The Department of Environmental Protection and Cabot Oil & Gas Corp. have executed a consent order and agreement that will provide a long-term solution for migrating gas that has affected 13 water supplies in Dimock Township, Susquehanna County. The affected area covers nine square miles around Carter Road. The consent order and agreement outlines a process that will give DEP more oversight of Cabot's new well construction work in the affected area. Prior to drilling and hydraulic fracturing, or hydro fracking, the company will submit well casing and cementing plans to DEP. Once DEP provides written approval, Cabot may proceed.

Cabot Oil & Gas Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The company reported third quarter net income of $38.9 million, or $0.38 per basic share. Removing the selected items, the quarter's net income was $42.6 million, or $0.41 per basic share. These figures compare to the 2008 third quarter numbers (for the reported results and after the removal of selected items) of $67.0 million, or $0.65 per basic share, and $60.1 million, or $0.58 per basic share, respectively. Cash flow from operations for the 2009 third quarter totaled $116.7 million, while discretionary cash flow was $158.9 million. Comparatively, 2008 third quarter cash flow from operations was $148.3 million, and discretionary cash flow was $161 million. Operating revenues were $207.0 million against $244.8 million a year ago. Income before income taxes was $59.9 million against $104.2 million a year ago. Capital expenditures were $101.9 million against $791.7 million a year ago. For the nine months ended September 30, 2009, the company reported net income of $112 million, or $1.08 per share, compared to $167.6 million, or $1.68 per share, for the same period last year. The cash flow comparisons for the nine months ended September 30, 2009 and September 30, 2008, respectively, are cash flow from operations of $417.1 million versus $424.7 million and discretionary cash flow of $430.6 million versus $446.5 million. The 2009 nine-month net income figure, after removal of the selected items, was $123.9 million, or $1.20 per share, versus $187.0 million, or $1.87 per share for the nine-month period ended September 30, 2008. Operating revenues were $645.9 million against $713.3 million a year ago. Income before income taxes was $174.7 million against $262.2 million a year ago. Capital expenditures were $394.9 million against $1,164.3 million a year ago. Net Debt as on September 30, 2009 was $774.3 million against $838.9 million a year ago.

Cabot Oil & Gas Corp. provided a status update of its Marcellus development in Susquehanna County, Pennsylvania, along with its first look at a horizontal Haynesville shale success in its County Line field in east Texas. Marcellu: The Company has nine horizontal wells producing, three of which have produced over 1 Bcf. Seventeen horizontal wells have been drilled so far in 2009, and 16 are drilling or remain to be drilled from six horizontal rigs that are currently operating. To date, the Company's 24-hour initial production rates have ranged between 4.6 to 11.5 Mmcf per day, with 30-day rates ranging from 3.5 to 10.9 Mmcf per day. Haynesville: In east Texas, Cabot confirmed that the Company and its partners are flow testing its first horizontal Haynesville shale well. The well is hooked up to sales flowing back at this point, at approximately 21.0 Mmcf per day with a flowing casing pressure of 7,800 psi, after 11 days in line. Dinges added, 'We anticipate that the well will improve further as it continues to clean up frac fluid.' The well is operated by Common Resources, and Cabot is a 42% working interest partner.