10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2021

☐       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission file number 1-10447

CABOT OIL & GAS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	04-3072771
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

Three Memorial City Plaza

840 Gessner Road, Suite 1400, Houston, Texas 77024

(Address of principal executive offices, including ZIP code)

(281) 589-4600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	COG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 28, 2021, there were 399,419,748 shares of Common Stock, Par Value $0.10 Per Share, outstanding.

CABOT OIL & GAS CORPORATION

INDEX TO FINANCIAL STATEMENTS

		Page
Part I. Financial Information
Item 1.	Financial Statements
Condensed Consolidated Balance Sheet (Unaudited) at March 31, 2021 and December 31, 2020		3
Condensed Consolidated Statement of Operations (Unaudited) for the Three Months Ended March 31, 2021 and 2020		4
Condensed Consolidated Statement of Cash Flows (Unaudited) for the Three Months Ended March 31, 2021 and 2020		5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) for the Three Months Ended March 31, 2021 and 2020		6
Notes to the Condensed Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	23
Part II. Other Information
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 5.	Other Information	24
Item 6.	Exhibits	25
Signatures		26

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PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

CABOT OIL & GAS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In thousands, except share amounts)	March 31, 2021		December 31, 2020
ASSETS
Current assets
Cash and cash equivalents	$	173,659	$	140,113
Restricted cash	11,578		11,578
Accounts receivable, net	197,843		214,724
Income taxes receivable	2,559		6,171
Inventories	15,870		15,270
Derivative instruments	9,574		26,209
Other current assets	832		1,650
Total current assets	411,915		415,715
Properties and equipment, net (Successful efforts method)	4,075,428		4,044,606
Other assets	63,509		63,211
	$	4,550,852	$	4,523,532
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	169,101	$	162,081
Current portion of long-term debt	100,000		188,000
Accrued liabilities	21,240		22,374
Income taxes payable	19,895		—
Interest payable	4,856		17,771
Total current liabilities	315,092		390,226
Long-term debt, net	946,123		945,924
Deferred income taxes	786,526		774,195
Asset retirement obligations	87,410		85,489
Postretirement benefits	31,203		30,713
Other liabilities	78,528		81,278
Total liabilities	2,244,882		2,307,825
Commitments and contingencies
Stockholders' equity
Common stock:
Authorized — 960,000,000 shares of $0.10 par value in 2021 and 2020, respectively
Issued — 478,377,066 shares and 477,828,813 shares in 2021 and 2020, respectively	47,838		47,783
Additional paid-in capital	1,808,232		1,804,354
Retained earnings	2,270,819		2,184,352
Accumulated other comprehensive income	2,282		2,419
Less treasury stock, at cost:
78,957,318 shares and 78,957,318 shares in 2021 and 2020, respectively	(1,823,201)		(1,823,201)
Total stockholders' equity	2,305,970		2,215,707
	$	4,550,852	$	4,523,532

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CABOT OIL & GAS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

	Three Months Ended  March 31,
(In thousands, except per share amounts)	2021		2020
OPERATING REVENUES
Natural gas	$	472,859	$	370,340
(Loss) gain on derivative instruments	(13,238)		16,062
Other	59		55
	459,680		386,457
OPERATING EXPENSES
Direct operations	16,876		17,244
Transportation and gathering	136,702		143,332
Taxes other than income	4,805		3,738
Exploration	2,627		2,190
Depreciation, depletion and amortization	94,148		100,135
General and administrative	29,155		33,429
	284,313		300,068
Loss on equity method investments	—		(59)
Gain on sale of assets	71		71
INCOME FROM OPERATIONS	175,438		86,401
Interest expense, net	12,377		14,211
Other expense	46		66
Income before income taxes	163,015		72,124
Income tax expense	36,661		18,214
NET INCOME	$	126,354	$	53,910
Earnings per share
Basic	$	0.32	$	0.14
Diluted	$	0.31	$	0.13
Weighted-average common shares outstanding
Basic	399,121		398,343
Diluted	401,811		399,897

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CABOT OIL & GAS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

	Three Months Ended  March 31,
(In thousands)	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	126,354	$	53,910
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	94,148		100,135
Deferred income tax expense	12,371		44,044
Gain on sale of assets	(71)		(71)
Loss (gain) on derivative instruments	13,238		(16,062)
Net cash received in settlement of derivative instruments	3,397		—
Loss on equity method investments	—		59
Amortization of debt issuance costs	715		750
Stock-based compensation and other	11,076		15,765
Changes in assets and liabilities:
Accounts receivable, net	16,881		73,327
Income taxes	23,507		(26,756)
Inventories	(600)		(4,317)
Other current assets	818		916
Accounts payable and accrued liabilities	3,425		(23,711)
Interest payable	(12,915)		(12,981)
Other assets and liabilities	(1,817)		(111)
Net cash provided by operating activities	290,527		204,897
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(123,617)		(148,702)
Proceeds from sale of assets	92		48
Investment in equity method investments	—		(35)
Proceeds from sale of equity method investments	—		(9,424)
Net cash used in investing activities	(123,525)		(158,113)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of debt	(88,000)		—
Dividends paid	(39,887)		(39,817)
Tax withholdings on vesting of stock awards	(5,569)		(6,313)
Net cash used in financing activities	(133,456)		(46,130)
Net increase in cash, cash equivalents and restricted cash	33,546		654
Cash, cash equivalents and restricted cash, beginning of period	151,691		213,783
Cash, cash equivalents and restricted cash, end of period	$	185,237	$	214,437

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CABOT OIL & GAS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited)

(In thousands, except per share  amounts)	Common Shares	Common Stock Par		Treasury Shares	Treasury Stock		Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total
Balance at December 31, 2020	477,829	$	47,783	78,957	$	(1,823,201)	$	1,804,354	$	2,419	$	2,184,352	$	2,215,707
Net income	—	—		—	—		—		—		126,354		126,354
Stock amortization and vesting	548	55		—	—		3,878		—		—		3,933
Cash dividends at $0.10 per share	—	—		—	—		—		—		(39,887)		(39,887)
Other comprehensive loss	—	—		—	—		—		(137)		—		(137)
Balance at March 31, 2021	478,377	$	47,838	78,957	$	(1,823,201)	$	1,808,232	$	2,282	$	2,270,819	$	2,305,970

(In thousands, except per share  amounts)	Common Shares	Common Stock Par		Treasury Shares	Treasury Stock		Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total
Balance at December 31, 2019	476,882	$	47,688	78,957	$	(1,823,201)	$	1,782,427	$	1,360	$	2,143,213	$	2,151,487
Net income	—	—		—	—		—		—		53,910		53,910
Stock amortization and vesting	651	65		—	—		2,886		—		—		2,951
Cash dividends at $0.10 per share	—	—		—	—		—		—		(39,817)		(39,817)
Other comprehensive loss	—	—		—	—		—		(136)		—		(136)
Balance at March 31, 2020	477,533	$	47,753	78,957	$	(1,823,201)	$	1,785,313	$	1,224	$	2,157,306	$	2,168,395

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CABOT OIL & GAS CORPORATION

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. Financial Statement Presentation

During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 (Form 10-K) filed with the Securities and Exchange Commission (SEC), except for any new accounting pronouncements adopted during the period. The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year.

2. Properties and Equipment, Net

Properties and equipment, net are comprised of the following:

(In thousands)	March 31, 2021		December 31, 2020
Proved oil and gas properties	$	7,196,548	$	7,068,605
Unproved oil and gas properties	43,060		49,829
Land, buildings and other equipment	92,858		92,566
	7,332,466		7,211,000
Accumulated depreciation, depletion and amortization	(3,257,038)		(3,166,394)
	$	4,075,428	$	4,044,606

At March 31, 2021, the Company did not have any projects that had exploratory well costs capitalized for a period of greater than one year after drilling.

3. Debt and Credit Agreements

The Company’s debt and credit agreements consisted of the following:

(In thousands)	March 31, 2021		December 31, 2020
6.51% weighted-average senior notes	$	37,000	$	37,000
5.58% weighted-average senior notes(1)	87,000		175,000
3.65% weighted-average senior notes(2)	925,000		925,000
Unamortized debt issuance costs	(2,877)		(3,076)
	$	1,046,123	$	1,133,924

_______________________________________________________________________________

(1)Includes $88.0 million of current portion of long-term debt at December 31, 2020, which the Company repaid in January 2021.

(2)Includes $100.0 million of current portion of long-term debt at March 31, 2021 and December 31, 2020 due in September 2021.

At March 31, 2021, the Company was in compliance with all financial and other covenants applicable to its revolving credit facility and senior notes.

Revolving Credit Agreement

The borrowing base under the terms of the Company's revolving credit facility is redetermined annually in April. In addition, either the Company or the banks may request an interim redetermination twice a year or in connection with certain acquisitions or divestitures of oil and gas properties. At March 31, 2021, the Company had no borrowings outstanding under its revolving credit facility and had unused commitments of $1.5 billion.

Effective April 21, 2021, the borrowing base and available commitments were reaffirmed at $3.2 billion and $1.5 billion, respectively.

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4. Derivative Instruments

As of March 31, 2021, the Company had the following outstanding financial commodity derivatives:

			Collars
			Floor			Ceiling			Swaps
Type of Contract	Volume (Mmbtu)	Contract Period	Range ($/Mmbtu)	Weighted-Average ($/Mmbtu)		Range ($/Mmbtu)	Weighted-Average ($/Mmbtu)		Weighted-Average ($/Mmbtu)
Natural gas (NYMEX)	13,750,000	Apr. 2021-Dec. 2021							$	2.74
Natural gas (NYMEX)	123,750,000	Apr. 2021-Dec. 2021	$2.50 - $2.85	$	2.68	$2.83 - $3.80	$	3.03
Natural gas (NYMEX)	10,700,000	Apr. 2021-Oct. 2021	$—	$	2.50	$—	$	2.80
Natural gas (NYMEX)	21,400,000	Apr. 2021-Oct. 2021							$	2.78

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Commodity contracts	Derivative instruments (current)	$	9,574	$	26,209	$	—	$	—

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet

(In thousands)	March 31, 2021		December 31, 2020
Derivative assets
Gross amounts of recognized assets	$	10,575	$	26,354
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of assets presented in the condensed consolidated balance sheet	9,574		26,209
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	9,574	$	26,209
Derivative liabilities
Gross amounts of recognized liabilities	$	1,001	$	145
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of liabilities presented in the condensed consolidated balance sheet	—		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	—

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations

	Three Months Ended  March 31,
(In thousands)	2021		2020
Cash received (paid) on settlement of derivative instruments
(Loss) gain on derivative instruments	$	3,397	$	—
Non-cash gain (loss) on derivative instruments
(Loss) gain on derivative instruments	(16,635)		16,062
	$	(13,238)	$	16,062

5. Fair Value Measurements

The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K.

8

Financial Assets and Liabilities

The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at   March 31, 2021
Assets
Deferred compensation plan	$	24,296	$	—	$	—	$	24,296
Derivative instruments	—		1,836		8,739		10,575
	$	24,296	$	1,836	$	8,739	$	34,871
Liabilities
Deferred compensation plan	$	33,607	$	—	$	—	$	33,607
Derivative instruments	—		7		994		1,001
	$	33,607	$	7	$	994	$	34,608

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at   December 31, 2020
Assets
Deferred compensation plan	$	22,510	$	—	$	—	$	22,510
Derivative instruments	—		2,647		23,707		26,354
	$	22,510	$	2,647	$	23,707	$	48,864
Liabilities
Deferred compensation plan	$	30,581	$	—	$	—	$	30,581
Derivative instruments	—		—		145		145
	$	30,581	$	—	$	145	$	30,726

The Company's investments associated with its deferred compensation plan consist of mutual funds and deferred shares of the Company's common stock that are publicly traded and for which market prices are readily available.

The derivative instruments were measured based on quotes from the Company's counterparties or internal models. Such quotes and models have been derived using an income approach that considers various inputs, including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates for a similar length of time as the derivative contract term as applicable. Estimates are derived from or verified using relevant NYMEX futures contracts and are compared to multiple quotes obtained from counterparties for reasonableness. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative transactions while non-performance risk of the Company is evaluated using market credit spreads provided by several of the Company's banks. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties.

The most significant unobservable inputs relative to the Company's Level 3 derivative contracts are volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties' valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided.

9

The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Three Months Ended  March 31,
(In thousands)	2021		2020
Balance at beginning of period	$	23,562	$	(22)
Total gain (loss) included in earnings	(12,639)		7,215
Settlement (gain) loss	(3,178)		—
Transfers in and/or out of Level 3	—		—
Balance at end of period	$	7,745	$	7,193
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period	$	(6,350)	$	7,215

Non-Financial Assets and Liabilities

The Company discloses or recognizes its non-financial assets and liabilities, such as impairments or acquisitions, at fair value on a nonrecurring basis. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of March 31, 2021, additional disclosures were not required.

The estimated fair value of the Company’s asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy.

Fair Value of Other Financial Instruments

The estimated fair value of other financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for each of cash, cash equivalents and restricted cash approximate fair value, due to the short-term maturities of these instruments. Cash, cash equivalents and restricted cash are classified as Level 1 in the fair value hierarchy and the remaining financial instruments are classified as Level 2.

The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s outstanding debt to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The estimated fair value of the Company's outstanding debt is based on interest rates currently available to the Company. The Company’s debt is valued using an income approach and classified as Level 3 in the fair value hierarchy.

