This excerpt taken from the COG 10-K filed Feb 27, 2008.
SIZE="2">Capital Resources and Liquidity
Our primary sources of cash in 2007 were from funds generated from the sale of natural gas and crude oil
We generate cash from the sale of natural gas and crude oil. Operating cash flow fluctuations are substantially
Working capital is also substantially influenced by these variables
Operating Activities. Net cash provided by operating activities in 2007 increased by $105.0 million over
Net cash provided by operating activities in 2006 decreased by $7.5 million over 2005. This decrease was primarily due to an
FACE="Times New Roman" SIZE="2">See Results of Operations for a discussion on commodity prices and a review of the impact of prices and volumes on sales revenue.
FACE="Times New Roman" SIZE="2">Investing Activities. The primary uses of cash in investing activities were capital spending and exploration expenses. We established the budget for these amounts based on our current estimate of future
- 38 -
Cash flows used in investments in capital and exploration expenditures were $516.8 million in 2006 compared to $413.1
Financing Activities. Cash flows provided by financing activities were $104.4
At December 31, 2007, we had $140 million of borrowings outstanding under our credit facility at a weighted-average interest rate of 6.9%.
Our Board of Directors has authorized a share repurchase program under which we may purchase shares of common stock in the open market or in negotiated