Shares of natural gas-focused producer Coterra Energy (CTRA) slipped to a 52-week low of $22.79 per share on Sept. 6, before closing a tad higher at $23.49. Year to date, Coterra Energy has lost more than 10% of its value compared with the sector's decrease of 0.7%. Meanwhile, the S&P 500 Index has risen 13.3% over the same timeframe. The company has also fared worse than its peers like Range Resources (RRC) and Antero Resources (AR) . YTD Price Comparison Image Source: Zacks Investment Research What's Drag ...

Core Insights - Coterra Energy has demonstrated strong operational performance, beating expectations in seven out of the last eight quarters, with notable capital efficiencies and well performance exceeding initial expectations [2][3][5] - The company maintains a diversified business model, with over 70% of its production being natural gas, while oil and natural gas liquids (NGLs) contribute significantly to revenue [5][6][27] - Coterra emphasizes the importance of creating shareholder value through capital allocation, focusing on both M&A opportunities and share buybacks, while maintaining a strong balance sheet [7][9][13] Operational Performance - The operational team at Coterra has fostered a culture of collaboration and best practices, leading to consistent operational cadence and performance [2][3] - The company has successfully implemented simul-frac techniques, which have accelerated project timelines and improved well performance [5][30] Business Model and Market Position - Coterra's diversified revenue streams allow for consistent cash flow, even amidst volatile commodity prices, with cash flow only changing by about 12% despite significant price swings [6][21] - The company trades at a discount compared to pure gas companies and larger exploration and production (E&P) firms, indicating potential for market revaluation as operational excellence is established [4][5] Capital Allocation Strategy - Coterra prioritizes returning cash to shareholders through dividends and share buybacks, with a commitment to maintaining a strong dividend yield [13][14] - The company evaluates M&A opportunities based on the potential to create value for shareholders, emphasizing quality assets and the importance of capital allocation [7][8][10] Future Outlook - Coterra is focused on long-term growth through financial performance rather than production growth, with capital investments typically ranging from 50% to 70% of cash flow [16][17] - The company is well-positioned to adapt to market changes, with a robust inventory and a focus on environmental excellence, including emissions-free facilities and methane detection initiatives [37][38]

Coterra Energy Inc. (NYSE:CTRA) Barclays 38th Annual CEO Energy-Power Conference September 4, 2024 1:15 PM ET Company Participants Thomas Jorden - Chairman & CEO Conference Call Participants Wei Jiang - Barclays Wei Jiang Moving on to our next conversation. I'm really delighted to have Tom Jorden, Chairman, CEO of Coterra Energy to be here for our next fireside chat. Tom, thank you for being here. Thomas Jorden You’re welcome. Wei Jiang It's always great to you -- it's always a treat. Well, from my lens, ...

The U.S. Energy Department's weekly inventory release showed that natural gas supplies increased more than expected. The bearish inventory numbers, together with supply and weather headwinds, affected natural gas futures, which settled with a loss week over week. As a matter of fact, the commodity is currently trading around the lowly $2 level. Considering that the space remains highly susceptible to unpredictable temperature patterns that impact prices and market stability, at this time, we advise investor ...

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The U.S. Energy Department's weekly inventory release showed that natural gas supplies logged an untimely storage withdrawal. The bullish inventory numbers notwithstanding, futures settled with a slight loss week over week in the face of supply and weather headwinds. As a matter of fact, the commodity is currently trading around the lowly $2 level. Considering that the space remains highly susceptible to unpredictable temperature patterns that impact prices and market stability, at this time we advise inves ...

Core Viewpoint - Coterra Energy Inc. reported weaker-than-expected earnings and revenues for the second quarter of 2024, primarily due to lower natural gas prices and increased operating expenses Financial Performance - Adjusted earnings per share for Q2 2024 were 35 cents, missing the Zacks Consensus Estimate of 40 cents and down from 38 cents in the same quarter last year [1] - Operating revenues were $1.3 billion, missing the consensus estimate by $75 million but up 7.3% from $1.2 billion year-over-year, driven by higher oil revenues [2] - Cash flow from operations decreased by 13.6% to $558 million, while free cash flow for the quarter was $246 million [9] Shareholder Returns - The board approved a quarterly base dividend of 21 cents per share, payable on August 29, 2024 [2] - Total shareholder returns for the quarter amounted to $295 million, including $155 million in dividends and $140 million in share repurchases [4] Production and Price Realizations - Average daily production increased by 0.6% year-over-year to 669.2 thousand barrels of oil equivalent (Mboe), exceeding the consensus estimate of 652 Mboe [5] - Oil production rose by 11.9% to 107.2 thousand barrels per day, while natural gas production fell by 4.3% to 2,779.8 million cubic feet per day [6] - The average realized price for crude oil was $79.37 per barrel, a 10.4% increase from $71.88 a year ago [6] Costs and Expenses - Average unit cost rose to $16.26 per barrel of oil equivalent from $15.15 the previous year, driven by a 12.2% increase in depreciation expenses [8] - Total operating expenses increased to $976 million from $909 million year-over-year [8] Guidance - Coterra reaffirmed its capital expenditure budget at $1.75 billion to $1.95 billion and increased its oil production estimate to 105.5-108.5 thousand barrels per day [10] - For Q3 2024, the company anticipates production of 620-650 MBoepd and capital expenditures of $450-$530 million [11] - The company expects $3.2 billion in discretionary cash flow and $1.3 billion in free cash flow for the year [11] Financial Position - As of June 30, 2024, Coterra had $1.1 billion in cash and cash equivalents and long-term debt of $2.1 billion, resulting in a debt-to-capitalization ratio of 16.9% [9]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number 1-10447 COTERRA ENERGY INC. (Exact name of registrant as specified in its charter) Delaware 04-3072771 (State or other jurisdiction of incorporation or organiz ...

