Coterra Energy (CTRA) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR RELEASE	FOR MORE INFORMATION CONTACT
July 25, 2007	Scott Schroeder (281) 589-4993

Cabot Oil & Gas Reports Second Quarter Financial Results and

Double-digit Pro-forma Production Growth

HOUSTON, July 25, 2007 - Cabot Oil & Gas Corporation today announced second quarter net income of $41.4 million, or $0.43 per share, along with cash flow from operations of $105.9 million and discretionary cash flow of $112.5 million. “These results compare to last year’s record second quarter that included higher commodity prices and flush production from several new wells related to the south Louisiana and offshore assets that were sold in the third quarter of 2006,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. Net income in the 2006 second quarter was $46.9 million, or $0.48 per share, while cash flow from operations totaled $114.4 million and discretionary cash flow was $111.6 million.

Equivalent production levels in the second quarter grew 13 percent from last year’s second quarter with all regions making advances, excluding the benefit of the south Louisiana and offshore production in 2006. “The Company produced 21.2 Bcfe in the 2007 second quarter on the strength of a very successful (98% success rate) organic drilling program,” stated Dinges. “When including the sold production for 2006, the Company produced 23.5 Bcfe in last year’s second quarter.”

The Company’s second quarter natural gas price realization benefited from its hedges, adding $0.66 per Mcf, resulting in a $7.24 per Mcf realization for the quarter. This price realization was 7 percent above the comparable 2006 level. Realized oil prices were $61.98 per barrel, 9 percent below the comparable period last year.

Expense levels were generally in line with guidance levels with a slight increase in operating cost and an increase in DD&A, which included a $2.4 million pre-tax increase in amortization of unproved property related to the Company’s leasehold. “The DD&A guidance has been adjusted to reflect this increase going forward,” commented Dinges. The balance sheet remains strong with an 18.5 percent net debt to total adjusted capitalization rate at quarter’s end.

Year-to-date

In the six months ended June 30, 2007, Cabot reported net income of $89.9 million, or $0.93 per share compared to $100.0 million or $1.03 per share last year. The cash flow comparisons included cash flow from operations of $241.8 million in 2007 versus $269.4 million in 2006, while discretionary cash flow was $219.3 million in 2007, compared to $229.5 million in 2006.

Lower realized commodity prices and lower production volumes were the drivers of the results. “Clearly asset sales are going to affect comparisons,” commented Dinges. “However, the equivalent pro-forma (or production from the ongoing reserve portfolio) volume comparisons highlight a 19 percent year-over-year increase and solidify our guidance of 12 to 18 percent for the year.” The absolute comparison for year-to-date production is 42.2 Bcfe in 2007 versus 44.8 Bcfe in 2006.

Selected Items

Both the 2007 second quarter and the year-to-date figures were positively impacted by a non-cash gain on sale of assets. The non-cash gain on sale of assets, shown in detail in an attached table, had a $0.03 per share positive impact to net income for the second quarter and, combined with a first quarter gain on sale, an $0.08 per share pickup for the six-month year-to-date period. “These all related to small asset packages, which were yet to be closed from last year’s south Louisiana and offshore sale,” said Dinges.

Conference Call

Listen in live to Cabot Oil & Gas Corporation’s second quarter financial and operating results discussion with financial analysts on Thursday, July 26, at 9:30 a.m. EDT (8:30 a.m. 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 4159414. The replay will be available through Saturday, July 28, 2007. 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 in Canada. For additional information, visit the Company’s Internet homepage atwww.cabotog.com.

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.

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CABOT OIL & GAS RESULTS — Page 4

