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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Cabot Oil and Gas Corp | NYSE:COG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 22.25 | 0 | 01:00:00 |
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FORM 10-Q
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CABOT OIL & GAS CORPORATION
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(Exact name of registrant as specified in its charter)
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DELAWARE
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04-3072771
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Page
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(In thousands, except share amounts)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
579,316
|
|
|
$
|
514
|
|
Accounts receivable, net
|
|
100,871
|
|
|
120,229
|
|
||
Income taxes receivable
|
|
4,187
|
|
|
4,323
|
|
||
Inventories
|
|
15,948
|
|
|
17,049
|
|
||
Derivative instruments
|
|
18,994
|
|
|
—
|
|
||
Other current assets
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1,371
|
|
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2,671
|
|
||
Total current assets
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720,687
|
|
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144,786
|
|
||
Properties and equipment, net (Successful efforts method)
|
|
4,837,814
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4,976,879
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|
||
Equity method investments
|
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117,178
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103,517
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|
||
Other assets
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27,029
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|
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27,856
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||
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$
|
5,702,708
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$
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5,253,038
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||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
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|
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Current liabilities
|
|
|
|
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|
||
Accounts payable
|
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$
|
147,994
|
|
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$
|
160,407
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Current portion of long-term debt
|
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20,000
|
|
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20,000
|
|
||
Accrued liabilities
|
|
17,826
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|
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24,923
|
|
||
Interest payable
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13,562
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|
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30,222
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|
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Total current liabilities
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199,382
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|
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235,552
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|
||
Postretirement benefits
|
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36,244
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35,293
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|
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Long-term debt, net
|
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1,583,192
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|
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1,996,139
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Deferred income taxes
|
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780,295
|
|
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807,236
|
|
||
Asset retirement obligations
|
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130,795
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|
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143,606
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|
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Other liabilities
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28,740
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|
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26,024
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|
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Total liabilities
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2,758,648
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3,243,850
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Commitments and contingencies
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Stockholders' equity
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Common stock:
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Authorized — 960,000,000 shares of $0.10 par value in 2016 and 2015, respectively
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|
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Issued — 474,892,215 shares and 423,768,593 shares in 2016 and 2015, respectively
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47,489
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42,377
|
|
||
Additional paid-in capital
|
|
1,711,233
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721,997
