EXHIBIT 99.1

FOR RELEASE	FOR MORE INFORMATION CONTACT
July 28, 2005	Scott Schroeder (281) 589-4993

CABOT OIL & GAS REPORTS

RECORD SECOND QUARTER FINANCIAL RESULTS

HOUSTON, July 28, 2005 - Cabot Oil & Gas Corporation (NYSE: COG) today announced record second quarter earnings and discretionary cash flow. Net income for the quarter rose 83 percent to $35.4 million, or $0.72 per share, versus $19.3 million, or $0.40 per share for the same period last year. In terms of cash flow, the Company reported cash flow from operations of $80.1 million compared to $45.7 million in last year’s second quarter. Discretionary cash flow rose 32 percent to $79.6 million for the quarter. Before giving effect to the non-cash selected items related to the comparable second quarters, Cabot would have reported $33.0 million of net income, or $0.67 per share versus $19.8 million or $0.41 per share last year, still record performance levels (see Selected Items table for details). All information has been adjusted for the first quarter 2005 3-for-2 stock split.

The record financial results are attributable to higher realized commodity prices and improved production for the year-over-year quarterly comparison, the consecutive quarter periods and for the comparative year-to-date periods. Natural gas price realizations reached $6.02 per mcf for the 2005 second quarter, a 20 percent increase over last year’s comparable period. Realized oil price quarterly comparisons were $43.76 per barrel for 2005 versus $31.10 per barrel for 2004. Production improvements were driven by results from the West region, where the Company experienced a nine percent increase between comparable quarters. Advances were also made in the East region with a five percent increase in equivalent production and to a lesser extent new production from Canada. This was offset by a four percent decline in the Gulf Coast region equivalent production.

“Cabot’s financial metrics continue to improve as do the underlying operational prospects,” stated Dan O. Dinges, Chairman, President and Chief Executive Officer. “We anticipate year-over-year production and reserve growth in 2005; the magnitude of any increases, however, will be impacted by timely execution of projects due to the up-tick of business in the service sector.”

In regards to costs, the Company experienced upward pressure in several expense categories in the second quarter, the leader being “Taxes Other Than Income,” which is substantially price driven, followed by higher DD&A, which is a function of the higher cost in the areas in which Cabot does business. Dinges added, “We continue to work hard to manage the cost creep (including goods and services, along with personnel costs) in our industry and its overall impact on our operating results.”

Year-to-Date

For the first six months of 2005, Cabot Oil & Gas reported a new high for net income, cash flow from operations and discretionary cash flow. Reported numbers included: $56.2 million or $1.15 per share, for net income; $188.1 million for cash flow from operations; and $162.3 million for discretionary cash flow. Higher realized commodity prices and higher production drove the improvement.

At June 30, 2005, Cabot had long-term debt of $250 million and a positive working capital position of $14.7 million (which includes $51.9 million of cash and cash equivalents, and $20 million related to the current portion of long-term debt and $42.1 million of mark-to-market liability associated with unrealized derivative losses).

“With the inflationary pressure in drilling costs, accretive opportunities and our strong financial position, we have increased our capital program to $330 million from the original $280 million level,” said Dinges. “This figure includes the increment required for the acquisitions disclosed in the Operations Update press release.”

Late in the second quarter and early in the third quarter, the Company executed two hedges covering 2006 production. Both hedges were wide collars, one covering oil production and one covering natural gas production. The oil hedge consists of 1,000 barrels per day with a $50.00 floor and a $76.00 ceiling for all of 2006. The natural gas hedge is for 25,000 Mmbtu per day, with a floor of $7.00 per Mmbtu and a ceiling of $11.00 per Mmbtu. “These volumes represent only a small portion of the full year anticipated production total,” added Dinges.

Conference Call

Listen in live to Cabot Oil & Gas Corporation’s 2005 second quarter financial and operating results discussion with financial analysts on Friday, July 29, at 9:30am EDT (8:30am 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 8037259. A replay will be available from Friday, July 29 through Friday, August 5, 2005. 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, including the Rocky Mountains and Mid-Continent; the East, with an expansion effort in Canada. For additional information, visit the Company’s Internet homepage at www.cabotog.com.

