RSS   Newsletter   Contact   Advertise with us
Post Online Media
Post Online Media Magazine

Cabot Oil & Gas net income was $104.5 million

Share on Twitter Share on LinkedIn
Staff writer ▼ | February 23, 2015
Cabot Oil Gas
Oil industry   $0.25 per share

Cabot Oil & Gas Corporation reported financial and operating results for the fourth quarter and full-year ended December 31, 2014. Equivalent production was 531.8 Bcfe in 2014, consisting of 508 billion cubic feet (Bcf) of natural gas and 4.0 Mmbbls of liquids production.

These figures represent increases of 29 percent, 29 percent, and 23 percent, respectively, compared to 2013.

Net income was $104.5 million in 2014, or $0.25 per share, compared to $279.8 million, or $0.67 per share, in 2013. Net income for the full-year 2014 included the impact of a non-cash, after-tax charge of $486.7 million associated with the impairment of certain non-core fields, primarily in East Texas, due to a significant decline in commodity prices and management's decision not to purs

Excluding the effect of this impairment and other selected items (detailed in the table below), net income was $404.6 million, or $0.97 per share, in 2014, compared to $298.1 million, or $0.71 per share, in 2013.

Cash flow from operations in 2014 was $1.2 billion, compared to $1.0 billion in 2013. Discretionary cash flow was $1.3 billion in 2014, compared to $1.1 billion in 2013. Higher equivalent production drove the year's overall improvement, partially offset by lower realized natural gas and crude oil prices and increased absolute operating expenses associated with higher production.

Natural gas price realizations, including the impact of derivatives, were $3.28 per thousand cubic feet (Mcf) in 2014, down 8 percent compared to 2013. Oil price realizations, including the impact of derivatives, were $88.50 per barrel (Bbl), down 12 percent compared to 2013.

Total per unit costs (including financing) decreased to $2.56 per Mcfe in 2014, an improvement of 16 percent from $3.03 per Mcfe in 2013.

Fourth Quarter 2014 Financial Results

Equivalent production in the fourth quarter of 2014 was 151.9 Bcfe, consisting of 143.8 Bcf of natural gas and 1.4 Mmbbls of liquids. These figures represent increases of 25 percent, 23 percent, and 56 percent, respectively, compared to the fourth quarter of 2013.

Net loss in the fourth quarter of 2014 was ($221.8) million, or ($0.54) per share, compared to net income of $77.9 million, or $0.19 per share, in the fourth quarter of 2013.

Excluding the effect of the impairment and other selected items (detailed in the table below), net income was $95.3 million, or $0.23 per share, in the fourth quarter of 2014, compared to $74.4 million, or $0.18 per share, in the fourth quarter of 2013.

Cash flow from operations in the fourth quarter of 2014 was $293.2 million, compared to $257.9 million in the fourth quarter of 2013. Discretionary cash flow in the fourth quarter of 2014 was $324.2 million, compared to $284.5 million in the fourth quarter of 2013.

Natural gas price realizations, including the impact of derivatives, were $2.96 per Mcf in the fourth quarter of 2014, down 14 percent compared to the fourth quarter of 2013. Oil price realizations, including the impact of derivatives, were $72.35 per Bbl, down 24 percent compared to the fourth quarter of 2013.

Total per unit costs (including financing) decreased to $2.47 per Mcfe in the fourth quarter of 2014, a 13 percent improvement compared to $2.83 per Mcfe in the fourth quarter of 2013.

As of December 31, 2014, the company's total debt was $1.8 billion. Total lender commitments under the company's revolving credit facility are $1.4 billion, with $1.3 billion of available borrowing capacity under the facility at December 31, 2014.

In response to the decline in both crude oil and natural gas prices since Cabot released its initial 2015 budget in October 2014, the company has adjusted its 2015 operating plan to realign its capital budget with anticipated operating cash flows.

Based on budgeted price realizations (including the impact of hedges) of $2.45 per Mcf for natural gas and $55.00 per Bbl for crude oil, Cabot's updated 2015 capital budget is $900 million (excluding approximately $70 million of contributions to our equity investments in Constitution Pipeline and Central Penn Line).


What to read next
POST Online Media Contact