February 22, 2019 - 6:30 AM EST
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Cabot Oil & Gas Corporation Establishes Several New Full-Year Records, Returns $1.0 Billion to Shareholders, Repays $304 Million of Debt

HOUSTON, Feb. 22, 2019 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) ("Cabot" or the "Company") today announced the best year of its nearly three-decade public company history that provided record financial results, the culmination and in-service of several long-dated infrastructure initiatives, and continued momentum on the free cash flow front.

"In early 2018 we reaffirmed our commitment to creating long-term shareholder value through disciplined capital allocation by announcing a strategy focused on delivering debt-adjusted per share growth, generating positive free cash flow, improving corporate returns on capital employed, increasing return of capital to shareholders, and maintaining a strong balance sheet," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "I am happy to say that our 2018 program delivered on this strategy on all fronts."

Full-Year 2018 Highlights

New Records 

  • Net income of $557.0 million (or $1.25 per share); adjusted net income (non-GAAP) of $531.2 million (or $1.19 per share)
  • Free cash flow (non-GAAP) of $296.6 million, marking the third consecutive year of positive free cash flow
  • Production of 735.0 billion cubic feet equivalent (Bcfe), an increase of seven percent year-over-year (14 percent on a divestiture-adjusted basis)
  • Proved reserves of 11.6 trillion cubic feet equivalent (Tcfe), an increase of 19 percent year-over-year (25 percent on a divestiture-adjusted basis)
  • Operating expenses per unit of $1.76 per thousand cubic feet equivalent (Mcfe), a 13 percent improvement year-over-year

Other Strategic Milestones

  • Return on capital employed (ROCE) (non-GAAP) of 15.9 percent, an improvement of 860 basis points year-over-year
  • Returned approximately $1.0 billion of capital to shareholders through dividends and share repurchases, including a 40 percent increase in the quarterly dividend per share and an eight percent reduction in shares outstanding
  • Retired $304 million of senior notes at maturity, resulting in annualized interest expense savings of $21.8 million
  • Total company all-sources finding and development costs of $0.30 per Mcfe and Marcellus-only all-sources finding and development costs of $0.26 per thousand cubic feet (Mcf)
  • Reduced debt-to-EBITDAX to 1.0x at year-end 2018

See the supplemental tables at the end of this press release for a reconciliation of non-GAAP measures including adjusted net income, EBITDAX, discretionary cash flow, free cash flow, ROCE, pre-tax present value of future net cash flows (pre-tax PV–10) and net debt to adjusted capitalization ratio.

Fourth-Quarter 2018 Financial Results

Fourth-quarter 2018 daily equivalent production was 2,243 million cubic feet equivalent (Mmcfe) per day (100 percent natural gas), a 20 percent increase relative to the fourth-quarter of 2017 and an 11 percent sequential increase relative to the third-quarter of 2018. On a divestiture-adjusted basis, fourth-quarter 2018 daily equivalent production increased 26 percent relative to the prior-year comparable quarter.

Fourth-quarter 2018 net income was $275.0 million, or $0.64 per share, compared to net loss of $44.4 million, or $0.10 per share, in the prior-year period. Fourth-quarter 2018 adjusted net income (non-GAAP) was $235.8 million, or $0.55 per share, compared to adjusted net income of $59.5 million, or $0.13 per share, in the prior-year period. Fourth-quarter 2018 EBITDAX (non-GAAP) was $463.1 million, compared to $259.8 million in the prior-year period.

Fourth-quarter 2018 net cash provided by operating activities was $316.1 million, compared to $179.1 million in the prior-year period. Fourth-quarter 2018 discretionary cash flow (non-GAAP) was $492.8 million, compared to $240.1 million in the prior-year period. Fourth-quarter 2018 free cash flow (non-GAAP) was $241.4 million, compared to $28.7 million in the prior-year period. "Our free cash flow for the fourth-quarter exceeded our initial forecast of $200 million, driven by stronger than anticipated price realizations," commented Dinges.

Fourth-quarter 2018 natural gas price realizations, including the impact of derivatives, were $3.11 per Mcf, an increase of 43 percent compared to the prior-year period. Excluding the impact of derivatives, fourth-quarter 2018 natural gas price realizations were $3.22 per Mcf, representing a $0.42 discount to NYMEX settlement prices compared to a $0.78 discount in the prior-year comparable quarter.

Fourth-quarter 2018 operating expenses (including financing) decreased to $1.87 per Mcfe, a seven percent improvement compared to the prior-year period.  All operating expenses per unit were in-line with the Company's guidance for the quarter except for depreciation, depletion and amortization and exploration, driven by higher amortization of undeveloped leasehold and exploratory dry hole costs associated with unsuccessful drilling results in our exploration areas. "After further evaluation of our remaining exploration prospect, we have determined that this area is unlikely to yield results that generate long-term value creation for our shareholders," noted Dinges.  "As we have said through this entire evaluation process, we remain committed to deploying capital judiciously and if a project fails to generate competitive full-cycle returns, then we will not allocate additional capital to it going forward."

Cabot incurred a total of $223.0 million of capital expenditures in the fourth-quarter of 2018 including $207.6 million of drilling and facilities capital; $2.4 million of leasehold acquisition capital; and $13.0 million of other capital. Additionally, the Company contributed $4.4 million to its equity method pipeline investments in the fourth-quarter of 2018. See the supplemental table at the end of this press release reconciling the capital expenditures during the fourth-quarter of 2018.

Full-Year 2018 Financial Results

Full-year 2018 daily equivalent production was 2,014 Mmcfe per day (99 percent natural gas), a seven percent increase relative to the prior-year period. On a divestiture-adjusted basis, daily equivalent production for the full-year 2018 increased 14 percent relative to the prior-year period.

