Cabot Oil & Gas Earnings: Price Reductions Took a Bite

S&P 500 (NYSE:SPY) component Cabot Oil & Gas Corporation (NYSE:COG) reported its results for the first quarter. Cabot Oil & Gas Corporation is an independent company engaged in the development, exploitation and exploration of oil and gas properties in North America.

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Cabot Oil & Gas Earnings Cheat Sheet for the First Quarter

Results: Net income for the independent oil and gas company fell to $12.9 million (12 cents/share) vs. $28.7 million (27 cents/share) a year earlier. A decline of 55.1% from the year earlier quarter.

Revenue: Fell 1.7% to $209 million YoY.

Actual vs. Wall St. Expectations: Estimates, which often factor in net income adjustments, had a mean of 12 cents per share for COG.

Quoting Management: “Even with these significant price reductions between first quarters, we were able to hold production revenue essentially flat,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “This is on the strength of the positive news coming out of the quarter of 41 percent growth in equivalent production volumes between first quarters, at the top end of equivalent guidance.” The Company reported equivalent volumes of 37.7 Bcfe for 2011. “We still remain constrained on takeaway in the north region but with visibility for significant infrastructure commissioning in the near-term,” added Dinges. “Last year at this time we had a first quarter exit rate in Marcellus of 107 Mmcf gross per day. This year, our Marcellus production exit rate for the first quarter is 320 Mmcf gross per day.”

Key Stats:

Net income has dropped 32.9% year over year on average across the last five quarters. Performance was hurt by an 90% decline in the third quarter of the last fiscal year from the year earlier quarter.

Competitors to Watch: EOG Resources, Inc. (NYSE:EOG), Pinnacle Gas Resources, Inc. (PINN), Vanguard Natural Resources, LLC (NYSE:VNR), Magnum Hunter Resources Corp (NYSE:MHR), Anadarko Petroleum Corp. (NYSE:APC), PrimeEnergy Corporation (NASDAQ:PNRG), SM Energy Co. (NYSE:SM), EV Energy Partners, L.P. (NASDAQ:EVEP), Continental Resources, Inc. (NYSE:CLR), and Range Resources Corp. (NYSE:RRC).

Today’s Performance: Shares of COG are unchanged in after hours trading.

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