|
|
||
Retained earnings
|
|
1,492,538
|
|
|
1,552,014
|
|
||
Accumulated other comprehensive income (loss)
|
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(365
|
)
|
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(365
|
)
|
||
Less treasury stock, at cost:
|
|
|
|
|
|
|
||
9,892,680 shares in 2016 and 2015, respectively
|
|
(306,835
|
)
|
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(306,835
|
)
|
||
Total stockholders' equity
|
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2,944,060
|
|
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2,009,188
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||
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$
|
5,702,708
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|
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$
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5,253,038
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Three Months Ended
March 31, |
||||||
(In thousands, except per share amounts)
|
|
2016
|
|
2015
|
||||
OPERATING REVENUES
|
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|
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|
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Natural gas
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$
|
227,578
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|
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$
|
360,191
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Crude oil and condensate
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30,676
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62,558
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Gain (loss) on derivative instruments
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18,994
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34,123
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Brokered natural gas
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3,180
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4,827
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Other
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1,513
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3,066
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281,941
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464,765
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OPERATING EXPENSES
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Direct operations
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26,035
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36,017
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Transportation and gathering
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109,652
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121,235
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|
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Brokered natural gas
|
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2,566
|
|
|
3,739
|
|
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Taxes other than income
|
|
5,994
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|
|
11,280
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|
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Exploration
|
|
6,383
|
|
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8,732
|
|
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Depreciation, depletion and amortization
|
|
161,887
|
|
|
175,497
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|
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General and administrative
|
|
28,376
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|
|
22,529
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340,893
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379,029
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|
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Earnings (loss) on equity method investments
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2,009
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|
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1,421
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|
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Gain (loss) on sale of assets
|
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1,354
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138
|
|
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INCOME (LOSS) FROM OPERATIONS
|
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(55,589
|
)
|
|
87,295
|
|
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Interest expense
|
|
24,375
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|
|
23,566
|
|
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Income (loss) before income taxes
|
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(79,964
|
)
|
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63,729
|
|
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Income tax expense (benefit)
|
|
(28,770
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)
|
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23,474
|
|
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NET INCOME (LOSS)
|
|
$
|
(51,194
|
)
|
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$
|
40,255
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|
||||
Earnings (loss) per share
|
|
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Basic
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$
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(0.12
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)
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$
|
0.10
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Diluted
|
|
$
|
(0.12
|
)
|