Forward-Looking Statements

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 June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
PRODUCED NATURAL GAS (Bcf) & OIL (MBbl)
Natural Gas
Gulf Coast		7.3			7.6			14.7			15.2
West		5.7			5.2			11.4			10.8
East		5.1			4.9			10.2			9.3
Canada		0.3			—			0.5			—
Total		18.4			17.7			36.8			35.3
Crude/Condensate/Ngl
Gulf Coast		421			455			827			948
West		45			43			82			84
East		8			7			13			13
Canada		5			0			9			—
Total		479			505			931			1,045
Equivalent Production (Bcfe)		21.3			20.7			42.4			41.6
PRICES
Average Produced Gas Sales Price ($/Mcf)
Gulf Coast	$	6.14		$	5.12		$	6.09		$	5.13
West	$	5.47		$	4.64		$	5.10		$	4.74
East	$	6.54		$	5.29		$	6.44		$	5.53
Canada	$	4.53		$	—		$	4.95		$	—
Total	$	6.02		$	5.02		$	5.86		$	5.12
Crude/Condensate Price ($/Bbl)
Gulf Coast	$	42.86		$	30.43		$	42.19		$	30.57
West	$	52.27		$	37.37		$	50.61		$	35.89
East	$	50.32		$	36.41		$	49.37		$	34.17
Canada	$	35.43		$	—		$	36.83		$	—
Total	$	43.76		$	31.10		$	42.96		$	31.04
WELLS DRILLED
Gross		97			92			141			130
Net		77			84			105			113
Gross Success Rate		98	%		97	%		94	%		98	%

CABOT OIL & GAS RESULTS — Page 5

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)

	Quarter Ended June 30,					Six Months Ended June 30,
	2005		2004			2005		2004
Operating Revenues
Natural Gas Production (1)	$	111,817	$	90,028		$	216,089	$	180,407
Brokered Natural Gas		15,520		15,628			42,012		47,187
Crude Oil and Condensate (1)		23,936		13,552			35,914		26,319
Other		611		534			1,943		2,433
		151,884		119,742			295,958		256,346
Operating Expenses
Brokered Natural Gas Cost		13,701		13,596			36,999		42,317
Direct Operations - Field and Pipeline		14,307		13,114			28,925		25,192
Exploration		11,362		9,568			30,731		25,712
Depreciation, Depletion and Amortization		29,755		27,350			59,822		54,162
General and Administrative (excluding Stock-based Compensation)		7,168		6,935			15,093		13,180
Stock-based Compensation (2)		1,532		2,647			2,567		3,118
Taxes Other Than Income		12,396		9,921			22,114		20,023
		90,221		83,131			196,251		183,704
Gain / (Loss) on Sale of Assets		59		(172	)		59		(113	)
Income from Operations		61,722		36,439			99,766		72,529
Interest Expense and Other		5,134		5,445			10,122		10,822
Income Before Income Taxes		56,588		30,994			89,644		61,707
Income Tax Expense		21,166		11,676			33,460		23,378
Net Income	$	35,422	$	19,318		$	56,184	$	38,329
Net Earnings Per Share - Basic (3)	$	0.72	$	0.40		$	1.15	$	0.79
Average Common Shares Outstanding (3)		48,917		48,789			48,821		48,693

⁽¹⁾ See the “Impact of Mark-to-Market Accounting Requirements” table for additional information.

⁽²⁾ Includes the impact of the Company’s performance share mark-to-market requirement and restricted stock amortization.

⁽³⁾ Reflects the 3-for-2 split of the Company’s Common Stock on March 31, 2005.

CABOT OIL & GAS RESULTS — Page 6

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In thousands)

	June 30, 2005		December 31, 2004
Assets
Current Assets	$	207,400	$	194,679
Property, Equipment and Other Assets		1,058,338		1,001,422
Deferred Income Taxes		14,680		14,855
Total Assets	$	1,280,418	$	1,210,956
Liabilities and Stockholders’ Equity
Current Liabilities	$	192,732	$	196,889
Long-Term Debt		250,000		250,000
Deferred Income Taxes		259,701		247,376
Other Liabilities		62,165		61,029
Stockholders’ Equity		515,820		455,662
Total Liabilities and Stockholders’ Equity	$	1,280,418	$	1,210,956

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Cash Flows From Operating Activities
Net Income	$	35,422		$	19,318		$	56,184		$	38,329
Change in Derivative Fair Value		(3,831	)		653			3,681			6,272
Income Charges Not Requiring Cash		30,679			27,808			62,669			54,883
(Gain) / Loss on Sale of Assets		(59	)		172			(59	)		113
Deferred Income Tax Expense		6,056			2,632			9,078			7,181
Changes in Assets and Liabilities		430			(14,420	)		25,792			10,811
Exploration Expense		11,362			9,568			30,731			25,712
Net Cash Provided by Operations		80,059			45,731			188,076			143,301
Cash Flows From Investing Activities
Capital Expenditures		(74,778	)		(66,719	)		(115,848	)		(102,430	)
Proceeds from Sale of Assets		122			22			710			22
Exploration Expense		(11,362	)		(9,568	)		(30,731	)		(25,712	)
Net Cash Used by Investing		(86,018	)		(76,265	)		(145,869	)		(128,120	)
Cash Flows From Financing Activities
Sale of Common Stock Proceeds		849			6,812			3,580			13,468
Purchase of Treasury Stock		—			(5,342	)		(571	)		(5,342	)
Dividends Paid		(1,957	)		(1,306	)		(3,296	)		(2,602	)
Net Cash Provided / (Used) by Financing		(1,108	)		164			(287	)		5,524
Net Increase / (Decrease) in Cash and Cash Equivalents	$	(7,067	)	$	(30,370	)	$	41,920		$	20,705

