Coterra Energy (CTRA) 8-K Cabot Oil & Gas Reports Third Quarter Financial Results

Exhibit 99.1

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

Cabot Oil & Gas Reports Third Quarter Financial Results

HOUSTON, October 25, 2007—Cabot Oil & Gas Corporation today announced third quarter net income of $35.5 million, or $0.37 per share, cash flow from operations of $86.8 million and discretionary cash flow of $121.7 million. “These results compare favorably to our historical third quarter outcomes,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “The net income figure is Cabot’s second highest for a third quarter period, and the cash flow figures are both records for the quarter.”

Last year’s third quarter results included the sale of the Company’s south Louisiana and offshore properties, which generated a large gain, resulting in $189 million of net income, or $1.96 per share, $86.7 million of cash flow from operations and $21.5 million of discretionary cash flow. This year’s third quarter includes a $2.9 million, net of tax, charge for impairment. Removing the results of asset sales and impairments in both quarters, the comparative results for net income is $38.4 million, or $0.40 per share for 2007, versus $45.3 million, or $0.47 per share for 2006, with the cash flow comparisons remaining unchanged.

Realized pricing between the comparative third quarters was essentially flat for both oil and natural gas. While oil has strengthened recently, third quarter prices fell within the Company’s collared range. For natural gas, where weaker pricing has persisted, the Company realized $28.9 million from its hedge position for the quarter and $59.6 million year-to-date.

Equivalent production for the quarter totaled 21.9 Bcfe, up 14.7 percent over last year’s pro forma comparison level of 19.1 Bcfe. The actual reported figure for last year was 23.0 Bcfe, which included production from the divested south Louisiana and offshore

Exhibit 99.1

properties. “Equivalent production for the third quarter remained solidly within our guidance,” stated Dinges. “We returned to our pre-asset sale daily production levels at the end of September as we predicted; however, along with other industry players, we shut in Rocky Mountain production when prices fell below economic levels for October.”

Operating expenses between quarters grew five percent, but are up less than one percent in total when the impairment is removed from the comparison. The only changes from guidance for the quarter were increased direct operations expense due primarily to lease maintenance activity and slightly higher DD&A.

Year-to-Date

For the first nine months of 2007, the Company reported net income of $125.4 million, or $1.29 per share, cash flow from operations of $328.6 million and discretionary cash flow of $341 million. This compares to $289 million, or $2.98 per share, $356.1 million and $251 million, respectively. Removing the impairment and the gain on the sale, the nine-month comparison for net income is $120.6 million, or $1.24 per share for 2007 versus $145.2 million, or $1.50 per share for 2006. Primarily driving this result is lower absolute oil production between periods, due to the 2006 asset sale.

“Through the nine months ended September 30, 2007, we have been actively drilling (359 gross wells, up 19 percent), acquiring acreage and aggressively developing our portfolio,” commented Dinges. “Right now, we have a 22 percent net debt to adjusted capitalization ratio and expect to borrow additional dollars to jump start 2008 with extensive fourth quarter activity in east Texas,” Dinges added. Capital investment should approach $600 million for 2007.

Conference Call

Listen in live to Cabot Oil & Gas Corporation’s third quarter financial and operating results discussion with financial analysts on Friday, October 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 17100993. The replay will be available through Sunday, October 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.

