Cabot Oil & Gas Corporation (Cabot or ‘the Company’) has announced that it has completed the previously announced divestiture of its 20% ownership interest in Meade Pipeline Co LLC (Meade) and provided an update on its share repurchase programme.
Completion of Meade divestiture
On 13 November 2019, Cabot completed the divestiture of its 20% ownership interest in Meade for US$256 million, excluding customary closing adjustments. "Proceeds from this divestiture will allow Cabot to continue to enhance shareholder value through an ongoing opportunistic share repurchase programme, while also providing the Company with increased financial strength in a challenging natural gas price environment," highlighted Dan O. Dinges, Chairman, President and Chief Executive Officer.
Share repurchase programme update
"Subsequent to our third quarter earnings release, we were active in our share repurchase program in anticipation of the proceeds from the Meade divestiture," stated Dinges. Cabot has repurchased 5 million shares at a weighted-average share price of US$17.84 during the fourth quarter of 2019. Since reactivating the share repurchase programme in the second quarter of 2017, Cabot has reduced its shares outstanding by over 13% to 402.9 million shares. The Company currently has 16 million remaining shares authorised under its share repurchase programme (or approximately 4% of its current shares outstanding). Dinges added, "Year-to-date, we have returned over US$580 million of capital to shareholders through dividends and share repurchases, representing over 110% of the midpoint of our free cash flow guidance for the year and far exceeding our target of returning at least 50% of annual free cash flow to shareholders. We plan to remain active with our opportunistic share repurchases, which are supported by our expectation for continued free cash flow generation, even in the lows of the natural gas price cycle."
Read the article online at: https://www.worldpipelines.com/business-news/18112019/cabot-oil-gas-corporation-completes-divestiture-of-ownership-interest-in-meade-pipeline-co/
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