CABOT OIL & GAS RESULTS — Page 7

Selected Item Review and Reconciliation of Net Income and Earnings Per Share

(In thousands, except per share amounts)

	Quarter Ended June 30,					Six Months Ended June 30,
	2005			2004		2005			2004
As Reported - Net Income	$	35,422		$	19,318	$	56,184		$	38,329
Reversal of Selected Items, Net of Tax:
(Gain) / Loss on Sale of Assets		(36	)		107		(36	)		70
Change in Derivative Fair Value		(2,370	)		404		2,277			3,882
Net Income Including Reversal of Selected Items	$	33,016		$	19,829	$	58,425		$	42,281
As Reported - Net Earnings Per Share	$	0.72		$	0.40	$	1.15		$	0.79
Per Share Impact of Reversing Selected Items		(0.05	)		0.01		0.05			0.08
Net Earnings Per Share Including Reversal of Selected Items	$	0.67		$	0.41	$	1.20		$	0.87
Average Common Shares Outstanding		48,917			48,789		48,821			48,693

Discretionary Cash Flow Calculation and Reconciliation

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Discretionary Cash Flow
As Reported - Net Income	$	35,422		$	19,318		$	56,184		$	38,329
Plus:
Change in Derivative Fair Value		(3,831	)		653			3,681			6,272
Income Charges Not Requiring Cash		30,679			27,808			62,669			54,883
(Gain) / Loss on Sale of Assets		(59	)		172			(59	)		113
Deferred Income Tax Expense		6,056			2,632			9,078			7,181
Exploration Expense		11,362			9,568			30,731			25,712
Discretionary Cash Flow		79,629			60,151			162,284			132,490
Plus: Changes in Assets and Liabilities		430			(14,420	)		25,792			10,811
Net Cash Provided by Operations	$	80,059		$	45,731		$	188,076		$	143,301

Net Debt Reconciliation

(In thousands)

	June 30, 2005			December 31, 2004
Current Portion of Long-Term Debt	$	20,000		$	20,000
Long-Term Debt		250,000			250,000
Total Debt	$	270,000		$	270,000
Stockholders’ Equity		515,820			455,662
Total Capital	$	785,820		$	725,662
Total Debt	$	270,000		$	270,000
Less: Cash and Cash Equivalents		(51,946	)		(10,026	)
Net Debt	$	218,054		$	259,974
Net Debt	$	218,054		$	259,974
Stockholders’ Equity		515,820			455,662
Total Adjusted Capital	$	733,874		$	715,636
Total Debt to Total Capital Ratio		34.4	%		37.2	%
Less: Impact of Cash and Cash Equivalents		4.7	%		0.9	%
Net Debt to Capitalization Ratio		29.7	%		36.3	%

CABOT OIL & GAS RESULTS — Page 8

Impact of Mark-to-Market Accounting Requirements

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Unrealized Gain / (Loss) on Derivatives (1)
Natural Gas	$	782		$	1,306		$	222		$	(418	)
Crude Oil		3,049			(1,959	)		(3,903	)		(5,854	)
Incentive Stock Compensation Expense (2)
Performance Shares		298			(1,781	)		(114	)		(1,781	)
Mark-to-Market Impact, Before Income Tax	$	4,129		$	(2,434	)	$	(3,795	)	$	(8,053	)
Mark-to-Market Impact, Income Tax		(1,575	)		927			1,447			3,068
Mark-to-Market Impact on Net Income	$	2,554		$	(1,507	)	$	(2,348	)	$	(4,985	)

⁽¹⁾ These amounts represent the unrealized loss associated with the mark-to-market valuation of open positions which do not qualify for hedge accounting or are ineffective. These amounts are reflected in the respective line items of Operating Revenues. Therefore, the computation of our reported realized commodity prices can be obtained by adding the loss from the respective Operating Revenues line item and dividing by reported production.

⁽²⁾ This amount relates to the mark-to-market valuation of the Company’s performance share incentive stock compensation awards that is reflected in general and administrative expense. At June 30, 2005 the Company recognized stock compensation expense based on Cabot’s ranking against a predetermined peer group based on total shareholder return. Cabot must calculate its liability at the balance sheet date under the assumption that its relative ranking remains constant throughout the measurement period, creating an assumed ultimate liability which is then amortized over the measurement period (percent payout multiplied by shares multiplied by stock price at reported balance sheet date multiplied by the pro-rata time expired in the measurement period). Expense recognition will fluctuate between reporting periods due to the valuation of the performance shares at the reported balance sheet date.