The Company's average natural gas sales price for the quarter was $8.22 per Mcf versus $5.71 per Mcf in the comparable quarter last year, while the average price for oil, between comparable first quarters, was $61.11 per barrel versus $42.11 per barrel. Dan O. Dinges, Cabot's Chairman, President and Chief Executive Officer said, "As a result of 2005 hedges expiring and a 2006 hedge position focused on wide collars that allow downside protection and upside participation -- our overall realizations improved dramatically."

"Production for the quarter was slightly higher than the comparable quarter last year (21.3 Bcfe compared to 21.1 Bcfe) as new wells came on line in late March," added Dinges. "Cabot ended the quarter producing 257.5 Mmcfe per day with all regions exceeding their budgeted production targets as we entered the second quarter of 2006."

Contributing to the higher production has been a strong drilling success rate, which for the first quarter was 97 percent, compared to 86 percent in the first quarter of last year. "Encouraged by our recent drilling success and an acreage acquisition focus, Cabot has increased its capital spending program by approximately $40 million for 2006 bringing the total to about $435 million," stated Dinges.

Expenses increased in aggregate due to cost pressures, stock compensation (resulting from the adoption of SFAS 123R) and higher other taxes driven by commodity prices. "Despite the overall increase there was a 40 percent decline in exploration expense driven by the changing risk profile of our drilling program," added Dinges. "I am also pleased to report that Cabot's balance sheet remains strong as the Company repaid $45 million of debt during the first quarter bringing our debt to capitalization ratio to 30 percent."