Coterra Energy (CTRA) 8-K Quarterly Production and Second Quarter Financials

Exhibit 99.1

FOR RELEASE	FOR MORE INFORMATION CONTACT
July 24, 2006	Scott Schroeder (281) 589-4993

CABOT OIL & GAS REPORTS RECORDS:

QUARTERLY PRODUCTION AND SECOND QUARTER FINANCIALS

HOUSTON, July 24, 2006- Cabot Oil & Gas Corporation (NYSE: COG) announced today record second quarter financial results and record quarterly equivalent production. “The 23.5 Bcfe of quarterly production is ten percent higher than last year’s comparable period and the highest ever recorded by Cabot during a quarter, highlighting the tangible results of our strategic direction,” stated Dan O. Dinges, Chairman, President and Chief Executive Officer. “The majority of the increment came from our low-risk resource plays throughout the Company.”

This strong level for both production and high commodity prices resulted in net income of $46.9 million, or $0.96 per share, compared to $35.4 million, or $0.72 per share, for the same period last year. Cash flow from operations totaled $114.4 million versus $80.1 million in the same period of 2005, while discretionary cash flow reached $111.6 million versus $79.6 million for the comparable quarter last year.

Cabot’s 2006 natural gas price realizations outperformed 2005 due to an advantageous hedge position. The Company’s 2006 second quarter realized gas price of $6.77 includes a $0.34 per Mcf pick up associated with the hedges versus $6.02 for the same period in 2005, which included a $0.61 loss associated with hedging activities. The realized oil price for the second quarter was $68.32, compared to $43.76 in last year’s comparable period. Hedges have not had an impact on 2006 realized oil prices since index prices have been within the range of our collars, while in 2005 the quarterly oil price was reduced by $6.98 per barrel. Cabot has entered into additional 2007 hedges and is approximately one-third hedged for 2007, with a weighted average natural gas floor of $8.83 per Mcf and ceiling of $12.16 per Mcf (including basis differentials), and an oil hedge collar of $60.00 to $80.00 per Bbl. (See Investor Relations tab on the website for hedge details.)

“We are extremely pleased with the operational progress in all regions, with each showing production growth, and with the improved financial results,” said Dinges. “The goal we set for 2006, to continue to position the Company toward emphasizing large scale development of reserves through drilling and a focused exploration opportunity, has proven to be a successful strategy for Cabot.”

Expenses trended higher in all categories between comparable second quarter periods. This increase was due to the continued inflation in the general industry operations and new accounting rules for stock compensation. This was partially offset by a lower corporate tax rate due to the recognition of a change in Texas state income taxes.

Year-to-Date

On a year-to-date basis, Cabot reported net income of $100.0 million, or $2.05 per share, cash flow from operations of $269.4 million and discretionary cash flow of $229.5 million. All of these compare favorably with last year’s reported levels of $56.2 million, or $1.15 per share, for net income, $188.1 million for cash flow from operations and $162.3 million in discretionary cash flow.

The six-month reporting period benefited from higher realized commodity prices along with a six percent increase in production over the first six months of 2005.

Debt increased in the second quarter primarily due to the stock buyback program which netted 666,200 shares for approximately $27.2 million, or a weighted average price of $40.81 per share during the quarter. This leaves a remaining authorization of 819,950 shares. “With the stock market valuation significantly disconnected from recent M&A activity metrics, we felt our stock was a bargain,” commented Dinges. “Additionally, we were able to purchase reserves at a level competitive with our all-in finding cost for the last two years.”

Conference Call

Listen in live to Cabot Oil & Gas Corporation’s 2006 second quarter financial and operating results discussion with financial analysts on Monday, July 24, at 4:00pm EDT (3:00pm CDT) atwww.cabotog.com. A teleconference replay will also be available at (800) 642-1687, (U.S./Canada) or (706) 645-9291 (International), pass code 2397294. A replay will be available through Monday, July 31, 2006. The latest financial guidance, including the Company’s hedge positions, along with a replay of the web cast, which will be archived for one year, are available in the investor relations section of the Company’s website atwww.cabotog.com.

* * *

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; the East and an expansion effort in Canada. For additional information, visit the Company’s Internet homepage atwww.cabotog.com.

Forward-Looking Statements

The statements regarding future financial performance and results and the other statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price (including regional basis differentials) of natural gas and oil, results of future drilling and marketing activity, future production and costs, and other factors detailed in the Company’s Securities and Exchange Commission filings.