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$
|
0.10
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding
|
|
|
|
|
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|
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Basic
|
|
431,841
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|
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413,344
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|
||
Diluted
|
|
431,841
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|
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414,771
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||
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|
|
||||
Dividends per common share
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
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Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net income (loss)
|
|
$
|
(51,194
|
)
|
|
$
|
40,255
|
|
Adjustments to reconcile net income (loss) to cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation, depletion and amortization
|
|
161,887
|
|
|
175,497
|
|
||
Deferred income tax expense (benefit)
|
|
(28,973
|
)
|
|
15,081
|
|
||
(Gain) loss on sale of assets
|
|
(1,354
|
)
|
|
(138
|
)
|
||
Exploratory dry hole cost
|
|
—
|
|
|
162
|
|
||
(Gain) loss on derivative instruments
|
|
(18,994
|
)
|
|
(34,123
|
)
|
||
Net cash received (paid) in settlement of derivative instruments
|
|
—
|
|
|
37,685
|
|
||
Earnings of equity method investments
|
|
(2,009
|
)
|
|
(1,421
|
)
|
||
Amortization of debt issuance costs
|
|
1,191
|
|
|
1,267
|
|
||
Stock-based compensation
|
|
10,606
|
|
|
5,911
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||
Accounts receivable, net
|
|
19,358
|
|
|
49,615
|
|
||
Income taxes
|
|
233
|
|
|
8,979
|
|
||
Inventories
|
|
1,101
|
|
|
(61
|
)
|
||
Other current assets
|
|
1,300
|
|
|
(192
|
)
|
||
Accounts payable, accrued liabilities and interest payable
|
|
(31,292
|
)
|
|
(29,629
|
)
|
||
Other assets and liabilities
|
|
230
|
|
|
1,930
|
|
||
Stock-based compensation tax benefit
|
|
—
|
|
|
(3,437
|
)
|
||
Net cash provided by operating activities
|
|
62,090
|
|
|
267,381
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(92,237
|
)
|
|
(395,242
|
)
|
||
Proceeds from sale of assets
|
|
49,828
|
|
|
3,081
|
|
||
Investment in equity method investments
|
|
(11,652
|
)
|
|
(5,078
|
)
|
||
Net cash used in investing activities
|
|
(54,061
|
)
|
|
(397,239
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Borrowings from debt
|
|
90,000
|
|
|
382,000
|
|
||
Repayments of debt
|
|
(503,000
|
)
|
|
(257,000
|
)
|
||
Sale of common stock, net
|
|
995,278
|
|
|
—
|
|
||
Dividends paid
|
|
(8,282
|
)
|
|
(8,263
|
)
|
||
Stock-based compensation tax benefit
|
|
—
|
|
|
3,437
|
|
||
Capitalized debt issuance costs
|
|
(3,223
|
)
|
|
—
|
|
||
Other
|
|
—
|
|
|
2,678
|
|
||
Net cash provided by financing activities
|
|
570,773
|
|
|
122,852
|
|
||
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
|
578,802
|
|
|
(7,006
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
514
|
|
|
20,954
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
579,316
|
|
|
$
|
13,948
|
|
|
|
|
|
|
||||
Supplemental non-cash transactions:
|
|
|
|
|
||||
Change in accrued capital costs
|
|
$
|
(549
|
)
|
|
$
|
(91,644
|
)
|
(In thousands)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Proved oil and gas properties
|
|
$
|
7,483,181
|
|
|
$
|
8,821,146
|
|
Unproved oil and gas properties
|
|
324,488
|
|
|
390,434
|
|
||
Gathering and pipeline systems
|
|
242,962
|
|
|
243,672
|
|
||
Land, building and other equipment
|
|
114,596
|
|
|
117,848
|
|
||
|
|
8,165,227
|
|
|
9,573,100
|
|
||
Accumulated depreciation, depletion and amortization
|
|
(3,327,413
|
)
|
|
(4,596,221
|
)
|
||
|
|
$
|
4,837,814
|
|
|
$
|
4,976,879
|
|
|
|
Constitution
|
|
Meade
|
|
Total
|
||||||||||||||||||
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||||||||
(In thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Balance at beginning of period
|
|
$
|
90,345
|
|
|
$
|
64,268
|
|
|
$
|
13,172
|
|
|
$
|
3,761
|
|
|
$
|
103,517
|
|
|
$
|
68,029
|
|
Contributions
|
|
6,250
|
|
|
3,000
|
|
|
5,402
|
|
|
2,078
|
|
|
11,652
|
|
|
5,078
|
|
||||||
Earnings (loss) on equity method investments
|
|
2,011
|
|
|
1,427
|
|
|
(2
|
)
|
|
(6
|
)
|
|
2,009
|
|
|
1,421
|
|
||||||
Balance at end of period
|
|
$
|
98,606
|
|
|
$
|
68,695
|
|
|
$
|
18,572
|
|
|
$
|
5,833
|
|
|
$
|
117,178
|
|
|
$
|
74,528
|
|
(In thousands)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Total Debt
|
|
|
|
|
||||
7.33% weighted-average senior notes
|
|
$
|
20,000
|
|
|
$
|
20,000
|
|
6.51% weighted-average senior notes
|
|
425,000
|
|
|
425,000
|
|
||
9.78% senior notes
|
|
67,000
|
|
|
67,000
|
|
||
5.58% weighted-average senior notes
|
|
175,000
|
|
|
175,000
|
|
||
3.65% weighted-average senior notes
|
|
925,000
|
|
|
925,000
|
|
||
Revolving credit facility
|
|
—
|
|
|
413,000
|
|
||
|
|
$
|
1,612,000
|
|
|
$
|
2,025,000
|
|
Unamortized debt issuance costs
|
|
(8,808
|
)
|
|
(8,861
|
)
|
||
Total debt, net
(1)
|
|
$
|
1,603,192
|
|
|
$
|
2,016,139
|
|
|
|
|
|
|
|
|
|
Collars
|
|
Swaps
|
|||||||||||||||
|
|
|
|
|
|
|
Floor
|
|
Ceiling
|
|
|
|||||||||||||
Type of Contract
|
|
Volume
|
|
Contract Period
|
|
Range
|
|
Weighted-Average
|
|
Range
|
|
Weighted- Average
|
|
Weighted- Average
|
||||||||||
Natural gas
|
|
52.0
|
|
Bcf
|
|
Apr. 2016 - Oct. 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2.51
|
|
|||
Crude oil
|
|
1.4
|
|
Mmbbl
|
|
Apr. 2016 - Dec. 2016
|
|
$
|
38.00
|
|
|
$
|
38.00
|
|
|
$47.10-$47.50
|
|
$
|
47.28
|
|
|
|
(In thousands)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Derivative assets
|
|
|
|
|
|
|
||
Gross amounts of recognized assets
|
|
