CABOT OIL & GAS CORPORATION (NYSE:COG) Files An 8-K Results of Operations and Financial Condition
Item 2.02
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Results of Operations and Financial Condition.
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On February 24, 2017, we issued a press release with respect to
our 2016>fourth quarter and full year earnings. The press
release is furnished as Exhibit 99.1 to this Current Report. The
press release contains certain measures (discussed below) which
may be deemed non-GAAP financial measures as defined in Item 10
of Regulation S-K of the Securities Exchange Act of 1934, as
amended. In each case, the most directly comparable GAAP
financial measure and information reconciling the GAAP and
non-GAAP measures is also included in the press release.
our 2016>fourth quarter and full year earnings. The press
release is furnished as Exhibit 99.1 to this Current Report. The
press release contains certain measures (discussed below) which
may be deemed non-GAAP financial measures as defined in Item 10
of Regulation S-K of the Securities Exchange Act of 1934, as
amended. In each case, the most directly comparable GAAP
financial measure and information reconciling the GAAP and
non-GAAP measures is also included in the press release.
Exhibit 99.1 shall not be deemed to be filed for the purposes of
Section 18 of the Securities Exchange Act of 1934, as amended,
and will not be incorporated by reference into any registration
statement filed under the Securities Act of 1933, as amended,
unless specifically identified therein as being incorporated
therein by reference.
Section 18 of the Securities Exchange Act of 1934, as amended,
and will not be incorporated by reference into any registration
statement filed under the Securities Act of 1933, as amended,
unless specifically identified therein as being incorporated
therein by reference.
From time to time management discloses Discretionary Cash Flow,
EBITDAX, Net Income Excluding Selected Items, Earnings per Share
Excluding Selected Items, Net Debt calculations and ratios and
Pre-tax Present Value of Future Net Cash Flows, discounted at 10%
annual rate. These non-GAAP financial measures, to the extent
included in Exhibit 99.1, are reconciled to the most comparable
GAAP financial measures in Exhibit 99.1.
EBITDAX, Net Income Excluding Selected Items, Earnings per Share
Excluding Selected Items, Net Debt calculations and ratios and
Pre-tax Present Value of Future Net Cash Flows, discounted at 10%
annual rate. These non-GAAP financial measures, to the extent
included in Exhibit 99.1, are reconciled to the most comparable
GAAP financial measures in Exhibit 99.1.
Discretionary Cash Flow is defined as net income plus non-cash
charges and exploratory dry hole cost. Discretionary Cash Flow is
widely accepted as a financial indicator of an oil and gas
companys ability to generate cash which is used to internally
fund exploration and development activities, pay dividends and
service debt. Discretionary Cash Flow is presented based on
managements belief that this non-GAAP measure is useful
information to investors when comparing our cash flows with the
cash flows of other companies that use the full cost method of
accounting for oil and gas producing activities or have different
financing and capital structures or tax rates. Discretionary Cash
Flow is not a measure of financial performance under GAAP and
should not be considered as an alternative to cash flows from
operating activities, as defined by GAAP, or as a measure of
liquidity, or an alternative to net income.
charges and exploratory dry hole cost. Discretionary Cash Flow is
widely accepted as a financial indicator of an oil and gas
companys ability to generate cash which is used to internally
fund exploration and development activities, pay dividends and
service debt. Discretionary Cash Flow is presented based on
managements belief that this non-GAAP measure is useful
information to investors when comparing our cash flows with the
cash flows of other companies that use the full cost method of
accounting for oil and gas producing activities or have different
financing and capital structures or tax rates. Discretionary Cash
Flow is not a measure of financial performance under GAAP and
should not be considered as an alternative to cash flows from
operating activities, as defined by GAAP, or as a measure of
liquidity, or an alternative to net income.
EBITDAX is defined as net income plus interest expense, income
taxes expense, depreciation, depletion and amortization
(including property impairments), exploration expense, gains and
losses resulting from the sale of assets, non-cash gains and
losses on derivative instruments, and stock-based compensation
expense and other. EBITDAX is presented based on managements
belief that this non-GAAP measure is useful information to
investors when evaluating our ability to internally fund
exploration and development activities and to service or incur
debt without regard to financial or capital structure. EBITDAX is
not a measure of financial performance under GAAP and should not
be considered as alternative to cash flows from operating
activities or net income, as defined by GAAP, or as a measure of
liquidity.
taxes expense, depreciation, depletion and amortization
(including property impairments), exploration expense, gains and
losses resulting from the sale of assets, non-cash gains and
losses on derivative instruments, and stock-based compensation
expense and other. EBITDAX is presented based on managements
belief that this non-GAAP measure is useful information to
investors when evaluating our ability to internally fund
exploration and development activities and to service or incur
debt without regard to financial or capital structure. EBITDAX is
not a measure of financial performance under GAAP and should not
be considered as alternative to cash flows from operating
activities or net income, as defined by GAAP, or as a measure of
liquidity.