Financial Data and Key Metrics - Q2 2024 total production averaged 669 MBoepd, with oil at 107.2 MBopd and natural gas at 2.78 Bcf per day, exceeding guidance [12] - Q2 2024 pre-hedge revenues were $1.3 billion, with 75% from oil and NGL sales [13] - Net income for Q2 2024 was $220 million ($0.30 per share), and adjusted net income was $272 million ($0.37 per share) [13] - Total unit costs in Q2 2024 were $8.35 per BOE, within the annual guidance range of $7.45 to $9.55 per BOE [14] - Q2 2024 free cash flow was $246 million, with $295 million returned to shareholders (120% of free cash flow) [14][17] Business Line Performance - Permian: 23 net wells brought online in Q2 2024, in line with guidance [12] - Marcellus: 12 previously deferred wells brought online in June, contributing negligible volumes [12] - Anadarko: 15 net wells turned in line, above the high end of guidance [13] - Marcellus curtailment: 275 million cubic feet per day net curtailed in August and September due to low pricing [15] Market Performance - Natural gas prices dropped 42% between Q1 and Q2 2024, but revenue only declined 12% due to a balanced revenue stream and geographic diversity [3][4] - U S natural gas production rebounded to over 102 Bcf per day, primarily from the Marcellus and Permian basins [4] - Northeast storage is trending at or near the five-year max, with downward pressure on natural gas prices expected to continue [5] Strategic Direction and Industry Competition - The company is focusing on disciplined capital allocation, prioritizing the most profitable programs and maintaining flexibility to pivot between basins [7][8] - The company is exploring M&A opportunities but emphasizes the importance of acquiring quality assets at reasonable prices [9][10] - The company is committed to operational excellence, emissions reduction, and sustainability [11] Management Commentary on Operating Environment and Future Outlook - The company remains bullish on natural gas long-term but acknowledges near-term oversupply and price pressures [5][6] - The company is prepared to respond to market signals and adjust production and capital allocation as needed [6][15] - The company expects a materially better natural gas market with increasing LNG exports and growing natural gas power demand [6] Other Important Information - The company released its 2024 sustainability report, highlighting progress in emissions reduction and operational excellence [11] - The company increased its 2024 oil production guidance to 105 5 to 108 5 MBopd, up 2 4% from May guidance [16] - The company reiterated its 2024 capital expenditure guidance of $1 75 billion to $1 95 billion, 12% lower than 2023 [16] Q&A Session Summary Question: Learnings from Windham Row and cost savings - The company has seen strong simul-frac performance, leading to increased wells and cost savings of 10% to 15% in Culberson County [26][27][29] - The company plans to apply these learnings to other projects where feasible [28] Question: Shareholder returns and buyback strategy - The company has returned over 100% of free cash flow in the first half of 2024 and remains opportunistic with buybacks [31][32] Question: Three-year outlook and oil production growth - The company is well-positioned to meet or exceed its three-year outlook, with strong capital efficiency and operational performance [34][35][37] Question: Operational flexibility and gas price sensitivity - The company can quickly adjust production and capital allocation based on market conditions, with a focus on netbacks above $1 for Marcellus drilling [45][46] Question: Anadarko development and potential acreage additions - The company sees strong returns in the Anadarko and is open to adding assets if they create value [48] Question: Election year considerations - The company is monitoring the political environment but remains focused on operational excellence and value creation [50][51] Question: Cash tax rate outlook - The company expects to be a full cash tax payer in 2024, with deferred taxes expected to normalize over time [52] Question: Marcellus base performance and drilling activity - The company has seen strong base production in the Marcellus due to wellhead compression and lower field pressures [55] - There is no minimum level of activity required to maintain momentum in the Marcellus [56] Question: Permian oil guidance and capital efficiency - The company has seen significant efficiency gains in the Permian, driven by faster drilling and simul-frac performance [57][58] Question: Harkey well development and Marcellus curtailments - The company has not yet completed any Harkey wells but expects strong performance based on calibration [62] - The 275 million cubic feet per day curtailment represents the portion of the portfolio exposed to in-basin pricing [63] Question: Multi-section developments and operational flexibility - Large-scale multi-section developments like Windham Row are unique to Culberson County due to the contiguous acreage [65][66] - The company has worked to maintain vendor flexibility, allowing for rapid adjustments to capital allocation [75][76] Question: Marcellus turn-in line delays and Anadarko results - The company has not changed its approach to delaying turn-in lines in the Marcellus, with recent results reinforcing the strategy [78] - Efficiency gains in the Permian have also benefited the Anadarko and Marcellus operations [79]

Coterra Energy (CTRA) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -7.50%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $0.41 per share when it actually produced earnings of $0.51, delivering a surprise of 24.39%. Over the last fo ...