Full-year 2018 net income was $557.0 million, or $1.25 per share, compared to net income of $100.4 million, or $0.22 per share in the prior-year period. Adjusted net income (non-GAAP) was $531.2 million, or $1.19 per share, compared to adjusted net income of $244.5 million, or $0.53 per share, in the prior-year period. Full-year 2018 EBITDAX (non-GAAP) was $1.3 billion, compared to $1.1 billion in the prior-year period.

Full-year 2018 net cash provided by operating activities was $1,104.9 million, compared to $898.2 million in the prior-year period. Full-year 2018 discretionary cash flow (non-GAAP) was $1,268.4 million, compared to $976.1 million in the prior-year period. Full-year 2018 free cash flow (non-GAAP) was $296.6 million, compared to $154.5 million in the prior-year period. Full-year 2018 ROCE (non-GAAP) improved to 15.9 percent, compared to 7.3 percent in the prior-year period.

Full-year 2018 natural gas price realizations, including the impact of derivatives, were $2.54 per Mcf, an increase of 10 percent compared to the prior-year period.  Excluding the impact of derivatives, full-year 2018 natural gas price realizations were $2.58 per Mcf, representing a $0.51 discount to NYMEX settlement prices.

Full-year 2018 operating expenses (including financing) decreased to $1.76 per Mcfe, a 13 percent improvement compared to the prior-year period.

Cabot incurred a total of $816.1 million of capital expenditures in 2018 including $758.9 million of drilling and facilities capital; $29.9 million of leasehold acquisition capital; and $27.3 million of other capital. Additionally, the Company contributed $77.3 million to its equity method pipeline investments in 2018. See the supplemental table at the end of this press release reconciling the capital expenditures for the year.

Capital Allocation Update

During the fourth-quarter of 2018, Cabot repurchased 11.3 million shares at a weighted-average share price of $22.92, resulting in full-year 2018 repurchases of approximately 38.5 million shares at a weighted-average share price of $23.48. Since reactivating the share repurchase program in the second-quarter of 2017, Cabot has reduced its shares outstanding by over nine percent to 423.4 million shares. "During the year, we returned approximately $1.0 billion of capital to shareholders via dividends and share repurchases, representing a total shareholder yield of over nine percent based on our current market capitalization," said Dinges. "We expect to continue to be an industry leader in shareholder yield as we execute on our strategy of returning at least 50 percent of free cash flow to shareholders annually."

Financial Position and Liquidity

As of December 31, 2018, Cabot had total debt of $1.2 billion and cash on hand of $2.3 million. During the fourth-quarter of 2018, Cabot paid off its $67.0 million tranche of 9.78% senior notes that matured on December 1, 2018. For the full-year, the Company retired $304 million of senior notes that matured in 2018, resulting in annualized interest expense savings of $21.8 million.

The Company's debt-to-total capitalization ratio and debt-to-trailing twelve months EBITDAX ratio were 37.0 percent and 1.0x, respectively, compared to 37.6 percent and 1.4x as of December 31, 2017. The Company currently has $7.0 million outstanding under the credit facility, resulting in approximately $1.8 billion of liquidity.

Year-End 2018 Proved Reserves

Cabot reported year-end proved reserves of 11.6 Tcfe, an increase of 19 percent over year-end 2017. Specific highlights from the Company's year-end reserve report include:

  • Total company all-sources finding and development costs of $0.30 per Mcfe
  • Marcellus-only all-sources finding and development costs of $0.26 per Mcf
  • Marcellus-only all-sources reserve replacement of 414 percent

The table below reconciles the components driving the 2018 reserve increase:

Proved Reserves Reconciliation (in Bcfe)



Balance at December 31, 2017


9,726


Revisions of prior estimates


780


Extensions, discoveries and other additions


2,244


Sales


(410)


Production


(735)


Balance at December 31, 2018


11,605


As of December 31, 2018, 100 percent of Cabot's year-end proved reserves were natural gas and were located in the Marcellus Shale. Approximately 64 percent of the year-end proved reserves were classified as proved developed and 36 percent were classified as proved undeveloped (PUD), including five percent of drilled and uncompleted PUDs.

Total costs incurred during 2018 were $902.7 million, which included $778.6 million for development costs, $94.3 million for exploration costs, and $29.9 million for lease acquisition costs.

The SEC price used for reporting Cabot's year-end 2018 proved reserves, which has been adjusted for basis and quality differentials, was $2.58 per Mcf for natural gas, representing an 11 percent year-over-year increase. Assuming the SEC prices, the pre-tax PV–10 (non-GAAP) of the year-end 2018 proved reserves was $8.1 billion. "Our latest year-end proved reserves disclosure further demonstrates the strong underlying economics and repeatability of our low-cost position in Northeast Pennsylvania," commented Dinges.  "Our 25 percent growth in Marcellus reserves at industry-leading finding costs was accomplished with primarily only three rigs and two completion crews, highlighting the low capital intensity of this world-class asset."

Upper Marcellus Operations Update

The Company drilled and completed nine Generation 5 Upper Marcellus wells in the field during 2018. Based on the production data gathered to date, these wells on average have demonstrated an improvement over the average estimated ultimate recovery (EUR) per thousand lateral feet of 2.9 billion cubic feet (Bcf) from our earlier generation completions. "Given the limited sample size and production history, we plan to continue to allocate a small portion of our capital program annually to testing our Generation 5 completions in the Upper Marcellus in an effort to gather more production history from a larger sample of wells before updating our expected EURs; however, the long-term plan of fully-developing the Lower Marcellus before beginning full-development mode in the Upper Marcellus remains unchanged," stated Dinges. "Most importantly, our results from the 2018 wells reconfirmed what our previous Upper Marcellus results have demonstrated over the years, which is that we have two distinct, highly-economic intervals across our acreage position in Northeast Pennsylvania."