The carrying amount and estimated fair value of debt is as follows:

	March 31, 2021				December 31, 2020
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt	$	1,046,123	$	1,121,176	$	1,133,924	$	1,213,811
Current maturities	(100,000)		(100,900)		(188,000)		(189,332)
Long-term debt, excluding current maturities	$	946,123	$	1,020,276	$	945,924	$	1,024,479

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6. Asset Retirement Obligations

Activity related to the Company’s asset retirement obligations is as follows:

(In thousands)	Three Months Ended  March 31, 2021
Balance at beginning of period	$	85,989
Liabilities incurred	796
Accretion expense	1,125
Balance at end of period	87,910
Less: current asset retirement obligations	(500)
Noncurrent asset retirement obligations	$	87,410

7. Commitments and Contingencies

Contractual Obligations

The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Transportation and Gathering Agreements” and "Lease Commitments" as disclosed in Note 9 of the Notes to Consolidated Financial Statements in the Form 10-K.

Legal Matters

Pennsylvania Office of Attorney General Matter

On June 16, 2020, the Office of Attorney General of the Commonwealth of Pennsylvania informed the Company that it will pursue certain misdemeanor and felony charges in a Susquehanna County Magisterial District Court against the Company related to alleged violations of the Pennsylvania Clean Streams Law, which prohibits discharge of industrial wastes. The Company is vigorously defending itself against such charges; however, the proceedings could result in fines or penalties against the Company. At this time, it is not possible to estimate the amount of any fines or penalties, or the range of such fines or penalties, that are reasonably possible in this case.

Other

The Company is a defendant in various other legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows.

Contingency Reserves

When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters for which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently known or foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued.

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8. Revenue Recognition

Disaggregation of Revenue

The following table presents revenues from contracts with customers disaggregated by product:

	Three Months Ended March 31,
(In thousands)	2021		2020
Natural gas	$	472,859	$	370,340
Other	59		55
	$	472,918	$	370,395

All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and generated in the United States of America.

Transaction Price Allocated to Remaining Performance Obligations

A significant number of the Company’s product sales contracts are short-term in nature, with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

As of March 31, 2021, the Company has $8.2 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over periods ranging from three to 18 years.

Contract Balances

Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, which is generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $198.6 million and $215.3 million as of March 31, 2021 and December 31, 2020, respectively, and are reported in accounts receivable, net on the Condensed Consolidated Balance Sheet. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront payments or rights to deficiency payments.

9. Capital Stock

Dividends

In April 2021, the Board of Directors approved an increase in the quarterly dividend on the Company's common stock from $0.10 per share to $0.11 per share.

10. Stock-Based Compensation

General

The Company grants certain stock-based compensation awards, including restricted stock awards, restricted stock units and performance share awards. Stock-based compensation expense associated with these awards was $11.7 million and $16.3 million in the first quarter of 2021 and 2020, respectively. Stock-based compensation expense is included in general and administrative expense in the Condensed Consolidated Statement of Operations.

Refer to Note 14 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms.

Restricted Stock Units

During the first three months of 2021, 101,991 restricted stock units were granted to non-employee directors of the Company, with a weighted-average grant date value of $18.59 per unit. The fair value of these units is measured based on the closing stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company.

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Performance Share Awards

The performance period for the awards granted during the first three months of 2021 commenced on January 1, 2021 and ends on December 31, 2023. The Company used an annual forfeiture rate assumption ranging from zero percent to four percent for purposes of recognizing stock-based compensation expense for its performance share awards.

Performance Share Awards Based on Internal Performance Metrics

The fair value of performance share award grants based on internal performance metrics is based on the closing stock price on the grant date. Each performance share award represents the right to receive up to 100 percent of the award in shares of common stock. Based on the Company’s probability assessment at March 31, 2021, it is considered probable that the criteria for all performance awards based on internal metrics awards will be met.

Employee Performance Share Awards. During the first three months of 2021, 696,280 Employee Performance Share Awards were granted at a grant date value of $18.58 per share. The 2020 awards vest 100 percent on the third anniversary, provided that the Company averages $100 million or more of operating cash flow during the three-year performance period, as set by the compensation committee of the Company's board of directors. If the Company does not meet the performance metric for the applicable period, then the performance shares that would have been issued on the anniversary date will be forfeited.

Hybrid Performance Share Awards. During the first three months of 2021, 423,171 Hybrid Performance Share Awards were granted at a grant date value of $18.58 per share. The 2021 awards vest 25 percent on each of the first and second anniversary dates and 50 percent on the third anniversary, provided that the Company has $100 million or more of operating cash flow for the year preceding the vesting date, as set by the compensation committee of the Company's board of directors. If the Company does not meet the performance metric for the applicable period, then the portion of the performance shares that would have been issued on that anniversary date will be forfeited.

Performance Share Awards Based on Market Conditions

These awards have both an equity and liability component, with the right to receive up to the first 100 percent of the award in shares of common stock and the right to receive up to an additional 100 percent of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model.

TSR Performance Share Awards. During the first three months of 2021, 723,224 TSR Performance Share Awards were granted and are earned, or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group over a three-year performance period. The Company incorporated a new feature in the 2021 TSR awards that will reduce the potential cash component of the award if the actual performance is negative over the three-year period and the base calculation indicates an above-target payout.

The following assumptions were used to determine the grant date fair value of the equity component (February 17, 2021) and the period-end fair value of the liability component of the TSR Performance Share Awards:

	Grant Date			March 31, 2021
Fair value per performance share award	$	16.07		$7.66 - $10.60
Assumptions:
Stock price volatility	39.8		%	38.1% - 45.8%
Risk free rate of return	0.20		%	0.06% - 0.30%

11. Earnings per Common Share

Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive.

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The following is a calculation of basic and diluted weighted-average shares outstanding:

	Three Months Ended  March 31,
(In thousands)	2021	2020
Weighted-average shares - basic	399,121	398,343
Dilution effect of stock awards at end of period	2,690	1,554
Weighted-average shares - diluted	401,811	399,897

The following table presents weighted-average shares excluded from diluted EPS due to the anti-dilutive effect:

	Three Months Ended  March 31,
(In thousands)	2021	2020
Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method	928	1,068

12. Additional Balance Sheet Information

Certain balance sheet amounts are comprised of the following:

(In thousands)	March 31, 2021		December 31, 2020
Accounts receivable, net
Trade accounts	$	198,625	$	215,301
Other accounts	257		462
	198,882		215,763
Allowance for doubtful accounts	(1,039)		(1,039)
	$	197,843	$	214,724
Other assets
Deferred compensation plan	$	24,296	$	22,510
Debt issuance costs	6,360		6,875
Operating lease right-of-use assets	32,725		33,741
Other accounts	128		85
	$	63,509	$	63,211
Accounts payable
Trade accounts	$	17,230	$	12,896
Royalty and other owners	34,496		37,243
Accrued transportation	51,530		52,238
Accrued capital costs	38,280		37,872
Taxes other than income	18,420		13,736
Other accounts	9,145		8,096
	$	169,101	$	162,081
Accrued liabilities
Employee benefits	$	13,127	$	14,270
Taxes other than income	3,082		3,026
Operating lease liabilities	3,910		3,991
Other accounts	1,121		1,087
	$	21,240	$	22,374
Other liabilities
Deferred compensation plan	$	33,607	$	30,581
Operating lease liabilities	28,697		29,628
Other accounts	16,224		21,069
	$	78,528	$	81,278

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following review of operations for the three month periods ended March 31, 2021 and 2020 should be read in conjunction with our Condensed Consolidated Financial Statements and the Notes included in this Quarterly Report on Form 10-Q (Form 10-Q) and with the Consolidated Financial Statements, Notes and Management’s Discussion and Analysis included in the Cabot Oil & Gas Corporation Annual Report on Form 10-K for the year ended December 31, 2020 (Form 10-K).

OVERVIEW

Financial and Operating Overview

Financial and operating results for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 reflect the following:

•Natural gas production decreased 9.2 Bcf from 215.0 Bcf, or 2,363 Mmcf per day, in the 2020 period to 205.8 Bcf, or 2,287 Mmcf per day, in the 2021 period. The decrease was driven by reduced capital spending during 2020 related to our maintenance capital program and the timing of our drilling and completion activities in the Marcellus Shale in 2021.

•Average realized natural gas price was $2.31 per Mcf, 34 percent higher than the $1.72 per Mcf realized in the corresponding period of the prior year.

•Total capital expenditures were $124.0 million compared to $160.3 million in the corresponding period of the prior year.

•Drilled 28 gross wells (25.1 net) with a success rate of 100 percent compared to 22 gross wells (22.0 net) with a success rate of 100 percent for the corresponding period of the prior year. Wells drilled represents wells drilled to total depth during the period.

•Completed 14 gross wells (13.0 net) in 2021 compared to 13 gross wells (13.0 net) in the corresponding period of 2020. Wells completed includes wells completed during the period, regardless of when they were drilled.

•Average rig count during 2021 was approximately 3.0 rigs in the Marcellus Shale, compared to an average rig count of approximately 2.8 rigs during the corresponding period of 2020.

•Repaid $88.0 million of our 5.58% weighted-average senior notes, which matured in January 2021.

Market Conditions and Commodity Prices

Our financial results depend on many factors, particularly commodity prices and our ability to market our production on economically attractive terms. Commodity prices are affected by many factors outside of our control, including changes in market supply and demand, which are impacted by pipeline capacity constraints, inventory storage levels, basis differentials, weather conditions and other factors. Our realized prices are also further impacted by our hedging activities.

Our revenues, operating results, financial condition and ability to borrow funds or obtain additional capital depend substantially on prevailing commodity prices, particularly natural gas prices. Since substantially all of our production and reserves are natural gas, significant declines in natural gas prices could have a material adverse effect on our operating results, financial condition, liquidity and ability to obtain financing. Lower natural gas prices also may reduce the amount of natural gas that we can produce economically. In addition, in periods of low natural gas prices, we may elect to curtail a portion of our production from time to time. Historically, natural gas prices have been volatile, with prices sometimes fluctuating widely, and they may remain volatile. As a result, we cannot accurately predict future commodity prices and, therefore, cannot determine with any degree of certainty what effect increases or decreases in these prices will have on our capital program, production volumes or revenues. In addition to commodity prices and production volumes, finding and developing sufficient amounts of natural gas reserves at economical costs are critical to our long-term success.

We account for our derivative instruments on a mark-to-market basis, with changes in fair value recognized in operating revenues in the Condensed Consolidated Statement of Operations. As a result of these mark-to-market adjustments associated with our derivative instruments, we will experience volatility in our earnings due to commodity price volatility. Refer to “Impact of Derivative Instruments on Operating Revenues” below and Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information.

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The ongoing COVID-19 outbreak, which the World Health Organization (WHO) declared as a pandemic on March 11, 2020, has reached more than 200 countries and territories and there continues to be considerable uncertainty regarding the extent to which COVID-19 and its variants will continue to spread, the widespread availability and efficacy of treatments and recently developed vaccines and the extent and duration of governmental and other measures implemented to try to slow the spread of the virus and alleviate strain on the healthcare system and the economic impacts of those actions. One of the impacts of the COVID-19 pandemic was a significant reduction in demand for crude oil, and to a lesser extent, natural gas. The supply/demand imbalance driven by the COVID-19 pandemic, as well as production disagreements among members of the Organization of Petroleum Exporting Countries and certain other oil exporting countries (OPEC+), led to significant global economic contraction generally in 2020 and has continued to have disruptive impacts on the oil and gas industry. Although the members of OPEC+ agreed in April 2020 to cut oil production    and later extended such production cuts through early 2021, crude oil prices remained at depressed levels until the first quarter of 2021 as the oversupply and lack of demand in the market persisted. Natural gas prices increased in the first quarter of 2021 compared to the first quarter of 2020 but weakened toward the end of the first quarter of 2021, in part, due to lower seasonal demand during the shoulder season of 2021 and slightly increasing production levels.

Meanwhile, NYMEX natural gas futures prices have shown improvements since the implementation of pandemic-related restrictions and OPEC+ price disagreements. The improvements in natural gas futures prices are based on market expectations that declines in future natural gas supplies due to a substantial reduction of associated gas related to the curtailment of operations in oil basins throughout the United States will more than offset the lower demand recently experienced with the COVID-19 pandemic. While the current outlook on natural gas prices is generally favorable and our operations have not been significantly impacted in the short-term, in the event these disruptions continue for an extended period of time, our operations could be adversely impacted, commodity prices could decline and our costs may increase. Although we are unable to predict future commodity prices, at current natural gas price levels, we do not believe that an impairment of our oil and gas properties is reasonably likely to occur in the near future; however, in the event that commodity prices significantly decline from current levels, management would evaluate the recoverability of the carrying value of our oil and gas properties.

We have implemented preventative measures and developed response plans intended to minimize unnecessary risk of exposure and prevent infection among our employees and the communities in which we operate. We also have modified certain business practices (including those related to nonoperational employee work locations and the cancellation of physical participation in meetings, events and conferences) to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the WHO and other governmental and regulatory authorities. In addition, we implemented and provided training on a COVID-19 Safety Policy containing personal safety protocols; provided additional personal protective equipment to our workforce; implemented rigorous COVID-19 self-assessment, contract tracing and quarantine protocols; increased cleaning protocols at all of our employee work locations; and provided additional paid leave to employees with actual or presumed COVID-19 cases. We also collaborated, and continue to collaborate, with customers, suppliers and service providers to minimize potential impacts to or disruptions of our operations and to implement longer-term emergency response protocols. We intend to continue monitoring developments affecting our workforce, our customers, our suppliers, our service providers and the communities in which we operate, including any significant resurgence in COVID-19 transmission and infection, and we will take additional precautions as we believe are warranted.