Net Income Excluding Selected Items and Earnings per Share
Excluding Selected Items are presented based on managements
belief that these non-GAAP measures enable a user of the
financial information to understand the impact of these items on
reported results. Additionally, this presentation provides a
beneficial comparison to similarly adjusted measurements of prior
periods. Net Income and Earnings per Share Excluding Selected
Items is not a measure of financial performance under GAAP and
should not be considered as an alternative to net income and
earnings per share, as defined by GAAP.
Excluding Selected Items are presented based on managements
belief that these non-GAAP measures enable a user of the
financial information to understand the impact of these items on
reported results. Additionally, this presentation provides a
beneficial comparison to similarly adjusted measurements of prior
periods. Net Income and Earnings per Share Excluding Selected
Items is not a measure of financial performance under GAAP and
should not be considered as an alternative to net income and
earnings per share, as defined by GAAP.
The total debt to total capitalization ratio is calculated by
dividing total debt by the sum of total debt and total
stockholders equity. This ratio is a measurement which is
presented in our annual and interim filings and management
believes this ratio is useful to investors in determining the
Companys leverage. Net Debt and the Net Debt to Total
Capitalization ratio are non-GAAP measures which have been
presented in Exhibit 99.1. Net Debt is calculated by subtracting
cash and cash equivalents from total debt. Management believes
that these measurements are also useful to investors since the
Company has the ability to and may decide to use a portion of its
cash and cash equivalents to retire debt. Additionally, as the
Company may incur additional expenditures without increasing
debt, it is appropriate to apply cash and cash equivalents to
debt in calculating the Net Debt to Total Capitalization ratio.
dividing total debt by the sum of total debt and total
stockholders equity. This ratio is a measurement which is
presented in our annual and interim filings and management
believes this ratio is useful to investors in determining the
Companys leverage. Net Debt and the Net Debt to Total
Capitalization ratio are non-GAAP measures which have been
presented in Exhibit 99.1. Net Debt is calculated by subtracting
cash and cash equivalents from total debt. Management believes
that these measurements are also useful to investors since the
Company has the ability to and may decide to use a portion of its
cash and cash equivalents to retire debt. Additionally, as the
Company may incur additional expenditures without increasing
debt, it is appropriate to apply cash and cash equivalents to
debt in calculating the Net Debt to Total Capitalization ratio.
Pre-tax Present Value of Future Net Cash Flows, discounted at 10%
annual rate is defined as Standardized Measure of Discounted
Future Net Cash Flows plus Future Income Tax Expenses, discounted
at 10% annual rate. Year-end pre-tax PV-10 value is presented
based on managements belief this non-GAAP measure is useful
information to investors and creditors when comparing pre-tax
PV-10 values as a basis for comparison of our relative size and
value of reserves as compared with other companies. Pre-tax
Present Value of Future Net Cash Flows, discounted at 10% annual
rate is not a measure under GAAP and should not be considered as
alternative to Standardized Measure of Discounted Future Net Cash
Flows, as defined by GAAP.
annual rate is defined as Standardized Measure of Discounted
Future Net Cash Flows plus Future Income Tax Expenses, discounted
at 10% annual rate. Year-end pre-tax PV-10 value is presented
based on managements belief this non-GAAP measure is useful
information to investors and creditors when comparing pre-tax
PV-10 values as a basis for comparison of our relative size and
value of reserves as compared with other companies. Pre-tax
Present Value of Future Net Cash Flows, discounted at 10% annual
rate is not a measure under GAAP and should not be considered as
alternative to Standardized Measure of Discounted Future Net Cash
Flows, as defined by GAAP.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits
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99.1
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Press release issued by Cabot Oil Gas Corporation dated
February 24, 2017 |
About CABOT OIL & GAS CORPORATION (NYSE:COG)
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States. Its assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. The Company’s exploration, development and production operations are primarily concentrated in two unconventional plays: the Marcellus Shale in northeast Pennsylvania and the Eagle Ford Shale in south Texas. It also has operations in various other unconventional and conventional plays throughout the continental United States. It has operations in Houston, Texas and Pittsburgh, Pennsylvania. Its Marcellus Shale properties are principally located in Susquehanna County, Pennsylvania. It holds over 200,000 net acres in the dry gas window of the play. CABOT OIL & GAS CORPORATION (NYSE:COG) Recent Trading Information
CABOT OIL & GAS CORPORATION (NYSE:COG) closed its last trading session down -0.07 at 22.53 with 6,253,882 shares trading hands.