First-Quarter and Full-Year 2019 Guidance

Cabot has provided its first-quarter 2019 production guidance range of 2,250 to 2,275 Mmcfe per day. The Company has also updated its 2019 production growth guidance to 20 percent (27 percent on a debt-adjusted per share basis). This production growth is based on an updated capital budget of $800 million. Approximately $160 million of the 2019 capital budget relates to wells that are drilled and / or completed in 2019 but not placed on production until 2020. "While we continue to emphasize our focus on improving return on capital employed, generating significant free cash flow, and increasing our return of capital to shareholders, we also believe our unique, low-cost asset base in the Marcellus Shale allows us to deliver on these objectives while also continuing to invest in the disciplined, organic growth of our business to enhance long-term shareholder value, assuming market conditions warrant it," commented Dinges.

Based on a range of $2.50 and $3.00 per Mmbtu NYMEX prices for 2019, the Company has included its estimated key financial metrics for the year below. "Despite the current NYMEX strip for the year implying an outcome at the higher-end of this price range, we have highlighted that even at the low-end of the range our 2019 program can deliver financial metrics that are not only top-tier across all oil and gas companies but are also extremely competitive across the broader equity markets," noted Dinges.

Estimated Key Financial Metrics1

$2.50 NYMEX

$2.75 NYMEX

$3.00 NYMEX

Adjusted Earnings Per Share Growth (%)

20% - 35%

40% - 55%

60% - 75%

Free Cash Flow ($mm)

$475 - $525

$600 - $650

$700 - $750

Return on Capital Employed (%)

19% - 21%

21% - 23%

24% - 26%





(1) Ranges for estimated key financial metrics based on guidance ranges for operating expenses

Conference Call Webcast

A conference call is scheduled for Friday, February 22, 2019, at 9:30 a.m. Eastern Time to discuss fourth-quarter and full-year 2018 financial and operating results. To access the live audio webcast, please visit the Investor Relations section of the Company's website. A replay of the call will also be available on the Company's website.

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, 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

OPERATING DATA



Quarter Ended

December 31,


Twelve Months Ended

December 31,


2018


2017


2018


2017

PRODUCTION VOLUMES








Natural gas (Bcf)

206.3



164.4



729.9



655.6


Crude oil and condensate (Mbbl)



1,238.0



754.0



4,440.9


Natural gas liquids (NGLs) (Mbbl)



131.5



75.1



512.1


Equivalent production (Bcfe)

206.3



172.6



735.0



685.3


Daily equivalent production (Mmcfe/day)

2,243



1,876



2,014



1,878










AVERAGE SALES PRICE








Natural gas, including hedges ($/Mcf)

$

3.11



$

2.18



$

2.54



$

2.31


Natural gas, excluding hedges ($/Mcf)

$

3.22



$

2.15



$

2.58



$

2.30


Crude oil and condensate, including hedges ($/Bbl)

$



$

54.54



$

63.68



$

48.16


Crude oil and condensate, excluding hedges ($/Bbl)

$



$

54.77



$

64.68



$

47.81


NGL ($/Bbl)

$



$

23.51



$

21.51



$

19.47










AVERAGE UNIT COSTS ($/Mcfe)








Direct operations

$

0.08



$

0.14



$

0.09



$

0.15


Transportation and gathering

0.68



0.69



0.68



0.70


Taxes other than income

0.03



0.04



0.03



0.05


Exploration

0.22



0.03



0.15



0.03


Depreciation, depletion and amortization

0.63



0.83



0.57



0.83


General and administrative (excluding stock-based compensation)

0.07



0.11



0.09



0.09


Stock-based compensation

0.08



0.05



0.05



0.05


Interest expense

0.08



0.12



0.10



0.12



$

1.87



$

2.01



$

1.76



$

2.02


















WELLS DRILLED(1)








Gross

37



20



97



91


Net

35.1



20.0



95.1



82.5










WELLS COMPLETED(1)








Gross

33



24



94



105


Net

32.0



24.0



93.0



94.2


_______________________________________________________________________________

(1)

Wells drilled represents wells drilled to total depth during the period. Wells completed includes wells completed during the period, regardless of when they were drilled.

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands, except per share amounts)

2018


2017


2018


2017

OPERATING REVENUES








Natural gas

$

663,547



$

353,989



$

1,881,150



$

1,506,078


Crude oil and condensate



67,810



48,722



212,338


Gain (loss) on derivative instruments

46,060



(29,427)



44,432



16,926


Brokered natural gas

6,155



4,957



209,530



17,217


Other

539



3,174



4,314



11,660



716,301



400,503



2,188,148



1,764,219


OPERATING EXPENSES








Direct operations

16,889



24,125



69,646



102,310


Transportation and gathering

140,883



119,530



496,731



481,439


Brokered natural gas

5,761



4,990



184,198



15,252


Taxes other than income

7,208



6,925



22,642



33,487


Exploration

45,654



4,903



113,820



21,526


Depreciation, depletion and amortization

129,269



143,128



417,479



568,817


Impairment of oil and gas properties(1)



414,256





482,811


General and administrative (excluding stock-based compensation)

15,113



19,022



63,494



63,745


Stock-based compensation(2)

15,516



7,863



33,147



34,041



376,293



744,742



1,401,157



1,803,428


Earnings (loss) on equity method investments(3)

2,146



(96,500)



1,137



(100,486)


(Gain) loss on sale of assets

(1,477)



1,933



(16,327)



(11,565)


INCOME (LOSS) FROM OPERATIONS

340,677



(438,806)



771,801



(151,260)


Interest expense, net

15,624



20,410



73,201



82,130


Other expense (income)

116



18



463



(4,955)


Income (loss) before income taxes

324,937



(459,234)



698,137



(228,435)


Income tax expense (benefit)(4)

49,893



(414,793)



141,094



(328,828)


NET INCOME (LOSS)

$

275,044



$

(44,441)



$

557,043



$

100,393


Earnings (loss) per share - Basic

$

0.64



$

(0.10)



$

1.25



$

0.22


Weighted-average common shares outstanding

430,978



462,371



445,538



463,735


_______________________________________________________________________________

(1)

 Includes the impairment of our Eagle Ford Shale oil and gas properties in south Texas in the fourth quarter of 2017.

