This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cabot Oil & Gas Corporation Announces New Agreements For Long-Term Sales And Pipeline Takeaway Capacity

HOUSTON, Feb. 20, 2014 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today reported the execution of a definitive Gas Sale and Purchase Agreement with a subsidiary of WGL Holdings (NYSE: WGL) and the execution of a binding Precedent Agreement with Transcontinental Gas Pipe Line Company, LLC (Transco) for a new pipeline with committed takeaway capacity from Cabot's acreage position in Susquehanna County, Pennsylvania.  "This project is very unique in that the producer, the pipeline and the market have collectively combined resources to accomplish the individual goals of each party," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "Specifically for Cabot, we secure the optimal path for our previously announced Cove Point volumes (350,000 MMBtu per day) and add another sizeable agreement to our portfolio of long-term sales contracts, while utilizing a portion of our future anticipated free cash flow to invest in another infrastructure project."

The Gas Sale and Purchase Agreement will provide for 500,000 MMBtu per day of natural gas to be sold to WGL for a primary term of 15 years, commencing with the in-service date of Transco's Atlantic Sunrise expansion project currently scheduled for in-service in the second half of 2017.

The Precedent Agreement will allow for Transco to construct and operate approximately 177 miles of new pipeline, referred to as the Central Penn Line, from the Zick area of Susquehanna County to an interconnect with Transco's mainline in Lancaster County, Pennsylvania. These new facilities are an integral part of Transco's recently announced Atlantic Sunrise project. Cabot will own 850,000 MMBtu per day of firm capacity on Atlantic Sunrise and will also be participating as an equity owner.

"We are extremely excited to combine this new long-term sales agreement with our previously announced deal with Sumitomo for delivery to Cove Point," commented Dinges.  "Collectively, we are adding 850,000 MMBtu per day of baseload sales to our marketing effort while securing a firm path for these volumes through the 850,000 MMBtu per day of firm capacity on this newly announced pipeline.  We have achieved a significant goal of securing new takeaway capacity from the basin with the construction of a new large diameter pipeline that connects our operating area directly to multiple new markets including new pricing opportunities." 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%
YHOO $36.53 -0.19%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs