.97 | ||||||
Weighted average common shares outstanding | 413,875 | 413,035 | 413,696 | 415,840 |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Discretionary Cash Flow | |||||||||||||||
As reported - net income (loss) | $ | (111,124 | ) | $ | (221,771 | ) | $ | (113,891 | ) | $ | 104,468 | ||||
Plus (less): | |||||||||||||||
Deferred income tax expense (benefit) | (81,194 | ) | (294,006 | ) | (72,968 | ) | (112,567 | ) | |||||||
Impairment of oil and gas properties | 114,875 | 771,037 | 114,875 | 771,037 | |||||||||||
(Gain) loss on sale of assets | (52 | ) | (19,855 | ) | (3,866 | ) | (17,120 | ) | |||||||
Exploratory dry hole cost | 3,268 | 1,453 | 3,452 | 7,907 | |||||||||||
(Gain) loss on derivative instruments | (12,018 | ) | (149,742 | ) | (56,686 | ) | (219,319 | ) | |||||||
Net cash received (paid) in settlement of derivative instruments | 60,462 | 56,905 | 194,289 | 81,716 | |||||||||||
Income charges not requiring cash | 151,124 | 180,186 | 633,895 | 655,863 | |||||||||||
Discretionary Cash Flow | 125,341 | 324,207 | 699,100 | 1,271,985 | |||||||||||
Changes in assets and liabilities | 30,442 | (31,022 | ) | 41,637 | (35,550 | ) | |||||||||
Net cash provided by operations | $ | 155,783 | $ | 293,185 | $ | 740,737 | $ | 1,236,435 |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
As reported - net income (loss) | $ | (111,124 | ) | $ | (221,771 | ) | $ | (113,891 | ) | $ | 104,468 | ||||
Plus (less): | |||||||||||||||
Interest expense | 24,666 | 23,471 | 96,911 | 73,785 | |||||||||||
Income tax expense (benefit) | (71,213 | ) | (290,995 | ) | (73,382 | ) | (72,067 | ) | |||||||
Depreciation, depletion and amortization | 149,876 | 173,765 | 622,211 | 632,760 | |||||||||||
Impairment of oil and gas properties | 114,875 | 771,037 | 114,875 | 771,037 | |||||||||||
Exploration | 8,500 | 8,783 | 27,460 | 28,746 | |||||||||||
(Gain) loss on sale of assets | (52 | ) | (19,855 | ) | (3,866 | ) | (17,120 | ) | |||||||
Non-cash (gain) loss on derivative instruments | 48,444 | (92,837 | ) | 137,603 | (137,603 | ) | |||||||||
(Earnings) loss on equity method investments | (1,834 | ) | (1,262 | ) | (6,415 | ) | (3,080 | ) | |||||||
Stock-based compensation and other | 2,058 | 6,333 | 13,680 | 21,456 | |||||||||||
EBITDAX | $ | 164,196 | $ | 356,669 | $ | 815,186 | $ | 1,402,382 |
December 31, 2015 | December 31, 2014 | ||||||
Current portion of long-term debt | $ | 20,000 | $ | — | |||
Long-term debt | 2,005,000 | 1,752,000 | |||||
Total debt | $ | 2,025,000 | $ | 1,752,000 | |||
Stockholders’ equity | 2,009,188 | 2,142,733 | |||||
Total Capitalization | $ | 4,034,188 | $ | 3,894,733 | |||
Total debt | $ | 2,025,000 | $ | 1,752,000 | |||
Less: Cash and cash equivalents | (514 | ) | (20,954 | ) | |||
Net Debt | $ | 2,024,486 | $ | 1,731,046 | |||
Net debt | $ | 2,024,486 | $ | 1,731,046 | |||
Stockholders’ equity | 2,009,188 | 2,142,733 | |||||
Total Adjusted Capitalization | $ | 4,033,674 | $ | 3,873,779 | |||
Total debt to total capitalization ratio | 50.2 | % | 45.0 | % | |||
Less: Impact of cash and cash equivalents | — | % | 0.3 | % | |||
Net Debt to Adjusted Capitalization Ratio | 50.2 | % | 44.7 | % |