HOUSTON, Nov. 18, 2019 /PRNewswire/ -- Cabot Oil & Gas Corporation (COG) ("Cabot" or the "Company") announced today it has completed the previously announced divestiture of its 20 percent ownership interest in Meade Pipeline Co LLC ("Meade") and provided an update on its share repurchase program.
Completion of Meade Divestiture
On November 13, 2019, Cabot completed the divestiture of its 20 percent ownership interest in Meade for $256 million, excluding customary closing adjustments. "Proceeds from this divestiture will allow Cabot to continue to enhance shareholder value through an ongoing opportunistic share repurchase program, while also providing the Company with increased financial strength in a challenging natural gas price environment," highlighted Dan O. Dinges, Chairman, President and Chief Executive Officer.
Share Repurchase Program Update
"Subsequent to our third quarter earnings release, we were active in our share repurchase program in anticipation of the proceeds from the Meade divestiture," stated Dinges. Cabot has repurchased 5.0 million shares at a weighted-average share price of $17.84 during the fourth quarter of 2019. Since reactivating the share repurchase program in the second quarter of 2017, Cabot has reduced its shares outstanding by over 13 percent to 402.9 million shares. The Company currently has 16.0 million remaining shares authorized under its share repurchase program (or approximately four percent of its current shares outstanding). Dinges added, "Year-to-date, we have returned over $580 million of capital to shareholders through dividends and share repurchases, representing over 110 percent of the midpoint of our free cash flow guidance for the year and far exceeding our target of returning at least 50 percent of annual free cash flow to shareholders. We plan to remain active with our opportunistic share repurchases, which are supported by our expectation for continued free cash flow generation, even in the lows of the natural gas price cycle."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with its entire resource base located in the continental United States. For additional information, visit the Company's website at www.cabotog.com.
This press release includes forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements regarding future financial and operating performance and results, returns to shareholders, strategic pursuits and goals, market prices, future hedging and risk management activities, and other statements that are not historical facts contained in this report are forward-looking statements. The words "expect", "project", "estimate", "believe", "anticipate", "intend", "budget", "plan", "forecast", "outlook", "predict", "may", "should", "could", "will" and similar expressions are also intended to identify forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, market factors, market prices (including geographic basis differentials) of natural gas and crude oil, results of future drilling and marketing activity, future production and costs, pipeline projects, legislative and regulatory initiatives, electronic, cyber or physical security breaches and other factors detailed herein and in our other Securities and Exchange Commission (SEC) filings. See "Risk Factors" in Item 1A of the Form 10-K and subsequent public filings for additional information about these risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not undertake any obligation to correct or update any forward-looking statement, whether as the result of new information, future events or otherwise, except as required by applicable law.
FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642
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