Cabot Oil & Gas Corporation announced a definitive agreement to sell its offshore portfolio and its south Louisiana properties, which include the once prolific Etouffee field. Citing its growing emphasis on its resource-focused portfolio, Dan O. Dinges, Chairman, President and CEO commented, "In a market where there is a significant disconnect between asset sales values and implied stock prices, we took advantage of an opportunity to accelerate our realizations on these assets and further solidify our long-term objectives."

In this transaction Cabot will sell the properties to Phoenix Exploration Company LP for total cash consideration of $340 million. The sale is expected to close September 29, 2006, subject to due diligence and other customary closing conditions. With the total proceeds, Cabot intends to repurchase shares of common stock, fund its operations, repay a portion of its outstanding debt and pay the resulting tax bill.