-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JDpdibQPTBqsbeOUqTLKQ40P8AX14WfoXCv7J06Dxr/+I6XsBlwhQKojOb9ZNfKc H5P3xeZFKueqOHgS4E9V+g== 0001193125-03-002488.txt : 20030430 0001193125-03-002488.hdr.sgml : 20030430 20030429195552 ACCESSION NUMBER: 0001193125-03-002488 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030429 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CABOT OIL & GAS CORP CENTRAL INDEX KEY: 0000858470 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 043072771 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10447 FILM NUMBER: 03670668 BUSINESS ADDRESS: STREET 1: 1200 ENCLAVE PARKWAY CITY: HOUSTON STATE: TX ZIP: 77077 BUSINESS PHONE: 2815894600 8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): April 29, 2003 CABOT OIL & GAS CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-10447 04-3072771 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 1200 Enclave Parkway Houston, Texas 77077 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (281) 589-4600 Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press release issued by Cabot Oil & Gas Corporation dated April 29, 2003. Item 9. Regulation FD Disclosure The following information is furnished under Item 12 of Form 8-K (Results of Operations and Financial Condition) in accordance with Securities and Exchange Commission Release No. 33-8216. On April 29, 2003, we issued a press release with respect to our 2003 first quarter earnings. The press release is furnished as Exhibit 99.1 to this Current Report and incorporated by reference herein. The press release contains certain measures (discussed below) which may be deemed "non-GAAP financial measures" as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended. In each case, the most directly comparable GAAP financial measure and information reconciling the GAAP and non-GAAP measures is also included in the press release. The information furnished pursuant to this Item 9, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. From time to time management discloses discretionary cash flow and net income excluding selected items and earnings per share excluding selected items. These non-GAAP financial measures and reconciliations to the most comparable GAAP financial measure for the first quarter of 2003 are included in Exhibit 99.1 to this Current Report, furnished to the Securities and Exchange Commission. Discretionary cash flow is defined as net income plus non-cash charges and exploration expense. Discretionary cash flow is widely accepted as a financial indicator of an oil and gas company's ability to generate cash which is used to internally fund exploration and development activities, pay dividends and service debt. Discretionary cash flow is presented based on management's belief that this non-GAAP measure is useful information to investors because it is widely used by professional research analysts in the valuation, comparison, rating and investment recommendations of companies within the oil and gas exploration and production industry. Many investors use the published research of these analysts in making their investment decisions. Discretionary cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities, as defined by GAAP, or as a measure of liquidity, or an alternative to net income. Net income excluding selected items and earnings per share excluding selected items is presented based on managements belief that these non-GAAP measures enable a user of the financial information to understand the impact of these items on reported results. Additionally, this presentation provides a beneficial comparison to similarly adjusted measurements of prior periods. Net income and earnings per share excluding selected items is not a measure of financial performance under GAAP and should not be considered as an alternative to net income and earnings per share, as defined by GAAP. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CABOT OIL & GAS CORPORATION By: /s/ Henry C. Smyth ------------------------------------------------ Henry C. Smyth Vice President, Controller and Treasurer Date: April 29, 2003 EXHIBIT INDEX 99.1 -- Press release issued by Cabot Oil & Gas Corporation dated April 29, 2003. EX-99.1 3 dex991.txt PRESS RELEASE [CABOT OIL & GAS CORPORATION LOGO] NEWS RELEASE 1200 Enclave Parkway, Houston, Texas 77077 P.O. Box 4544, Houston, Texas 77210-4544 (281) 589-4600 FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT: April 29, 2003 Scott Schroeder (281) 589-4993 CABOT OIL & GAS ANNOUNCES FIRST QUARTER RESULTS HOUSTON, April 29, 2003 - Cabot Oil & Gas Corporation (NYSE:COG) today announced