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Lower gas prices hit Cabot’s bottom line

by on July 25, 2012 2:46 am GMT
 

Second-quarter production rose 40% to 62.8 billion cubic feet of gas equivalent.

However, the gas-focused company realized a price of $3.39 per thousand cubic feet, 27% lower than the second quarter of 2011.

April-June net income was $35.9 million, or 17 cents per share, compared with $54.7 million, or 26 cents per share, a year earlier.

Excluding items, earnings were 5 cents a share, missing analysts’ estimates by a penny, according to Thomson Reuters.

Operating revenue rose 11% to $265.7 million, but came in below analysts’ estimates of $267.9 million.

The Houston-based company’s average production in July has been higher than that of the second quarter due to increased activity in the Marcellus shale field, it said in a separate statement.

Shares of Cabot closed at $39.50 on Tuesday on the New York Stock Exchange.