CABOT OIL & GAS RESULTS — Page 4

OPERATING DATA

	Quarter Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
PRODUCED NATURAL GAS (Bcf) & OIL (MBbl)
Natural Gas
Gulf Coast		8.7			7.3			15.9			14.7
West		5.7			5.7			11.1			11.4
East		5.9			5.1			11.7			10.2
Canada		0.6			0.3			1.1			0.5
Total		20.9			18.4			39.8			36.8
Crude/Condensate/Ngl
Gulf Coast		371			421			704			827
West		57			45			113			82
East		6			8			13			13
Canada		3			5			7			9
Total		437			479			837			931
Equivalent Production (Bcfe)		23.5			21.3			44.8			42.4
PRICES
Average Produced Gas Sales Price ($/Mcf)
Gulf Coast	$	7.00		$	6.14		$	7.55		$	6.09
West	$	5.73		$	5.47		$	6.38		$	5.10
East	$	7.58		$	6.54		$	8.44		$	6.44
Canada	$	5.63		$	4.53		$	6.68		$	4.95
Total(1)	$	6.77		$	6.02		$	7.46		$	5.86
Crude/Condensate Price ($/Bbl)
Gulf Coast	$	68.58		$	42.86		$	65.17		$	42.19
West	$	65.92		$	52.27		$	63.31		$	50.61
East	$	66.51		$	50.32		$	62.68		$	49.37
Canada	$	84.24		$	35.43		$	65.15		$	36.83
Total(1)	$	68.32		$	43.76		$	64.88		$	42.96
WELLS DRILLED
Gross		120			97			191			141
Net		99			77			156			105
Gross Success Rate		97	%		98	%		97	%		94	%

⁽¹⁾ These realized prices include the realized impact of derivative instruments.

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CABOT OIL & GAS RESULTS — Page 5

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)

	Quarter Ended June 30,				Six Months Ended June 30,
	2006		2005		2006			2005
Operating Revenues
Natural Gas Production(1)	$	141,503	$	111,817	$	296,670		$	216,089
Brokered Natural Gas		17,495		15,520		50,314			42,012
Crude Oil and Condensate(1)		29,668		23,936		53,848			35,914
Other		2,128		611		4,730			1,943
		190,794		151,884		405,562			295,958
Operating Expenses
Brokered Natural Gas Cost		15,397		13,701		44,642			36,999
Direct Operations - Field and Pipeline		17,955		14,307		35,585			28,925
Exploration		14,797		11,362		26,411			30,731
Depreciation, Depletion and Amortization		36,675		29,755		72,190			59,822
General and Administrative (excluding Stock-Based Compensation)		9,363		7,168		18,729			15,093
Stock-Based Compensation(2)		4,152		1,532		8,635			2,567
Taxes Other Than Income		14,578		12,396		30,073			22,114
		112,917		90,221		236,265			196,251
Gain on Sale of Assets		4		59		211			59
Income from Operations		77,881		61,722		169,508			99,766
Interest Expense and Other		6,023		5,134		12,173			10,122
Income Before Income Taxes and Cumulative Effect of Accounting Change		71,858		56,588		157,335			89,644
Income Tax Expense		24,994		21,166		56,903			33,460
Income Before Cumulative Effect of Accounting Change		46,864		35,422		100,432			56,184
Cumulative Effect of Accounting Change, Net of Tax(3)		—		—		(403	)		—
Net Income	$	46,864	$	35,422	$	100,029		$	56,184
Net Earnings Per Share - Basic	$	0.96	$	0.72	$	2.05		$	1.15
Weighted Average Common Shares Outstanding		48,741		48,917		48,711			48,821

⁽¹⁾ See the “Impact of Mark-to-Market Accounting Requirements” table for additional information.

⁽²⁾ Includes the impact of the Company’s performance share and restricted stock amortization.

In addition, the 2006 figure includes expense related to stock options and stock appreciation rights following the adoption of SFAS 123(R).

⁽³⁾ Cumulative effect of accounting change relates to the adoption of SFAS No. 123(R), “Share Based Payment (revised 2004).”

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CABOT OIL & GAS RESULTS — Page 6

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In thousands)

	June 30, 2006		December 31, 2005
Assets
Current Assets	$	187,591	$	230,312
Property, Equipment and Other Assets		1,413,841		1,245,471
Deferred Income Taxes		26,573		19,587
Total Assets	$	1,628,005	$	1,495,370
Liabilities and Stockholders’ Equity
Current Liabilities	$	189,943	$	218,584
Long-Term Debt		330,000		320,000
Deferred Income Taxes		320,245		289,381
Other Liabilities		75,733		67,194
Stockholders’ Equity		712,084		600,211
Total Liabilities and Stockholders’ Equity	$	1,628,005	$	1,495,370