its first quarter results which included the impact of two previously disclosed (February 13, 2003) non-cash selected items. For the first three months of the year, the Company recorded a net loss of $39.2 million, or $1.23 per share, and a near doubling of discretionary cash flow to $67.6 million. These figures compare to a net loss of $0.8 million, or $.03 per share, and discretionary cash flow of $34.4 million in the first quarter of 2002. Cash flow from operations was $59.5 million in the first quarter of 2003 versus $29.5 million in the comparable period for last year. Selected Items Detail The 2003 first quarter includes the effects of the Kurten field impairment ($54.4 million after tax) and the adoption of SFAS No. 143 "Accounting for Asset Retirement Obligations" ($6.8 million after tax). Excluding the impact of these selected items Cabot's net income was $22.1 million, or $.69 per share. A detailed reconciliation between this reporting and the GAAP results can be found in the attached statements. Discussion of Results Higher realized commodity prices drove revenues up 81 percent over last year's comparable quarter. Realized natural gas prices averaged $2.53 per Mcf in the first quarter of 2002 and $4.55 per Mcf during this year's first quarter. Oil prices exhibited strong gains with a $30.88 per barrel realization for the 2003 first quarter versus - more - CABOT OIL & GAS / 2 $20.55 per barrel during last year's comparable period. The Company increased its exploration expense with a $5 million additional investment in Gulf Coast seismic over last year's level. Additionally, the significantly higher realized commodity prices resulted in a higher level of production related taxes. Consistent with the Company's first quarter guidance, production was 3 percent below the level reported in the first quarter of last year. Comparing the fourth quarter 2002 to the first quarter of 2003, Cabot's daily production was 242.9 Mmcfe per day in the first quarter of 2003 versus 243.9 Mmcfe per day in the fourth quarter of 2002, essentially flat between periods. Commenting on the quarter, Dan O. Dinges, Chairman, President and Chief Executive Officer stated, "Operationally we continued to make progress through our accelerated development drilling program that yielded a 96 percent success rate and the Hayworth exploration project (Ellender #1, net revenue interest 36.5 percent) that is now producing 13 Mmcfe per day (gross). We have also positioned the Company for future opportunities in the Gulf Coast with our success at the recent offshore lease sale and in Canada with the first quarter opening of our office in Calgary, Alberta." Dinges added, "In terms of our financial position, we were able to absorb the impairment and not adversely impact our balance sheet, which still has a debt to total capitalization ratio of 53 percent." In response to the nuances of Regulation G and other SEC requirements, Cabot has posted on its website at www.cabotog.com in the investor relations section its latest financial guidance for the remaining three quarters of 2003. Additionally, the replay of the webcast will now be archived for one year. - more - CABOT OIL & GAS / 3 Listen in live to Cabot Oil & Gas Corporation's first quarter earnings discussion with financial analysts on Wednesday, April 30 at 9:30 AM EDT (8:30 AM CDT) at www.cabotog.com. A teleconference replay will also be available at (888) 203-1112 (international (719) 457-0820), reservation number 405510. The audio webcast and teleconference replay will be available beginning April 30 at 12:30 PM EDT. Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic 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 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. # # # CABOT OIL & GAS RESULTS -- Page 4 OPERATING DATA Quarter Ended March 31, ------------------- 2003 2002 -------- ------- NATURAL GAS (Bcf) & OIL (MBbl) Produced Natural Gas Gulf Coast 6.7 7.5 West 6.1 6.4 East 4.4 4.5 ------ ------ Total 17.2 18.4 Crude/Condensate Gulf Coast 696 610 West 48 50 East 6 8 ------ ------ Total 750 668 Natural Gas Liquids 29 15 Equivalent Production (Bcfe) 21.9 22.5 PRICES Average Produced Gas Sales Price ($/Mcf) Gulf Coast $ 4.88 $ 2.67 West $ 3.61 $ 2.14 East $ 5.35 $ 2.85 Total $ 4.55 $ 2.53 Crude/Condensate Price ($/Bbl) Gulf Coast $30.84 $20.57 West $32.05 $20.97 East $25.79 $16.41 Total $30.88 $20.55 WELLS DRILLED Gross 25 21 Net 18.5 12.3 Gross Success Rate 88% 95% -more- CABOT OIL & GAS RESULTS -- Page 5 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In Thousands, Except Per Share Amounts) Quarter Ended