(2)

Includes the impact of our performance share awards and restricted stock.

(3)

Includes the $95.9 million other than temporary impairment of our investment in Constitution.

(4)

Includes the impact of the remeasurement of our net deferred income tax liabilities based on the new corporate income tax rate associated with the Tax Act in the fourth quarter of 2017. The remeasurement resulted in an income tax benefit of $242.9 million.

 

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)


(In thousands)

December 31,
 2018


December 31,
 2017

ASSETS




Current assets

$

544,545



$

764,957


Properties and equipment, net (Successful efforts method)

3,463,606



3,072,204


Assets held for sale



778,855


Other assets

190,678



111,328



$

4,198,829



$

4,727,344






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities

$

287,264



$

630,050


Long-term debt, net (excluding current maturities)

1,226,104



1,217,891


Deferred income taxes

458,597



227,030


Liabilities held for sale



15,748


Other liabilities

138,705



112,720


Stockholders' equity

2,088,159



2,523,905



$

4,198,829



$

4,727,344



 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)



Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands)

2018


2017


2018


2017

CASH FLOWS FROM OPERATING ACTIVITIES








Net income (loss)

$

275,044



$

(44,441)



$

557,043



$

100,393


Deferred income tax expense (benefit)

97,804



(410,844)



229,603



(321,113)


Impairment of oil and gas properties



414,256





482,811


(Gain) loss on sale of assets

1,477



(1,933)



16,327



11,565


Exploratory dry hole cost

41,316



978



97,741



3,820


(Gain) loss on derivative instruments

(46,060)



29,427



(44,432)



(16,926)


Net cash received (paid) in settlement of derivative instruments

(21,277)



4,469



(41,631)



8,056


Income charges not requiring cash

144,500



248,231



453,712



707,496


Changes in assets and liabilities

(176,753)



(61,030)



(163,460)



(77,942)


Net cash provided by operating activities

316,051



179,113



1,104,903



898,160










CASH FLOWS FROM INVESTING ACTIVITIES








Capital expenditures

(246,967)



(177,745)



(894,470)



(764,558)


Proceeds from sale of assets

2,825



82,733



678,350



115,444


Investment in equity method investments

(4,397)



(33,657)



(77,263)



(57,039)


Net cash used in investing activities

(248,539)



(128,669)



(293,383)



(706,153)










CASH FLOWS FROM FINANCING ACTIVITIES








Net borrowings (repayments) of debt

(60,000)





(297,000)




Treasury stock repurchases

(291,036)



(55,486)



(872,761)



(123,741)


Dividends paid

(30,184)



(23,131)



(111,369)



(78,838)


Tax withholding on vesting of stock awards

(82)



(2,044)



(8,150)



(7,973)


Other



8





50


Net cash used in financing activities

(381,302)



(80,653)



(1,289,280)



(210,502)










Net decrease in cash and cash equivalents

$

(313,790)



$

(30,209)



$

(477,760)



$

(18,495)



Explanation and Reconciliation of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, we believe certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of our peers and of prior periods. In addition, we believe these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated.

We have also included herein certain forward-looking non-GAAP financial measures. Due to the forward-looking nature of these non-GAAP financial measures, we cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Reconciling items in future periods could be significant.

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings Per Share

Adjusted Net Income (Loss) and Adjusted Earnings per Share are presented based on our belief that these non-GAAP measures enable a user of the financial information to understand the impact of these items on reported results. Additionally, this presentation provides a beneficial comparison to similarly adjusted measurements of prior periods. Adjusted Net Income (Loss) and Adjusted Earnings per Share are not measures of financial performance under GAAP and should not be considered as alternatives to net income and earnings per share, as defined by GAAP.


Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands, except per share amounts)

2018


2017


2018


2017

As reported - net income (loss)

$

275,044



$

(44,441)



$

557,043



$

100,393


Reversal of selected items:








Impairment of oil and gas properties(1)



414,256





482,811


Impairment of equity method investments(2)



95,945





95,945


(Gain) loss on sale of assets

1,477



(1,933)



16,327



11,565


(Gain) loss on derivative instruments(3)

(67,337)



33,896



(86,063)



(8,870)


Stock-based compensation expense

15,516



7,863



33,147



34,041


Severance expense



21



28



3,213


OPEB curtailment



(67)





(4,917)


Interest expense related to income tax reserves

(538)





3,116




Tax effect on selected items

11,619



(203,211)



7,637



(226,787)


Impact of 2017 tax reform



(242,875)





(242,875)


Adjusted net income

$

235,781



$

59,454



$

531,235



$

244,519


As reported - earnings (loss) per share

$

0.64



$

(0.10)



$

1.25



$

0.22


Per share impact of selected items

(0.09)



0.23



(0.06)



0.31


Adjusted earnings per share

$

0.55



$

0.13



$

1.19



$

0.53


Weighted-average common shares outstanding

430,978



462,371



445,538



463,735


_______________________________________________________________________________

(1)

This amount represents the non-cash impairment of our Eagle Ford Shale oil and gas properties located in south Texas in the fourth quarter of 2017.

(2)

This amount represents the non-cash other than temporary impairment of our investment in Constitution recorded in Loss on equity method investments in the Condensed Consolidated Statement of Operations.

(3)

This amount represents the non-cash mark-to-market changes of our commodity derivative instruments recorded in Gain (loss) on derivative instruments in the Condensed Consolidated Statement of Operations.

Return on Capital Employed

Return on Capital Employed (ROCE) is defined as adjusted net income (loss) (defined above) plus after-tax net interest expense divided by average capital employed, which is defined as total debt plus stockholders' equity. ROCE is presented based on our belief that this non-GAAP measure is useful information to investors when comparing our profitability and the efficiency with which we have employed capital over time relative to other companies. ROCE is not a measure of financial performance under GAAP and should not be considered an alternative to net income.

