Cabot Oil & Gas Announces New Hedge Positions

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Cabot Oil & Gas Announces New Hedge Positions
    HOUSTON, Feb. 12 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation
(NYSE: COG) today announced that the Company has initiated new hedge positions
covering 25,000 Mmbtu per day of its Eastern natural gas production for the
period February through December of 2003, and 10,000 Mmbtu per day of the
Company's Rocky Mountains natural gas production for the period March through
December of 2003.  The Company also entered into a range swap involving
500 barrels of oil per day produced from July through December of 2003.
    "With the ongoing bullish sentiment in the commodity markets, we continue
to follow our hedging strategy of layering in additional hedges," said Dan O.
Dinges, Chairman and Chief Executive Officer.  "These latest hedges are
dominated by collars to provide the potential for additional upside and to
better balance our current overall hedge position that consists of 42% swaps
and 20% collars, or 62% of total equivalent anticipated production for 2003."
    In aggregate, Cabot has downside price protection in place for
approximately 66% of the anticipated natural gas production at a combined
price of $4.38 per Mcf.  Cabot also has 45% of oil production covered by
derivatives (11% with collars and 34% with range swaps).  Under the range swap
agreement the Company receives an above current market swap price in exchange
for giving up the downside protection below a certain price during any one
month.
    The following table summarizes by operating area the volumes and prices
(per Mmbtu) of the new hedge positions for the remainder of the year.

     Location  Mmbtu/day  Transaction      Period         Price/Mmbtu*

     East       20,000    Costless collar  Feb. - Dec.    $4.50 floor /
                                                          $5.72 ceiling
                 5,000    Swap             Feb. - Dec.        $5.15

     Rocky       5,000    Costless collar  March - Dec.   $3.50 floor /
     Mountains                                            $4.55 ceiling
                 5,000    Swap             March - Dec.       $4.00

       Total    35,000

     * Net of regional basis differentials

    The oil hedge provides for a fixed price swap at $30.00 per barrel with a
"fade-out" provision.  During any month if the crude oil NYMEX contract
average is less than $22.00 per barrel, Cabot receives the market price for
that month.
    Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading
domestic independent natural gas producer and marketer with substantial
interests in the Gulf Coast, including Texas and Louisiana; the West, with the
Rocky Mountains and Mid-Continent; and the East.  For additional information,
visit the Company's Internet homepage at http://www.cabotog.com .

    The statements regarding future financial performance and results and the
other statements which are not historical facts contained in this release are
forward-looking statements that involve risks and uncertainties, including,
but not limited to, market factors, the market price (including regional basis
differentials) of natural gas and oil, results of future drilling and
marketing activity, future production and costs, and other factors detailed in
the Company's Securities and Exchange Commission filings.
SOURCE Cabot Oil & Gas Corporation
http://www.cabotog.com
CONTACT:
Scott Schroeder of Cabot Oil & Gas
Corporation, +1-281-589-4993