$
|
18,994
|
|
|
$
|
—
|
|
Gross amounts offset in the statement of financial position
|
|
—
|
|
|
—
|
|
||
Net amounts of assets presented in the statement of financial position
|
|
18,994
|
|
|
—
|
|
||
Gross amounts of financial instruments not offset in the statement of financial position
|
|
—
|
|
|
—
|
|
||
Net amount
|
|
$
|
18,994
|
|
|
$
|
—
|
|
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Cash received (paid) on settlement of derivative instruments
|
|
|
|
|
|
|
||
Gain (loss) on derivative instruments
|
|
$
|
—
|
|
|
$
|
37,685
|
|
Non-cash gain (loss) on derivative instruments
|
|
|
|
|
|
|
||
Gain (loss) on derivative instruments
|
|
18,994
|
|
|
(3,562
|
)
|
||
|
|
$
|
18,994
|
|
|
$
|
34,123
|
|
(In thousands)
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
|
Balance at March 31, 2016
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan
|
|
$
|
13,013
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,013
|
|
Derivative instruments
|
|
—
|
|
|
15,347
|
|
|
3,647
|
|
|
18,994
|
|
||||
Total assets
|
|
$
|
13,013
|
|
|
$
|
15,347
|
|
|
$
|
3,647
|
|
|
$
|
32,007
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred compensation plan
|
|
$
|
25,144
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,144
|
|
Total liabilities
|
|
$
|
25,144
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,144
|
|
(In thousands)
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
|
Balance at December 31, 2015
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan
|
|
$
|
12,921
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,921
|
|
Total assets
|
|
$
|
12,921
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,921
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred compensation plan
|
|
$
|
22,371
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,371
|
|
Total liabilities
|
|
$
|
22,371
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,371
|
|
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Balance at beginning of period
|
|
$
|
—
|
|
|
$
|
85,958
|
|
Total gains (losses) (realized or unrealized):
|
|
|
|
|
|
|
||
Included in earnings
|
|
3,647
|
|
|
17,840
|
|
||
Included in other comprehensive income
|
|
—
|
|
|
—
|
|
||
Settlements
|
|
—
|
|
|
(20,473
|
)
|
||
Transfers in and/or out of level 3
|
|
—
|
|
|
—
|
|
||
Balance at end of period
|
|
$
|
3,647
|
|
|
$
|
83,325
|
|
|
|
|
|
|
||||
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period
|
|
$
|
3,647
|
|
|
$
|
(2,663
|
)
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
(In thousands)
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
||||||||
Debt
|
|
$
|
1,603,192
|
|
|
$
|
1,506,177
|
|
|
$
|
2,016,139
|
|
|
$
|
1,839,530
|
|
Current maturities
|
|
(20,000
|
)
|
|
(20,219
|
)
|
|
(20,000
|
)
|
|
(20,378
|
)
|
||||
Long-term debt
|
|
$
|
1,583,192
|
|
|
$
|
1,485,958
|
|
|
$
|
1,996,139
|
|
|
$
|
1,819,152
|
|
(In thousands)
|
|
Three Months Ended
March 31, 2016 |
||
Balance at beginning of period
|
|
$
|
145,606
|
|
Liabilities incurred
|
|
1,746
|
|
|
Liabilities settled
|
|
(53
|
)
|
|
Liabilities divested
|
|
(16,353
|
)
|
|
Accretion expense
|
|
1,849
|
|
|
Balance at end of period
|
|
$
|
132,795
|
|
|
|
Grant Date
|
|
March 31, 2016
|
||
Fair value per performance share award
|
|
$
|
18.57
|
|
|
$5.40 - $11.24
|
Assumptions:
|
|
|
|
|
|
|
Stock price volatility
|
|
34.4
|
%
|
|
36.1% - 51.9%
|
|
Risk free rate of return
|
|
0.9
|
%
|
|
0.5% - 0.8%
|
|
|
Three Months Ended
March 31, |
||||
(In thousands)
|
|
2016
|
|
2015
|
||
Weighted-average shares - basic
|
|
431,841
|
|
|
413,344
|
|
Dilution effect of stock appreciation rights and stock awards at end of period
|
|
—
|
|
|
1,427
|
|
Weighted-average shares - diluted
|
|
431,841
|
|
|
414,771
|
|
|
|
|
|
|
||
Weighted-average shares excluded from diluted EPS due to the anti-dilutive effect
|
|
700
|
|
|
401
|
|
(In thousands)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Accounts receivable, net
|
|
|
|
|
|
|
||
Trade accounts
|
|
$
|
97,205
|
|
|
$
|
116,772
|
|
Joint interest accounts
|
|
2,215
|
|
|
2,013
|
|
||
Other accounts
|
|
2,484
|
|
|
2,557
|
|
||
|
|
101,904
|
|
|
121,342
|
|
||
Allowance for doubtful accounts
|
|
(1,033
|
)
|
|
(1,113
|
)
|
||
|
|
$
|
100,871
|
|
|
$
|
120,229
|
|
|
|
|
|
|
||||
Inventories
|
|
|
|
|
|
|
||
Tubular goods and well equipment
|
|
$
|
14,186
|
|
|
$
|
14,655
|
|
Natural gas in storage
|
|
1,762
|
|
|
2,364
|
|
||
Other accounts
|
|
—
|
|
|
30
|
|
||
|
|
$
|
15,948
|
|
|
$
|
17,049
|
|
|
|
|
|
|
||||
Other assets
|
|
|
|
|
|
|
||
Deferred compensation plan
|
|
$
|
13,013
|
|
|
$
|
12,921
|
|
Debt issuance costs
|
|
13,957
|
|
|
14,871
|
|
||
Other accounts
|
|
59
|
|
|
64
|
|
||
|
|
$
|
27,029
|
|
|
$
|
27,856
|
|
|
|
|
|
|
||||
Accounts payable
|
|
|
|
|
|
|
||
Trade accounts
|
|
$
|
28,942
|
|
|
$
|
30,038
|
|
Natural gas purchases
|
|
1,101
|
|
|
2,231
|
|
||
Royalty and other owners
|
|
69,776
|
|
|
75,106
|
|
||
Accrued capital costs
|
|
26,930
|
|
|
27,479
|
|
||
Taxes other than income
|
|
16,904
|
|
|
14,628
|
|
||
Other accounts
|
|
4,341
|
|
|
10,925
|
|
||
|
|
$
|
147,994
|
|
|
$
|
160,407
|
|
|
|
|
|
|
||||
Accrued liabilities
|
|
|
|
|
|
|
||
Employee benefits
|
|
$
|
8,725
|
|
|
$
|
13,870
|
|
Taxes other than income
|
|
6,104
|
|
|
5,073
|
|
||
Income taxes payable
|
|
97
|
|
|
—
|
|
||
Other accounts
|
|
2,900
|
|
|
5,980
|
|
||
|
|
$
|
17,826
|
|
|
$
|
24,923
|
|
|
|
|
|
|
||||
Other liabilities
|
|
|
|
|
|
|
||
Deferred compensation plan
|
|
$
|
25,144
|
|
|
$
|
22,371
|
|
Other accounts
|
|
3,596
|
|
|
3,653
|
|
||
|
|
$
|
28,740
|
|
|
$
|
26,024
|
|
•
|
Equivalent production
decrease
d
11.0
Bcfe, or
6%
, from
171.4
Bcfe, or
1.9
Bcfe per day, in
2015
to
160.3
Bcfe, or
1.8
Bcfe per day, in
2016
.
