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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
ý
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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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Emerging growth company
o
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Page
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(In thousands, except share amounts)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
ASSETS
|
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
516,534
|
|
|
$
|
498,542
|
|
Accounts receivable, net
|
|
177,342
|
|
|
191,045
|
|
||
Income taxes receivable
|
|
16,464
|
|
|
10,298
|
|
||
Inventories
|
|
11,080
|
|
|
13,304
|
|
||
Current assets held for sale
|
|
2,228
|
|
|
—
|
|
||
Other current assets
|
|
12,176
|
|
|
2,692
|
|
||
Total current assets
|
|
735,824
|
|
|
715,881
|
|
||
Properties and equipment, net (Successful efforts method)
|
|
4,202,985
|
|
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4,250,125
|
|
||
Equity method investments
|
|
140,581
|
|
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129,524
|
|
||
Assets held for sale
|
|
111,321
|
|
|
—
|
|
||
Other assets
|
|
28,748
|
|
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27,039
|
|
||
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$
|
5,219,459
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|
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$
|
5,122,569
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
183,554
|
|
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$
|
168,411
|
|
Accrued liabilities
|
|
20,841
|
|
|
21,492
|
|
||
Interest payable
|
|
27,339
|
|
|
27,650
|
|
||
Derivative instruments
|
|
2,688
|
|
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40,259
|
|
||
Total current liabilities
|
|
234,422
|
|
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257,812
|
|
||
Long-term debt, net
|
|
1,521,211
|
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1,520,530
|
|
||
Deferred income taxes
|
|
617,332
|
|
|
579,447
|
|
||
Asset retirement obligations
|
|
57,502
|
|
|
131,733
|
|
||
Liabilities held for sale
|
|
75,693
|
|
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—
|
|
||
Postretirement benefits
|
|
37,208
|
|
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36,259
|
|
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Other liabilities
|
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34,060
|
|
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29,121
|
|
||
Total liabilities
|
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2,577,428
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|
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2,554,902
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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 $0.10 par value in 2017 and 2016, respectively
|
|
|
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Issued — 475,428,710 shares and 475,042,692 shares in 2017 and 2016, respectively
|
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47,543
|
|
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47,504
|
|
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Additional paid-in capital
|
|
1,733,312
|
|
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1,727,310
|
|
||
Retained earnings
|
|
1,235,540
|
|
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1,098,703
|
|
||
Accumulated other comprehensive income
|
|
726
|
|
|
985
|
|
||
Less treasury stock, at cost:
|
|
|
|
|
|
|
||
12,935,926 and 9,892,680 shares in 2017 and 2016, respectively
|
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(375,090
|
)
|
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(306,835
|
)
|
||
Total stockholders' equity
|
|
2,642,031
|
|
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2,567,667
|
|
||
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$
|
5,219,459
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|
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$
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5,122,569
|
|
|
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Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands, except per share amounts)
|
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2017
|
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2016
|
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2017
|
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2016
|
||||||||
OPERATING REVENUES
|
|
|
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||||
Natural gas
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$
|
395,328
|
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$
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223,232
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$
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828,770
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$
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450,811
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Crude oil and condensate
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44,625
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46,156
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87,616
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76,833
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|
||||
Gain (loss) on derivative instruments
|
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13,805
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|
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(27,184