Our efforts to respond to the challenges presented by the on-going pandemic, as well as certain operational decisions we previously implemented such as our maintenance capital program, have helped to minimize the impact, and any resulting disruptions, of the pandemic to our business and operations. We have not required any loans under any COVID-19-related federal or other governmental programs to support our operations, and we do not expect to have to utilize any such funding. As a result, we currently believe that we are well-positioned to manage the challenges presented by the ongoing low commodity pricing environment, and we believe we can endure the current downturn in the energy industry and continued volatility in current and future commodity prices by continuing to:

•Exercise discipline in our capital program with the expectation of funding our capital expenditures with cash on hand, operating cash flows, and if required, borrowings under our revolving credit facility;

•Manage our portfolio by strategically curtailing production in periods of weaker natural gas prices;

•Optimize our drilling, completion and operational efficiencies;

•Manage our balance sheet, which we believe provides sufficient availability under our revolving credit facility and existing cash balances to meet our capital requirements and maintain compliance with our debt covenants; and

•Manage price risk by strategically hedging our production.

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The impact that the COVID-19 pandemic will have on our business, cash flows, liquidity, financial condition and results of operations will depend on future developments, including, among others, the duration, ultimate geographic spread and severity of the virus and its variants, any resurgence in virus transmission and infection in affected regions after they have begun to experience an improvement, the consequences of governmental and other measures designed to mitigate the spread of the virus and alleviate strain on the healthcare system, the distribution and effectiveness of therapeutic treatments and recently developed vaccines, actions taken by governmental authorities, customers, suppliers and other third parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume.

For information about the impact of realized commodity prices on our revenues, refer to “Results of Operations” below.

Outlook

We expect our 2021 capital program to be approximately $530.0 million to $540.0 million, which contemplates a maintenance capital program as a result of the weaker natural gas price environment. We expect to fund these capital expenditures with our operating cash flow and, if required, cash on hand.

In 2020, we drilled 74 gross wells (64.3 net) and completed 86 gross wells (77.3 net), of which 26 gross wells (26.0 net) were drilled but uncompleted in prior years. For the full year of 2021, our capital program will focus on the Marcellus Shale, where we expect to drill and complete 80 net wells. We allocate our planned program for capital expenditures based on market conditions, return on capital and free cash flow expectations and availability of services and human resources. We will continue to assess the natural gas price environment and may adjust our capital expenditures accordingly.

Financial Condition

Capital Resources and Liquidity

Our primary source of cash for the three months ended March 31, 2021 was from net cash flows related to the sale of natural gas production. These cash flows were used to fund our capital expenditures, principal and interest payments on debt and payment of dividends. See below for additional discussion and analysis of our cash flows.

The borrowing base under the terms of our revolving credit facility is redetermined annually in April. In addition, either we or the banks may request an interim redetermination twice a year or in connection with certain acquisitions or divestitures of oil and gas properties. At March 31, 2021 and during the three months then ended, we had no borrowings outstanding under our revolving credit facility and our unused commitments were $1.5 billion. Refer to Note 3 of the Notes to the Condensed Consolidated Financial Statements for more information.

Effective April 21, 2021, the borrowing base and available commitments were reaffirmed at $3.2 billion and $1.5 billion, respectively.

A decline in commodity prices could result in the future reduction of our borrowing base and related commitments under our revolving credit facility. Unless commodity prices decline significantly from current levels, we do not believe that any such reductions would have a significant impact on our ability to service our debt and fund our drilling program and related operations.

We strive to manage our debt at a level below the available credit line in order to maintain borrowing capacity. Our revolving credit facility includes a covenant limiting our total debt. We believe that, with operating cash flows, cash on hand and availability under our revolving credit facility, we have the capacity to fund our spending plans.

At March 31, 2021, we were in compliance with all financial and other covenants applicable to our revolving credit facility and senior notes. Refer to our Form 10-K for further discussion of our restrictive financial covenants.

Cash Flows

Our cash flows from operating activities, investing activities and financing activities are as follows:

	Three Months Ended  March 31,
(In thousands)	2021		2020
Cash flows provided by operating activities	$	290,527	$	204,897
Cash flows used in investing activities	(123,525)		(158,113)
Cash flows used in financing activities	(133,456)		(46,130)
Net increase in cash, cash equivalents and restricted cash	$	33,546	$	654

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Operating Activities. Fluctuations in our operating cash flow are substantially driven by commodity prices, changes in our production volumes and operating expenses. Commodity prices have historically been volatile, primarily as a result of supply and demand for natural gas, pipeline infrastructure constraints, basis differentials, inventory storage levels, seasonal influences and other factors. In addition, fluctuations in cash flow may result in an increase or decrease in our capital expenditures.

Our working capital is substantially influenced by the variables discussed above and fluctuates based on the timing and amount of borrowings and repayments under our revolving credit facility, repayments of debt, the timing of cash collections and payments on our trade accounts receivable and payable, respectively, payment of dividends, repurchases of our securities and changes in the fair value of our commodity derivative activity. From time to time, our working capital will reflect a deficit, while at other times it will reflect a surplus. This fluctuation is not unusual. At March 31, 2021 and December 31, 2020, we had a working capital surplus of $96.8 million and a surplus of $25.5 million, respectively. We believe that we have adequate liquidity and availability under our revolving credit facility to meet our working capital requirements over the next 12 months.

Net cash provided by operating activities in the first three months of 2021 increased by $85.6 million compared to the first three months of 2020. This increase was primarily due to higher natural gas revenues, higher cash received from derivative settlements, lower operating expenses and favorable changes in working capital compared to the prior year. The increase in natural gas revenues was primarily due to higher realized prices, partially offset by lower production. Average realized natural gas prices increased by 34 percent for the first three months of 2021 compared to the first three months of 2020. The decrease in natural gas production for the first three months of 2021 compared to the first three months of 2020 was driven by reduced capital spending during 2020 related to our maintenance capital program and the timing of our drilling and completion activities in the Marcellus Shale in 2021.

Refer to “Results of Operations” for additional information relative to commodity price, production and operating expense fluctuations. We are unable to predict future commodity prices and, as a result, cannot provide any assurance about future levels of net cash provided by operating activities.

Investing Activities. Cash flows used in investing activities decreased by $34.6 million for the first three months of 2021 compared to the first three months of 2020. The decrease was primarily due to $25.1 million of lower capital expenditures as a result of the continuation of our maintenance capital program in 2021 and a decrease in net cash outflows of $9.4 million related to the sale of equity method investments in 2020.

Financing Activities. Cash flows used in financing activities increased by $87.3 million for the first three months of 2021 compared to the first three months of 2020. This increase was primarily due to $88.0 million higher net repayments of debt in 2021 compared to 2020.

Capitalization

Information about our capitalization is as follows:

(In thousands)	March 31, 2021			December 31, 2020
Debt (1)	$	1,046,123		$	1,133,924
Stockholders' equity	2,305,970			2,215,707
Total capitalization	$	3,352,093		$	3,349,631
Debt to total capitalization	31		%	34		%
Cash and cash equivalents	$	173,659		$	140,113

_______________________________________________________________________________

(1)Includes $100.0 million and $188.0 million of current portion of long-term debt at March 31, 2021 and December 31, 2020, respectively. There were no borrowings outstanding under our revolving credit facility as of March 31, 2021 and December 31, 2020.

We did not repurchase any shares of our common stock during the first three months of 2021 and 2020. During the first three months of 2021 and 2020, we paid dividends of $39.9 million ($0.10 per share) and $39.8 million ($0.10 per share), respectively, on our common stock.

In April 2021, our Board of Directors approved an increase in the quarterly dividend on our common stock from $0.10 per share to $0.11 per share.

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Capital and Exploration Expenditures

On an annual basis, we generally fund most of our capital expenditures, excluding any significant property acquisitions, with operating cash flows, cash on hand and, if required, borrowings under our revolving credit facility. We budget these expenditures based on our projected cash flows for the year.

The following table presents major components of our capital and exploration expenditures:

	Three Months Ended  March 31,
(In thousands)	2021		2020
Capital expenditures
Drilling and facilities	$	122,972	$	157,992
Leasehold acquisitions	612		879
Other	441		1,434
	124,025		160,305
Exploration expenditures	2,627		2,190
	$	126,652	$	162,495

For the full year of 2021, we plan to allocate substantially all of our capital to the Marcellus Shale, where we expect to drill and complete 80 net wells. Our 2021 capital program is expected to be approximately $530.0 million to $540.0 million. Refer to “Outlook” for additional information regarding the current year drilling program. We will continue to assess the commodity price environment and may increase or decrease our capital expenditures accordingly. 

Contractual Obligations

We have various contractual obligations in the normal course of our operations. There have been no material changes to our contractual obligations described under “Transportation and Gathering Agreements” and “Lease Commitments” as disclosed in Note 9 of the Notes to the Consolidated Financial Statements and the obligations described under “Contractual Obligations” in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Form 10-K.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. Refer to our Form 10-K for further discussion of our critical accounting policies.

Results of Operations

First Three Months of 2021 and 2020 Compared

We reported net income in the first three months of 2021 of $126.4 million, or $0.32 per share, compared to net income of $53.9 million, or $0.14 per share, in the first three months of 2020. The increase in net income was primarily due to higher operating revenues and lower operating expenses, partially offset by higher income tax expense.

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Revenue, Price and Volume Variances

Our revenues vary from year to year as a result of changes in commodity prices and production volumes. Below is a discussion of revenue, price and volume variances.

	Three Months Ended March 31,				Variance
(In thousands)	2021		2020		Amount		Percent
Operating Revenues
Natural gas	$	472,859	$	370,340	$	102,519	28	%
(Loss) gain on derivative instruments	(13,238)		16,062		(29,300)		(182)	%
Other	59		55		4		7	%
	$	459,680	$	386,457	$	73,223	19	%

Natural Gas Revenues

	Three Months Ended March 31,				Variance				Increase (Decrease) (In thousands)
	2021		2020		Amount		Percent
Price variance ($/Mcf)	$	2.30	$	1.72	$	0.58	34	%	$	118,343
Volume variance (Bcf)	205.8		215.0		(9.2)		(4)	%	(15,824)
Total									$	102,519

The increase in natural gas revenues of $102.5 million was primarily due to higher natural gas prices, partially offset by lower production. The decrease in production was due to reduced capital spending during 2020 related to the maintenance capital program and the timing of our drilling and completion activities in the Marcellus Shale in 2021.

Impact of Derivative Instruments on Operating Revenues

	Three Months Ended  March 31,
(In thousands)	2021		2020
Cash received (paid) on settlement of derivative instruments
(Loss) gain on derivative instruments	$	3,397	$	—
Non-cash gain (loss) on derivative instruments
(Loss) gain on derivative instruments	(16,635)		16,062
	$	(13,238)	$	16,062

Operating and Other Expenses

	Three Months Ended March 31,				Variance
(In thousands)	2021		2020		Amount		Percent
Operating and Other Expenses
Direct operations	$	16,876	$	17,244	$	(368)	(2)	%
Transportation and gathering	136,702		143,332		(6,630)		(5)	%
Taxes other than income	4,805		3,738		1,067		29	%
Exploration	2,627		2,190		437		20	%
Depreciation, depletion and amortization	94,148		100,135		(5,987)		(6)	%
General and administrative	29,155		33,429		(4,274)		(13)	%
	$	284,313	$	300,068	$	(15,755)	(5)	%
Loss on equity method investments	$	—	$	(59)	$	59	(100)	%
Gain on sale of assets	71		71		—		—	%
Interest expense, net	12,377		14,211		(1,834)		(13)	%
Other expense	46		66		(20)		(30)	%
Income tax expense	36,661		18,214		18,447		101	%

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Total costs and expenses from operations decreased by $15.8 million in the first three months of 2021 compared to the corresponding period of 2020. The primary reasons for this fluctuation are as follows:

•Direct operations decreased $0.4 million, due to a decrease in production.

•Transportation and gathering decreased $6.6 million, primarily due to lower production.

•Taxes other than income increased $1.1 million, primarily due to $1.1 million higher drilling impact fees driven by an increase in rates associated with higher natural gas prices.

•Depreciation, depletion and amortization (DD&A) decreased $6.0 million, primarily due to lower DD&A of $3.8 million and lower amortization of unproved properties of $2.3 million. The decrease in DD&A was due to lower production in 2021 compared to the corresponding period of 2020. The DD&A rate was flat at $0.44 per Mcfe for the first three months of 2021 and 2020, respectively. Amortization of unproved properties decreased due to lower amortization rates.

•General and administrative decreased $4.3 million, primarily due to lower stock-based compensation expense of $4.7 million associated with certain of our market-based performance awards, partially offset by $2.4 million of higher severance costs that were incurred in the first quarter of 2021. The remaining changes in general and administrative expenses were not individually significant.

Interest Expense, net

Interest expense, net decreased $1.8 million, primarily due to the repayment of $87.0 million of our 6.51% weighted-average senior notes, which matured in July 2020, and the repayment of $88.0 million of our 5.58% weighted-average senior notes, which matured in January 2021.

Income Tax Expense

Income tax expense increased $18.4 million due to higher pre-tax income, partially offset by a lower effective tax rate. The effective tax rates for the first three months of 2021 and 2020 were 22.5 percent and 25.3 percent, respectively. The effective tax rate was lower for the first three months of 2021 compared to the first three months of 2020 due to a decrease in tax expense related to book compensation expense exceeding the federal and state tax deductions for employee stock-based compensation awards that vested during the period, a decrease in non-deductible executive compensation, and the impact of non-recurring discrete items recorded in 2021.