Exhibit 99.1

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 September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
PRODUCED NATURAL GAS (Bcf) & OIL (MBbl)
Natural Gas
East		6.2			5.8			18.2			17.5
Gulf Coast		6.8			8.0			19.7			23.9
West		6.6			6.2			19.4			17.3
Canada		1.0			0.7			3.0			1.8
Total		20.6			20.7			60.3			60.5
Less: Production from properties sold in 2006 (1)		—			(2.7	)		—			(9.0	)
Adjusted Total		20.6			18.0			60.3			51.5
Crude/Condensate/Ngl
East		7			6			20			19
Gulf Coast		154			321			463			1,025
West		50			54			140			167
Canada		4			1			14			8
Total		215			382			637			1,219
Less: Production from properties sold in 2006(1)		—			(213	)		—			(705	)
Adjusted Total		215			169			637			514
Equivalent Production (Bcfe)		21.9			23.0			64.1			67.8
Less: Production from properties sold in 2006(1)		—			(3.9	)		—			(13.2	)
Adjusted Equivalent Production (Bcfe)		21.9			19.1			64.1			54.6
PRICES
Average Produced Gas Sales Price ($/Mcf)
East	$	7.37		$	7.41		$	7.76		$	8.09
Gulf Coast	$	7.82		$	7.13		$	7.95		$	7.41
West	$	5.47		$	5.84		$	6.00		$	6.19
Canada	$	4.95		$	5.09		$	5.63		$	6.10
Total(2)	$	6.80		$	6.76		$	7.15		$	7.22
Crude/Condensate Price ($/Bbl)
East	$	68.12		$	64.67		$	60.78		$	63.29
Gulf Coast	$	71.16		$	70.10		$	62.27		$	66.71
West	$	70.85		$	68.53		$	62.81		$	64.99
Canada	$	63.47		$	69.53		$	54.97		$	65.90
Total(2)	$	70.85		$	69.80		$	62.17		$	66.42
WELLS DRILLED
Gross		137			110			359			301
Net		110			92			313			248
Gross Success Rate		98	%		96	%		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 September 30,				Nine Months Ended September 30,
	2007		2006		2007		2006
Realized Impacts to Gas Pricing	$	1.40	$	0.41	$	0.99	$	0.28
Realized Impacts to Oil Pricing	$	—	$	—	$	0.29	$	—

CABOT OIL & GAS RESULTS — Page 5

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)

	Quarter Ended September 30,					Nine Months Ended September 30,
	2007			2006		2007		2006
Operating Revenues
Natural Gas Production	$	140,300		$	140,261	$	431,178	$	436,931
Brokered Natural Gas		15,179			17,075		66,357		67,389
Crude Oil and Condensate		15,084			26,435		39,289		80,283
Other		285			973		1,429		5,703
		170,848			184,744		538,253		590,306
Operating Expenses
Brokered Natural Gas Cost		13,223			15,282		57,973		59,924
Direct Operations—Field and Pipeline		20,996			19,893		57,131		55,478
Exploration		8,766			13,561		21,243		39,972
Depreciation, Depletion and Amortization		43,585			35,914		121,551		108,104
Impairment of Oil & Gas Properties		4,614			—		4,614		—
General and Administrative (excluding Stock-Based Compensation)		7,831			7,566		28,380		26,295
Stock-Based Compensation(1)		1,884			3,149		12,580		12,187
Taxes Other Than Income		14,379			14,366		42,123		44,439
		115,278			109,731		345,595		346,399
Gain / (Loss) on Sale of Assets(2)		(49	)		229,733		12,293		229,944
Income from Operations		55,521			304,746		204,951		473,851
Interest Expense and Other		3,921			6,978		11,464		19,151
Income Before Income Taxes		51,600			297,768		193,487		454,700
Income Tax Expense		16,147			108,748		68,111		165,651
Net Income	$	35,453		$	189,020	$	125,376	$	289,049
Net Earnings Per Share—Basic	$	0.37		$	1.96	$	1.29	$	2.98
Weighted Average Common Shares Outstanding		97,068			96,459		96,899		97,097

⁽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)

	September 30, 2007		December 31, 2006
Assets
Current Assets	$	197,835	$	315,682
Property, Equipment and Other Assets		1,843,198		1,487,897
Deferred Income Taxes		36,213		30,912
Total Assets	$	2,077,246	$	1,834,491
Liabilities and Stockholders’ Equity
Current Liabilities	$	223,665	$	251,027
Long-Term Debt, excluding Current Maturities		295,000		220,000
Deferred Income Taxes		424,267		347,430
Other Liabilities		82,530		70,836
Stockholders’ Equity		1,051,784		945,198
Total Liabilities and Stockholders’ Equity	$	2,077,246	$	1,834,491