|
)
|
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47,190
|
|
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(8,190
|
)
|
||||
Brokered natural gas
|
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4,037
|
|
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2,596
|
|
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8,732
|
|
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5,776
|
|
||||
Other
|
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2,662
|
|
|
2,016
|
|
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5,994
|
|
|
3,527
|
|
||||
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460,457
|
|
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246,816
|
|
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978,302
|
|
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528,757
|
|
||||
OPERATING EXPENSES
|
|
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|
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||||
Direct operations
|
|
27,262
|
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26,477
|
|
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51,903
|
|
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52,513
|
|
||||
Transportation and gathering
|
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120,544
|
|
|
107,560
|
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244,018
|
|
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217,213
|
|
||||
Brokered natural gas
|
|
3,419
|
|
|
2,021
|
|
|
7,465
|
|
|
4,587
|
|
||||
Taxes other than income
|
|
8,310
|
|
|
8,973
|
|
|
17,368
|
|
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14,967
|
|
||||
Exploration
|
|
3,959
|
|
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3,738
|
|
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10,157
|
|
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10,121
|
|
||||
Depreciation, depletion and amortization
|
|
144,322
|
|
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147,533
|
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279,422
|
|
|
309,420
|
|
||||
Impairment of oil and gas properties
|
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
—
|
|
||||
General and administrative
|
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23,957
|
|
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19,945
|
|
|
47,659
|
|
|
47,817
|
|
||||
|
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400,328
|
|
|
316,247
|
|
|
726,547
|
|
|
656,638
|
|
||||
Earnings (loss) on equity method investments
|
|
(1,286
|
)
|
|
(73
|
)
|
|
(2,569
|
)
|
|
1,935
|
|
||||
Gain (loss) on sale of assets
|
|
(1,403
|
)
|
|
(878
|
)
|
|
(1,626
|
)
|
|
477
|
|
||||
INCOME (LOSS) FROM OPERATIONS
|
|
57,440
|
|
|
(70,382
|
)
|
|
247,560
|
|
|
(125,469
|
)
|
||||
Interest expense
|
|
20,619
|
|
|
21,963
|
|
|
41,390
|
|
|
46,338
|
|
||||
Loss on debt extinguishment
|
|
—
|
|
|
4,709
|
|
|
—
|
|
|
4,709
|
|
||||
Other (income) expense
|
|
(315
|
)
|
|
302
|
|
|
109
|
|
|
804
|
|
||||
Income (loss) before income taxes
|
|
37,136
|
|
|
(97,356
|
)
|
|
206,061
|
|
|
(177,320
|
)
|
||||
Income tax expense (benefit)
|
|
15,609
|
|
|
(34,446
|
)
|
|
78,814
|
|
|
(63,216
|
)
|
||||
NET INCOME (LOSS)
|
|
$
|
21,527
|
|
|
$
|
(62,910
|
)
|
|
$
|
127,247
|
|
|
$
|
(114,104
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.05
|
|
|
$
|
(0.14
|
)
|
|
$
|
0.27
|
|
|
$
|
(0.25
|
)
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
(0.14
|
)
|
|
$
|
0.27
|
|
|
$
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
464,768
|
|
|
465,068
|
|
|
465,057
|
|
|
448,455
|
|
||||
Diluted
|
|
466,745
|
|
|
465,068
|
|
|
466,752
|
|
|
448,455
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Dividends per common share
|
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
|
Six Months Ended
June 30, |
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net income (loss)
|
|
$
|
127,247
|
|
|
$
|
(114,104
|
)
|
Adjustments to reconcile net income (loss) to cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation, depletion and amortization
|
|
279,422
|
|
|
309,420
|
|
||
Impairment of oil and gas properties
|
|
68,555
|
|
|
—
|
|
||
Deferred income tax expense (benefit)
|
|
73,394
|
|
|
(64,294
|
)
|
||
(Gain) loss on sale of assets
|
|
1,626
|
|
|
(477
|
)
|
||
Exploratory dry hole cost
|
|
2,842
|
|
|
18
|
|
||
(Gain) loss on derivative instruments
|
|
(47,190
|
)
|
|
8,190
|
|
||
Net cash received (paid) in settlement of derivative instruments
|
|
(319
|
)
|
|
11,305
|
|
||
(Earnings) loss on equity method investments
|
|
2,569
|
|
|
(1,935
|
)
|
||
Amortization of debt issuance costs
|
|
2,384
|
|
|
2,692
|
|
||
Stock-based compensation and other
|
|
18,198
|
|
|
17,963
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||
Accounts receivable, net
|
|
13,713
|
|
|
2,118
|
|
||
Income taxes
|
|
(6,166
|
)
|
|
516
|
|
||
Inventories
|
|
(4
|
)
|
|
1,362
|
|
||
Other current assets
|
|
(1,776
|
)
|
|
(1,858
|
)
|
||
Accounts payable and accrued liabilities
|
|
(4,339
|
)
|
|
(17,194
|
)
|
||
Interest payable
|
|
(311
|
)
|
|
(2,078
|
)
|
||
Other assets and liabilities
|
|
101
|
|
|
646
|
|
||
Net cash provided by operating activities
|
|
529,946
|
|
|
152,290
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(393,333
|
)
|
|
(159,399
|
)
|
||
Proceeds from sale of assets
|
|
1,475
|
|
|
49,828
|
|
||
Investment in equity method investments
|
|
(13,626
|
)
|
|
(18,171
|
)
|
||
Net cash used in investing activities
|
|
(405,484
|
)
|
|
(127,742
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Borrowings from debt