|
•
|
Natural gas production
decrease
d
8.7
Bcf, or
5%
, from
161.8
Bcf in
2015
to
153.1
Bcf in
2016
, as a result of
reduced drilling activity in Pennsylvania due to the current commodity price environment
.
|
•
|
Crude oil/condensate/NGL production
decrease
d
0.4
Mmbbls, or
25%
, from
1.6
Mmbbls in
2015
to
1.2
Mmbbls in
2016
,
as a result of a decrease in drilling activity in south Texas due to the current commodity price environment
.
|
•
|
Average realized natural gas price was
$1.49
per Mcf,
39%
lower
than the
$2.46
per Mcf realized in the comparable period of the prior year.
|
•
|
Average realized crude oil price was
$27.65
per Bbl,
37%
lower
than the
$43.82
per Bbl realized in the comparable period of the prior year.
|
•
|
Drilled
10
gross wells (
10.0
net) with a success rate of
100%
compared to
43
gross wells (
41.9
net) with a success rate of
100%
for the comparable period of the prior year.
|
•
|
Total capital expenditures were
$91.7 million
compared to
$303.4 million
in the comparable period of the prior year.
|
•
|
Average rig count during 2016 was approximately 1.2 rigs in the Marcellus Shale and approximately 0.5 rigs in the Eagle Ford Shale, compared to an average rig count in the Marcellus Shale of approximately 4.7 rigs and approximately 3.4 rigs in the Eagle Ford Shale in the comparable period of the prior year.
|
•
|
In the first quarter of 2016, we completed a public offering of our common stock and received net proceeds of
$995.6 million
, after deducting underwriting discounts and commissions.
|
•
|
Continuing to exercise discipline in our capital program by reducing our capital expenditures and number of wells drilled compared to the prior year.
|
•
|
Continuing to optimize our drilling, completion and operational efficiencies, resulting in lower operating costs per unit of production.
|
•
|
Continuing to manage our balance sheet, including the recent issuance of common stock which allowed us to pay down the outstanding balance under our revolving credit facility, leaving us with sufficient availability under our revolving credit facility to meet our capital requirements and maintain compliance with our debt covenants.
|
•
|
Continuing to manage price risk by strategically hedging our natural gas and crude oil production.