OPERATING DATA

	Quarter Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
PRODUCED NATURAL GAS (Bcf) & OIL (MBbl)
Natural Gas
East		6.2			5.9			12.0			11.7
Gulf Coast		6.4			8.7			12.9			15.9
West		6.4			5.7			12.8			11.1
Canada		0.9			0.6			2.0			1.1
Total		19.9			20.9			39.7			39.8
Less: Production from properties sold in 2006(1)		—			(3.3	)		—			(6.3	)
Adjusted Total		19.9			17.6			39.7			33.5
Crude/Condensate/Ngl
East		7			6			13			13
Gulf Coast		161			371			309			704
West		43			57			90			113
Canada		4			3			10			7
Total		215			437			422			837
Less: Production from properties sold in 2006(1)		—			(242	)		—			(492	)
Adjusted Total		215			195			422			345
Equivalent Production (Bcfe)		21.2			23.5			42.2			44.8
Less: Production from properties sold in 2006(1)		—			(4.8	)		—			(9.3	)
Adjusted Equivalent Production (Bcfe)		21.2			18.7			42.2			35.5
PRICES
Average Produced Gas Sales Price ($/Mcf)
East	$	7.86		$	7.58		$	7.97		$	8.44
Gulf Coast	$	8.27		$	7.00		$	8.01		$	7.55
West	$	6.02		$	5.73		$	6.26		$	6.38
Canada	$	4.25		$	5.63		$	5.97		$	6.68
Total(2)	$	7.24		$	6.77		$	7.33		$	7.46
Crude/Condensate Price ($/Bbl)
East	$	59.41		$	66.51		$	56.60		$	62.68
Gulf Coast	$	62.28		$	68.58		$	57.85		$	65.17
West	$	62.76		$	65.92		$	58.33		$	63.31
Canada	$	48.51		$	84.24		$	51.77		$	65.15
Total(2)	$	61.98		$	68.32		$	57.76		$	64.88
WELLS DRILLED
Gross		122			120			222			191
Net		111			99			203			156
Gross Success Rate		98	%		97	%		98	%		97	%

⁽¹⁾ These amounts relate to production associated with offshore and certain south Louisiana properties sold during the third quarter of 2006.

⁽²⁾ These realized prices include the realized impact of derivative instrument settlements.

	Quarter Ended June 30,				Six Months Ended June 30,
	2007		2006		2007		2006
Realized Impacts to Gas Pricing	$	0.66	$	0.34	$	0.77	$	0.22
Realized Impacts to Oil Pricing	$	—	$	—	$	0.43	$	—

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,
	2007		2006		2007		2006
Operating Revenues
Natural Gas Production	$	144,128	$	141,503	$	290,878	$	296,670
Brokered Natural Gas		18,001		17,495		51,178		50,314
Crude Oil and Condensate		13,263		29,668		24,205		53,848
Other		440		2,128		1,144		4,730
		175,832		190,794		367,405		405,562
Operating Expenses
Brokered Natural Gas Cost		16,051		15,397		44,750		44,642
Direct Operations-Field and Pipeline		19,004		17,955		36,135		35,585
Exploration		6,825		14,797		12,477		26,411
Depreciation, Depletion and Amortization		40,585		36,675		77,966		72,190
General and Administrative (excluding Stock-Based Compensation)		8,904		9,363		20,549		18,729
Stock-Based Compensation(1)		4,061		4,152		10,696		9,038
Taxes Other Than Income		14,579		14,578		27,744		30,073
		110,009		112,917		230,317		236,668
Gain on Sale of Assets(2)		4,422		4		12,342		211
Income from Operations		70,245		77,881		149,430		169,105
Interest Expense and Other		3,619		6,023		7,543		12,173
Income Before Income Taxes		66,626		71,858		141,887		156,932
Income Tax Expense		25,250		24,994		51,964		56,903
Net Income	$	41,376	$	46,864	$	89,923	$	100,029
Net Earnings Per Share - Basic	$	0.43	$	0.48	$	0.93	$	1.03
Weighted Average Common Shares Outstanding		96,929		97,482		96,813		97,421

⁽¹⁾ Includes the impact of the Company's performance share and restricted stock amortization as well as expense related to stock options and stock appreciation rights.

⁽²⁾ Gain on Sale of Assets is primarily related to the sale in the third quarter of 2006 of offshore and certain south Louisiana properties.

CABOT OIL & GAS RESULTS — Page 6

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In thousands)

	June 30, 2007		December 31, 2006
Assets
Current Assets	$	213,662	$	315,682
Property, Equipment and Other Assets		1,721,258		1,487,897
Deferred Income Taxes		34,341		30,912
Total Assets	$	1,969,261	$	1,834,491
Liabilities and Stockholders' Equity
Current Liabilities	$	236,111	$	251,027
Long-Term Debt, excluding Current Maturities		235,000		220,000
Deferred Income Taxes		394,569		347,430
Other Liabilities		84,718		70,836
Stockholders' Equity		1,018,863		945,198
Total Liabilities and Stockholders' Equity	$	1,969,261	$	1,834,491

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(In thousands)