|
|
—
|
|
|
90,000
|
|
||
Repayments of debt
|
|
—
|
|
|
(567,000
|
)
|
||
Treasury stock repurchases
|
|
(68,255
|
)
|
|
—
|
|
||
Sale of common stock, net
|
|
—
|
|
|
995,279
|
|
||
Dividends paid
|
|
(32,582
|
)
|
|
(17,582
|
)
|
||
Tax withholdings on stock award vestings
|
|
(5,672
|
)
|
|
(5,046
|
)
|
||
Capitalized debt issuance costs
|
|
—
|
|
|
(3,223
|
)
|
||
Other
|
|
39
|
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
|
(106,470
|
)
|
|
492,428
|
|
||
Net increase in cash and cash equivalents
|
|
17,992
|
|
|
516,976
|
|
||
Cash and cash equivalents, beginning of period
|
|
498,542
|
|
|
514
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
516,534
|
|
|
$
|
517,490
|
|
|
|
Net Cash Provided by Operating Activities
|
|
Net Cash Provided by Financing Activities
|
||||||||||||
(In thousands)
|
|
As Reported
|
|
As Adjusted
|
|
As Reported
|
|
As Adjusted
|
||||||||
Year ended December 31, 2015
|
|
$
|
740,737
|
|
|
$
|
749,598
|
|
|
$
|
232,157
|
|
|
$
|
223,296
|
|
Three months ended March 31, 2016
|
|
62,090
|
|
|
67,112
|
|
|
570,773
|
|
|
565,751
|
|
||||
Six months ended June 30, 2016
|
|
147,244
|
|
|
152,290
|
|
|
497,474
|
|
|
492,428
|
|
||||
Nine months ended September 30, 2016
|
|
252,649
|
|
|
257,705
|
|
|
468,171
|
|
|
463,115
|
|
||||
Year ended December 31, 2016
|
|
392,377
|
|
|
397,441
|
|
|
458,869
|
|
|
453,805
|
|
(In thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Proved oil and gas properties
|
|
$
|
6,801,380
|
|
|
$
|
7,437,604
|
|
Unproved oil and gas properties
|
|
291,250
|
|
|
260,543
|
|
||
Gathering and pipeline systems
|
|
1,569
|
|
|
187,846
|
|
||
Land, building and other equipment
|
|
84,680
|
|
|
84,462
|
|
||
|
|
7,178,879
|
|
|
7,970,455
|
|
||
Accumulated depreciation, depletion and amortization
|
|
(2,975,894
|
)
|
|
(3,720,330
|
)
|
||
|
|
$
|
4,202,985
|
|
|
$
|
4,250,125
|
|
|
|
Constitution
|
|
Meade
|
|
Total
|
||||||||||||||||||
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Balance at beginning of period
|
|
$
|
96,850
|
|
|
$
|
90,345
|
|
|
$
|
32,674
|
|
|
$
|
13,172
|
|
|
$
|
129,524
|
|
|
$
|
103,517
|
|
Contributions
|
|
3,125
|
|
|
6,800
|
|
|
10,501
|
|
|
11,371
|
|
|
13,626
|
|
|
18,171
|
|
||||||
Earnings (loss) on equity method investments
|
|
(2,555
|
)
|
|
1,937
|
|
|
(14
|
)
|
|
(2
|
)
|
|
(2,569
|
)
|
|
1,935
|
|
||||||
Balance at end of period
|
|
$
|
97,420
|
|
|
$
|
99,082
|
|
|
$
|
43,161
|
|
|
$
|
24,541
|
|
|
$
|
140,581
|
|
|
$
|
123,623
|
|
(In thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
6.51% weighted-average senior notes
|
|
$
|
361,000
|
|
|
$
|
361,000
|
|
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
|
|
||
|
|
1,528,000
|
|
|
1,528,000
|
|
||
Unamortized debt issuance costs
|
|
(6,789
|
)
|
|
(7,470
|
)
|
||
|
|
$
|
1,521,211
|
|
|
$
|
1,520,530
|
|
|
|
|
|
|
|
|
Collars
|
|
|
|
Basis Swaps
|
|||||||||||||||||
|
|
|
|
|
|
|
Floor
|
|
Ceiling
|
|
Swaps
|
|
||||||||||||||||
Type of Contract
|
|
Volume
|
|
Contract Period
|
|
Range
|
|
Weighted-Average
|
|
Range
|
|
Weighted-Average
|
|
Weighted-Average
|
|
Weighted-Average
|
||||||||||||
Natural gas
|
|
17.9
|
|
Bcf
|
|
Jul. 2017 - Dec. 2017
|
|
|
|
|
|
|
|
|
|
$
|
3.12
|
|
|
|
||||||||
Natural gas
|
|
8.9
|
|
Bcf
|
|
Jul. 2017 - Dec. 2017
|
|
|
|
|
|
|
|
|
|
$
|
3.46
|
|
|
|
||||||||
Natural gas
|
|
17.9
|
|
Bcf
|
|
Jul. 2017 - Dec. 2017
|
|
$
|
—
|
|
|
$
|
3.09
|
|
|
$3.42-$3.45
|
|
$
|
3.43
|
|
|
|
|
|
||||
Natural gas
|
|
21.3
|
|
Bcf
|
|
Jan. 2018 - Dec. 2019
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.42
|
|
||||||||
Crude oil
|
|
0.9
|
|
Mmbbl
|
|
Jul. 2017 - Dec. 2017
|
|
$
|
—
|
|
|
$
|
50.00
|
|
|
$56.25-$56.50
|
|
$
|
56.39
|
|
|
|
|
|
|
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
(In thousands)
|
|
Balance Sheet Location
|
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
Commodity contracts
|
|
Other current assets
|
|
$
|
7,708
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity contracts
|
|
Other assets (non-current)
|
|
5,222
|
|
|
2,991
|
|
|
—
|
|
|
—
|
|
||||
Commodity contracts
|
|
Derivative instruments (current)
|
|
—
|
|
|
—
|
|
|
2,688
|
|
|
40,259
|
|
||||
|
|
|
|
$
|
12,930
|
|
|
$
|
2,991
|
|
|
$
|
2,688
|
|
|
$
|
40,259
|
|
(In thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Derivative assets
|
|
|
|
|
|
|
||
Gross amounts of recognized assets
|
|
$
|
13,880
|
|
|
$
|
2,991
|
|
Gross amounts offset in the statement of financial position
|
|
(950
|
)
|
|
—
|
|
||
Net amounts of assets presented in the statement of financial position
|
|
12,930
|
|
|
2,991
|
|
||
Gross amounts of financial instruments not offset in the statement of financial position
|
|
721
|
|
|
—
|
|
||
Net amount
|
|
$
|
13,651
|
|
|
$
|
2,991
|
|
|
|
|
|
|
||||
Derivative liabilities
|
|
|
|
|
|
|
||
Gross amounts of recognized liabilities
|
|
$
|
3,638
|
|
|
$
|
40,259
|
|
Gross amounts offset in the statement of financial position
|
|
(950
|
)
|
|
—
|
|
||
Net amounts of liabilities presented in the statement of financial position
|
|
2,688
|
|
|
40,259
|
|
||
Gross amounts of financial instruments not offset in the statement of financial position
|
|
—
|
|
|
757
|
|
||
Net amount
|
|
$
|
2,688
|
|
|
$
|
41,016
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Cash received (paid) on settlement of derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain (loss) on derivative instruments
|
|
$
|
1,204
|
|
|
$
|
11,305
|
|
|
$
|
(319
|
)
|
|
$
|
11,305
|
|
Non-cash gain (loss) on derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain (loss) on derivative instruments
|
|
12,601
|
|
|
(38,489
