Related to infrastructure, the Company has been notified by Williams that it has received 90 percent of the 2012 gathering line permits. With this news, there are currently numerous construction crews in the field, which should allow for approximately 30 wells to begin producing during the fourth quarter, roughly half of these will occur in December.
The Company has revised its 2013 Marcellus program to reflect tighter frac spacing. This was the main catalyst for the increase in the low end of production guidance and for the slight increase in program spending to cover this initiative. Guidance detail can be found on the Company's website under the Investor Relations tab. "Even with this change, we will still be cash flow positive at our budget prices of $3.50 and $90.00 for 2013," affirmed Dinges. "For 2012 we have narrowed production guidance (moving the lower-end higher and the top-end lower) due to delayed receipt of the gathering permits and the current schedule to begin producing our wells. Also, we have reaffirmed that there were no changes to our 2012 capital plans."
Summary"We continued to move forward on all fronts with new drilling initiatives showing enhanced results, be it new plays or new techniques," said Dinges. "Our ability to provide significant production growth with free cash flow in the near-term is a differentiating factor for Cabot." 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 Internet homepage at www.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.