Forward-Looking Information

The statements regarding future financial and operating performance and results, strategic pursuits and goals, market prices, future hedging and risk management activities, and other statements that are not historical facts contained in this report are forward-looking statements. The words "expect," "project," "estimate," "believe," "anticipate," "intend," "budget," "plan," "forecast," "target," "predict," "may," "should," "could" and similar expressions are also intended to identify forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continuing effects of the COVID-19 pandemic and the impact thereof on our business, financial condition and results of operations, the availability of cash on hand and other sources of liquidity to fund our capital expenditures, actions by, or disputes among or between, members of OPEC+, market factors, market prices (including geographic basis differentials) of natural gas, results of future drilling and marketing activity, future production and costs, legislative and regulatory initiatives, electronic, cyber or physical security breaches and other factors detailed herein and in our other Securities and Exchange Commission filings. Refer to “Risk Factors” in Item 1A of our Form 10-K for additional information about these risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Market Risk

Our primary market risk is exposure to natural gas prices. Realized prices are mainly driven by spot market prices for North American natural gas production, which can be volatile and unpredictable.

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Derivative Instruments and Risk Management Activities

Our risk management strategy is designed to reduce the risk of commodity price volatility for our production in the natural gas markets through the use of financial commodity derivatives. A committee that consists of members of senior management oversees our risk management activities. Our financial commodity derivatives generally cover a portion of our production and provide only partial price protection by limiting the benefit to us of increases in prices, while protecting us in the event of price declines. Further, if any of our counterparties defaulted, this protection might be limited as we might not receive the full benefit of our financial commodity derivatives. Please read the discussion below as well as Note 6 of the Notes to the Consolidated Financial Statements in our Form 10-K for a more detailed discussion of our derivative instruments.

Periodically, we enter into financial commodity derivatives including collar and swap agreements, to protect against exposure to commodity price declines related to our natural gas production. Our credit agreement restricts our ability to enter into financial commodity derivatives other than to hedge or mitigate risks to which we have actual or projected exposure or as permitted under our risk management policies and not subjecting us to material speculative risks. All of our financial derivatives are used for risk management purposes and are not held for trading purposes. Under the collar agreements, if the index price rises above the ceiling price, we pay the counterparty. If the index price falls below the floor price, the counterparty pays us. Under the swap agreements, we receive a fixed price on a notional quantity of natural gas in exchange for paying a variable price based on a market-based index, such as the NYMEX natural gas futures.

As of March 31, 2021, we had the following outstanding financial commodity derivatives:

			Collars										Estimated Fair Value Asset (Liability) (In thousands)
			Floor				Ceiling				Swaps
Type of Contract	Volume (Mmbtu)	Contract Period	Range ($/Mmbtu)		Weighted-Average ($/Mmbtu)		Range ($/Mmbtu)		Weighted-Average ($/Mmbtu)		Weighted-Average ($/Mmbtu)
Natural gas (NYMEX)	13,750,000	Apr. 2021-Dec. 2021									$	2.74	$	38
Natural gas (NYMEX)	123,750,000	Apr. 2021-Dec. 2021	$2.50 - $2.85		$	2.68	$2.83 - $3.80		$	3.03			8,202
Natural gas (NYMEX)	10,700,000	Apr. 2021-Oct. 2021	$	—	$	2.50	$	—	$	2.80			(454)
Natural gas (NYMEX)	21,400,000	Apr. 2021-Oct. 2021									$	2.78	1,793
													$	9,579

The amounts set forth in the table above represent our total unrealized derivative position at March 31, 2021 and exclude the impact of non-performance risk. Non-performance risk is considered in the fair value of our derivative instruments that are recorded in our Condensed Consolidated Financial Statements and is primarily evaluated by reviewing credit default swap spreads for the various financial institutions with which we have derivative contracts, while our non-performance risk is evaluated using a market credit spread provided by several of our banks.

A significant portion of our expected natural gas production for 2021 and beyond is currently unhedged and directly exposed to the volatility in natural gas prices, whether favorable or unfavorable.

During the first three months of 2021, natural gas collars with floor prices ranging from $2.50 to $2.85 per Mmbtu and ceiling prices ranging from $3.00 to $3.94 per Mmbtu covered 39.3 Bcf, or 19 percent of natural gas production at a weighted-average price of $2.77 per Mmbtu. Natural gas swaps covered 4.4 Bcf, or two percent of natural gas production at a weighted-average price of $2.74 per Mmbtu.

We are exposed to market risk on financial commodity derivative instruments to the extent of changes in market prices of natural gas. However, the market risk exposure on these derivative contracts is generally offset by the gain or loss recognized upon the ultimate sale of the commodity. Although notional contract amounts are used to express the volume of natural gas agreements, the amounts that can be subject to credit risk in the event of non-performance by third parties are substantially smaller. Our counterparties are primarily commercial banks and financial service institutions that our management believes present minimal credit risk and our derivative contracts are with multiple counterparties to minimize our exposure to any individual counterparty. We perform both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. We have not incurred any losses related to non-performance risk of our counterparties and we do not anticipate any material impact on our financial results due to non-performance by third parties. However, we cannot be certain that we will not experience such losses in the future.

The preceding paragraphs contain forward-looking information concerning future production and projected gains and losses, which may be impacted by both production and changes in the future commodity prices. Refer to “Forward-Looking Information” for further details.

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Fair Value of Other Financial Instruments

The estimated fair value of other financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash, cash equivalents and restricted cash approximate fair value due to the short-term maturities of these instruments.

We use available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount we would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is our default or repayment risk. The credit spread (premium or discount) is determined by comparing our outstanding debt to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The estimated fair value of our outstanding debt is based on interest rates currently available to us.

The carrying amount and estimated fair value of debt is as follow:

	March 31, 2021				December 31, 2020
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt	$	1,046,123	$	1,121,176	$	1,133,924	$	1,213,811
Current maturities	(100,000)		(100,900)		(188,000)		(189,332)
Long-term debt, excluding current maturities	$	946,123	$	1,020,276	$	945,924	$	1,024,479

ITEM 4. Controls and Procedures

As of March 31, 2021, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934 (the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective, in all material respects, with respect to the recording, processing, summarizing and reporting, within the time periods specified in the Commission’s rules and forms, of information required to be disclosed by us in the reports that we file or submit under the Exchange Act.

There were no changes in internal control over financial reporting that occurred during the first quarter of 2021 that have materially affected, or are reasonably likely to have a material effect on, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

Legal Matters

The information set forth under the heading “Legal Matters” in Note 7 of the Notes to Condensed Consolidated Financial Statements included in Item 1 of Part I of this Form 10-Q is incorporated by reference in response to this item.

Environmental Matters

From time to time, we receive notices of violation from governmental and regulatory authorities in areas in which we operate relating to alleged violations of environmental statutes or the rules and regulations promulgated thereunder. Although we cannot predict with certainty whether these notices of violation will result in fines and/or penalties, if fines and/or penalties are imposed, they may result in monetary sanctions, individually or in the aggregate, in excess of $300,000.

ITEM 1A. Risk Factors

For additional information about the risk factors that affect us, see Item 1A of Part I of our Form 10-K for the fiscal year ended December 31, 2020.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Our Board of Directors has authorized a share repurchase program under which we may purchase shares of common stock in the open market or in negotiated transactions. There is no expiration date associated with the authorization. There were no

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repurchases during the quarter ended March 31, 2021. The maximum number of remaining shares that may be purchased under our share repurchase program as of March 31, 2021 was 11.0 million shares.

ITEM 5. Other Information

We regularly grant certain stock-based compensation awards, including performance share awards to our officers, under our shareholder-approved 2014 Incentive Plan. We grant performance share awards to our officers based on market conditions measured based on our performance relative to a predetermined peer group (TSR Performance Share Awards). The performance period for these awards commences on January 1 of the year in which the award is granted and extends over a three-year performance period.

In connection with the awards made during the first quarter of 2021, the compensation committee of our board of directors (the Committee) adopted a new form of award agreement under the 2014 Incentive Plan for the awards made to our officers.

Under the new form of award agreement, the Committee added a feature to the TSR Performance Share awards which will reduce the number of each award’s earned performance shares if: 1) our actual TSR performance is negative over the three-year performance period, and 2) the base calculation indicates an above-target pay outcome. The severity of the reduction increases with the severity of the negative performance and the reduction will occur regardless of our relative TSR rank. Even if our TSR performance ranks first in its peer group, negative absolute TSR will cause a reduction in the percentage of earned shares, but not below 100% of the award, as follows:

Three-year cumulative TSR (%)	Reduction of Performance Shares Earned
0% - (10)%	10 percentage points
(11)% - (20)%	25 percentage points
(21)% or lower	50 percentage points

The foregoing descriptions of the new form of award agreement is a summary only and is qualified by reference to the complete form of the agreement, which is filed as an exhibit to this report and incorporated by reference into this Item 5.

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ITEM 6. Exhibits

Exhibit Number	Description
10.1*	2021 Form of Performance Share Award Agreement (Officers).
31.1	302 Certification — Chairman, President and Chief Executive Officer.
31.2	302 Certification — Executive Vice President Executive Vice President and Chief Financial Officer. Chief Financial Officer.
32.1	906 Certification.
101.INS	Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

_______________________________________________________________________________

*Compensatory plan, contract or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CABOT OIL & GAS CORPORATION
	(Registrant)
April 30, 2021	By:	/s/ DAN O. DINGES
		Dan O. Dinges
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)
April 30, 2021	By:	/s/ SCOTT C. SCHROEDER
		Scott C. Schroeder
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
April 30, 2021	By:	/s/ TODD M. ROEMER
		Todd M. Roemer
		Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

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EX-10.1

Exhibit 10.1

CABOT OIL & GAS CORPORATION

PERFORMANCE SHARE AWARD AGREEMENT

This Performance Award Agreement (the “Agreement”), made and entered into by and between Cabot Oil & Gas Corporation (the “Company”) with its principal office at 840 Gessner Road, Suite 1400, Houston, Texas 77024 and [ Participant Name ], (the “Employee”), is dated as of [ grant date ].

As an additional incentive and inducement to the Employee to remain in the employment of the Company, and to devote his or her best efforts to the business and affairs of the Company, the Company hereby awards to the Employee a Performance Award of [ number of shares granted ] performance shares (the “Performance Shares”) upon the terms and conditions hereinafter set forth.

This Agreement is expressly subject to the terms and provisions of the Company’s 2014 Incentive Plan (the “Plan”). In the event there is a conflict between the terms of the Plan and this Agreement, the terms of the Plan shall control. All undefined capitalized terms used herein that are not otherwise defined shall have the meanings assigned to them in the Plan.

1.Performance Period. The performance period for the Performance Shares subject to this Agreement shall be the period beginning January 1, 2021 and ending December 31, 2023 (the “Performance Period”).

2.Terms of Award. Each Performance Share represents the right to receive, after the end of the Performance Period and based on the Company’s performance, the aggregate of from 0% to 100% of the Fair Market Value of a share of Cabot Oil & Gas Corporation Common Stock, par value $.10/share (“Common Stock”) payable in shares of Common Stock, plus from 0% to 100% of the Fair Market Value of a share of Common Stock payable in cash. The number of shares of Common Stock and cash to be issued or paid with respect to a Performance Share at the end of the Performance Period shall be determined based upon the Company’s achievement of performance criteria established by the Compensation Committee (the “Committee”) of the Board of Directors for the Performance Period as set forth below (the “Performance Criteria”), and the Common Stock Fair Market Value as of the end of the Performance Period. Each Performance Share shall be payable up to 100% in Common Stock of the Company and, to the extent that the percentage of a Performance Share earned at the end of the Performance Period exceeds 100%, in cash equal to the Fair Market Value of a share of Common Stock. Cash will also be paid in lieu of the issuance of fractional shares of Common Stock.

The Performance Criteria that determines the number of shares of Common Stock (and cash) of the Company issued per Performance Share (the “Performance Shares Earned”) is the relative Total Shareholder Return (as defined below) on the Company’s Common Stock as compared to the Total Shareholder Return on the common equity of each company in the Comparator Group (as defined below). “Total Shareholder Return (“TSR”)” shall be expressed as the percentage increase in the average daily closing share price for the last month of the Performance Period plus total dividends paid over the Performance Period on a cumulative,

reinvested basis, over the average daily closing share price for the first month of the Performance Period. The “Comparator Group” is the group of companies set forth on Exhibit A hereto and which will be used for comparison purposes in determining if the Performance Criteria have been met. If any member of the Comparator Group ceases to exist or ceases to have publicly traded common stock as the result of a business combination or other transaction, the Committee may select a replacement company, which shall be included in the Comparator Group as of January 1, 2021 instead of the replaced member.

After the end of the Performance Period, the Performance Shares Earned for such period, and the Common Stock issued and cash paid with respect to each Performance Share, shall be determined based on the relative TSR performance of the Company during the Performance Period versus the Comparator Group, using the following scale:

Company Relative TSR Performance	Performance Shares Earned	Common Stock Issued/Cash Paid
1 (highest)	200%	100% stock / 100% cash
2	190%	100% stock / 90% cash
3	175%	100% stock / 75% cash
4	160%	100% stock / 60% cash
5	145%	100% stock / 45% cash
6	130%	100% stock / 30% cash
7	115%	100% stock / 15% cash
8	100%	Stock
9	85%	Stock
10	70%	Stock
11	55%	Stock
12	40%	Stock
13	25%	Stock
14	10%	Stock
15 (lowest)	0%	Stock

When the Company’s TSR for the Performance Period is negative, then the Performance Shares Earned, as calculated in the above table, shall be reduced by the number of percentage points set forth in the following table, provided, however, that this adjustment below shall not result in a calculation of less than 100% of the Performance Shares Earned:

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Company TSR	Reduction of Performance Shares Earned (Number of Percentage Points)
-1% to -10%	10 percentage points
-11% to -20%	25 percentage points
-21% or more negative	50 percentage points

For example: If (a) Company TSR for the Performance Period is -14% and (b) Company relative TSR performance is 4th, the 160% Performance Shares Earned would be reduced by 25 percentage points, resulting in an Performance Shares Earned of 135%.

