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Cabot Oil & Gas Corp. Reports Operating Results (10-K)

February 28, 2011 | About:

Cabot Oil & Gas Corp. (NYSE:COG) filed Annual Report for the period ended 2010-12-31.

Cabot Oil & Gas Corp. has a market cap of $4.76 billion; its shares were traded at around $45.79 with a P/E ratio of 46.72 and P/S ratio of 5.64. The dividend yield of Cabot Oil & Gas Corp. stocks is 0.26%. Cabot Oil & Gas Corp. had an annual average earning growth of 15.9% over the past 10 years. GuruFocus rated Cabot Oil & Gas Corp. the business predictability rank of 4.5-star.Hedge Fund Gurus that owns COG: Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns COG: Robert Rodriguez of FPA Capital, First Pacific Advisors of First Pacific Advisors, LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, PRIMECAP Management, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

In 2010, natural gas prices decreased from the price levels experienced during 2009, while crude oil prices increased. Our 2010 average realized natural gas price was $5.54 per Mcf, 26% lower than the 2009 average realized price of $7.47 per Mcf. Our 2010 average realized crude oil price was $97.91 per Bbl, 14% higher than the 2009 average realized price of $85.52 per Bbl. These realized prices include realized gains and losses resulting from commodity derivatives. For information about the impact of these derivatives on realized prices, refer to the Results of Operations section in Item 7 of this Annual Report on Form 10-K.

In 2010, our investment program totaled $891.5 million, including lease acquisition ($130.7 million) and drilling and facilities ($654.2 million) programs. Our capital spending was funded through cash on hand, operating cash flow, borrowings on our revolving credit facility, proceeds from our new senior notes offering and select asset sales.

In September 2010, we amended and restated our revolving credit facility to increase the available credit line to $900 million and with an accordion feature allowing us to increase the available credit line to $1.0 billion, if any one or more of the existing banks or new banks agree to provide such increased commitment amount. The amended facility provides for a $1.5 billion borrowing base and extends the term of the agreement to September 2015.

In April 2009, we sold substantially all of our Canadian properties to Tourmaline Oil Corporation (Tourmaline) in exchange for cash and common stock shares of Tourmaline. In November 2010, we sold our investment in Tourmaline for $61.3 million and recognized a $40.7 million gain on sale of assets.

In August 2008, we completed the acquisition of producing properties, leasehold acreage and a natural gas gathering infrastructure in east Texas (the east Texas acquisition). We paid total net cash consideration of approximately $604.0 million. In order to finance the east Texas acquisition, we completed a public offering of 5,002,500 shares of our common stock in June 2008, receiving net proceeds of $313.5 million, and we closed a private placement in July 2008 of $425 million principal amount of 6.51% weighted average senior unsecured fixed rate notes.

Our 2010 total capital and exploration spending was $891.5 million compared to $640.4 million in 2009. In both 2010 and 2009, we allocated our planned program for capital and exploration expenditures among our various operating regions based on return expectations, availability of services and human resources. We plan to continue such method of allocation in 2011. Funding of the program is expected to be provided by operating cash flow, existing cash and, if required, borrowings under our credit facility. For 2011, the North region is expected to receive approximately 58% of the anticipated capital program, with the remaining 42% dedicated to the South region. In 2011, we plan to spend approximately $600 million on capital and exploration activities.

Read the The complete Report

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