|
)
|
|
47,509
|
|
|
(19,495
|
)
|
||||
|
|
$
|
13,805
|
|
|
$
|
(27,184
|
)
|
|
$
|
47,190
|
|
|
$
|
(8,190
|
)
|
(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
June 30, 2017 |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan
|
|
$
|
13,765
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,765
|
|
Derivative instruments
|
|
—
|
|
|
—
|
|
|
13,880
|
|
|
13,880
|
|
||||
Total assets
|
|
$
|
13,765
|
|
|
$
|
—
|
|
|
$
|
13,880
|
|
|
$
|
27,645
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred compensation plan
|
|
$
|
26,199
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,199
|
|
Derivative instruments
|
|
—
|
|
|
1,111
|
|
|
2,527
|
|
|
3,638
|
|
||||
Total liabilities
|
|
$
|
26,199
|
|
|
$
|
1,111
|
|
|
$
|
2,527
|
|
|
$
|
29,837
|
|
(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, 2016 |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan
|
|
$
|
12,587
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,587
|
|
Derivative instruments
|
|
—
|
|
|
—
|
|
|
2,991
|
|
|
2,991
|
|
||||
Total assets
|
|
$
|
12,587
|
|
|
$
|
—
|
|
|
$
|
2,991
|
|
|
$
|
15,578
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred compensation plan
|
|
$
|
24,169
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,169
|
|
Derivative instruments
|
|
—
|
|
|
21,400
|
|
|
18,859
|
|
|
40,259
|
|
||||
Total liabilities
|
|
$
|
24,169
|
|
|
$
|
21,400
|
|
|
$
|
18,859
|
|
|
$
|
64,428
|
|
|
|
Six Months Ended
June 30, |
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Balance at beginning of period
|
|
$
|
(15,868
|
)
|
|
$
|
—
|
|
Total gain (loss) included in earnings
|
|
30,758
|
|
|
(6,499
|
)
|
||
Settlement (gain) loss
|
|
(3,537
|
)
|
|
(1,807
|
)
|
||
Transfers in and/or out of level 3
|
|
—
|
|
|
—
|
|
||
Balance at end of period
|
|
$
|
11,353
|
|
|
$
|
(8,306
|
)
|
|
|
|
|
|
||||
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period
|
|
$
|
17,915
|
|
|
$
|
(8,306
|
)
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
(In thousands)
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
||||||||
Debt, net
|
|
$
|
1,521,211
|
|
|
$
|
1,511,291
|
|
|
$
|
1,520,530
|
|
|
$
|
1,463,643
|
|
(In thousands)
|
|
Six Months Ended
June 30, 2017 |
||
Balance at beginning of period
|
|
$
|
133,733
|
|
Liabilities reclassified to held-for-sale
|
|
(75,693
|
)
|
|
Liabilities incurred
|
|
796
|
|
|
Liabilities settled
|
|
(1,140
|
)
|
|
Liabilities divested
|
|
(1,788
|
)
|
|
Accretion expense
|
|
3,594
|
|
|
Balance at end of period
|
|
$
|
59,502
|
|
|
|
Grant Date
|
|
June 30, 2017
|
||
Fair value per performance share award
|
|
$
|
19.85
|
|
|
$14.03 - $18.61
|
Assumptions:
|
|
|
|
|
|
|
Stock price volatility
|
|
37.8
|
%
|
|
33.5% - 40.0%
|
|
Risk free rate of return
|
|
1.4
|
%
|
|
1.1% - 1.5%
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Weighted-average shares - basic
|
|
464,768
|
|
|
465,068
|
|
|
465,057
|
|
|
448,455
|
|
Dilution effect of stock appreciation rights and stock awards at end of period
|
|
1,977
|
|
|
—
|
|
|
1,695
|
|
|
—
|
|
Weighted-average shares - diluted
|
|
466,745
|
|
|
465,068
|
|
|
466,752
|
|
|
448,455
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect due to net loss
|
|
—
|
|
|
1,569
|
|
|
—
|
|
|
1,168
|
|
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method
|
|
—
|
|
|
—
|
|
|
774
|
|
|
827
|
|
Weighted-average stock appreciation rights and stock awards excluded from diluted EPS due to the anti-dilutive effect
|
|
—
|
|
|
1,569
|
|
|
774
|
|
|
1,995
|
|
(In thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Accounts receivable, net
|
|
|
|
|
|
|
||
Trade accounts
|
|
$
|
176,840
|
|
|
$
|
185,594
|
|
Joint interest accounts
|
|
1,192
|
|
|
1,359
|
|
||
Other accounts
|
|
1,322
|
|
|
5,335
|
|
||
|
|
179,354
|
|
|
192,288
|
|
||
Allowance for doubtful accounts
|
|
(2,012
|
)
|
|
(1,243
|
)
|
||
|
|
$
|
177,342
|
|
|
$
|
191,045
|
|
|
|
|
|
|
||||
Inventories
|
|
|
|
|
|
|
||
Tubular goods and well equipment
|
|
$
|
10,761
|
|
|
$
|
11,005
|
|
Natural gas in storage
|
|
319
|
|
|
2,299
|
|
||
|
|
$
|
11,080
|
|
|
$
|
13,304
|
|
|
|
|
|
|
||||
Other current assets
|
|
|
|
|
|
|
||
Prepaid balances and other
|
|
$
|
4,468
|
|
|
$
|
2,692
|
|
Derivative instruments
|
|
7,708
|
|
|
—
|
|
||
|
|
$
|
12,176
|
|
|
$
|
2,692
|
|
|
|
|
|
|
||||
Other assets
|
|
|
|
|
|
|
||
Deferred compensation plan
|
|
$
|
13,765
|
|
|
$
|
12,587
|
|
Debt issuance costs
|
|
9,699
|
|
|
11,403
|
|
||
Derivative instruments
|
|
5,222
|
|
|
2,991
|
|
||
Other accounts
|
|
62
|
|
|
58
|
|
||
|
|
$
|
28,748
|
|
|
$
|
27,039
|
|
|
|
|
|
|
||||
Accounts payable
|
|
|
|
|
|
|
||
Trade accounts
|
|
$
|
32,574
|
|
|
$
|
27,355
|
|
Natural gas purchases
|
|
3,629
|
|
|
2,231
|
|
||
Royalty and other owners
|
|
83,750
|
|
|
85,449
|
|
||
Accrued capital costs
|
|
51,445
|
|
|
34,647
|
|
||
Taxes other than income
|
|
8,686
|
|
|
13,827
|
|
||
Other accounts
|
|
3,470
|
|
|
4,902
|
|
||
|
|
$
|
183,554
|
|
|
$
|
168,411
|
|
|
|
|
|
|
||||
Accrued liabilities
|
|
|
|
|
|
|
||
Employee benefits
|
|
$
|
12,164
|
|
|
$
|
14,153
|
|
Taxes other than income
|
|
5,858
|
|
|
3,829
|
|
||
Asset retirement obligations
|
|
2,000
|
|
|
2,000
|
|
||
Other accounts
|
|
819
|
|
|
1,510
|
|
||
|
|
$
|
20,841
|
|
|
$
|
21,492
|
|
|
|
|
|
|
||||
Other liabilities
|
|
|
|
|
|
|
||
Deferred compensation plan
|
|
$
|
26,199
|
|
|
$
|
24,169
|
|
Other accounts
|
|
7,861
|
|
|
4,952
|
|
||
|
|
$
|
34,060
|
|
|
$
|
29,121
|
|
•
|
Equivalent production
increase
d
31.0
Bcfe, or
10%
, from
312.1
Bcfe, or
1,714.9
Mmcfe per day, in
2016
to
343.1
Bcfe, or
1,895.8
Mmcfe per day, in
2017
.