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(In thousands)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Cash Flows From Operating Activities
Net Income	$	35,453		$	189,020		$	125,376		$	289,049
Impairment of Oil & Gas Properties		4,614			—			4,614			—
Income Charges Not Requiring Cash		45,511			39,141			135,094			120,366
(Gain) / Loss on Sale of Assets		49			(229,733	)		(12,293	)		(229,944	)
Deferred Income Tax Expense		27,318			9,482			66,930			31,514
Changes in Assets and Liabilities		(34,148	)		66,078			(5,548	)		110,849
Stock-Based Compensation Tax Benefit		(811	)		(859	)		(6,857	)		(5,756	)
Exploration Expense		8,766			13,561			21,243			39,972
Net Cash Provided by Operations		86,752			86,690			328,559			356,050
Cash Flows From Investing Activities
Capital Expenditures		(145,032	)		(120,157	)		(416,963	)		(344,620	)
Proceeds from Sale of Assets		1			322,412			5,826			322,987
Exploration Expense		(8,766	)		(13,561	)		(21,243	)		(39,972	)
Net Cash (Used in) / Provided by Investing		(153,797	)		188,694			(432,380	)		(61,605	)
Cash Flows From Financing Activities
Sale of Common Stock Proceeds		7			1,056			2,314			3,620
Net Increase in Debt		60,000			50,000			75,000			60,000
Purchase of Treasury Stock		—			(19,305	)		—			(46,492	)
Stock-Based Compensation Tax Benefit		811			859			6,857			5,756
Dividends Paid		(2,913	)		(1,930	)		(7,753	)		(5,832	)
Net Cash Provided by Financing		57,905			30,680			76,418			17,052
Net (Decrease) / Increase in Cash and Cash Equivalents	$	(9,140	)	$	306,064		$	(27,403	)	$	311,497

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 September 30,					Nine Months Ended September 30,
	2007		2006			2007			2006
As Reported—Net Income	$	35,453	$	189,020		$	125,376		$	289,049
Reversal of Selected Items, Net of Tax:
Impairment of Oil & Gas Properties		2,870		—			2,870			—
(Gain) / Loss on Sale of Assets		30		(143,675	)		(7,646	)		(143,806	)
Net Income Excluding Selected Items	$	38,353	$	45,345		$	120,600		$	145,243
As Reported—Net Earnings Per Share	$	0.37	$	1.96		$	1.29		$	2.98
Per Share Impact of Reversing Selected Items		0.03		(1.49	)		(0.05	)		(1.48	)
Net Earnings Per Share Including Reversal of Selected Items	$	0.40	$	0.47		$	1.24		$	1.50
Weighted Average Common Shares Outstanding		97,068		96,459			96,899			97,097

Discretionary Cash Flow Calculation and Reconciliation

(In thousands)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Discretionary Cash Flow
As Reported—Net Income	$	35,453		$	189,020		$	125,376		$	289,049
Plus / (Less):
Impairment of Oil & Gas Properties		4,614			—			4,614			—
Income Charges Not Requiring Cash		45,511			39,141			135,094			120,366
(Gain) / Loss on Sale of Assets		49			(229,733	)		(12,293	)		(229,944	)
Deferred Income Tax Expense		27,318			9,482			66,930			31,514
Exploration Expense		8,766			13,561			21,243			39,972
Discretionary Cash Flow		121,711			21,471			340,964			250,957
Changes in Assets and Liabilities		(34,148	)		66,078			(5,548	)		110,849
Stock-Based Compensation Tax Benefit		(811	)		(859	)		(6,857	)		(5,756	)
Net Cash Provided by Operations	$	86,752		$	86,690		$	328,559		$	356,050

Net Debt Reconciliation

(In thousands)

	September 30, 2007			December 31, 2006
Current Portion of Long-Term Debt	$	20,000		$	20,000
Long-Term Debt		295,000			220,000
Total Debt	$	315,000		$	240,000
Stockholders’ Equity		1,051,784			945,198
Total Capitalization	$	1,366,784		$	1,185,198
Total Debt	$	315,000		$	240,000
Less: Cash and Cash Equivalents		(14,451	)		(41,854	)
Net Debt	$	300,549		$	198,146
Net Debt	$	300,549		$	198,146
Stockholders’ Equity		1,051,784			945,198
Total Adjusted Capitalization	$	1,352,333		$	1,143,344
Total Debt to Total Capitalization Ratio		23.0	%		20.2	%
Less: Impact of Cash and Cash Equivalents		0.8	%		2.9	%
Net Debt to Adjusted Capitalization Ratio		22.2	%		17.3	%