 

(In thousands)


2018


2017

Interest expense, net


$

73,201



$

82,130


Less: Interest expense related to income tax reserves (1)


(3,116)




Tax benefit on interest expense, net


(16,004)



(30,346)


After-tax interest expense, net (A)


54,081



51,784







As reported - net income (loss)


557,043



100,393


Adjustments to as reported - net income (loss), net of tax


(25,808)



144,126


Adjusted net income (loss) (B)


531,235



244,519







Adjusted net income (loss) before interest expense, net (A + B)


$

585,316



$

296,303







Total debt - beginning


$

1,521,891



$

1,520,530


Stockholders' equity - beginning


2,523,905



2,567,667


Capital employed - beginning


4,045,796



4,088,197







Total debt - ending


1,226,104



1,521,891


Stockholders' equity - ending


2,088,159



2,523,905


Capital employed - ending


3,314,263



4,045,796







Average capital employed (C)


$

3,680,030



$

4,066,997







Return on average capital employed (ROCE) (A+B) / C


15.9

%


7.3

%

_______________________________________________________________________________

(1)

 Interest expense related to income tax reserves is included in the adjustments to as reported - net income, net of tax.

Discretionary Cash Flow and Free Cash Flow Calculation and Reconciliation

Discretionary Cash Flow is defined as net cash provided by operating activities excluding changes in assets and liabilities. Discretionary Cash Flow is widely accepted as a financial indicator of an oil and gas company's ability to generate cash which is used to internally fund exploration and development activities, pay dividends and service debt. Discretionary Cash Flow is presented based on our belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies that use the full cost method of accounting for oil and gas producing activities or have different financing and capital structures or tax rates. Discretionary Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities, as defined by GAAP, or as a measure of liquidity, or an alternative to net income.

Free Cash Flow is defined as Discretionary Cash Flow (defined above) less capital expenditures and investment in equity method investments. Free Cash Flow is an indicator of a company's ability to generate cash flow after spending the money required to maintain or expand its asset base. Free Cash Flow is presented based on our belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Free Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities, as defined by GAAP, or as a measure of liquidity, or an alternative to net income.



Quarter Ended
 December 31,


Twelve Months Ended

December 31,

(In thousands)


2018


2017


2018


2017

Net cash provided by operating activities


$

316,051



$

179,113



$

1,104,903



$

898,160


Changes in assets and liabilities


176,753



61,030



163,460



77,942


Discretionary cash flow


492,804



240,143



1,268,363



976,102


Capital expenditures


(246,967)



(177,745)



(894,470)



(764,558)


Investment in equity method investments


(4,397)



(33,657)



(77,263)



(57,039)


Free cash flow


$

241,440



$

28,741



$

296,630



$

154,505


EBITDAX Calculation and Reconciliation

EBITDAX is defined as net income plus loss on debt extinguishment, interest expense, other expense, income tax expense, depreciation, depletion and amortization (including impairments), exploration expense, gain and loss on sale of assets, non-cash gain and loss on derivative instruments, earnings and loss on equity method investments, and stock-based compensation expense. EBITDAX is presented based on our belief that this non-GAAP measure is useful information to investors when evaluating our ability to internally fund exploration and development activities and to service or incur debt without regard to financial or capital structure. EBITDAX is not a measure of financial performance under GAAP and should not be considered as alternative to cash flows from operating activities or net income, as defined by GAAP, or as a measure of liquidity.


Quarter Ended

December 31,


Twelve Months Ended

December 31,

(In thousands)

2018


2017


2018


2017

Net income (loss)

$

275,044



$

(44,441)



$

557,043



$

100,393


Plus (less):








Interest expense, net

15,624



20,410



73,201



82,130


Other expense (income)

116



18



463



(4,955)


Income tax expense (benefit)

49,893



(414,793)



141,094



(328,828)


Depreciation, depletion and amortization

129,269



143,128



417,479



568,817


Impairment of oil and gas properties



414,256





482,811


Exploration

45,654



4,903



113,820



21,526


(Gain) loss on sale of assets

1,477



(1,933)



16,327



11,565


Non-cash (gain) loss on derivative instruments

(67,337)



33,896



(86,063)



(8,870)


(Earnings) loss on equity method investments

(2,146)



96,500



(1,137)



100,486


Stock-based compensation

15,516



7,863



33,147



34,041


EBITDAX

$

463,110



$

259,807



$

1,265,374



$

1,059,116


Net Debt Reconciliation

The total debt to total capitalization ratio is calculated by dividing total debt by the sum of total debt and total stockholders' equity. This ratio is a measurement which is presented in our annual and interim filings and we believe this ratio is useful to investors in determining our leverage. Net Debt is calculated by subtracting cash and cash equivalents from total debt. Net Debt and the Net Debt to Adjusted Capitalization ratio are non-GAAP measures which we believe are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire debt. Additionally, as we may incur additional expenditures without increasing debt, it is appropriate to apply cash and cash equivalents to debt in calculating the Net Debt to Adjusted Capitalization ratio.

(In thousands)

December 31,
 2018


December 31,
 2017

Current portion of long-term debt

$



$

304,000


Long-term debt, net

1,226,104



1,217,891


Total debt

$

1,226,104



$

1,521,891


Stockholders' equity

2,088,159



2,523,905


Total capitalization

$

3,314,263



$

4,045,796






Total debt

$

1,226,104



$

1,521,891


Less: Cash and cash equivalents

(2,287)



(480,047)


Net debt

$

1,223,817



$

1,041,844






Net debt

$

1,223,817



$

1,041,844


Stockholders' equity

2,088,159



2,523,905


Total adjusted capitalization

$

3,311,976



$

3,565,749






Total debt to total capitalization ratio

37.0

%


37.6

%

Less: Impact of cash and cash equivalents

%


8.4

%

Net debt to adjusted capitalization ratio

37.0

%


29.2

%

Capital Expenditures



Quarter Ended
December 31,


Twelve Months Ended
December 31,

(In thousands)