|
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Cash flows provided by operating activities
|
|
$
|
62,090
|
|
|
$
|
267,381
|
|
Cash flows used in investing activities
|
|
(54,061
|
)
|
|
(397,239
|
)
|
||
Cash flows provided by financing activities
|
|
570,773
|
|
|
122,852
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
578,802
|
|
|
$
|
(7,006
|
)
|
(Dollars in thousands)
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Debt
|
|
$
|
1,603,192
|
|
|
$
|
2,016,139
|
|
Stockholders' equity
|
|
2,944,060
|
|
|
2,009,188
|
|
||
Total capitalization
|
|
$
|
4,547,252
|
|
|
$
|
4,025,327
|
|
Debt to total capitalization
|
|
35
|
%
|
|
50
|
%
|
||
Cash and cash equivalents
|
|
$
|
579,316
|
|
|
$
|
514
|
|
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Capital expenditures
|
|
|
|
|
|
|
||
Drilling and facilities
|
|
$
|
90,913
|
|
|
$
|
293,501
|
|
Leasehold acquisitions
|
|
344
|
|
|
9,415
|
|
||
Property acquisitions
|
|
—
|
|
|
151
|
|
||
Pipeline and gathering
|
|
269
|
|
|
186
|
|
||
Other
|
|
162
|
|
|
183
|
|
||
|
|
91,688
|
|
|
303,436
|
|
||
Exploration expenditures
|
|
6,383
|
|
|
8,732
|
|
||
Total
|
|
$
|
98,071
|
|
|
$
|
312,168
|
|
|
|
Three Months Ended March 31,
|
|
Variance
|
|||||||||||
Revenue Variances (In thousands)
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|||||||
Natural gas
|
|
$
|
227,578
|
|
|
$
|
360,191
|
|
|
$
|
(132,613
|
)
|
|
(37
|
)%
|
Crude oil and condensate
|
|
30,676
|
|
|
62,558
|
|
|
(31,882
|
)
|
|
(51
|
)%
|
|||
Gain (loss) on derivative instruments
|
|
18,994
|
|
|
34,123
|
|
|
(15,129
|
)
|
|
(44
|
)%
|
|||
Brokered natural gas
|
|
3,180
|
|
|
4,827
|
|
|
(1,647
|
)
|
|
(34
|
)%
|
|||
Other
|
|
1,513
|
|
|
3,066
|
|
|
(1,553
|
)
|
|
(51
|
)%
|
|||
|
|
$
|
281,941
|
|
|
$
|
464,765
|
|
|
$
|
(182,824
|
)
|
|
(39
|
)%
|
|
|
Three Months Ended March 31,
|
|
Variance
|
|
Increase
(Decrease)
(In thousands)
|
|||||||||||||
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|
||||||||||
Price Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas
|
|
$
|
1.49
|
|
|
$
|
2.23
|
|
|
$
|
(0.74
|
)
|
|
(33
|
)%
|
|
$
|
(113,212
|
)
|
Crude oil and condensate
|
|
$
|
27.65
|
|
|
$
|
43.82
|
|
|
$
|
(16.17
|
)
|
|
(37
|
)%
|
|
(17,947
|
)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(131,159
|
)
|
|||
Volume Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas (Bcf)
|
|
153.1
|
|
|
161.8
|
|
|
(8.7
|
)
|
|
(5
|
)%
|
|
$
|
(19,401
|
)
|
|||
Crude oil and condensate (Mbbl)
|
|
1,110
|
|
|
1,428
|
|
|
(318
|
)
|
|
(22
|
)%
|
|
(13,935
|
)
|
||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(33,336
|
)
|
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Cash received (paid) on settlement of derivative instruments
|
|
|
|
|
|
|
||
Gain (loss) on derivative instruments
|
|
$
|
—
|
|
|
$
|
37,685
|
|
Non-cash gain (loss) on derivative instruments
|
|
|
|
|
||||
Gain (loss) on derivative instruments
|
|
18,994
|
|
|
(3,562
|
)
|
||
|
|
$
|
18,994
|
|
|
$
|
34,123
|
|
|
|
Three Months Ended March 31,
|
|
Variance
|
|
Price and
Volume
Variances
(In thousands)
|
|||||||||||||
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|
||||||||||
Brokered Natural Gas Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales price ($/Mcf)
|
|
$
|
2.20
|
|
|
$
|
3.29
|
|
|
$
|
(1.09
|
)
|
|
(33
|
)%
|
|
$
|
(1,573
|
)
|
Volume brokered (Mmcf)
|
|
x
|
1,443
|
|
|
x
|
1,468
|
|
|
(25
|
)
|
|
(2
|
)%
|
|
(74
|
)
|
||
Brokered natural gas (In thousands)
|
|
$
|
3,180
|
|
|
$
|
4,827
|
|
|
|
|
|
|
$
|
(1,647
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Brokered Natural Gas Purchases
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchase price ($/Mcf)
|
|
$
|
1.78
|
|
|
$
|
2.55
|
|
|
$
|
(0.77
|
)
|
|
(30
|
)%
|
|
$
|
1,109
|
|
Volume brokered (Mmcf)
|
|
x
|
1,443
|
|
|
x
|
1,468
|
|
|
(25
|
)
|
|
(2
|
)%
|
|
64
|
|
||
Brokered natural gas (In thousands)