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Cash Flows From Operating Activities
Net Income	$	46,864		$	35,422		$	100,029		$	56,184
Cumulative Effect of Accounting Change		—			—			403			—
Unrealized (Gain) / Loss on Derivatives		—			(3,831	)		—			3,681
Income Charges Not Requiring Cash		40,840			30,679			80,822			62,669
Gain on Sale of Assets		(4	)		(59	)		(211	)		(59	)
Deferred Income Tax Expense		9,139			6,056			22,032			9,078
Changes in Assets and Liabilities		4,660			430			44,771			25,792
Stock-Based Compensation Tax Benefit		(1,945	)		—			(4,897	)		—
Exploration Expense		14,797			11,362			26,411			30,731
Net Cash Provided by Operations		114,351			80,059			269,360			188,076
Cash Flows From Investing Activities
Capital Expenditures		(121,347	)		(74,778	)		(224,463	)		(115,848	)
Proceeds from Sale of Assets		34			122			575			710
Exploration Expense		(14,797	)		(11,362	)		(26,411	)		(30,731	)
Net Cash Used in Investing		(136,110	)		(86,018	)		(250,299	)		(145,869	)
Cash Flows From Financing Activities
Sale of Common Stock Proceeds		1,502			849			2,564			3,580
Net Increase in Debt		55,000			—			10,000			—
Purchase of Treasury Stock		(27,187	)		—			(27,187	)		(571	)
Stock-Based Compensation Tax Benefit		1,945			—			4,897			—
Dividends Paid		(1,956	)		(1,957	)		(3,902	)		(3,296	)
Net Cash Provided by / (Used in) Financing		29,304			(1,108	)		(13,628	)		(287	)
Net Increase / (Decrease) in Cash and Cash Equivalents	$	7,545		$	(7,067	)	$	5,433		$	41,920

CABOT OIL & GAS RESULTS — Page 7

Selected Item Review and Reconciliation of Net Income and Earnings Per Share

(In thousands, except per share amounts)

	Quarter Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
As Reported - Net Income	$	46,864		$	35,422		$	100,029		$	56,184
Reversal of Selected Items, Net of Tax:
Gain on Sale of Assets		(2	)		(36	)		(131	)		(36	)
Unrealized (Gain) / Loss on Derivatives		—			(2,370	)		—			2,277
Cumulative Effect of Accounting Change		—			—			403			—
Net Income Including Reversal of Selected Items	$	46,862		$	33,016		$	100,301		$	58,425
As Reported - Net Earnings Per Share	$	0.96		$	0.72		$	2.05		$	1.15
Per Share Impact of Reversing Selected Items		—			(0.05	)		0.01			0.05
Net Earnings Per Share Including Reversal of Selected Items	$	0.96		$	0.67		$	2.06		$	1.20
Weighted Average Common Shares Outstanding		48,741			48,917			48,711			48,821

Discretionary Cash Flow Calculation and Reconciliation

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Discretionary Cash Flow
As Reported - Net Income	$	46,864		$	35,422		$	100,029		$	56,184
Plus:
Cumulative Effect of Accounting Change		—			—			403			—
Unrealized (Gain) / Loss on Derivatives		—			(3,831	)		—			3,681
Income Charges Not Requiring Cash		40,840			30,679			80,822			62,669
Gain on Sale of Assets		(4	)		(59	)		(211	)		(59	)
Deferred Income Tax Expense		9,139			6,056			22,032			9,078
Exploration Expense		14,797			11,362			26,411			30,731
Discretionary Cash Flow		111,636			79,629			229,486			162,284
Plus: Changes in Assets and Liabilities		4,660			430			44,771			25,792
Less: Stock-Based Compensation Tax Benefit		(1,945	)		—			(4,897	)		—
Net Cash Provided by Operations	$	114,351		$	80,059		$	269,360		$	188,076

Net Debt Reconciliation

(In thousands)

	June 30, 2006			December 31, 2005
Current Portion of Long-Term Debt	$	20,000		$	20,000
Long-Term Debt		330,000			320,000
Total Debt	$	350,000		$	340,000
Stockholders’ Equity		712,084			600,211
Total Capitalization	$	1,062,084		$	940,211
Total Debt	$	350,000		$	340,000
Less: Cash and Cash Equivalents		(16,059	)		(10,626	)
Net Debt	$	333,941		$	329,374
Net Debt	$	333,941		$	329,374
Stockholders’ Equity		712,084			600,211
Total Adjusted Capitalization	$	1,046,025		$	929,585
Total Debt to Total Capitalization Ratio		33.0	%		36.2	%
Less: Impact of Cash and Cash Equivalents		1.1	%		0.8	%
Net Debt to Adjusted Capitalization Ratio		31.9	%		35.4	%

CABOT OIL & GAS RESULTS — Page 8

Impact of Mark-to-Market Accounting Requirements

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Unrealized Gain/ (Loss) on Derivatives(1)
Natural Gas	$	—		$	782		$	—		$	222
Crude Oil		—			3,049			—			(3,903	)
Incentive Stock Compensation Expense(2)		(4,152	)		(1,532	)		(9,284	)		(2,567	)
Mark-to-Market Impact, Before Income Tax	$	(4,152	)	$	2,299		$	(9,284	)	$	(6,248	)
Mark-to-Market Impact, Income Tax		1,578			(877	)		3,528			2,383
Mark-to-Market Impact on Net Income	$	(2,574	)	$	1,422		$	(5,756	)	$	(3,865	)

⁽¹⁾ These amounts represent the unrealized loss associated with the mark-to-market valuation of open positions which do not qualify for hedge accounting or are ineffective. These amounts are reflected in the respective line items of Operating Revenues. Therefore, the computation of our reported realized commodity prices can be obtained by adding the loss or subtracting the gain from the respective Operating Revenues line item and dividing by reported production.

⁽²⁾ See Company’s Form 10-Q and Form 10-K for descriptions of incentive stock compensation awards.