2018


2017


2018


2017

Cash paid for capital expenditures


$

246,967



$

177,745



$

894,470



$

764,558


Change in accrued capital costs


17,326



(2,309)



19,346



(3,516)


Exploratory dry hole cost


(41,316)



(978)



(97,741)



(3,820)


Capital expenditures


$

222,977



$

174,458



$

816,075



$

757,222


Pre-tax Present Value of Future Net Cash Flows Calculation and Reconciliation

(In thousands)

December 31,
 2018


December 31,
 2017

Standardized Measure of Discounted Future Net Cash Flows

$

6,483,308



$

5,010,446


Plus: Future Income Tax Expenses, discounted at 10% annual rate

1,651,488



955,240


Pre-tax Present Value of Future Net Cash Flows, discounted at 10% annual rate

$

8,134,796



$

5,965,686


 

Cision View original content:http://www.prnewswire.com/news-releases/cabot-oil--gas-corporation-establishes-several-new-full-year-records-returns-1-0-billion-to-shareholders-repays-304-million-of-debt-300800200.html

SOURCE Cabot Oil & Gas Corporation


Source: PR Newswire (February 22, 2019 - 6:30 AM EST)

News by QuoteMedia
www.quotemedia.com

Recent Company Earnings:


February 24, 2020

Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a designer and manufacturer of drilling tool technologies, today announced unaudited preliminary revenue for the year ended December 31, 2019, was $19.0 million, up 4% from the prior year. Fourth quarter 2019 preliminary revenue included approximately $600 thousand from the rental of the Company’s well bore conditioning tool, the Drill-N-Ream® (DNR) in the Middle East, or almost half of SDP’s total Middle East revenue for the year. For the year, international revenue nearly quadrupled to $1.3 million compared with $360 thousand in 2018. At the end of 2019, SDP had $1.2 million in cash. Preliminary results are subject to change pending review by the Company’s independent accountants.

February 20, 2020

Houston Chronicle


Houston oilfield service company Halliburton plans to pay down its long-term debt by issuing $1 billion in lower-interest notes.

Halliburton to pay down debt by issuing $1 billion of lower-interest notes- oil and gas 360

Source: Houston Chronicle

Halliburton on Wednesday said it plans to issue a type of debt known as senior notes. Due in March 2030, the notes will pay 2.92 percent interest.

The company said it will use proceeds from the sales to buy back previously issued senior notes and reduce other forms of debt.

Halliburton closed 2019 with about $10.3 billion of debt, almost one-third less than the $15.4 billion in debt it had at the end of 2015, according to a Securities and Exchange Commission filing.

With the price of crude hovering just above $50 per barrel, most oil companies are reducing drilling and fracking activity, resulting in recent losses for oilfield service companies. Halliburton lost $1.1 billion in 2019.

Shell Midstream Partners, L.P. (NYSE: SHLX) reported net income attributable to the Partnership of $140 million for the fourth quarter of 2019, which equated to $0.37 per common limited partner unit. Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the Partnership of $187 million.

February 19, 2020

HOUSTON, Feb. 19, 2020 (GLOBE NEWSWIRE) — Hi-Crush Inc. (NYSE: HCR) (the “Company”), a fully-integrated provider of proppant logistics solutions, today reported fourth quarter and full year 2019 results. Revenues during the fourth quarter of 2019 totaled $125.5 million compared to $173.0 million during the third quarter of 2019.

DENVERFeb. 19, 2020 /PRNewswire/ —

  • Fourth quarter oil production averaged 92.0 MBbls per day
    • Full year oil production averaged 86.2 MBbls per day
  • 2019 capital investment (including midstream) totaled $1.32 billion; below guidance range
    • Lower D&C costs drove the beat
  • Generated $1.34 billion of net cash from operating activities
    • $141 million of free cash flow1 in 2019; $59 million after dividend

February 14, 2020

Enbridge Files 2019 Year End Disclosure Documents

February 13, 2020

Houston Chronicle


Houston exploration and production company Marathon Oil has cut its drilling budget by about 10 percent amid an ongoing shale slump that caused revenue and profits to decline in 2019.

Marathon Oil cuts drilling budget amid 56 percent drop in profit- oil and gas 360

Source: Houston Chronicle

In a Wednesday afternoon statement, Marathon said the company is cutting capital expenditures by 10 percent, to $2.4 billion from $2.6 billion in 2019.

The company plans to spend $2.2 billion of its capital expenditure budget on drilling, hydraulic fracturing and other activities in the field while the remain $200 million will go to secure new oil leases and exploratory work looking for new geological formations with oil and natural gas.

Marathon remains in the black, but like other companies in the exploration and production sector, more than a year of crude oil prices in the $50 range is taking its toll on profit and drilling activity.

Active in the Eagle Ford Shale, Permian Basin, Oklahoma and Bakken Shale, Marathon reported a $20 million loss during the fourth quarter of 2019 compared with a $165 million profit a year earlier and revenue fell to $1.2 billion from $1.3 billion.

For the year, the company reported a $480 million profit, a 56 percent drop from the $1.1 billion profit in 2018; revenue of $5.2 billion was 21 percent off the $6.6 billion in 2018.

“We’ll continue to be guided by our unwavering commitment to capital discipline and sustainability,” Marathon Oil CEO Lee Tillman said in a statement.

 

Precision Drilling Corporation Announces 2019 Fourth Quarter and Year End Unaudited Financial Results

February 7, 2020

Houston Chronicle


Houston oilfield service company National Oilwell Varco finished up a year of losses $6.1 billion in the red.

NOV finishes year of losses $6.1 billion in the red- oil and gas 360

Source: Houston Chronicle

In a statement released on Thursday evening, the company reported closing 2019 with a $6.1 billion loss, a dramatic drop from the $31 million end-of-year loss in 2018. The company’s annual revenue remained flat at $8.5 billion.

Most of the company’s end-of-year loss came from writing down the value of $5.4 billion of assets during the second quarter. Crude oil prices stuck in the $50 per barrel range for most of past year have dramatically cut demand for drilling and hydraulic fracturing services in the United States. The shale slump has created eye-popping losses for oilfield services companies, which have written down billions of dollars of assets in response.

