Comment of Sierra Club under CP13-553, et. al.

UNIQUELY CABOT. 2012 ANNUAL REPORT CABOT OIL & GAS CORPORATION Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer, with its entire resource base located in the continental United States. The Companys focused operations are centered around developing its natural gas resources in Pennsylvania and West Virginia; and exploiting its oil, liquids and to a lesser extent, natural gas reserves in Texas and Oklahoma. IN DECEMBER, CABOT SURPASSED ONE BCFE OF NET PRODUCTION PER DAY FOR THE FIRST TIME IN ITS HISTORY A MILESTONE THAT FURTHER HIGHLIGHTS THE UNIQUELY PROLIFIC NATURE OF ITS ASSETS. 3 1 Bcf 2012 WAS ONE OF OUR BEST YEARS AS INTERSTATE WE DELIVERED TOP LEVEL PRODUCTION PIPELINES GROWTH AT BEST-IN-CLASS FINDING DIRECTLY GROSS DAILY ACCESSIBLE TO COSTS FROM A 100 PERCENT ORGANIC OUR ACREAGE. MARCELLUS PRODUCTION GROWTH INVESTMENT PROGRAM. DAN O. DINGES, CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER TENNESSEE GAS PIPELINE TRANSCO PIPELINE MILLENNIUM PIPELINE all provide efficient delivery of our natural gas to CUMULATIVE Northeast markets. NET ACRES IN MARCELLUS THE MARCELLUS SHALE PRODUCTION ~200,000 CONSTITUTION PIPELINE VENTURE We are partnering with HAS REACHED 500 Williams Partners L.P. to develop the Constitution Pipeline. This large diameter pipeline is specifically designed to transport our Marcellus production to both the New England and New York markets. WE ARE T HE RESULTS BILLION CUBIC FEET NET ACRES IN LIQUIDS- DEVELOPING ONCE AGAIN FROM A WELL FOCUSED PLAYS COUNT OF 189 THE MOST DEMONSTRATE EAGLE FORD ~62,000 PROLIFIC THE VALUE MARMATON ~70,000 ACREAGE Cabots Susquehanna County acreage position in the sweet spot of the Marcellus Shale produced 15 of the OF OUR PROLIFIC PEARSALL ~71,000 OPERATED PRODUCING IN THE U.S. top 20 Pennsylvania Marcellus wells in 2012. ACREAGE. HORIZONTAL WELLS OTHER ~50,000 5 6 7 To Our Shareholders DURING 2012 CABOT OIL & GAS CORPORATION CONTINUED THE MOMENTUM STARTED IN 2011 BY ACHIEVING SEVERAL NEW MILESTONES FOR THE COMPANY. Our most important achievement was another strong year of stock price appreciation with a 31 percent increase, even in the face of stiff headwinds due to low natural gas prices. In 2011, we were the #1 performing stock in the S&P 500 and in 2012 we were the #1 performing stock in our peer group. RECORD MILESTONES 2012 was another standout year for Cabot. Despite a backdrop of macroeconomic uncertainty and depressed natural gas prices, new company records were set for production, proved reserves, revenues, cash flow from operations and discretionary cash flow. We also achieved two new milestones by surpassing one Bcf of daily gross production out of ...