Financial Data and Key Metrics Changes - Cotera Energy reported pre-hedge revenues of $2 billion, up from $1.4 billion in the previous quarter, with a significant increase in natural gas price realizations contributing to this growth [21] - The company generated net income of $516 million or $0.68 per share, and adjusted net income of $608 million or $0.80 per share [21] - Discretionary cash flow for the quarter was $1.135 billion, significantly up from $776 million in the prior quarter, while free cash flow was $663 million after cash capital expenditures [22] Business Line Data and Key Metrics Changes - Oil production was approximately 2% above the midpoint of guidance, while natural gas production exceeded the high end of guidance [20] - The company reported net turn-in lines of 37 in the Permian, below the guidance midpoint of 40, and zero in the Marcellus as expected [20] - The full-year production guidance remains unchanged despite a slight reduction in capital expenditures [18][24] Market Data and Key Metrics Changes - The company is experiencing a modest pullback in activity in the Permian Basin while incrementally adding activity in the Marcellus Shale, resulting in a projected $100 million reduction in 2025 CapEx [11][12] - Natural gas production is expected to average between 2.725 and 2.875 Bcf per day, delivering over 1 Tcf of gas on an annualized basis [27] Company Strategy and Development Direction - Cotera Energy emphasizes flexibility in capital allocation, describing its approach as a "guided missile" that can adapt to changing market conditions [13] - The company is committed to debt reduction, particularly focusing on a $1 billion term loan executed in conjunction with recent acquisitions [14][30] - The strategic focus includes optimizing investment allocation while lowering capital expenditure by $100 million for 2025, maintaining a strong balance sheet to navigate market volatility [24][30] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns regarding the oil outlook but maintained a constructive view on natural gas, indicating a cautious approach to capital spending [11][62] - The company is prepared for potential market volatility and is optimistic about the long-term performance of its diverse asset portfolio [39] - Management highlighted the importance of maintaining a fortress balance sheet to protect shareholder returns and capitalize on market opportunities [30] Other Important Information - The company announced a quarterly dividend of $0.22 per share, maintaining one of the highest yielding base dividends in the industry at over 3.4% [29] - The Windom Row project included 73 total wells, with strong performance from Wolfcamp wells, while Harkey wells faced mechanical issues that are being addressed [14][15] Q&A Session Summary Question: Clarification on Harkey shale issues - Management confirmed that the issues were related to cementing and are considered temporary, with remediation steps underway [42][46] Question: Impact on future development plans - Management reassured that the three-year growth plan remains intact and does not foresee significant changes due to the current issues [45][46] Question: Production guidance and ramp-up expectations - Management indicated that the production guidance does not rely on the return of Harkey volumes, with expectations for substantial sequential production increases in the latter half of the year [78][79] Question: Prioritization between buybacks and debt reduction - Management emphasized that debt repayment will be the priority in 2025, while buybacks will be opportunistic and back-end weighted [64][65] Question: Update on Barbara Row development - Management confirmed that Harkey wells have been removed from the current frac schedule, with a focus on Wolfcamp completions [67][68] Question: Natural gas priorities and macro view - Management expressed optimism about the Marcellus program and its growth potential, supported by favorable market conditions [72][73]

Coterra Energy (CTRA) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Thank you for standing by. My name is Kaila, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Cotera Energy First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the call over to Dan Guffey, VP of Finance, Investor Relations a ...

Coterra Energy (CTRA) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Company Participants Daniel Guffey - Vice President of Finance, Planning & Analysis and Investor RelationsThomas Jorden - CEO, President & ChairmanShane Young - EVP & CFOBlake Sirgo - Senior Vice President of OperationsBetty Jiang - Managing DirectorMichael Deshazer - Senior Vice President of Business UnitsJosh Silverstein - Managing DirectorMatthew Portillo - Partner & Head of ResearchDerrick Whitfield - Managing DirectorKevin MacCurdy - ...