March 31, 2003 2002 -------- --------- Operating Revenues Natural Gas Production $78,173 $46,506 Brokered Natural Gas 31,850 13,698 Crude Oil and Condensate 23,174 13,718 Change in Derivative Fair Value (544) (616) Other 3,263 1,767 -------- ------- 135,916 75,073 Operating Expenses Brokered Natural Gas Cost 28,261 12,267 Production and Pipeline Operations 10,926 12,235 Exploration 13,391 7,056 Taxes Other Than Income 10,224 6,152 Administrative 6,595 5,739 Depreciation, Depletion and Amortization 25,844 25,547 Impairment of Long-Lived Assets 87,926 1,063 -------- ------- 183,167 70,059 Gain (Loss) on Sale of Assets 560 (18) -------- ------- Income (Loss) from Operations (46,691) 4,996 Interest Expense and Other 5,625 6,226 -------- ------- Loss Before Income Taxes (52,316) (1,230) Income Tax Benefit (19,940) (432) -------- ------- Net Loss Before Cumulative Effect of Accounting Change (32,376) (798) Cumulative Effect of Accounting Change (1) (6,847) - -------- ------- Net Loss $(39,223) $ (798) ======== ======= Net Loss Per Share - Basic $(1.23) $(0.03) Average Common Shares Outstanding 31,837 31,604 (1) Cumulative effect of accounting change relates to the adoption of SFAS 143, "Accounting for Asset Retirement Obligations." -more- CABOT OIL & GAS RESULTS -- Page 6 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (In Thousands) March 31, Dec. 31, 2003 2002 ----------- ------------ Assets Current Assets $ 124,829 $ 93,121 Property, Equipment and Other Assets 888,997 978,767 ------------ ------------ Total Assets $ 1,013,826 $ 1,071,888 ============ ============ Liabilities and Stockholders' Equity Current Liabilities $ 159,695 $ 121,890 Long-Term Debt 338,000 365,000 Deferred Income Taxes 161,641 200,207 Other Liabilities 55,452 34,134 Stockholders' Equity 299,038 350,657 ------------ ------------ Total Liabilities and Stockholders' Equity $ 1,013,826 $ 1,071,888 ============ ============ CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (In Thousands) Quarter Ended March 31, -------------------------- 2003 2002 ---------- ------------ Cash Flows From Operating Activities Net Loss $(39,223) $ (798) Cumulative Effect of Accounting Change 6,847 - Change in Derivative Fair Value 544 616 Impairment of Long-Lived Assets 87,926 1,063 Income Charges Not Requiring Cash 25,705 26,911 (Gain) Loss on Sale of Assets (560) 18 Deferred Income Taxes (27,010) (471) Changes in Assets and Liabilities (8,073) (4,846) Exploration Expense 13,391 7,056 ---------- ---------- Net Cash Provided by Operations 59,547 29,549 Cash Flows From Investing Activities Capital Expenditures (21,321) (41,062) Proceeds from Sale of Assets 1,602 (2) Exploration Expense (13,391) (7,056) ---------- ---------- Net Cash Used by Investing (33,110) (48,120) Cash Flows From Financing Activities Sale of Common Stock 498 105 Increase (Decrease) in Debt (27,000) 19,000 Common Dividends and Other (1,273) (1,264) ---------- ---------- Net Cash Provided (Used) by Financing (27,775) 17,841 Net Decrease in Cash and Cash Equivalents $ (1,338) $ (730) ========== ========== -more- CABOT OIL & GAS RESULTS -- Page 7 Selected Item Review and Reconciliation of Net Income (Loss) and Earnings (Loss) Per Share (In Thousands, Except Per Share Amounts)
Quarter Ended March 31, ------------------------- 2003 2002 ---------- ---------- As Reported - Net Loss $(39,223) $ (798) Reversal of Selected Items, Net of Tax: Impairment of Long-Lived Assets 54,426 657 Cumulative Effect of Accounting Change 6,847 - -------- ------- Net Income Including Reversal of Selected Items $ 22,050 $ (141) ======== ======= As Reported - Net Loss Per Share $ (1.23) $ (0.03) Per Share Impact of Reversing Selected Items 1.92 0.02 -------- ------- Net Income (Loss) Per Share Including Reversal of Selected Items $ 0.69 $ (0.01) ======== ======= Average Common Shares Outstanding 31,837 31,604
Discretionary Cash Flow Calculation and Reconciliation (In Thousands)
Quarter Ended March 31, ------------------------- 2003 2002 ---------- ---------- Discretionary Cash Flow As Reported - Net Loss $ (39,223) $ (798) Plus: Cumulative Effect of Accounting Change 6,847 - Change in Derivative Fair Value 544 616 Impairment of Long-Lived Assets 87,926 1,063 Income Charges Not Requiring Cash 25,705 26,911 (Gain) Loss on Sale of Assets (560) 18 Deferred Income Taxes (27,010) (471) Exploration Expense 13,391 7,056 ---------- --------- Discretionary Cash Flow 67,620 34,395 Plus: Changes in Assets and Liabilities (8,073) (4,846) ---------- --------- Net Cash Provided by Operations $ 59,547 $ 29,549 ========== =========
-----END PRIVACY-ENHANCED MESSAGE-----