Cabot Oil & Gas Corp., 2011’s best-performing stock among the Standard & Poor’s 500, announced a stock split and dividend increase after more than doubling natural-gas production from the Marcellus Shale in a year.
The two-for-one split will be distributed Jan. 25 to holders of record as of Jan. 17, Houston-based Cabot, said today in a statement. It increased the quarterly dividend on a pre- split basis by 33 percent. Shareholders will get 2 cents a share on Feb. 3, up from the equivalent of 1.5 cents.
Cabot shares doubled in 2011 to $75.90 as output rose. Production from the Marcellus Shale, a gas-rich deposit near U.S. East Coast markets, more than doubled to 600 million cubic feet a day before royalties during the final two days of 2011 a year earlier, Cabot said in a separate statement today.
A compressor upgrade increased Marcellus shipping capacity to 650 million cubic feet a day, the company said. The company expects deliveries of 250 million cubic feet per day from a new pipeline link will begin tomorrow.
The announcements were made before regular trading began on U.S. markets. Cabot rose 3.1 percent to $79.20 a share at 8:21 a.m. in New York.
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