For Company performance that results in Performance Shares Earned of 100% less, based on the above tables (whether or not Company TSR is negative), there will be no further reduction of the calculated Performance Shares Earned. For example: If (a) Company TSR for the Performance Period is -25% and (b) Company relative TSR performance is 5th, the above tables would result in the 145% Performance Shares Earned being reduced by 50 percentage points, down to 95%; however, since the reduction for negative TSR performance cannot result in Performance Shares Earned below 100%, the actual Performance Shares Earned would be 100%.

3.Certification and Issuance of Shares. No later than the fifteenth business day following the close of the Performance Period, the Committee shall determine, in writing, the extent to which the Performance Criteria have been met and the amount to be distributed with respect to a Performance Share as provided in Section 2 hereof and the Company shall issue or pay to the Employee the appropriate number of shares of Common Stock and cash as soon as administratively practicable following such Committee determination, but in no event later than March 15th of the calendar year following the close of the Performance Period, provided the Employee has been continuously employed with the Company or one of its Subsidiaries during the Performance Period (except as provided in Section 4, Section 6 and Section 7). The Committee has sole and absolute authority and discretion to determine the amount to be distributed with respect to Performance Shares. The determination of the Committee shall be binding and conclusive on the Employee. Notwithstanding anything in this Agreement to the contrary, the Employee shall not be entitled to any Common Stock or cash with respect to the Performance Shares unless and until the Committee determines and certifies the extent to which the Performance Criteria have been met. The number of shares issued shall be reduced by the number of shares of Common Stock equal to the amount the Company is required by any governmental authority to withhold for tax purposes with respect to the payment of the Performance Shares.

4.Termination of Employment. Except as otherwise provided in this Section 4, Section 6 or Section 7, if the Employee’s employment is terminated for any reason prior to the completion of the Performance Period, the Performance Shares shall be immediately forfeited unless otherwise determined by the Committee. In the case of the termination of employment by reason of death, disability, or retirement (as defined in the Company’s Employee Handbook as of the date of this Agreement), the Performance Shares shall not be so forfeited and shall

3

otherwise be payable as set forth herein as if such employment continued through the end of the Performance Period. Notwithstanding the foregoing and in the case of a retirement, the Employee must be an employee of the Company or one of its Subsidiaries on December 31st of the year the Performance Shares are granted in order to continue vesting in the Performance Shares. Further, the Employee must be an active employee of the Company or a Subsidiary at the time the Committee certifies the results of the performance shares for employment termination other than death, disability or retirement.

5.Dividend Equivalents. At the same time that the Company delivers the shares of Common Stock pursuant to Section 3 or Section 7, the Company shall also pay to the Employee an amount in cash equal to the dividends that would have been paid on each share of Common Stock delivered had such share been outstanding from the date of grant until the date shares are delivered to the Employee. The dividend equivalent payment pursuant to this Section 5 shall be paid without interest or earnings, and will be subject to the payment of applicable withholding taxes. No dividend equivalent payments will be made with respect to Performance Shares that do not vest pursuant to this Agreement or with respect to any portion of the payout under this Agreement not made in the form of shares of Common Stock.

6.Confidential Information and Non-Competition. In consideration of (i) the Company disclosing and providing access to Confidential Information, as more fully described in Section 6(a) below, (ii) the grant by the Company of the Performance Shares to provide an economic incentive to Employee to use Employee’s best efforts during his/her employment with the Company to advance the business and goodwill of the Company and in order to protect the Company’s interests in its Confidential Information and goodwill after the date hereof, and (iii) other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Employee, intending to be legally bound, hereby agrees as follows:

    (a)    Employee hereby covenants and agrees that at all times during his or her employment with the Company and for a period of twenty-nine (29) months after a termination of the Employee’s employment by reason of retirement as provided in Section 4, he or she will not, without the prior written consent of the Company’s chief legal officer, either directly or indirectly, for himself/herself or on behalf of or in conjunction with any other person, company, partnership, corporation or other entity, engage in any activities prohibited in the following subsections (1) through (3) of this Section 6(a):

(1)    Employee shall not assist or directly or indirectly provide services, whether as a partner, employee, consultant, officer, director, manager, agent, associate, investor, or otherwise, to any person or entity which is at the time of such assistance or provision a “Competitor” of the Company. For purposes of this Section 6, the term “Competitor” means any person or entity that is engaged in the exploration and production of oil, gas or other hydrocarbons, the transportation thereof, any other midstream activities or the provision of oilfield services in any state or county/parish thereof in which the Company conducts business and/or has established business plans to conduct business activities within the twelve month period preceding Employee’s termination.

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(2)    In order to assist Employee with his or her duties, the Company shall continue to provide the Employee with access to confidential and proprietary information and other confidential information which is either information not known by actual or potential competitors, customers and third parties of the Company or is proprietary information of the Company (“Confidential Information”). Such Confidential Information shall include all non-public information the Employee acquired as a result of his or her positions with the Company that might be of any value to a competitor of the Company. Examples of such Confidential Information include, without limitation, non-public information about the Company’s customers, suppliers, and potential acquisition targets; its business operations, structure and methods of operation; its services and pricing; its processes, machines and inventions; it research and know-how; its business planning and strategies; information maintained in its computer systems; devices, processes, compilations of information and records; and future business plans. Employee agrees that such Confidential Information remains confidential even if committed to the Employee’s memory. Employee agrees not to use, divulge, or furnish or make accessible to any third party, company, corporation or other organization (including but not limited to customers, competitors, or governmental agencies), without the Company’s prior written consent, any Confidential Information of the Company, except as necessary in performing his or her duties on behalf of the Company during his or her employment with the Company. The Employee’s obligations under this Section will not apply to the extent that (i) the disclosure of Confidential Information is required by applicable law; provided that, prior to disclosing such Confidential Information, to the fullest extent practicable Employee must notify the Company thereof, which notice will include the basis upon which Employee believes the information is required to be disclosed, or (ii) information otherwise determined to be Confidential Information is or becomes generally available to the public or to persons generally knowledgeable in the Company’s industry without violation of this Agreement by Employee.

(3)    Employee agrees that whenever the Employee’s employment with the Company ends for any reason, (i) all documents containing or referring to the Company’s Confidential Information as may be in the Employee’s possession, or over which the Employee may have control, and all other property of the Company provided to Employee by the Company during the course of Employee’s employment with the Company will be returned to the Company immediately, with no request being required; and (ii) all Company computer and computer-related equipment and software, and all Company property, files, records, documents, drawings, specifications, lists, equipment and similar items relating to the business of the Company, whether prepared by the Employee or otherwise, coming into the Employee’s possession or control during the course of his or her employment shall remain the exclusive property of the Company, and shall be delivered by the Employee to the Company immediately, with no request being required.

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    (b)    Employee specifically recognizes and affirms that each of the covenants contained in Section 6(a)(1) through (3) of this Agreement is a material and important term of this Agreement which has induced the Company to provide for the award of Performance Shares granted hereunder, the disclosure of the Confidential Information referenced herein, and the other promises made by the Company herein, and the Employee further agrees that in the event that he or she retires and thereafter (A) the Company determines that Employee has breached any term of Section 6(a) (1) through (3) or (B) all or any part of Section 6(a) is held or found invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in any action between the Employee and the Company, in addition to any other remedies at law or in equity the Company may have available to it, the Employee shall lose the right to receive Performance Shares and any unvested Performance Shares shall be deemed forfeited effective as of the date (A) the Company determines that Employee has breached any term of Section 6(a) or (B) all or any part of Section 6(a) is held or found invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between the Employee and the Company.

    (c)    The Employee and the Company agree that the restrictions set forth in Section 6(a) are reasonable, including the geographic area, duration as to time, and scope of activities restrained. The Employee further agrees that if any covenant contained in Section 6(a) is found by a court of competent jurisdiction to contain limitations as to time, geographical area, or scope of activity that are not reasonable and impose a greater restraint than is necessary to protect the goodwill or other business interest of the Company, then the court shall reform the covenant to the extent necessary to cause the limitations contained in the covenant as to time, geographical area, and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill and other business interests of the Company and to enforce the covenants as reformed.

    (d)    The covenants on the part of Employee in this Section 6 are considered independent of any other agreement, and the fact that the Employee has a claim against the Company, whether predicated upon this Agreement or otherwise, is not a defense to enforcement of this Section 6.

7.Change in Control. Upon either of a Change in Control (as defined below) or the Company's ceasing to have publicly traded Common Stock as a result of a business combination or other extraordinary transaction (either to be known as a “Corporate Event”), in each case prior to the completion of the Performance Period, the Performance Period shall be deemed complete and the Employee shall have earned the Performance Shares as calculated in Section 2 above based on Company Relative Placement as of the last day of the month prior to the month in which the Corporate Event occurred, without any proration by reason of the shortened Performance Period.

    Total Shareholder Return at termination of the Performance Period shall be the greater of (i) the result determined under Section 2 above or (ii) the result determined under Section 2

6

above substituting for the Company average stock price for the last month of the Performance Period the value of consideration per share of such Common Stock received by a shareholder of the Company in connection with the Corporate Event (the “Deemed Share Value”).

    If the Corporate Event also meets the requirements of Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended and the related regulations and guidance (collectively, “Section 409A”), then the shares of Common Stock and cash earned (if any) shall be issued to the Employee as provided in Section 3, except that if the Company ceases to have publicly traded Common Stock, then, instead of any share of Common Stock that would otherwise be issued, there shall instead be paid a single lump-sum payment of cash in the amount equal to the aggregate of the Deemed Share Value for each full and fractional share to which the Employee is entitled.

    In all other cases, any benefits to which the Employee becomes entitled by operation of this Section 7 shall be payable (i) on the date on which payment would otherwise have been made had the Performance Period ended as originally scheduled pursuant to Section 1 and (ii) in the form of a single lump-sum payment. Unless the Committee directs otherwise in advance of the Corporate Event, the payment shall be made in cash and shall be in an amount equal to the sum of (1) the aggregate of the Deemed Share Value on the date of the Corporate Event for each full and fractional share to which the Employee is entitled, plus (2) interest compounded monthly from the date of the Corporate Event to the date of payment at the prime interest rate set forth in the Wall Street Journal (or, if such publication ceases to exist, a published interest rate from a source approved by the Committee, in its sole discretion), as adjusted from time to time.

A “Change in Control” shall mean:

(a)The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d3 promulgated under the Exchange Act) of 35% or more of either (1) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (I), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (iv) any acquisition by any entity pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (III) of this definition; or

(b)Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall

7

be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(c)Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the then outstanding shares of common equity of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination and (3) at least a majority of the members of the board of directors of the corporation, or the similar managing body of a non-corporate entity, resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

(d)Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, other than a liquidation or dissolution in connection with a transaction to which subsection (III) applies.

8.Employment at Will. This Agreement is not an employment agreement. Nothing contained herein shall be construed as creating any employment relationship other than one at will.

9.Assignment. This Agreement shall inure to the benefit of and be binding upon the heirs, legatees, distributees, executors and administrators of the Employee and the successors and assigns of the Company. In no event shall Performance Shares granted hereunder be voluntarily or involuntarily sold, pledged, assigned or transferred by the Employee other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order.

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10.Governing Law. This Agreement shall be governed by the laws of the State of Delaware, without giving effect to conflict of law rules or principles. Any action or proceeding seeking to enforce any provision of or based on any right arising out of this Agreement may be brought against the Employee or the Company only in the courts of the State of Delaware or, if it has or can acquire jurisdiction, in the United States District Court for the District of Delaware, and the Employee and the Company consent to the jurisdiction of such courts (and of the appropriate appellate courts) in any action or proceeding and waives any objection to venue laid herein.

11.Shareholder Status. The Employee shall have no rights of a shareholder with respect to the shares of Common Stock potentially deliverable pursuant to this Agreement unless and until such time as the ownership of such shares of Common Stock has been transferred to the Employee.

12.Controlling Agreement. This Agreement shall supersede and control over any other agreement between the Company and the Employee, whether entered previously or entered subsequent to the date hereof, related to Performance Shares awarded hereunder.

13.Section 409A. The Performance Shares granted under this Agreement are intended to comply with or be exempt from Section 409A, and ambiguous provisions of this Agreement, if any, shall be construed and interpreted in a manner consistent with such intent. This Agreement shall not be amended in a manner that would cause this Agreement or any amounts payable under this Agreement to fail to comply with the requirements of Section 409A, to the extent applicable, and, further, the provisions of any purported amendment that may reasonably be expected to result in such non-compliance shall be of no force or effect with respect to the Agreement. If any provision of this Agreement would result in the imposition of an additional tax under Section 409A, that provision will be reformed to avoid imposition of the additional tax. If the Employee is a “specified employee” as defined in Section 409A on the date on which the Employee has a “separation from service” (other than due to death) within the meaning of Treasury Regulation § 1.409A1(h), any Performance Shares settled on account of a separation from service that are deferred compensation subject to Section 409A shall be paid or settled on the earliest of (1) the fifteenth business day following the expiration of six months from the Employee’s separation from service, (2) the date of the Employee’s death, or (3) such earlier date as complies with the requirements of Section 409A. For purposes of Section 409A, each payment under this Agreement shall be deemed to be a separate payment.

14.Miscellaneous.

1.With the approval of the Board of Directors, the Committee may terminate, amend or modify the Plan; provided, however, that no such termination, amendment or modification of the Plan may in any material way adversely affect the Employee’s rights under this Agreement.

2.This Agreement shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

9

3.This Agreement may be executed in one or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto cause this Agreement to be executed as of the date hereof.