|
|
$
|
2,566
|
|
|
$
|
3,739
|
|
|
|
|
|
|
|
|
$
|
1,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Brokered natural gas margin (In thousands)
|
|
$
|
614
|
|
|
$
|
1,088
|
|
|
|
|
|
|
|
|
$
|
(474
|
)
|
|
|
Three Months Ended March 31,
|
|
Variance
|
|||||||||||
(In thousands)
|
|
2016
|
|
2015
|
|
Amount
|
|
Percent
|
|||||||
Operating and Other Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Direct operations
|
|
$
|
26,035
|
|
|
$
|
36,017
|
|
|
$
|
(9,982
|
)
|
|
(28
|
)%
|
Transportation and gathering
|
|
109,652
|
|
|
121,235
|
|
|
(11,583
|
)
|
|
(10
|
)%
|
|||
Brokered natural gas
|
|
2,566
|
|
|
3,739
|
|
|
(1,173
|
)
|
|
(31
|
)%
|
|||
Taxes other than income
|
|
5,994
|
|
|
11,280
|
|
|
(5,286
|
)
|
|
(47
|
)%
|
|||
Exploration
|
|
6,383
|
|
|
8,732
|
|
|
(2,349
|
)
|
|
(27
|
)%
|
|||
Depreciation, depletion and amortization
|
|
161,887
|
|
|
175,497
|
|
|
(13,610
|
)
|
|
(8
|
)%
|
|||
General and administrative
|
|
28,376
|
|
|
22,529
|
|
|
5,847
|
|
|
26
|
%
|
|||
|
|
$
|
340,893
|
|
|
$
|
379,029
|
|
|
$
|
(38,136
|
)
|
|
(10
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings (loss) on equity method investments
|
|
$
|
2,009
|
|
|
$
|
1,421
|
|
|
$
|
588
|
|
|
41
|
%
|
Gain (loss) on sale of assets
|
|
1,354
|
|
|
138
|
|
|
1,216
|
|
|
(881
|
)%
|
|||
Interest expense
|
|
24,375
|
|
|
23,566
|
|
|
809
|
|
|
3
|
%
|
|||
Income tax (benefit) expense
|
|
(28,770
|
)
|
|
23,474
|
|
|
(52,244
|
)
|
|
(223
|
)%
|
•
|
Direct operations
decrease
d
$10.0 million
largely due to lower production, improved operational efficiencies, cost reductions from suppliers, and lower workover costs in
2016
compared to
2015
.
|
•
|
Transportation and gathering
decrease
d
$11.6 million
due to
lower
throughput as a result of
lower
Marcellus Shale production and the release of certain capacity to third parties, partially offset by higher transportation rates and the commencement of various transportation and gathering agreements in the Marcellus Shale throughout 2015.
|
•
|
Brokered natural gas
decrease
d
$1.2 million
. See the preceding table titled “
Brokered Natural Gas
” for further analysis.
|
•
|
Taxes other than income
decrease
d
$5.3 million
due to $3.5 million lower production taxes due to lower natural gas and crude oil prices and production and the receipt of a production tax refund of $1.9 million. Drilling impact fees also decreased $1.9 million as a result of reduced drilling activities in the Marcellus Shale and lower rates due to a decrease in natural gas prices.
|
•
|
Exploration expense
decrease
d
$2.3 million
as a result of a decrease in charges related to the release of certain drilling rig contracts in south Texas. In the first three months of 2016, we recorded a charge of $3.2 million compared to $5.1 million in the first three months of 2015.
|
•
|
Depreciation, depletion and amortization
decrease
d
$13.6 million
, of which $10.7 million was due to
lower
equivalent production volumes and $4.8 million was due to a lower DD&A rate of $0.94 per Mcfe for the first
three
months of
2016
compared to $0.97 per Mcfe for the first
three
months of
2015
. The lower DD&A rate was primarily due to lower cost reserve additions associated with our Marcellus Shale drilling program and the impairment charge recorded in the fourth quarter of 2015 associated with higher DD&A rate fields. In addition, amortization of unproved properties increased $1.5 million as a result of ongoing evaluation of our unproved properties.
|
•
|
General and administrative
increase
d
$5.8 million
due to higher stock-based compensation expense of $4.6 million primarily due to an increase in the Company's stock price during the first
three
months of
2016
compared to the first
three
months of
2015
and $1.6 million higher legal expenses. The remaining increases and decreases in other expenses were not individually significant.