|
•
|
Natural gas production
increase
d
32.6
Bcf, or
11%
, from
297.4
Bcf in
2016
to
330.0
Bcf in
2017
, as a result of drilling and completion activities in Pennsylvania.
|
•
|
Crude oil/condensate/NGL production
decrease
d
0.3
Mmbbls, or
11%
, from
2.5
Mmbbls in
2016
to
2.2
Mmbbls in
2017
, as result of natural decline in production partially offset by an increase in drilling and completion activity.
|
•
|
Average realized natural gas price was
$2.51
per Mcf,
62%
higher
than the
$1.55
per Mcf realized in the comparable period of the prior year.
|
•
|
Average realized crude oil price was
$45.80
per Bbl,
34%
higher
than the
$34.06
per Bbl realized in the comparable period of the prior year.
|
•
|
Total capital expenditures were
$407.3 million
compared to
$162.5 million
in the comparable period of the prior year.
|
•
|
Drilled
48
gross wells (
42.1
net) with a success rate of
97.9%
compared to
17
gross wells (
17.0
net) with a success rate of
100%
for the comparable period of the prior year.
|
•
|
Completed
51
gross wells (
48.0
net) in
2017
compared to
28
gross wells (
28.0
net) in
2016
.
|
•
|
Average rig count during
2017
was approximately 2.0 rigs in the Marcellus Shale and approximately 1.0 rig in the Eagle Ford Shale, compared to an average rig count in the Marcellus Shale of approximately 1.1 rigs and approximately 0.2 rigs in the Eagle Ford Shale in
2016
.
|
•
|
Repurchased 3.0 million shares of our common stock for a total cost of
$68.3 million
.
|
•
|
Continuing to exercise discipline in our capital program with the expectation of funding our capital expenditures with cash on hand, operating cash flows, and if required, borrowings under our revolving credit facility.
|
•
|
Continuing to optimize our drilling, completion and operational efficiencies, resulting in lower operating costs per unit of production.
|
•
|
Continuing to manage our balance sheet, which provides sufficient availability under our revolving credit facility and existing cash balances 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.
|
|
|
Six Months Ended
June 30, |
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Cash flows provided by operating activities
|
|
$
|
529,946
|
|
|
$
|
152,290
|
|
Cash flows used in investing activities
|
|
(405,484
|
)
|
|
(127,742
|
)
|
||
Cash flows provided by (used in) financing activities
|
|
(106,470
|
)
|
|
492,428
|
|
||
Net increase in cash and cash equivalents
|
|
$
|
17,992
|
|
|
$
|
516,976
|
|
(In thousands)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Debt
|
|
$
|
1,521,211
|
|
|
$
|
1,520,530
|
|
Stockholders' equity
|
|
2,642,031
|
|
|
2,567,667
|
|
||
Total capitalization
|
|
$
|
4,163,242
|
|
|
$
|
4,088,197
|
|
Debt to total capitalization
|
|
37
|
%
|
|
37
|
%
|
||
Cash and cash equivalents
|
|
$
|
516,534
|
|
|
$
|
498,542
|
|
|
|
Six Months Ended
June 30, |
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Capital expenditures
|
|
|
|
|
|
|
||
Drilling and facilities
|
|
$
|
310,308
|
|
|
$
|
157,716
|
|
Leasehold acquisitions
|
|
91,497
|
|
|
592
|
|
||
Pipeline and gathering
|
|
462
|
|
|
775
|
|
||
Other
|
|
5,022
|
|
|
3,465
|
|
||
|
|
407,289
|
|
|
162,548
|
|
||
Exploration expenditures
|
|
10,157
|
|
|
10,121
|
|
||
Total
|
|
$
|
417,446
|
|
|
$
|
172,669
|
|
|
|
Three Months Ended June 30,
|
|
Variance
|
|||||||||||
Revenue Variances (In thousands)
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Natural gas
|
|
$
|
395,328
|
|
|
$
|
223,232
|
|
|
$
|
172,096
|
|
|
77
|
%
|
Crude oil and condensate
|
|
44,625
|
|
|
46,156
|
|
|
(1,531
|
)
|
|
(3
|
)%
|
|||
Gain (loss) on derivative instruments
|
|
13,805
|
|
|
(27,184
|
)
|
|
40,989
|
|
|
151
|
%
|
|||
Brokered natural gas
|
|
4,037
|
|
|
2,596
|
|
|
1,441
|
|
|
56
|
%
|
|||
Other
|
|
2,662
|
|
|
2,016
|
|
|
646
|
|
|
32
|
%
|
|||
|
|
$
|
460,457
|
|
|
$
|
246,816
|
|
|
$
|
213,641
|
|
|
87
|
%
|
|
|
Three Months Ended June 30,
|
|
Variance
|
|
Increase
(Decrease)
(In thousands)
|
|||||||||||||
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|
||||||||||
Price Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas
|
|
$
|
2.38
|
|
|
$
|
1.55
|
|
|
$
|
0.83
|
|
|
54
|
%
|
|
$
|
138,151
|
|
Crude oil and condensate
|
|
$
|
44.03
|
|
|
$
|
40.51
|
|
|
$
|
3.52
|
|
|
9
|
%
|
|
3,533
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
141,684
|
|
|||
Volume Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas (Bcf)
|
|
166.2
|
|
|
144.3
|
|
|
21.9
|
|
|
15
|
%
|
|
$
|
33,945
|
|
|||
Crude oil and condensate (Mbbl)
|
|
1,014
|
|
|
1,139
|
|
|
(125
|
)
|
|
(11
|
)%
|
|
(5,064
|
)
|
||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
28,881
|
|
|
|
Three Months Ended
June 30, |
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Cash received (paid) on settlement of derivative instruments