“The fourth quarter saw continued improvements in international and offshore markets, partially offset by another sequential decline in spending by our customers in North America,” National Oilwell Varco CEO Clay Williams said in a statement.

Looking at the company’s fourth quarter performance, NOV posted a $385 million loss, which was a dramatic swing from the $15 million profit during the fourth quarter of 2018.

The company’s fourth quarter revenue also slipped by 5 percent year-over-year. NOV reported making $2.3 billion during the fourth quarter, compared to $2.4 billion during the fourth quarter one year earlier.

With historical roots going back to 1862, NOV is headquartered in Houston and has more than 35,000 employees in 65 nations.

The company has not made an annual profit since 2014.

 

February 6, 2020

Reuters


ABERDEEN, Scotland – Total (TOTF.PA) beat forecasts on Thursday by keeping net adjusted fourth-quarter profit steady at $3.2 billion despite low oil prices and fulfilled a pledge to boost dividends, lifting the French energy firm’s shares.

Total beats quarterly forecasts despite low oil price, raises payout- oil and gas 360

Source: Reuters

The stock rose about 3% before easing off its highs as the company bucked a trend in the industry which has seen profits tumble in the last three months of 2019. Analysts had expected Total’s net profit to slip to $2.7 billion.

“This performance is better than that of our rivals in terms of resisting low oil prices,” CEO Patrick Pouyanne told journalists, adding Total was rewarding investors with a 6% increase in the final dividend for 2019 to 0.68 euros per share.

“Taking into account the strong visibility on cash flow, the group will continue to increase the dividend with the guidance of 5% to 6% per year,” the company said in its statement.

Total bought back $1.75 billion in shares in 2019 and plans to buy back $2 billion more in 2020.

Pouyanne said the group had reported solid results including debt-adjusted cash flow (DACF) of $7.4 billion, up more than 20% from a year earlier.

“While some peers buckled last week to a synchronized slowdown in their commodity prices and margins, Total has bucked that trend with flat year-on-year net income,” Bernstein analysts wrote, adding that net income and net operating income were both ahead of forecasts.

The analysts, which rate the stock “outperform”, said liquefied natural gas (LNG) margins “also beat our expectations as the company proved immune to low spot gas prices despite market concerns”.

LNG prices have been under pressure as new projects have kept the market well supplied, while oil prices LCOc1 have tumbled to around $55 per barrel from last year’s peak in April of almost $75.

Rivals have seen fourth-quarter profits slide on lower prices. BP (BP.L) reported a 26% drop on Tuesday while Royal Dutch Shell (RDSa.L) last month said its profits had halved.

(Graphic: Majors cashflow Total, here)

Reuters Graphic

LNG OUTPUT

Total’s oil and gas production grew by 9% in 2019 thanks to project start-ups and ramp-ups, while its LNG business doubled, boosting cash flow.

“One of the reasons our results resisted the low oil environment was because of the strong LNG output which grew 50%,” Pouyanne said.

He said exceptional production growth was unlikely to continue in the years to come and output growth for 2020 was seen at 2% to 4%, a more typical level in the industry.

The chief executive said Total was expanding in the low carbon energy business and was on track to meet its goal of producing 25 gigawatts (GW) of renewable electricity by 2025, helped by solar projects in Qatar and India.

Total, which kept its capital expenditure target steady for 2020 at $18 billion, said it was on track to achieve its target of $5 billion in divestments during 2019 and 2020.

Total said it had sold its 27.5% interest in Fosmax LNG, which operates France’s Fos Cavaou LNG terminal, to Engie (ENGIE.PA) unit Elengy for about $260 million.

Total is on track to achieve its divestment target with transactions worth $3 billion so far, Jefferies analysts said.

(Graphic: Total Results, here)

Reuters Graphic

Houston Chronicle


Black Stone Minerals said it will cut its quarterly payouts to investors by almost 20 percent because of falling oil and gas prices.

Black Stone Minerals cuts investor payouts by almost 20%- oil and gas 360

Source: Houston Chronicle

In another sign of the weakening energy sector, the Houston oil and gas royalties firm will reduce its distributions to 30 cents per unit from 37 cents. This is the first time Black Stone has reduced its payout since going public in 2015.

Even during the lean years of the last oil bust in 2015 and 2016, Black Stone steadily hiked investor payments from an initial 16.2 cents per unit in 2015.

“We are taking a proactive approach to strengthen our balance sheet and enhance our financial flexibility with the expectation that 2020 may be a challenging year in terms of commodity prices and overall drilling activity,” said Black Stone CEO Thomas Carter Jr.

“Given the current environment, the board believes that reducing the distribution benefits unitholders by providing additional cash flow for, first, the repayment of debt, and for other such uses as unit repurchases and acquisitions.,” Carter added.

February 4, 2020

CNBC


Energy giant BP reported better-than-expected full-year net profit on Tuesday, outperforming analyst expectations despite lower oil and gas prices.

BP full-year net profit falls 21% on weak oil and gas prices- oil and gas 360

Source: Reuters

The U.K.-based oil and gas company posted full-year underlying replacement cost profit, used as a proxy for net profit, of $10 billion in 2019. That compared with $12.7 billion full-year net profit in 2018, reflecting a year-on-year fall of 21%.

Analysts had expected full-year net profit to come in at $9.7 billion in 2019, according to data from Refinitiv.

Shares of BP were up more than 4%.

“BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery,” Bob Dudley, CEO of BP, said in a statement.

“After almost ten years, this is now my last quarter as CEO. In that time, we have achieved a huge amount together and I am proud to be handing over a safer and stronger BP to Bernard and his team.”

“I am confident that under their leadership, BP will continue to successfully navigate the rapidly-changing energy landscape,” Dudley said.