|
|
|
|
|
|
|
|
Collars
|
|
Swaps
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
Floor
|
|
Ceiling
|
|
|
|
Estimated
Fair Value
Asset (Liability)
(In thousands)
|
|||||||||||||
Type of Contract
|
|
Volume
|
|
Contract Period
|
|
Range
|
|
Weighted-
Average
|
|
Range
|
|
Weighted-
Average
|
|
Weighted-
Average
|
|
|||||||||||
Natural gas
|
|
52.0
|
|
Bcf
|
|
Apr. 2016 - Oct. 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
2.51
|
|
$
|
18,623
|
|
|||
Crude oil
|
|
1.4
|
|
Mmbbl
|
|
Apr. 2016 - Dec. 2016
|
|
$
|
38.00
|
|
|
$
|
38.00
|
|
|
$47.10-$47.50
|
|
$
|
47.28
|
|
|
|
|
$
|
387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,010
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
(In thousands)
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
||||||||
Debt
|
|
$
|
1,603,192
|
|
|
$
|
1,506,177
|
|
|
$
|
2,016,139
|
|
|
$
|
1,839,530
|
|
Current maturities
|
|
(20,000
|
)
|
|
(20,219
|
)
|
|
(20,000
|
)
|
|
(20,378
|
)
|
||||
Long-term debt, excluding current maturities
|
|
$
|
1,583,192
|
|
|
$
|
1,485,958
|
|
|
$
|
1,996,139
|
|
|
$
|
1,819,152
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
4.1
|
|
Note Purchase Agreement dated as of July 16, 2008 among Cabot Oil & Gas Corporation and the Purchasers named therein (Form 8-K for July 16, 2008).
|
|
|
(a) Amendment No. 1 to Note Purchase Agreement, dated as of June 30, 2010 (Form 10-Q for the quarter ended June 30, 2010).
|
|
|
(b) Amendment No. 2 to Note Purchase Agreement, dated as of December 31, 2015 (Form 8-K for February 9, 2016).
|
|
|
(c) Amendment No. 3 to Note Purchase Agreement, dated as of April 6, 2016.
|
|
|
|
4.2
|
|
Note Purchase Agreement dated as of December 1, 2008 among Cabot Oil & Gas Corporation and the Purchasers named therein (Form 10-K for 2008).
|
|
|
(a) Amendment No. 1 to Note Purchase Agreement, dated as of June 30, 2010 (Form 10-Q for the quarter ended June 30, 2010).
|
|
|
(b) Amendment No. 2 to Note Purchase Agreement, dated as of December 31, 2015 (Form 8-K for February 9, 2016).
|
|
|
(c) Amendment No. 3 to Note Purchase Agreement, dated as of April 6, 2016.
|
|
|
|
4.3
|
|
Note Purchase Agreement dated as of December 30, 2010 among Cabot Oil & Gas Corporation and the Purchasers named therein (Form 10-K for 2010).
|
|
|
(a) Amendment No. 1 to Note Purchase Agreement, dated as of December 31, 2015 (Form 8-K for February 9, 2016).
|
|
|
(b) Amendment No. 2 to Note Purchase Agreement, dated as of April 6, 2016.
|
|
|
|
4.4
|
|
Note Purchase Agreement dated as of September 18, 2014 among Cabot Oil & Gas Corporation and the Purchasers named therein (Form 8-K for September 24, 2014).
|
|
|
(a) Amendment No. 1 to Note Purchase Agreement, dated as of December 31, 2015 (Form 8-K for February 9, 2016).
|
|
|
(b) Amendment No. 2 to Note Purchase Agreement, dated as of April 6, 2016.
|
|
|
|
31.1
|
|
302 Certification — Chairman, President and Chief Executive Officer.
|
|
|
|
31.2
|
|
302 Certification — Executive Vice President and Chief Financial Officer.
|
|
|
|
32.1
|
|
906 Certification.
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
CABOT OIL & GAS CORPORATION
|
|
|
(Registrant)
|
|
|
|
|
May 3, 2016
|
By:
|
/s/ DAN O. DINGES
|
|
|
Dan O. Dinges
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
May 3, 2016
|
By:
|
/s/ SCOTT C. SCHROEDER
|
|
|
Scott C. Schroeder
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
May 3, 2016
|
By:
|
/s/ TODD M. ROEMER
|
|
|
Todd M. Roemer
|
|
|
Controller
|
|
|
(Principal Accounting Officer)
|
1 Year Cabot Oil and Gas Chart |
1 Month Cabot Oil and Gas Chart |
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