|
|
|
|
|
|
|
||
Gain (loss) on derivative instruments
|
|
$
|
1,204
|
|
|
$
|
11,305
|
|
Non-cash gain (loss) on derivative instruments
|
|
|
|
|
|
|
||
Gain (loss) on derivative instruments
|
|
12,601
|
|
|
(38,489
|
)
|
||
|
|
$
|
13,805
|
|
|
$
|
(27,184
|
)
|
|
|
Three Months Ended June 30,
|
|
Variance
|
|
Price and
Volume
Variances
(In thousands)
|
|||||||||||||
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|
||||||||||
Brokered Natural Gas Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales price ($/Mcf)
|
|
$
|
3.06
|
|
|
$
|
2.11
|
|
|
$
|
0.95
|
|
|
45
|
%
|
|
$
|
1,253
|
|
Volume brokered (Mmcf)
|
|
x
|
1,321
|
|
|
x
|
1,232
|
|
|
89
|
|
|
7
|
%
|
|
188
|
|
||
Brokered natural gas (In thousands)
|
|
$
|
4,037
|
|
|
$
|
2,596
|
|
|
|
|
|
|
$
|
1,441
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Brokered Natural Gas Purchases
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchase price ($/Mcf)
|
|
$
|
2.59
|
|
|
$
|
1.64
|
|
|
$
|
0.95
|
|
|
58
|
%
|
|
$
|
1,252
|
|
Volume brokered (Mmcf)
|
|
x
|
1,321
|
|
|
x
|
1,232
|
|
|
89
|
|
|
7
|
%
|
|
146
|
|
||
Brokered natural gas (In thousands)
|
|
$
|
3,419
|
|
|
$
|
2,021
|
|
|
|
|
|
|
|
|
$
|
1,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Brokered natural gas margin (In thousands)
|
|
$
|
618
|
|
|
$
|
575
|
|
|
|
|
|
|
|
|
$
|
43
|
|
|
|
Three Months Ended June 30,
|
|
Variance
|
|||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Operating and Other Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Direct operations
|
|
$
|
27,262
|
|
|
$
|
26,477
|
|
|
$
|
785
|
|
|
3
|
%
|
Transportation and gathering
|
|
120,544
|
|
|
107,560
|
|
|
12,984
|
|
|
12
|
%
|
|||
Brokered natural gas
|
|
3,419
|
|
|
2,021
|
|
|
1,398
|
|
|
69
|
%
|
|||
Taxes other than income
|
|
8,310
|
|
|
8,973
|
|
|
(663
|
)
|
|
(7
|
)%
|
|||
Exploration
|
|
3,959
|
|
|
3,738
|
|
|
221
|
|
|
6
|
%
|
|||
Depreciation, depletion and amortization
|
|
144,322
|
|
|
147,533
|
|
|
(3,211
|
)
|
|
(2
|
)%
|
|||
Impairment of oil and gas properties
|
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
100
|
%
|
|||
General and administrative
|
|
23,957
|
|
|
19,945
|
|
|
4,012
|
|
|
20
|
%
|
|||
|
|
$
|
400,328
|
|
|
$
|
316,247
|
|
|
$
|
84,081
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings (loss) on equity method investments
|
|
$
|
(1,286
|
)
|
|
$
|
(73
|
)
|
|
$
|
(1,213
|
)
|
|
1,662
|
%
|
Gain (loss) on sale of assets
|
|
(1,403
|
)
|
|
(878
|
)
|
|
(525
|
)
|
|
60
|
%
|
|||
Loss on debt extinguishment
|
|
—
|
|
|
4,709
|
|
|
(4,709
|
)
|
|
(100
|
)%
|
|||
Interest expense
|
|
20,619
|
|
|
21,963
|
|
|
(1,344
|
)
|
|
(6
|
)%
|
|||
Other (income) expense
|
|
(315
|
)
|
|
302
|
|
|
(617
|
)
|
|
(204
|
)%
|
|||
Income tax expense (benefit)
|
|
15,609
|
|
|
(34,446
|
)
|
|
50,055
|
|
|
(145
|
)%
|
•
|
Direct operations
increase
d
$0.8 million
largely due to an increase in operating costs primarily driven by higher production, partially offset by improved operational efficiencies.
|
•
|
Transportation and gathering
increase
d
$13.0 million
due to
higher
throughput as a result of
higher
Marcellus Shale production.
|
•
|
Brokered natural gas
increase
d
$1.4 million
. See the preceding table titled “
Brokered Natural Gas
” for further analysis.
|
•
|
Taxes other than income
decrease
d
$0.7 million
primarily due to $1.7 million lower ad valorem taxes as a result of lower property values primarily in south Texas, partially offset by $1.1 million higher drilling impact fees as a result of an increase in drilling activity in Pennsylvania. The remaining changes in taxes other than income were not individually significant.
|
•
|
Depreciation, depletion and amortization
decrease
d
$3.2 million
, primarily due to lower DD&A of $9.0 million, partially offset by higher amortization of unproved properties of $5.0 million in the
second
quarter of
2017
. A $28.1 million decrease in DD&A was due to a lower DD&A rate of $0.73 per Mcfe for the second quarter of 2017 compared to $0.90 per Mcfe for the second quarter of 2016 primarily due to positive reserve revisions and the impairment of oil and gas properties and related pipeline assets in West Virginia and Virginia in 2016. This decrease was partially offset by $19.1 million higher equivalent production primarily in Pennsylvania for the
second
quarter of
2017
compared to the
second
quarter of
2016
. The increase in amortization of unproved properties is primarily due to an increase in leasing activity.
|
•
|
Impairment of oil and gas properties was
$68.6 million
in the
second
quarter of
2017
due to the impairment of oil and gas properties and related pipeline assets in West Virginia, Virginia and Ohio associated with the proposed sale of these properties.
