Driven by increased production in its Gulf Coast assets and a strong hedging position, Cabot Oil & Gas Corp., headquartered in Houston, reported record third quarter results including net income of $10.7 million, or $0.35 per share, and discretionary cash flow of $63.6 million, or $2.08 per share, before certain selected items. The selected items include a net expense of $0.6 million after tax related to an impairment of long-lived assets and a small adjustment for SFAS 133 (Accounting for Derivative Instruments and Hedging Activities), partially offset by a severance tax refund. These results compare to last year’s third quarter profits of $6.1 million, or $0.21 per share, and discretionary cash flow of $29.4 million, or $1.01 per share. Contributing to the record results were increased production and strong prices realized from a hedge position in effect through the end of October 2001. Total production of 22,246 MMcfe during the third quarter was nearly 30% higher than in the corresponding period last year (17,102 MMcfe), and nearly 25% over the second quarter of 2001 (17,739 MMcfe). Most of the increase came from production in the Gulf Coast region, driven mainly by drilling success in South Louisiana, along with volumes from the Cody Co. merger that were consolidated beginning in August. Of the 5.1 Bcfe increase in production since the comparable quarter last year, 2.3 Bcfe came from organic growth within Cabot’s drilling program, giving the company a 13.6% increase from drilling over last year’s third quarter. Also, organic growth in production versus the second quarter of 2001 was 9.6%. For the quarter, average realized natural gas prices increased 30% primarily as a result of certain hedge positions, while oil prices declined 16% over the prior year period, with Cabot realizing an average price of $3.77/Mcf and $24.99/bbl in the third quarter of 2001. Nearly 45% of third quarter gas production was hedged, according to CEO Ray Seegmiller. For complete financial information, visit the web site at www.cabotog.com.

Houston-based Ocean Energy reported its production was up in the third quarter, although net income was down. It reported net income of $48 million or $0.27 per diluted share on revenues of $279 million, compared with net income of $58 million or $0.33 per diluted share on revenues of $268 million for the third quarter a year ago. Average daily production for the quarter was approximately 151 Mboe as compared to 131 Mboe a year earlier, mostly because of higher production from the Zafiro field in Equatorial Guinea and exploitation activities on Gulf of Mexico shelf properties, as well as two earlier acquisitions in 2001 of onshore producing properties in Texas and Louisiana. While production increased on a year-over-year basis, it declined 3% from the second quarter, primarily due to the timing of international crude oil liftings and previously announced assets sales. Discretionary cash flow for the third quarter was approximately $165 million, compared to $185 million for the same period in 2000. Discretionary cash flow per diluted share for the third quarter was $0.92 compared to $1.04 for the same period in 2000. Detailed financials are available on the web site at www.oceanenergy.com.

Petro-Canada, headquartered in Calgary, announced third quarter net earnings of $149 million ($0.57 per share), down from $229 million ($0.84 per share) in the third quarter of 2000. — All dollars in this report are Canadian dollars — Cash flow was $298 million ($1.13 per share), down from $450 million ($1.65 per share) a year earlier. Crude oil and natural gas prices were lower than in the third quarter of 2000, reducing earnings and cash flow. In the first nine months of 2001, consolidated net earnings of $833 million ($3.13 per share), including gains on asset sales of $30 million and a positive tax adjustment of $61 million, were up from $507 million ($1.86 per share) last year, which included reorganization charges of $33 million and losses on asset sales of $33 million. Cash flow from operations of $1.381 million ($5.20 per share) so far in 2001 was up from $1.186 million ($4.35 per share) in the first nine months of 2000. Upstream earnings from operations in the first three quarters of 2001 were $611 million, up from $460 million last year, reflecting higher oil and gas prices in the first half of this year. Petro-Canada has also decided that it will not file an application for a Normal Course Issuer Bid for the repurchase of common shares, following the expiration of its existing share repurchase program that began Nov. 1, 2000. In light of the current business environment, Petro-Canada said it “is prudent to maintain flexibility to fund its long-term capital projects.” For detailed financial information, visit the web site at www.petro-canada.ca.

Houston-based drilling contractor Nabors Industries Inc., ranked first in the world, announced its best results ever for the third quarter, with income derived from operating activities totaling $165.5 million versus $59.3 million in the same period last year and $160.9 million in the second quarter of this year. Net income was $108.2 million or $0.68 per diluted share versus $38.7 million or $0.25 per diluted share last year. For the first nine months of 2001, income derived from operating activities and net income totaled $450.4 million and $295.4 million ($1.82 per diluted share), respectively, versus $133.3 million and $82.4 million ($0.54 per diluted share) last year. Revenues and other income for the quarter and nine months were $621.1 million and $1,781.3 million, respectively, versus $369.1 million and $974.8 million last year. CEO Gene Isenberg said the strong results came from drilling in the Lower 48, along with its offshore and marine transportation business. For complete financials, visit the web site at www.nabors.com.

The number two oilfield services company, Schlumberger Ltd., headquartered in New York City, reported its third quarter earnings were down, with operating revenue of $3.6 billion and net income of $195 million. Diluted earnings per share, excluding acquisition-related costs and a divestiture-related net gain, were $0.51 compared with $0.39 for the same period last year and $0.47 per share for the second quarter this year. Oilfield Services revenue increased 36%, including revenue from WesternGeco, compared with the same period of 2000. The worldwide M-I rig count grew 14% over the same period. Revenue growth of 1%, compared to the second quarter of 2001, reflected the lower quarterly average rig count growth of 2%. SchlumbergerSema revenue of $870 million for the quarter decreased 3% sequentially, mostly as a result of a 17% decrease in Cards revenue following lower demand in Europe. However, pretax operating income improved to $19 million. During the quarter, Schlumberger sold the Production Operators Corp. natural gas compression business and related assets. The previously announced divestiture of the Resource Management Services (RMS) businesses is expected to be completed in the fourth quarter. Net cash proceeds from these divestitures will be used to pay down debt. For complete information, visit the web site at www.slb.com.

Amerada Hess reported net income of $167 million for the third quarter of 2001, compared with $257 million for the third quarter of 2000. Net income in the first nine months of 2001 was $860 million compared with $683 million in the first nine months of 2000. Earnings from exploration and production activities include income of $48 million from the resolution of a United Kingdom income tax dispute. Refining, marketing and shipping results include after-tax losses of $46 million resulting primarily from adjustments to costs associated with natural gas sold in prior quarters. Oil and gas production was 433,000 boe/d, an increase of 18%. However, the average worldwide crude oil price in the third quarter of 2001 was $24.30/bbl, a decrease of $1.75 from the third quarter of 2000. The average U.S. natural gas price was $3.42/Mcf compared with $3.98 in the third quarter of 2000. Capital expenditures in the third quarter of 2001 were $3.2 billion, including $2.7 billion for the purchase of Triton Energy Limited.

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