CABOT OIL & GAS CORPORATION

/s/ Scott C. Schroeder    

By:    Scott C. Schroeder

Title:    Executive Vice President and

Chief Financial Officer

Employee:

    [ Participant Name ]

EXHIBIT A

COMPARATOR GROUP

10

ANTERO RESOURCES CORPORATION

APACHE CORPORATION

CNX RESOURCES CORPORATION

Cimarex Energy Company

CONTINENTAL RESOURCES, INC.

DEVON ENERGY CORPORATION

DIAMONDBACK ENERGY, INC.

EQT Corporation

MARATHON OIL CORPORATION

MURPHY OIL CORPORATION

OVINTIV INC.

Pioneer Natural Resources Company

Range Resources Corporation

Southwestern Energy Company

11

EX-31.1

EXHIBIT 31.1

I, Dan O. Dinges, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Cabot Oil & Gas Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 30, 2021

/s/ DAN O. DINGES

Dan O. Dinges

Chairman, President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Scott C. Schroeder, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Cabot Oil & Gas Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 30, 2021

/s/ SCOTT C. SCHROEDER

Scott C. Schroeder

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) (the “Act”), each of the undersigned, Dan O. Dinges, Chief Executive Officer of Cabot Oil & Gas Corporation, a Delaware corporation (the “Company”), and Scott C. Schroeder, Chief Financial Officer of the Company, hereby certify that, to his knowledge:

(1)the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 30, 2021

/s/ DAN O. DINGES

Dan O. Dinges

Chief Executive Officer

/s/ SCOTT C. SCHROEDER

Scott C. Schroeder

Chief Financial Officer

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	Apr. 28, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-10447
Entity Registrant Name	CABOT OIL & GAS CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3072771
Entity Address, Address Line One	Three Memorial City Plaza
Entity Address, Address Line Two	840 Gessner Road,
Entity Address, Address Line Three	Suite 1400,
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	281
Local Phone Number	589-4600
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	COG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		399,419,748
Entity Central Index Key	0000858470
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 173,659	$ 140,113
Restricted cash	11,578	11,578
Accounts receivable, net	197,843	214,724
Income taxes receivable	2,559	6,171
Inventories	15,870	15,270
Derivative instruments	9,574	26,209
Other current assets	832	1,650
Total current assets	411,915	415,715
Properties and equipment, net (Successful efforts method)	4,075,428	4,044,606
Other assets	63,509	63,211
TOTAL ASSETS	4,550,852	4,523,532
Current liabilities
Accounts payable	169,101	162,081
Current portion of long-term debt	100,000	188,000
Accrued liabilities	21,240	22,374
Income taxes payable	19,895	0
Interest payable	4,856	17,771
Total current liabilities	315,092	390,226
Long-term debt, net	946,123	945,924
Deferred income taxes	786,526	774,195
Asset retirement obligations	87,410	85,489
Postretirement benefits	31,203	30,713
Other liabilities	78,528	81,278
Total liabilities	2,244,882	2,307,825
Commitments and contingencies
Stockholders' equity
Common stock	47,838	47,783
Additional paid-in capital	1,808,232	1,804,354
Retained earnings	2,270,819	2,184,352
Accumulated other comprehensive income	2,282	2,419
Treasury stock	(1,823,201)	(1,823,201)
Total stockholders' equity	2,305,970	2,215,707
Total liabilities and stockholders' equity	$ 4,550,852	$ 4,523,532

XML

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, authorized (shares)	960,000,000	960,000,000
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, issued (shares)	478,377,066	477,828,813
Treasury stock (shares)	78,957,318	78,957,318

XML

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
OPERATING REVENUES
Operating revenues	$ 472,918	$ 370,395
(Loss) gain on derivative instruments	(13,238)	16,062
TOTAL OPERATING REVENUES	459,680	386,457
OPERATING EXPENSES
Direct operations	16,876	17,244
Transportation and gathering	136,702	143,332
Taxes other than income	4,805	3,738
Exploration	2,627	2,190
Depreciation, depletion and amortization	94,148	100,135
General and administrative	29,155	33,429
TOTAL OPERATING EXPENSES	284,313	300,068
Loss on equity method investments	0	(59)
Gain on sale of assets	71	71
INCOME FROM OPERATIONS	175,438	86,401
Interest expense, net	12,377	14,211
Other expense	46	66
Income before income taxes	163,015	72,124
Income tax expense	36,661	18,214
NET INCOME	$ 126,354	$ 53,910
Earnings per share
Basic (in dollars per share)	$ 0.32	$ 0.14
Diluted (in dollars per share)	$ 0.31	$ 0.13
Weighted-average common shares outstanding
Basic (in shares)	399,121	398,343
Diluted (in shares)	401,811	399,897
Natural gas
OPERATING REVENUES
Operating revenues	$ 472,859	$ 370,340
Other
OPERATING REVENUES
Operating revenues	$ 59	$ 55

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 126,354	$ 53,910
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	94,148	100,135
Deferred income tax expense	12,371	44,044
Gain on sale of assets	(71)	(71)
Loss (gain) on derivative instruments	13,238	(16,062)
Net cash received in settlement of derivative instruments	3,397	0
Loss on equity method investments	0	59
Amortization of debt issuance costs	715	750
Stock-based compensation and other	11,076	15,765
Changes in assets and liabilities:
Accounts receivable, net	16,881	73,327
Income taxes	23,507	(26,756)
Inventories	(600)	(4,317)
Other current assets	818	916
Accounts payable and accrued liabilities	3,425	(23,711)
Interest payable	(12,915)	(12,981)
Other assets and liabilities	(1,817)	(111)
Net cash provided by operating activities	290,527	204,897
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(123,617)	(148,702)
Proceeds from sale of assets	92	48
Investment in equity method investments	0	(35)
Proceeds from sale of equity method investments	0	(9,424)
Net cash used in investing activities	(123,525)	(158,113)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of debt	(88,000)	0
Dividends paid	(39,887)	(39,817)
Tax withholdings on vesting of stock awards	(5,569)	(6,313)
Net cash used in financing activities	(133,456)	(46,130)
Net increase in cash, cash equivalents and restricted cash	33,546	654
Cash, cash equivalents and restricted cash, beginning of period	151,691	213,783
Cash, cash equivalents and restricted cash, end of period	$ 185,237	$ 214,437

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Balance (in shares) at Dec. 31, 2019		476,882	(78,957)
Balance at beginning of period at Dec. 31, 2019	$ 2,151,487	$ 47,688	$ (1,823,201)	$ 1,782,427	$ 1,360	$ 2,143,213
Increase (Decrease) in Stockholders' Equity
Net income	53,910					53,910
Stock amortization and vesting (in shares)		651
Stock amortization and vesting	2,951	$ 65		2,886
Cash dividends	(39,817)					(39,817)
Other comprehensive loss	(136)				(136)
Balance (in shares) at Mar. 31, 2020		477,533	(78,957)
Balance at end of period at Mar. 31, 2020	2,168,395	$ 47,753	$ (1,823,201)	1,785,313	1,224	2,157,306
Balance (in shares) at Dec. 31, 2020		477,829	(78,957)
Balance at beginning of period at Dec. 31, 2020	2,215,707	$ 47,783	$ (1,823,201)	1,804,354	2,419	2,184,352
Increase (Decrease) in Stockholders' Equity
Net income	126,354					126,354
Stock amortization and vesting (in shares)		548
Stock amortization and vesting	3,933	$ 55		3,878
Cash dividends	(39,887)					(39,887)
Other comprehensive loss	(137)				(137)
Balance (in shares) at Mar. 31, 2021		478,377	(78,957)
Balance at end of period at Mar. 31, 2021	$ 2,305,970	$ 47,838	$ (1,823,201)	$ 1,808,232	$ 2,282	$ 2,270,819

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share (in dollars per share)	$ 0.10	$ 0.10

XML

Financial Statement Presentation	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Presentation	Financial Statement PresentationDuring interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 (Form 10-K) filed with the Securities and Exchange Commission (SEC), except for any new accounting pronouncements adopted during the period. The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year.

XML

Properties and Equipment, Net

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Properties and Equipment, Net

Properties and Equipment, Net

Properties and equipment, net are comprised of the following:

(In thousands)	March 31, 2021		December 31, 2020
Proved oil and gas properties	$	7,196,548	$	7,068,605
Unproved oil and gas properties	43,060		49,829
Land, buildings and other equipment	92,858		92,566
	7,332,466		7,211,000
Accumulated depreciation, depletion and amortization	(3,257,038)		(3,166,394)
	$	4,075,428	$	4,044,606

At March 31, 2021, the Company did not have any projects that had exploratory well costs capitalized for a period of greater than one year after drilling.

XML

Debt and Credit Agreements

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt and Credit Agreements

Debt and Credit Agreements

The Company’s debt and credit agreements consisted of the following:

(In thousands)	March 31, 2021		December 31, 2020
6.51% weighted-average senior notes	$	37,000	$	37,000
5.58% weighted-average senior notes(1)	87,000		175,000
3.65% weighted-average senior notes(2)	925,000		925,000
Unamortized debt issuance costs	(2,877)		(3,076)
	$	1,046,123	$	1,133,924

_______________________________________________________________________________

(1)Includes $88.0 million of current portion of long-term debt at December 31, 2020, which the Company repaid in January 2021.

(2)Includes $100.0 million of current portion of long-term debt at March 31, 2021 and December 31, 2020 due in September 2021.

At March 31, 2021, the Company was in compliance with all financial and other covenants applicable to its revolving credit facility and senior notes.

Revolving Credit Agreement

The borrowing base under the terms of the Company's revolving credit facility is redetermined annually in April. In addition, either the Company or the banks may request an interim redetermination twice a year or in connection with certain acquisitions or divestitures of oil and gas properties. At March 31, 2021, the Company had no borrowings outstanding under its revolving credit facility and had unused commitments of $1.5 billion.

Effective April 21, 2021, the borrowing base and available commitments were reaffirmed at $3.2 billion and $1.5 billion, respectively.

XML

Derivative Instruments

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

As of March 31, 2021, the Company had the following outstanding financial commodity derivatives:

			Collars
			Floor			Ceiling			Swaps
Type of Contract	Volume (Mmbtu)	Contract Period	Range ($/Mmbtu)	Weighted-Average ($/Mmbtu)		Range ($/Mmbtu)	Weighted-Average ($/Mmbtu)		Weighted-Average ($/Mmbtu)
Natural gas (NYMEX)	13,750,000	Apr. 2021-Dec. 2021							$	2.74
Natural gas (NYMEX)	123,750,000	Apr. 2021-Dec. 2021	$2.50 - $2.85	$	2.68	$2.83 - $3.80	$	3.03
Natural gas (NYMEX)	10,700,000	Apr. 2021-Oct. 2021	$—	$	2.50	$—	$	2.80
Natural gas (NYMEX)	21,400,000	Apr. 2021-Oct. 2021							$	2.78

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Commodity contracts	Derivative instruments (current)	$	9,574	$	26,209	$	—	$	—

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet

(In thousands)	March 31, 2021		December 31, 2020
Derivative assets
Gross amounts of recognized assets	$	10,575	$	26,354
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of assets presented in the condensed consolidated balance sheet	9,574		26,209
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	9,574	$	26,209
Derivative liabilities
Gross amounts of recognized liabilities	$	1,001	$	145
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of liabilities presented in the condensed consolidated balance sheet	—		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	—

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations

	Three Months Ended  March 31,
(In thousands)	2021		2020
Cash received (paid) on settlement of derivative instruments
(Loss) gain on derivative instruments	$	3,397	$	—
Non-cash gain (loss) on derivative instruments
(Loss) gain on derivative instruments	(16,635)		16,062
	$	(13,238)	$	16,062

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value MeasurementsThe Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K.

Financial Assets and Liabilities

The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at   March 31, 2021
Assets
Deferred compensation plan	$	24,296	$	—	$	—	$	24,296
Derivative instruments	—		1,836		8,739		10,575
	$	24,296	$	1,836	$	8,739	$	34,871
Liabilities
Deferred compensation plan	$	33,607	$	—	$	—	$	33,607
Derivative instruments	—		7		994		1,001
	$	33,607	$	7	$	994	$	34,608

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at   December 31, 2020
Assets
Deferred compensation plan	$	22,510	$	—	$	—	$	22,510
Derivative instruments	—		2,647		23,707		26,354
	$	22,510	$	2,647	$	23,707	$	48,864
Liabilities
Deferred compensation plan	$	30,581	$	—	$	—	$	30,581
Derivative instruments	—		—		145		145
	$	30,581	$	—	$	145	$	30,726

The Company's investments associated with its deferred compensation plan consist of mutual funds and deferred shares of the Company's common stock that are publicly traded and for which market prices are readily available.

The derivative instruments were measured based on quotes from the Company's counterparties or internal models. Such quotes and models have been derived using an income approach that considers various inputs, including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates for a similar length of time as the derivative contract term as applicable. Estimates are derived from or verified using relevant NYMEX futures contracts and are compared to multiple quotes obtained from counterparties for reasonableness. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative transactions while non-performance risk of the Company is evaluated using market credit spreads provided by several of the Company's banks. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties.

The most significant unobservable inputs relative to the Company's Level 3 derivative contracts are volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties' valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided.

The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Three Months Ended  March 31,
(In thousands)	2021		2020
Balance at beginning of period	$	23,562	$	(22)
Total gain (loss) included in earnings	(12,639)		7,215
Settlement (gain) loss	(3,178)		—
Transfers in and/or out of Level 3	—		—
Balance at end of period	$	7,745	$	7,193
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period	$	(6,350)	$	7,215

Non-Financial Assets and Liabilities

The Company discloses or recognizes its non-financial assets and liabilities, such as impairments or acquisitions, at fair value on a nonrecurring basis. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of March 31, 2021, additional disclosures were not required.

The estimated fair value of the Company’s asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy.

