Cabot Oil & Gas has reported third quarter net income of $35.5 million, or $0.37 per share, and cash flow from operations of $86.8 million and discretionary cash flow of $121.7 million.
Dan Dinges, chairman, president and CEO, said: These results compare favorably to our historical third quarter outcomes. The net income figure is Cabot’s second highest for a third quarter period, and the cash flow figures are both records for the quarter.
Last year’s third quarter results included the sale of the company’s South Louisiana and offshore properties, which generated a large gain, resulting in $189 million of net income, or $1.96 per share, $86.7 million of cash flow from operations and $21.5 million of discretionary cash flow.
This year’s third quarter includes a $2.9 million, net of tax, charge for impairment. Removing the results of asset sales and impairments in both quarters, the comparative results for net income is $38.4 million, or $0.40 per share for 2007, versus $45.3 million, or $0.47 per share for 2006, with the cash flow comparisons remaining unchanged.
For the first nine months of 2007, the company reported net income of $125.4 million, or $1.29 per share, cash flow from operations of $328.6 million and discretionary cash flow of $341 million. This compares to $289 million, or $2.98 per share, $356.1 million and $251 million, respectively. Removing the impairment and the gain on the sale, the nine-month comparison for net income is $120.6 million, or $1.24 per share for 2007 versus $145.2 million, or $1.50 per share for 2006.
Primarily driving this result is lower absolute oil production between periods, due to the 2006 asset sale.