Cabot Oil & Gas Reports 27% Increase in Proved Reserves in 2012
Cabot Oil & Gas Corporation (NYSE: COG) today reported year-end 2012 proved reserves of 3.8 trillion cubic feet equivalent (Tcfe), an increase of 27 percent over year-end 2011. This is 100 percent organically generated growth and represents the third consecutive year of reserve growth exceeding 20 percent, after adjusting for the sale of its Rocky Mountain properties in 2011. Total reserve replacement from all sources was 417 percent at a finding cost of $0.87 per thousand cubic feet equivalent (Mcfe). "In spite of a 33 percent decrease in the benchmark natural gas price used in calculating proved reserves in 2012, we grew year-end proved reserves significantly without an increase to our PUD percentage," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Our all sources finding cost of $0.87 per Mcfe is our lowest in 15 years and further highlights the capital efficiency of our portfolio."
Cabot's reserve growth was primarily driven by its drilling programs in the Marcellus Shale, Eagle Ford Shale and Marmaton oil play, which resulted in 926.8 billion cubic feet equivalent (Bcfe) of additions for the year. The Company