Fair Value of Other Financial Instruments

The estimated fair value of other financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for each of cash, cash equivalents and restricted cash approximate fair value, due to the short-term maturities of these instruments. Cash, cash equivalents and restricted cash are classified as Level 1 in the fair value hierarchy and the remaining financial instruments are classified as Level 2.

The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s outstanding debt to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The estimated fair value of the Company's outstanding debt is based on interest rates currently available to the Company. The Company’s debt is valued using an income approach and classified as Level 3 in the fair value hierarchy.

The carrying amount and estimated fair value of debt is as follows:

	March 31, 2021				December 31, 2020
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt	$	1,046,123	$	1,121,176	$	1,133,924	$	1,213,811
Current maturities	(100,000)		(100,900)		(188,000)		(189,332)
Long-term debt, excluding current maturities	$	946,123	$	1,020,276	$	945,924	$	1,024,479

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Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

Activity related to the Company’s asset retirement obligations is as follows:

(In thousands)	Three Months Ended  March 31, 2021
Balance at beginning of period	$	85,989
Liabilities incurred	796
Accretion expense	1,125
Balance at end of period	87,910
Less: current asset retirement obligations	(500)
Noncurrent asset retirement obligations	$	87,410

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Contractual Obligations

The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Transportation and Gathering Agreements” and "Lease Commitments" as disclosed in Note 9 of the Notes to Consolidated Financial Statements in the Form 10-K.

Legal Matters

Pennsylvania Office of Attorney General Matter

On June 16, 2020, the Office of Attorney General of the Commonwealth of Pennsylvania informed the Company that it will pursue certain misdemeanor and felony charges in a Susquehanna County Magisterial District Court against the Company related to alleged violations of the Pennsylvania Clean Streams Law, which prohibits discharge of industrial wastes. The Company is vigorously defending itself against such charges; however, the proceedings could result in fines or penalties against the Company. At this time, it is not possible to estimate the amount of any fines or penalties, or the range of such fines or penalties, that are reasonably possible in this case.

Other

The Company is a defendant in various other legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows.

Contingency Reserves

When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters for which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently known or foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued.

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Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Revenue

The following table presents revenues from contracts with customers disaggregated by product:

	Three Months Ended March 31,
(In thousands)	2021		2020
Natural gas	$	472,859	$	370,340
Other	59		55
	$	472,918	$	370,395

All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and generated in the United States of America.

Transaction Price Allocated to Remaining Performance Obligations

A significant number of the Company’s product sales contracts are short-term in nature, with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

As of March 31, 2021, the Company has $8.2 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over periods ranging from three to 18 years.

Contract Balances

Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, which is generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $198.6 million and $215.3 million as of March 31, 2021 and December 31, 2020, respectively, and are reported in accounts receivable, net on the Condensed Consolidated Balance Sheet. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront payments or rights to deficiency payments.

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Capital Stock

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Capital Stock

Capital Stock

Dividends

In April 2021, the Board of Directors approved an increase in the quarterly dividend on the Company's common stock from $0.10 per share to $0.11 per share.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

General

The Company grants certain stock-based compensation awards, including restricted stock awards, restricted stock units and performance share awards. Stock-based compensation expense associated with these awards was $11.7 million and $16.3 million in the first quarter of 2021 and 2020, respectively. Stock-based compensation expense is included in general and administrative expense in the Condensed Consolidated Statement of Operations.

Refer to Note 14 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms.

Restricted Stock Units

During the first three months of 2021, 101,991 restricted stock units were granted to non-employee directors of the Company, with a weighted-average grant date value of $18.59 per unit. The fair value of these units is measured based on the closing stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company.

Performance Share Awards

The performance period for the awards granted during the first three months of 2021 commenced on January 1, 2021 and ends on December 31, 2023. The Company used an annual forfeiture rate assumption ranging from zero percent to four percent for purposes of recognizing stock-based compensation expense for its performance share awards.

Performance Share Awards Based on Internal Performance Metrics

The fair value of performance share award grants based on internal performance metrics is based on the closing stock price on the grant date. Each performance share award represents the right to receive up to 100 percent of the award in shares of common stock. Based on the Company’s probability assessment at March 31, 2021, it is considered probable that the criteria for all performance awards based on internal metrics awards will be met.

Employee Performance Share Awards. During the first three months of 2021, 696,280 Employee Performance Share Awards were granted at a grant date value of $18.58 per share. The 2020 awards vest 100 percent on the third anniversary, provided that the Company averages $100 million or more of operating cash flow during the three-year performance period, as set by the compensation committee of the Company's board of directors. If the Company does not meet the performance metric for the applicable period, then the performance shares that would have been issued on the anniversary date will be forfeited.

Hybrid Performance Share Awards. During the first three months of 2021, 423,171 Hybrid Performance Share Awards were granted at a grant date value of $18.58 per share. The 2021 awards vest 25 percent on each of the first and second anniversary dates and 50 percent on the third anniversary, provided that the Company has $100 million or more of operating cash flow for the year preceding the vesting date, as set by the compensation committee of the Company's board of directors. If the Company does not meet the performance metric for the applicable period, then the portion of the performance shares that would have been issued on that anniversary date will be forfeited.

Performance Share Awards Based on Market Conditions

These awards have both an equity and liability component, with the right to receive up to the first 100 percent of the award in shares of common stock and the right to receive up to an additional 100 percent of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model.

TSR Performance Share Awards. During the first three months of 2021, 723,224 TSR Performance Share Awards were granted and are earned, or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group over a three-year performance period. The Company incorporated a new feature in the 2021 TSR awards that will reduce the potential cash component of the award if the actual performance is negative over the three-year period and the base calculation indicates an above-target payout.

The following assumptions were used to determine the grant date fair value of the equity component (February 17, 2021) and the period-end fair value of the liability component of the TSR Performance Share Awards:

	Grant Date			March 31, 2021
Fair value per performance share award	$	16.07		$7.66 - $10.60
Assumptions:
Stock price volatility	39.8		%	38.1% - 45.8%
Risk free rate of return	0.20		%	0.06% - 0.30%

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Earnings per Common Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings per Common Share

Earnings per Common ShareBasic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive.

The following is a calculation of basic and diluted weighted-average shares outstanding:

	Three Months Ended  March 31,
(In thousands)	2021	2020
Weighted-average shares - basic	399,121	398,343
Dilution effect of stock awards at end of period	2,690	1,554
Weighted-average shares - diluted	401,811	399,897

The following table presents weighted-average shares excluded from diluted EPS due to the anti-dilutive effect:

	Three Months Ended  March 31,
(In thousands)	2021	2020
Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method	928	1,068

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Additional Balance Sheet Information

3 Months Ended

Mar. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Additional Balance Sheet Information

Additional Balance Sheet Information

Certain balance sheet amounts are comprised of the following:

(In thousands)	March 31, 2021		December 31, 2020
Accounts receivable, net
Trade accounts	$	198,625	$	215,301
Other accounts	257		462
	198,882		215,763
Allowance for doubtful accounts	(1,039)		(1,039)
	$	197,843	$	214,724
Other assets
Deferred compensation plan	$	24,296	$	22,510
Debt issuance costs	6,360		6,875
Operating lease right-of-use assets	32,725		33,741
Other accounts	128		85
	$	63,509	$	63,211
Accounts payable
Trade accounts	$	17,230	$	12,896
Royalty and other owners	34,496		37,243
Accrued transportation	51,530		52,238
Accrued capital costs	38,280		37,872
Taxes other than income	18,420		13,736
Other accounts	9,145		8,096
	$	169,101	$	162,081
Accrued liabilities
Employee benefits	$	13,127	$	14,270
Taxes other than income	3,082		3,026
Operating lease liabilities	3,910		3,991
Other accounts	1,121		1,087
	$	21,240	$	22,374
Other liabilities
Deferred compensation plan	$	33,607	$	30,581
Operating lease liabilities	28,697		29,628
Other accounts	16,224		21,069
	$	78,528	$	81,278

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Financial Statement Presentation (Policies)	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 (Form 10-K) filed with the Securities and Exchange Commission (SEC), except for any new accounting pronouncements adopted during the period. The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year.

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Properties and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of properties and equipment, net

Properties and equipment, net are comprised of the following:

(In thousands)	March 31, 2021		December 31, 2020
Proved oil and gas properties	$	7,196,548	$	7,068,605
Unproved oil and gas properties	43,060		49,829
Land, buildings and other equipment	92,858		92,566
	7,332,466		7,211,000
Accumulated depreciation, depletion and amortization	(3,257,038)		(3,166,394)
	$	4,075,428	$	4,044,606

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Debt and Credit Agreements (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt and credit agreement components

The Company’s debt and credit agreements consisted of the following:

(In thousands)	March 31, 2021		December 31, 2020
6.51% weighted-average senior notes	$	37,000	$	37,000
5.58% weighted-average senior notes(1)	87,000		175,000
3.65% weighted-average senior notes(2)	925,000		925,000
Unamortized debt issuance costs	(2,877)		(3,076)
	$	1,046,123	$	1,133,924

_______________________________________________________________________________

(1)Includes $88.0 million of current portion of long-term debt at December 31, 2020, which the Company repaid in January 2021.

(2)Includes $100.0 million of current portion of long-term debt at March 31, 2021 and December 31, 2020 due in September 2021.

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding commodity derivatives

As of March 31, 2021, the Company had the following outstanding financial commodity derivatives:

			Collars
			Floor			Ceiling			Swaps
Type of Contract	Volume (Mmbtu)	Contract Period	Range ($/Mmbtu)	Weighted-Average ($/Mmbtu)		Range ($/Mmbtu)	Weighted-Average ($/Mmbtu)		Weighted-Average ($/Mmbtu)
Natural gas (NYMEX)	13,750,000	Apr. 2021-Dec. 2021							$	2.74
Natural gas (NYMEX)	123,750,000	Apr. 2021-Dec. 2021	$2.50 - $2.85	$	2.68	$2.83 - $3.80	$	3.03
Natural gas (NYMEX)	10,700,000	Apr. 2021-Oct. 2021	$—	$	2.50	$—	$	2.80
Natural gas (NYMEX)	21,400,000	Apr. 2021-Oct. 2021							$	2.78

Effect of derivative instruments on the condensed consolidated balance sheet

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Commodity contracts	Derivative instruments (current)	$	9,574	$	26,209	$	—	$	—

Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet

(In thousands)	March 31, 2021		December 31, 2020
Derivative assets
Gross amounts of recognized assets	$	10,575	$	26,354
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of assets presented in the condensed consolidated balance sheet	9,574		26,209
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	9,574	$	26,209
Derivative liabilities
Gross amounts of recognized liabilities	$	1,001	$	145
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of liabilities presented in the condensed consolidated balance sheet	—		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	—

Schedule of offsetting of derivative assets in the condensed consolidated balance sheet

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet

(In thousands)	March 31, 2021		December 31, 2020
Derivative assets
Gross amounts of recognized assets	$	10,575	$	26,354
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of assets presented in the condensed consolidated balance sheet	9,574		26,209
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	9,574	$	26,209
Derivative liabilities
Gross amounts of recognized liabilities	$	1,001	$	145
Gross amounts offset in the condensed consolidated balance sheet	(1,001)		(145)
Net amounts of liabilities presented in the condensed consolidated balance sheet	—		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	—

Effect of derivatives on the condensed consolidated statement of operations

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations

	Three Months Ended  March 31,
(In thousands)	2021		2020
Cash received (paid) on settlement of derivative instruments
(Loss) gain on derivative instruments	$	3,397	$	—
Non-cash gain (loss) on derivative instruments
(Loss) gain on derivative instruments	(16,635)		16,062
	$	(13,238)	$	16,062

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Financial assets and liabilities measured at fair value on a recurring basis

The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at   March 31, 2021
Assets
Deferred compensation plan	$	24,296	$	—	$	—	$	24,296
Derivative instruments	—		1,836		8,739		10,575
	$	24,296	$	1,836	$	8,739	$	34,871
Liabilities
Deferred compensation plan	$	33,607	$	—	$	—	$	33,607
Derivative instruments	—		7		994		1,001
	$	33,607	$	7	$	994	$	34,608

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at   December 31, 2020
Assets
Deferred compensation plan	$	22,510	$	—	$	—	$	22,510
Derivative instruments	—		2,647		23,707		26,354
	$	22,510	$	2,647	$	23,707	$	48,864
Liabilities
Deferred compensation plan	$	30,581	$	—	$	—	$	30,581
Derivative instruments	—		—		145		145
	$	30,581	$	—	$	145	$	30,726

Reconciliation of changes in the fair value of financial assets and liabilities classified as level 3

The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy:

	Three Months Ended  March 31,
(In thousands)	2021		2020
Balance at beginning of period	$	23,562	$	(22)
Total gain (loss) included in earnings	(12,639)		7,215
Settlement (gain) loss	(3,178)		—
Transfers in and/or out of Level 3	—		—
Balance at end of period	$	7,745	$	7,193
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period	$	(6,350)	$	7,215

Carrying amounts and fair values of debt

The carrying amount and estimated fair value of debt is as follows:

	March 31, 2021				December 31, 2020
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt	$	1,046,123	$	1,121,176	$	1,133,924	$	1,213,811
Current maturities	(100,000)		(100,900)		(188,000)		(189,332)
Long-term debt, excluding current maturities	$	946,123	$	1,020,276	$	945,924	$	1,024,479

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Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Activity related to asset retirement obligations

Activity related to the Company’s asset retirement obligations is as follows:

(In thousands)	Three Months Ended  March 31, 2021
Balance at beginning of period	$	85,989
Liabilities incurred	796
Accretion expense	1,125
Balance at end of period	87,910
Less: current asset retirement obligations	(500)
Noncurrent asset retirement obligations	$	87,410

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following table presents revenues from contracts with customers disaggregated by product:

	Three Months Ended March 31,
(In thousands)	2021		2020
Natural gas	$	472,859	$	370,340
Other	59		55
	$	472,918	$	370,395

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Assumptions to Determine the Grant Date Fair Value of the Equity Component and the Period-End Fair Value of the Liability

The following assumptions were used to determine the grant date fair value of the equity component (February 17, 2021) and the period-end fair value of the liability component of the TSR Performance Share Awards:

	Grant Date			March 31, 2021
Fair value per performance share award	$	16.07		$7.66 - $10.60
Assumptions:
Stock price volatility	39.8		%	38.1% - 45.8%
Risk free rate of return	0.20		%	0.06% - 0.30%

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Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Calculation of basic and diluted weighted-average shares outstanding

The following is a calculation of basic and diluted weighted-average shares outstanding:

	Three Months Ended  March 31,
(In thousands)	2021	2020
Weighted-average shares - basic	399,121	398,343
Dilution effect of stock awards at end of period	2,690	1,554
Weighted-average shares - diluted	401,811	399,897

Calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect

The following table presents weighted-average shares excluded from diluted EPS due to the anti-dilutive effect:

	Three Months Ended  March 31,
(In thousands)	2021	2020
Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method	928	1,068

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Additional Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Additional Balance Sheet Information

Certain balance sheet amounts are comprised of the following:

(In thousands)	March 31, 2021		December 31, 2020
Accounts receivable, net
Trade accounts	$	198,625	$	215,301
Other accounts	257		462
	198,882		215,763
Allowance for doubtful accounts	(1,039)		(1,039)
	$	197,843	$	214,724
Other assets
Deferred compensation plan	$	24,296	$	22,510
Debt issuance costs	6,360		6,875
Operating lease right-of-use assets	32,725		33,741
Other accounts	128		85
	$	63,509	$	63,211
Accounts payable
Trade accounts	$	17,230	$	12,896
Royalty and other owners	34,496		37,243
Accrued transportation	51,530		52,238
Accrued capital costs	38,280		37,872
Taxes other than income	18,420		13,736
Other accounts	9,145		8,096
	$	169,101	$	162,081
Accrued liabilities
Employee benefits	$	13,127	$	14,270
Taxes other than income	3,082		3,026
Operating lease liabilities	3,910		3,991
Other accounts	1,121		1,087
	$	21,240	$	22,374
Other liabilities
Deferred compensation plan	$	33,607	$	30,581
Operating lease liabilities	28,697		29,628
Other accounts	16,224		21,069
	$	78,528	$	81,278

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Properties and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Proved oil and gas properties	$ 7,196,548	$ 7,068,605
Unproved oil and gas properties	43,060	49,829
Land, buildings and other equipment	92,858	92,566
Properties and equipment, gross, total	7,332,466	7,211,000
Accumulated depreciation, depletion and amortization	(3,257,038)	(3,166,394)
Properties and equipment, net	$ 4,075,428	$ 4,044,606

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Debt and Credit Agreements - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (2,877)	$ (3,076)
Long-term debt	1,046,123	1,133,924
Current portion of long-term debt	$ 100,000	188,000
6.51% weighted-average senior notes
Debt Instrument [Line Items]
Weighted average interest rate	6.51%
Total debt	$ 37,000	37,000
5.58% weighted-average senior notes
Debt Instrument [Line Items]
Weighted average interest rate	5.58%
Total debt	$ 87,000	175,000
Current portion of long-term debt	$ 88,000
3.65% weighted-average senior notes
Debt Instrument [Line Items]
Weighted average interest rate	3.65%
Total debt	$ 925,000	925,000
Current portion of long-term debt	$ 100,000	$ 100,000

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Debt and Credit Agreements - Narrative (Details) - Revolving credit facility - USD ($)	Apr. 21, 2021	Mar. 31, 2021
Debt Instrument [Line Items]
Long-term debt		$ 0
Remaining borrowing capacity		$ 1,500,000,000
Subsequent event
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 1,500,000,000
Borrowing base	$ 3,200,000,000

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Derivative Instruments - Outstanding Commodity Derivatives (Details) - Natural gas (NYMEX)	3 Months Ended
	Mar. 31, 2021 MMBTU $ / MMBTU
Derivative [Line Items]
Volume (in Mmbtu) | MMBTU	13,750,000
Swaps Weighted-Average (in usd per Mmbtu)	2.74
Volume (in Mmbtu) | MMBTU	123,750,000
Floor, Weighted-Average (in usd per Mmbtu)	2.68
Ceiling, Weighted-Average (in usd per Mmbtu)	3.03
Minimum
Derivative [Line Items]
Derivative, Floor Price	2.50
Derivative, Cap Price	2.83
Maximum
Derivative [Line Items]
Derivative, Floor Price	2.85
Derivative, Cap Price	3.80
Volume (in Mmbtu) | MMBTU	10,700,000
Derivative, Floor Price	0
Floor, Weighted-Average (in usd per Mmbtu)	2.50
Derivative, Cap Price	0
Ceiling, Weighted-Average (in usd per Mmbtu)	2.80
Swaps Weighted-Average (in usd per Mmbtu)
Volume (in Mmbtu) | MMBTU	21,400,000
Ceiling, Weighted-Average (in usd per Mmbtu)
Swaps Weighted-Average (in usd per Mmbtu)	2.78

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Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	$ 9,574	$ 26,209
Derivative instruments (current) | Derivatives Not Designated as Hedges | Commodity contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	9,574	26,209
Derivative Liabilities	$ 0	$ 0

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Derivative Instruments - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivative assets
Gross amounts of recognized assets	$ 10,575	$ 26,354
Gross amounts offset in the condensed consolidated balance sheet	(1,001)	(145)
Net amounts of assets presented in the condensed consolidated balance sheet	9,574	26,209
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	0	0
Net amount	9,574	26,209
Derivative liabilities
Gross amounts of recognized liabilities	1,001	145
Gross amounts offset in the condensed consolidated balance sheet	(1,001)	(145)
Net amounts of liabilities presented in the condensed consolidated balance sheet	0	0
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	0	0
Net amount	$ 0	$ 0

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Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash received (paid) on settlement of derivative instruments, gain (loss) on derivative instruments	$ 3,397	$ 0
Non-cash gain (loss) on derivative instruments, gain (loss) on derivative instruments	(16,635)	16,062
Gain (loss) on derivative instruments	$ (13,238)	$ 16,062

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Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Deferred compensation plan	$ 24,296	$ 22,510
Derivative instruments	10,575	26,354
Liabilities
Deferred compensation plan	33,607	30,581
Recurring basis
Assets
Deferred compensation plan	24,296	22,510
Derivative instruments	10,575	26,354
Total assets	34,871	48,864
Liabilities
Deferred compensation plan	33,607	30,581
Derivative instruments	1,001	145
Total liabilities	34,608	30,726
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis
Assets
Deferred compensation plan	24,296	22,510
Derivative instruments	0	0
Total assets	24,296	22,510
Liabilities
Deferred compensation plan	33,607	30,581
Derivative instruments	0	0
Total liabilities	33,607	30,581
Significant Other Observable Inputs (Level 2) | Recurring basis
Assets
Deferred compensation plan	0	0
Derivative instruments	1,836	2,647
Total assets	1,836	2,647
Liabilities
Deferred compensation plan	0	0
Derivative instruments	7	0
Total liabilities	7	0
Significant Unobservable Inputs (Level 3) | Recurring basis
Assets
Deferred compensation plan	0	0
Derivative instruments	8,739	23,707
Total assets	8,739	23,707
Liabilities
Deferred compensation plan	0	0
Derivative instruments	994	145
Total liabilities	$ 994	$ 145

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Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy
Balance at beginning of period	$ 23,562	$ (22)
Total gain (loss) included in earnings	(12,639)	7,215
Settlement (gain) loss	(3,178)	0
Transfers in and/or out of Level 3	0	0
Balance at end of period	7,745	7,193
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period	$ (6,350)	$ 7,215

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Fair Value Measurements - Narrative (Details)	3 Months Ended
	Mar. 31, 2021 impaired_asset_and_liability
Fair Value Disclosures [Abstract]
Number of non-financial assets and liabilities impaired	0

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Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair value disclosures
Long-term debt	$ 1,046,123	$ 1,133,924
Current maturities	(100,000)	(188,000)
Long-term debt, excluding current maturities	946,123	945,924
Carrying Amount
Fair value disclosures
Long-term debt	1,046,123	1,133,924
Current maturities	(100,000)	(188,000)
Long-term debt, excluding current maturities	946,123	945,924
Estimated Fair Value
Fair value disclosures
Long-term debt	1,121,176	1,213,811
Current maturities	(100,900)	(189,332)
Long-term debt, excluding current maturities	$ 1,020,276	$ 1,024,479

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Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Asset Retirement Obligation
Balance at beginning of period	$ 85,989
Liabilities incurred	796
Accretion expense	1,125
Balance at end of period	87,910
Less: current asset retirement obligations	(500)
Noncurrent asset retirement obligations	$ 87,410	$ 85,489

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 472,918	$ 370,395
Natural gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	472,859	370,340
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 59	$ 55

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Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contracts with customers	$ 198.6	$ 215.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue from Contract with Customer [Abstract]
Unsatisfied performance obligations	$ 8,200.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations, expected period of satisfaction	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations, expected period of satisfaction	18 years

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Capital Stock (Details) - $ / shares	1 Months Ended	3 Months Ended
	Apr. 30, 2021	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends, per share (in dollars per share)		$ 0.10	$ 0.10
Subsequent event | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends, per share (in dollars per share)	$ 0.10
Subsequent event | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends, per share (in dollars per share)	$ 0.11

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Stock-Based Compensation - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended
	Feb. 17, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
Stock-based Compensation arrangements
Stock based compensation expense		$ 11,700,000	$ 16,300,000
Restricted Stock Units
Stock-based Compensation arrangements
Granted (in shares)		101,991
Granted (in dollars per share)		$ 18.59
Performance Share Awards | Minimum
Stock-based Compensation arrangements
Annual forfeiture rate assumption (as a percent)		0.00%
Performance Share Awards | Maximum
Stock-based Compensation arrangements
Annual forfeiture rate assumption (as a percent)		4.00%
Performance Share Awards Based on Internal Performance Metrics
Stock-based Compensation arrangements
Right to receive additional shares, maximum		100.00%
Employee Performance Share Awards
Stock-based Compensation arrangements
Granted (in shares)		696,280
Granted (in dollars per share)		$ 18.58
Minimum operating cash flow for the year preceding the performance period				$ 100,000,000
Number of years over which performance criteria is to be met		3 years
Employee Performance Share Awards | Tranche three
Stock-based Compensation arrangements
Award vesting rights (as a percent)		100.00%
Hybrid Performance Share Awards
Stock-based Compensation arrangements
Granted (in shares)		423,171
Granted (in dollars per share)		$ 18.58
Minimum operating cash flow for the year preceding the performance period		$ 100,000,000
Hybrid Performance Share Awards | Tranche one
Stock-based Compensation arrangements
Award vesting rights (as a percent)		25.00%
Hybrid Performance Share Awards | Tranche two
Stock-based Compensation arrangements
Award vesting rights (as a percent)		25.00%
Hybrid Performance Share Awards | Tranche three
Stock-based Compensation arrangements
Award vesting rights (as a percent)		50.00%
Performance Shares Based on Market Conditions
Stock-based Compensation arrangements
Right to receive shares		100.00%
Right to receive an additional award in cash		100.00%
TSR Performance Share Awards
Stock-based Compensation arrangements
Granted (in shares)		723,224
Granted (in dollars per share)	$ 16.07
Performance period		3 years
TSR Performance Share Awards | Minimum
Stock-based Compensation arrangements
Granted (in dollars per share)		$ 7.66
TSR Performance Share Awards | Maximum
Stock-based Compensation arrangements
Granted (in dollars per share)		$ 10.60

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Stock-Based Compensation - Assumptions for TSR Shares (Details) - TSR Performance Share Awards - $ / shares		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)	$ 16.07
Stock price volatility	39.80%
Risk free rate of return	0.20%
Minimum expected volatility		38.10%
Maximum expected volatility		45.80%
Minimum risk free interest rate		0.06%
Maximum risk free interest rate		0.30%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)		$ 7.66
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)		$ 10.60

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Earnings per Common Share - Schedule of EPS (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Weighted-average shares - basic	399,121	398,343
Dilution effect of stock awards at end of period	2,690	1,554
Weighted-average shares - diluted	401,811	399,897

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Earnings per Common Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Treasury Stock Method
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	928	1,068

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Additional Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts receivable, net
Trade accounts	$ 198,625	$ 215,301
Other accounts	257	462
Accounts receivable, gross	198,882	215,763
Allowance for doubtful accounts	(1,039)	(1,039)
Accounts receivable, net	197,843	214,724
Other assets
Deferred compensation plan	24,296	22,510
Debt issuance costs	6,360	6,875
Operating lease right-of-use assets	32,725	33,741
Other accounts	128	85
Other assets	63,509	63,211
Accounts payable
Trade accounts	17,230	12,896
Royalty and other owners	34,496	37,243
Accrued transportation	51,530	52,238
Accrued capital costs	38,280	37,872
Taxes other than income	18,420	13,736
Other accounts	9,145	8,096
Accounts payable	169,101	162,081
Accrued liabilities
Employee benefits	13,127	14,270
Taxes other than income	3,082	3,026
Operating lease liabilities	3,910	3,991
Other accounts	1,121	1,087
Accrued liabilities	21,240	22,374
Other liabilities
Deferred compensation plan	33,607	30,581
Operating lease liabilities	28,697	29,628
Other accounts	16,224	21,069
Other liabilities	$ 78,528	$ 81,278