Cabot Oil and Gas of Houston, Texas, announced doubled net income for the fourth quarter 2011 of $40 million, excluding extraordinary items, compared with $20 million in the fourth quarter 2010.
Net income for the year was $122 million in 2011, or $0.59 per share, compared with $103 million, or $0.50 per share.
The company boasted increased net income even while experiencing a 20 percent decline in gas prices and an 8 percent decline in oil prices year over year.
The increase in income was attributed in part to growth in production. For 2011, Cabot's combined production reached a record 187.5 billion cubic feet equivalent, or bcfe, establishing a new benchmark for both absolute production and for year-over-year growth of 43.5 percent.
Cabot's Marcellus acreage is centered on Susquehanna County, in northeast Pennsylvania.
Also contributing to the income increase, the company reported, were reductions of 27 percent in operating expenses.
Cabot feels gas prices have hit bottom, said Chairman, President and CEO Dan Dinges, although the pace of price recovery is uncertain.
Cabot also announced Feb. 21 a new joint venture with Williams Partners to build a pipeline from Cabot's Marcellus acreage that would serve the New York and New England markets.
The new Constitution Pipeline would move 500,000 mcf/day. Cabot will have a 25 percent interest in the pipeline, with Williams Partners maintaining 75 percent interest and will operate the pipeline through an affiliate. The planned in-service date is March 2015.
Cabot shares trade on the New York Stock Exchange under symbol COG.
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