|
•
|
General and administrative
increase
d
$4.0 million
due to $2.8 million of higher stock-based compensation expense associated with certain of our market-based performance awards, $2.3 million higher employee-related expenses, partially offset by $2.2 million lower professional services. The remaining changes in other general and administrative expenses were not individually significant.
|
|
|
Six Months Ended June 30,
|
|
Variance
|
|||||||||||
Revenue Variances (In thousands)
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Natural gas
|
|
$
|
828,770
|
|
|
$
|
450,811
|
|
|
$
|
377,959
|
|
|
84
|
%
|
Crude oil and condensate
|
|
87,616
|
|
|
76,833
|
|
|
10,783
|
|
|
14
|
%
|
|||
Gain (loss) on derivative instruments
|
|
47,190
|
|
|
(8,190
|
)
|
|
55,380
|
|
|
676
|
%
|
|||
Brokered natural gas
|
|
8,732
|
|
|
5,776
|
|
|
2,956
|
|
|
51
|
%
|
|||
Other
|
|
5,994
|
|
|
3,527
|
|
|
2,467
|
|
|
70
|
%
|
|||
|
|
$
|
978,302
|
|
|
$
|
528,757
|
|
|
$
|
449,545
|
|
|
85
|
%
|
|
|
Six Months Ended June 30,
|
|
Variance
|
|
Increase
(Decrease)
(In thousands)
|
|||||||||||||
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|
||||||||||
Price Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas
|
|
$
|
2.51
|
|
|
$
|
1.52
|
|
|
$
|
0.99
|
|
|
65
|
%
|
|
$
|
328,407
|
|
Crude oil and condensate
|
|
$
|
45.29
|
|
|
$
|
34.16
|
|
|
$
|
11.13
|
|
|
33
|
%
|
|
21,509
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
349,916
|
|
|||
Volume Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas (Bcf)
|
|
330.0
|
|
|
297.4
|
|
|
32.6
|
|
|
11
|
%
|
|
$
|
49,552
|
|
|||
Crude oil and condensate (Mbbl)
|
|
1,935
|
|
|
2,249
|
|
|
(314
|
)
|
|
(14
|
)%
|
|
(10,726
|
)
|
||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
38,826
|
|
|
|
Six Months Ended
June 30, |
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Cash received (paid) on settlement of derivative instruments
|
|
|
|
|
|
|
||
Gain (loss) on derivative instruments
|
|
$
|
(319
|
)
|
|
$
|
11,305
|
|
Non-cash gain (loss) on derivative instruments
|
|
|
|
|
||||
Gain (loss) on derivative instruments
|
|
47,509
|
|
|
(19,495
|
)
|
||
|
|
$
|
47,190
|
|
|
$
|
(8,190
|
)
|
|
|
Six Months Ended June 30,
|
|
Variance
|
|
Price and
Volume
Variances
(In thousands)
|
|||||||||||||
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|
||||||||||
Brokered Natural Gas Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales price ($/Mcf)
|
|
$
|
3.47
|
|
|
$
|
2.16
|
|
|
$
|
1.31
|
|
|
61
|
%
|
|
$
|
3,297
|
|
Volume brokered (Mmcf)
|
|
x
|
2,517
|
|
|
x
|
2,675
|
|
|
(158
|
)
|
|
(6
|
)%
|
|
(341
|
)
|
||
Brokered natural gas (In thousands)
|
|
$
|
8,732
|
|
|
$
|
5,776
|
|
|
|
|
|
|
$
|
2,956
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Brokered Natural Gas Purchases
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchase price ($/Mcf)
|
|
$
|
2.97
|
|
|
$
|
1.71
|
|
|
$
|
1.26
|
|
|
74
|
%
|
|
$
|
3,148
|
|
Volume brokered (Mmcf)
|
|
x
|
2,517
|
|
|
x
|
2,675
|
|
|
(158
|
)
|
|
(6
|
)%
|
|
(270
|
)
|
||
Brokered natural gas (In thousands)
|
|
$
|
7,465
|
|
|
$
|
4,587
|
|
|
|
|
|
|
|
|
$
|
2,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Brokered natural gas margin (In thousands)
|
|
$
|
1,267
|
|
|
$
|
1,189
|
|
|
|
|
|
|
|
|
$
|
78
|
|
|
|
Six Months Ended June 30,
|
|
Variance
|
|||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Operating and Other Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Direct operations
|
|
$
|
51,903
|
|
|
$
|
52,513
|
|
|
$
|
(610
|
)
|
|
(1
|
)%
|
Transportation and gathering
|
|
244,018
|
|
|
217,213
|
|
|
26,805
|
|
|
12
|
%
|
|||
Brokered natural gas
|
|
7,465
|
|
|
4,587
|
|
|
2,878
|
|
|
63
|
%
|
|||
Taxes other than income
|
|
17,368
|
|
|
14,967
|
|
|
2,401
|
|
|
16
|
%
|
|||
Exploration
|
|
10,157
|
|
|
10,121
|
|
|
36
|
|
|
—
|
%
|
|||
Depreciation, depletion and amortization
|
|
279,422
|
|
|
309,420
|
|
|
(29,998
|
)
|
|
(10
|
)%
|
|||
Impairment of oil and gas properties
|
|
68,555
|
|
|
—
|
|
|
68,555
|
|
|
100
|
%
|
|||
General and administrative
|
|
47,659
|
|
|
47,817
|
|
|
(158
|
)
|
|
—
|
%
|
|||
|
|
$
|
726,547
|
|
|
$
|
656,638
|
|
|
$
|
69,909
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings (loss) on equity method investments
|
|
$
|
(2,569
|
)
|
|
$
|
1,935
|
|
|
$
|
(4,504
|
)
|
|
(233
|
)%
|
Gain (loss) on sale of assets
|
|
(1,626
|
)
|
|
477
|
|
|
(2,103
|
)
|
|
(441
|
)%
|
|||
Loss on debt extinguishment
|
|
—
|
|
|
4,709
|
|
|
(4,709
|
)
|
|
(100
|
)%
|
|||
Interest expense
|
|
41,390
|
|
|
46,338
|
|
|
(4,948
|
)
|
|
(11
|
)%
|
|||
Other (income) expense
|
|
109
|
|
|
804
|
|
|
(695
|
)
|
|
(86
|
)%
|
|||
Income tax expense (benefit)
|
|
78,814
|
|
|
(63,216
|
)
|
|
142,030
|
|
|
(225
|
)%
|
•
|
Direct operations
decrease
d
$0.6 million
largely due to improved operational efficiencies, cost reductions from service providers and suppliers in
2017
compared to
2016
and the divestiture of certain oil and gas properties in east Texas in February 2016.