Bernard Looney, who has run BP’s upstream business since April 2016 and has been a member of the firm’s executive management team since November 2010, is now set to take the reins from the outgoing chief executive.

In October, Dudley announced he would step down as CEO on Feb. 4., having held the position for almost a decade. The 64-year-old plans to retire on March 31, thus bringing an end to his 40-year career with BP.

Here are the key highlights:

  • Underlying replacement cost profit for the fourth quarter and full-year 2019 was $2.6 billion and $10.0 billion respectively, compared to $3.5 billion and $12.7 billion for the same periods a year earlier.
  • Gulf of Mexico oil spill payments for the year totaled $2.4 billion on a post-tax basis, and are expected to be less than $1 billion in 2020.
  • A dividend of 10.5 cents per share was announced for the quarter, an increase of 2.4% on a year earlier.

The energy giant’s full-year results follow disappointing earnings from oil and gas companies on both sides of the Atlantic.

Anglo-Dutch energy giant Royal Dutch Shell reported a sharp fall in full-year net profit late last week, while U.S. rivals Chevron and Exxon Mobil both missed analyst expectations on Friday.

France’s Total is scheduled to report its latest quarterly earnings on Feb. 6.

All roads lead to OPEC decision

International benchmark Brent crude traded at $54.74 Tuesday lunchtime, up more than 0.5%, while U.S. West Texas Intermediate (WTI) stood at $50.75, around 1.2% higher.

Both crude benchmarks have each fallen around 20% since climbing to a peak in early January, dragged lower by concern over demand in China after the coronavirus outbreak.

Brian Gilvary, chief financial officer at BP, told CNBC’s “Squawk Box Europe” on Tuesday that the coronavirus outbreak could wipe out as much as 300,000 to 500,000 barrels per day (bpd) of oil demand in 2020.

The International Energy Agency (IEA) has previously said it expects oil demand to grow by 1.2 million bpd this year, so a reduction of up to 500,000 bpd would leave demand growth “healthy” at 700,000 to 800,000 bpd, Gilvary said.

“I think, in terms of price direction, all roads will then lead to what OPEC will do in terms of trying to rebalance the system to get back to something around $60 to $65 a barrel,” he added.

OPEC and its allies are considering cutting their oil output by a further 500,000 bpd this year, two OPEC sources and a third industry source familiar with discussions told Reuters on Monday.

A ministerial meeting currently scheduled for early March could be brought forward to mid-February, one of the OPEC sources said, with February 14-15 touted as possible dates.

Houston Chronicle


ConocoPhillips’ fourth-quarter profit declined by more than 60 percent, to $720 million from $1.9 billion in the same period last year, amid weaker oil prices and production outputs.

ConocoPhillips' fourth-quarter profit plunges by 60%-oil and gas 360

Source: Houston Chronicle

Revenue during the quarter dropped by more than 20 percent to $8.1 billion.

For the full year, net earnings jumped 15 percent to $7.2 billion compared with $6.3 billion in 2018.

The Houston oil and gas producer still won over many on Wall Street late last year by hiking dividend payments to shareholders and with the release of a 10-year outlook that would rein in spending throughout the new decade.

“Strong 2019 performance capped off a highly successful three-year period in which we transformed our business model and significantly improved our underlying performance drivers across the company,” said Ryan Lance, chairman and chief executive officer. “We’ve positioned ConocoPhillips to deliver sustained value through price cycles due to our strong balance sheet, focus on free cash flow generation, compelling returns of and returns on capital and our commitment to environmental, social and governance leadership.”

Essentially, ConocoPhillips is focused on bringing in stronger profits and paying out more to investors while operating with flatter spending and smaller overall scale.

The company’s production output is expected to dip a little in 2020 because of some recent asset sales.

Last year, ConocoPhillips’ oil and gas production volumes grew by 5 percent despite a small decline in the fourth quarter.

The company’s shale production jumped by 22 percent last year. Shale volumes account for 30 percent of the company’s global production, led by South Texas’ Eagle Ford Shale. ConocoPhillips’ rising outputs in West Texas’ Permian Basin are on track to soon surpass its volumes in North Dakota’s Bakken shale.

Still, ConocoPhillips’ Asian, Australian, North Sea and Alaskan business units are more profitable than its U.S. shale output.

The company’s 2020 capital spending budget is projected to be $6.5 billion to $6.7 billion, on par with the $6.6 billion in 2019. However, that 2019 capital spending budget increased throughout the year from an initial budget of $6.1 billion, a revised midyear budget at $6.3 billion, and final spending for the year of $6.6 billion.

 

January 31, 2020

Houston Chronicle


Houston refining and pipeline company Phillips 66 on Friday reported a $689 million fourth-quarter profit, 51 percent less than the same period in 2018.

Imperial Oil's quarterly profit beats estimates on higher crude prices- oil and gas 360

Source: Houston Chronicle

The fourth quarter performance resulted in Phillips 66 closing 2019 with a nearly $3.7 billion profit, a 35 percent drop from the previous year when favorable margins in the refining of domestic crude oil swelled profits. The

West Texas Intermediate crude oil prices fell by 40 percent during the fourth quarter of 2018 and entered the $40 per barrel range, creating losses for exploration and production companies and services companies but windfalls for refining companies that were able to process domestic crude.

Crude oil prices have since settled in the $50 per range, which are still beneficial to refining companies but not as profitable.

Phillips 66’s pipeline business took a $900 million hit during the third quarter for impairments related to writing down the value of DCP Midstream, a gathering and processing plant joint venture with Canadian pipeline operator Enbridge.

In a statement, Phillips 66 Greg Garland focused on future growth. The company placed its Gray Oak Pipeline into service in November. When in full service early this year it will move 900,000 barrels of crude oil per day from Texas’ Permian Basin and Eagle Ford Shale to the company’s refinery in Brazoria County and the Port of Corpus Christi.

“As we begin 2020, we are focused on operating excellence, executing our growth projects, enhancing returns on existing assets and exercising disciplined capital allocation,” Garland said.

 


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