	Quarter Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Cash Flows From Operating Activities
Net Income	$	41,376		$	46,864		$	89,923		$	100,029
Income Charges Not Requiring Cash		45,032			40,840			89,583			81,225
Gain on Sale of Assets		(4,422	)		(4	)		(12,342	)		(211	)
Deferred Income Tax Expense		23,738			9,139			39,612			22,032
Changes in Assets and Liabilities		(4,689	)		4,660			28,600			44,771
Stock-Based Compensation Tax Benefit		(1,911	)		(1,945	)		(6,046	)		(4,897	)
Exploration Expense		6,825			14,797			12,477			26,411
Net Cash Provided by Operations		105,949			114,351			241,807			269,360
Cash Flows From Investing Activities
Capital Expenditures		(158,183	)		(121,347	)		(271,931	)		(224,463	)
Proceeds from Sale of Assets		41			34			5,825			575
Exploration Expense		(6,825	)		(14,797	)		(12,477	)		(26,411	)
Net Cash Used in Investing		(164,967	)		(136,110	)		(278,583	)		(250,299	)
Cash Flows From Financing Activities
Sale of Common Stock Proceeds		1,163			1,502			2,307			2,564
Net Increase in Debt		25,000			55,000			15,000			10,000
Purchase of Treasury Stock		—			(27,187	)		—			(27,187	)
Stock-Based Compensation Tax Benefit		1,911			1,945			6,046			4,897
Dividends Paid		(2,907	)		(1,956	)		(4,840	)		(3,902	)
Net Cash Provided by / (Used in) Financing		25,167			29,304			18,513			(13,628	)
Net (Decrease) / Increase in Cash and
Cash Equivalents	$	(33,851	)	$	7,545		$	(18,263	)	$	5,433

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,
	2007			2006			2007			2006
As Reported - Net Income	$	41,376		$	46,864		$	89,923		$	100,029
Reversal of Selected Items, Net of Tax:
Gain on Sale of Assets		(2,750	)		(2	)		(7,677	)		(131	)
Net Income Excluding Selected Items	$	38,626		$	46,862		$	82,246		$	99,898
As Reported - Net Earnings Per Share	$	0.43		$	0.48		$	0.93		$	1.03
Per Share Impact of Reversing Selected Items		(0.03	)		—			(0.08	)		(0.01	)
Net Earnings Per Share Including Reversal of Selected Items	$	0.40		$	0.48		$	0.85		$	1.02
Weighted Average Common Shares Outstanding		96,929			97,482			96,813			97,421
Discretionary Cash Flow Calculation and Reconciliation (In thousands)
	Quarter Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Discretionary Cash Flow
As Reported - Net Income	$	41,376		$	46,864		$	89,923		$	100,029
Plus / (Less):
Income Charges Not Requiring Cash		45,032			40,840			89,583			81,225
Gain on Sale of Assets		(4,422	)		(4	)		(12,342	)		(211	)
Deferred Income Tax Expense		23,738			9,139			39,612			22,032
Exploration Expense		6,825			14,797			12,477			26,411
Discretionary Cash Flow		112,549			111,636			219,253			229,486
Changes in Assets and Liabilities		(4,689	)		4,660			28,600			44,771
Stock-Based Compensation Tax Benefit		(1,911	)		(1,945	)		(6,046	)		(4,897	)
Net Cash Provided by Operations	$	105,949		$	114,351		$	241,807		$	269,360

Net Debt Reconciliation

(In thousands)

	June 30, 2007			December 31, 2006
Current Portion of Long-Term Debt	$	20,000		$	20,000
Long-Term Debt		235,000			220,000
Total Debt	$	255,000		$	240,000
Stockholders' Equity		1,018,863			945,198
Total Capitalization	$	1,273,863		$	1,185,198
Total Debt	$	255,000		$	240,000
Less: Cash and Cash Equivalents		(23,591	)		(41,854	)
Net Debt	$	231,409		$	198,146
Net Debt	$	231,409		$	198,146
Stockholders' Equity		1,018,863			945,198
Total Adjusted Capitalization	$	1,250,272		$	1,143,344
Total Debt to Total Capitalization Ratio		20.0	%		20.2	%
Less: Impact of Cash and Cash Equivalents		1.5	%		2.9	%
Net Debt to Adjusted Capitalization Ratio		18.5	%		17.3	%