|
•
|
Transportation and gathering
increase
d
$26.8 million
due to
higher
throughput as a result of
higher
Marcellus Shale production and a charge associated with transportation expenses in the Eagle Ford Shale.
|
•
|
Brokered natural gas
increase
d
$2.9 million
. See the preceding table titled “
Brokered Natural Gas
” for further analysis.
|
•
|
Taxes other than income
increase
d
$2.4 million
due to $2.5 million higher production taxes primarily resulting from higher natural gas and crude oil prices and an increase in drilling impact fees of $2.5 million due to an increase in drilling activity in Pennsylvania. These increases were offset by a decrease of $2.5 million in ad valorem taxes as a result of lower property values primarily in south Texas.
|
•
|
Exploration
increase
d slightly as a result of higher dry hole costs of $2.8 million in 2017, partially offset by lower charges related to the release of certain drilling rig contracts in south Texas. In the first
six
months of
2016
, we recorded rig termination charges of
$3.2 million
. We recorded no rig termination charges in the first
six
months of
2017
.
|
•
|
Depreciation, depletion and amortization
decrease
d
$30.0 million
, primarily due to lower DD&A of $36.6 million, partially offset by higher amortization of unproved properties of $6.5 million in 2017. A $65.1 million decrease in DD&A was associated with a lower DD&A rate of $0.73 per Mcfe for the first
six
months of
2017
compared to $0.92 per Mcfe for the first
six
months of
2016
, partially offset by a $28.5 million increase due to
higher
equivalent production volumes. The lower DD&A rate was primarily due to positive reserve revisions and the impairment of oil and gas properties and related pipeline assets in West Virginia and Virginia in 2016. The increase in amortization of unproved properties is primarily due to the ongoing evaluation of our unproved properties and an increase in leasing activity.
|
•
|
Impairment of oil and gas properties was
$68.6 million
in
2017
due to the impairment of oil and gas properties and related pipeline assets in West Virginia, Virginia and Ohio associated with the proposed sale of these properties.
|
•
|
General and administrative
decrease
d
$0.2 million
due to $5.2 million lower professional services, partially offset by $0.4 million higher stock-based compensation expense primarily due to changes in the price of our common stock and $3.6 million higher employee-related expenses. The remaining changes in other general and administrative expenses were not individually significant.
|
|
|
|
|
|
|
|
Collars
|
|
|
|
Basis Swaps
|
|
Estimated
Fair Value
Asset (Liability)
(In thousands)
|
|||||||||||||||||||
|
|
|
|
|
|
|
Floor
|
|
Ceiling
|
|
Swaps
|
|
|
|||||||||||||||||||
Type of Contract
|
|
Volume
|
|
Contract Period
|
|
Range
|
|
Weighted-
Average
|
|
Range
|
|
Weighted-
Average
|
|
Weighted-
Average
|
|
Weighted- Average
|
|
|||||||||||||||
Natural gas
|
|
17.9
|
|
Bcf
|
|
Jul. 2017 - Dec. 2017
|
|
|
|
|
|
|
|
|
|
$
|
3.12
|
|
|
|
|
$
|
(1,116
|
)
|
||||||||
Natural gas
|
|
8.9
|
|
Bcf
|
|
Jul. 2017 - Dec. 2017
|
|
|
|
|
|
|
|
|
|
$
|
3.46
|
|
|
|
|
4,294
|
|
|||||||||
Natural gas
|
|
17.9
|
|
Bcf
|
|
Jul. 2017 - Dec. 2017
|
|
$
|
—
|
|
|
$
|
3.09
|
|
|
$3.42-$3.45
|
|
$
|
3.43
|
|
|
|
|
|
|
453
|
|
|||||
Natural gas
|
|
21.3
|
|
Bcf
|
|
Jan. 2018 - Dec. 2019
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.42
|
|
|
2,687
|
|
|||||||||
Crude oil
|
|
0.9
|
|
Mmbbl
|
|
Jul. 2017 - Dec. 2017
|
|
$
|
—
|
|
|
$
|
50.00
|
|
|
$56.25-$56.50
|
|
$
|
56.39
|
|
|
|
|
|
|
3,914
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,232
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
(In thousands)
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
|
Carrying
Amount
|
|
Estimated Fair
Value
|
||||||||
Debt, net
|
|
$
|
1,521,211
|
|
|
$
|
1,511,291
|
|
|
$
|
1,520,530
|
|
|
$
|
1,463,643
|
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
|
|||||
April 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,097,320
|
|
|
May 2017
|
|
750,000
|
|
|
$
|
22.65
|
|
|
750,000
|
|
|
9,347,320
|
|
June 2017
|
|
2,293,246
|
|
|
$
|
22.33
|
|
|
2,293,246
|
|
|
7,054,074
|
|
Total
|
|
3,043,246
|
|
|
|
|
3,043,246
|
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
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)
|
|
|
|
|
July 28, 2017
|
By:
|
/s/ DAN O. DINGES
|
|
|
Dan O. Dinges
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
July 28, 2017
|
By:
|
/s/ SCOTT C. SCHROEDER
|
|
|
Scott C. Schroeder
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
July 28, 2017
|
By:
|
/s/ TODD M. ROEMER
|
|
|
Todd M. Roemer
|
|
|
Vice President and Controller
|
|
|
(Principal Accounting Officer)
|
1 Year Cabot Oil and Gas Chart |
1 Month Cabot Oil and Gas Chart |
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