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 ...

News Release Coterra Energy Reports Second-Quarter 2024 Results, Announces Quarterly Dividend, and Provides ThirdQuarter 2024 Guidance and Full-Year 2024 Updates HOUSTON, August 1, 2024 - Coterra Energy Inc. (NYSE: CTRA) ("Coterra" or the "Company") today reported second-quarter 2024 financial and operating results and declared a quarterly dividend of $0.21 per share. Additionally, the Company provided third-quarter production and capital guidance and updated full-year 2024 guidance. Key Takeaways & Updates ...

Coterra Energy Inc. (CTRA) is set to release second-quarter results on Aug 1. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 40 cents per share on revenues of $1.4 billion. Highlights of Q1 Earnings & Surprise History Coterra Energy beat the Zacks Consensus Estimate in three of the last four quarters and missed in the other, resulting in an earnings surprise of 9.8%, on average. This is depicted in the graph below: Coterra Energy Inc. Price and EPS Surprise The Zacks Consensus Es ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Coterra Energy (CTRA) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. This independent oil and gas company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-ov ...

Investors have had a healthy dose of skepticism about energy stocks over the past year. A sluggish recovery in China has muddled the demand picture. However, Brent crude has stabilized between $75 and $90, a profitable price for energy stocks. At the same time, demand for natural gas, particularly liquefied natural gas, is rising due to its important role in the energy transition. Coterra Energy (CTRA) In Q1 2024, natural gas accounted for 72% of its production mix and 38% of revenues. Besides gas productio ...

Market Performance - U.S. stock markets have shown exceptional performance over the past 18 months, with the S&P 500 increasing by approximately 17% year to date and 24% in 2023, achieving 36 all-time highs [1] Economic Outlook - Recent economic data releases have underperformed estimates, leading some economists to suggest that the Federal Reserve should consider lowering the benchmark lending rate starting in September [2] Investment Strategy - The Relative Price Strength Strategy emphasizes evaluating a stock's performance relative to its industry or peers, alongside earnings growth and valuation multiples [3] - Stocks that outperform their sectors in terms of price are more likely to provide significant returns, while underperforming stocks should be avoided [4] - Stocks that have outperformed the S&P 500 over the last 1 to 3 months and possess solid fundamentals are considered to have growth potential [5] Analyst Sentiment - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to additional price gains [6] Screening Parameters - Key screening parameters include relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7] - Stocks with a VGM Score of A or B, combined with a Zacks Rank of 1 or 2, are identified as having the best upside potential [8] Company Highlights - NextEra Energy Partners (NEP) has a market capitalization of $2.5 billion and is projected to have a 455.9% year-over-year growth in earnings per share for 2024, despite a 54% decline in share price over the past year [10] - Haemonetics Corporation (HAE) is expected to see a 15.4% year-over-year growth in earnings per share for fiscal 2025 and has a VGM Score of A [11] - Coterra Energy (CTRA) has an expected EPS growth rate of 10.8% over the next three to five years, slightly above the industry average of 10.5%, and holds a VGM Score of B [12] - LendingTree, Inc. (TREE) has a market capitalization of $550.3 million, with a projected 18% growth in earnings for 2024 and a trailing four-quarter earnings surprise of approximately 119.1% [17][18] - Williams-Sonoma, Inc. (WSM) has a market capitalization of $18.3 billion, with an expected 8.3% year-over-year growth in earnings per share for fiscal 2025 and a significant share price increase of 135.2% over the past year [21]