Cabot Oil & Gas has reported third quarter net income of $38.9 million, or $0.38 per share. Removing the selected items, the quarter's net income was $42.6 million, or $0.41 per share. These figures compare to the 2008 third quarter numbers (for the reported results and after the removal of selected items) of $67.0 million, or $0.65 per share, and $60.1 million, or $0.58 per share, respectively.
Cash flow from operations for the 2009 third quarter totaled $116.7 million, while discretionary cash flow was $158.9 million. Comparatively, 2008 third quarter cash flow from operations was $148.3 million, and discretionary cash flow was $161 million.
"In light of the general market conditions for natural gas, the metrics are very good," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "These results include a five percent increase in third quarter 2009 equivalent production over the third quarter of 2008." The production growth rate was driven by a 24.2 percent increase in the North region production for comparable year over year quarters. Dinges added, "Weighing on the overall growth rate was the sale of our Canadian assets." Pricing, as expected, offset the benefit from increased production. Realized natural gas prices were $7.40 per Mcf in the 2009 third quarter versus $8.66 per Mcf in the 2008 third quarter. Realized oil prices fell 12 percent to $87.49 per barrel. The production and price information have been adjusted to reflect the new North and South regional split for the Company.
Overall costs were up only slightly and were flat on a per unit basis. The largest increases occurred in stock-based compensation and exploration, with the largest declines coming from brokered gas costs and taxes other than income.
For the nine months ended September 30, 2009, Cabot reported net income of $112 million, or $1.08 per share, compared to $167.6 million, or $1.68 per share, for the same period last year. The cash flow comparisons for the nine months ended September 30, 2009 and September 30, 2008, respectively, are cash flow from operations of $417.1 million versus $424.7 million and discretionary cash flow of $430.6 million versus $446.5 million. The 2009 nine-month net income figure, after removal of the selected items, was $123.9 million, or $1.20 per share, versus $187.0 million, or $1.87 per share for the nine-month period ended September 30, 2008.
"The same dynamic that drove the quarter results apply to the year-to-date periods -- increased production and lower price realizations," stated Dinges. "Production was up approximately ten percent while natural gas and oil prices fell by 14 and 13 percent, respectively."
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