Group 1 - The core viewpoint of the articles indicates that major U.S. shale oil companies are reducing capital expenditures in response to a significant drop in oil prices, which has raised concerns about the peak production levels of U.S. shale oil [1][2][5] - Diamondback Energy announced a reduction in its 2025 capital budget by $400 million, bringing it to a range of $3.8 billion to $4.2 billion [1] - Coterra Energy plans to cut its 2025 capital expenditures to $2 billion to $2.3 billion, down from a previous estimate of $2.1 billion to $2.4 billion [2] Group 2 - The energy research group Enverus suggests that if the recent forecasts from these shale oil giants hold true, U.S. shale oil production is expected to decline for the remainder of this year and into 2026, potentially allowing OPEC+ to regain market share [2] - Following OPEC+'s announcement to increase production by 411,000 barrels per day in June, concerns have grown regarding the potential for further production increases unless a reduction agreement is reached among member countries [2] - The price of Brent crude oil has fallen to its lowest level in four years, dropping below $60 per barrel, while WTI crude oil is nearing $57 per barrel, creating a challenging environment for U.S. shale oil producers [2][5] Group 3 - In response to the low oil prices, Diamondback Energy plans to reduce the number of drilling rigs by 10% by the end of June and further decrease in the third quarter [5] - Coterra Energy intends to reduce its drilling rigs in the Permian Basin from 10 to 7 in the second half of the year [5] - Analysts warn that many U.S. shale oil producers may struggle to remain profitable at oil prices below $60 per barrel, particularly in aging basins, which could lead to further drilling halts, rig reductions, and layoffs [5]

Financial Performance - Coterra Energy reported revenue of $1.9 billion for the quarter ended March 2025, reflecting a year-over-year increase of 32.9% [1] - Earnings per share (EPS) for the quarter was $0.80, up from $0.51 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $1.94 billion, resulting in a revenue surprise of -1.89% [1] - The company achieved an EPS surprise of +2.56%, with the consensus EPS estimate being $0.78 [1] Production Volumes - Total daily equivalent production was 746.8 MBOE/d, exceeding the average estimate of 739.75 MBOE/d by analysts [4] - Natural gas liquids production was 98.3 MBbl, below the six-analyst average estimate of 110.65 MBbl [4] - Natural gas production reached 3,043.8 MMcf/d, surpassing the estimated 2,914.38 MMcf/d [4] - Oil production was reported at 141.2 MBbl/d, slightly below the average estimate of 143.73 MBbl/d [4] Average Sales Prices - Average sales price for natural gas liquids (NGL) was $23.23 per barrel, higher than the estimated $22.47 per barrel [4] - Average sales price for oil, including hedges, was $69.3 per barrel, compared to the estimate of $69.55 per barrel [4] - Average sales price for natural gas was $3.21 per thousand cubic feet, exceeding the estimated $3.02 per thousand cubic feet [4] Operating Revenues - Operating revenues from oil amounted to $886 million, slightly above the average estimate of $882.52 million, representing a year-over-year increase of 26.4% [4] - Operating revenues from natural gas reached $898 million, significantly higher than the average estimate of $832.47 million, with a year-over-year change of 66.9% [4] - Operating revenues from NGL were reported at $206 million, below the average estimate of $223.80 million, with a year-over-year change of 19.1% [4] - Other operating revenues were $26 million, exceeding the average estimate of $14.50 million, representing a year-over-year change of 23.8% [4]

Group 1: Company Performance - Coterra Energy reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 2.56% [1] - Cabot reported revenues of $1.9 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.89%, compared to $1.43 billion in the same quarter last year [2] - Cabot has surpassed consensus EPS estimates two times over the last four quarters, while it has topped consensus revenue estimates just once [2] Group 2: Market Outlook - The sustainability of Cabot's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for Cabot is $0.60 on $1.84 billion in revenues for the coming quarter, and $2.78 on $7.85 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3: Estimate Revisions - The estimate revisions trend for Cabot is mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

1Q25 Earnings Presentation May 2025 Disclaimer Cautionary Statement Regarding Forward-Looking Information Investor Contacts This presentation contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not statements of historical fact and reflect Coterra's current views about future events. Such forward-looking statements include, but are not limited to, statements about returns to shareholders, growth rates, enhanced shareholder value, reserves ...

Production and Operational Performance - For Q1 2025, total BOE production was 747 MBoepd, exceeding guidance of 710 to 750 MBoepd[4] - Total production volumes for the Company increased to 3,043.8 Mmcf/day in Q1 2025, up from 2,960.1 Mmcf/day in Q1 2024, representing a growth of approximately 2.8%[20] - The average daily equivalent production in the Permian Basin increased to 303.4 MBoepd in Q1 2025, up from 248.2 MBoepd in Q1 2024, representing a growth of 22.3%[20] - The Company drilled a total of 75 gross wells in Q1 2025, compared to 70 gross wells in Q1 2024, reflecting a 7.1% increase in drilling activity[21] - The average operated rig count in the Permian Basin increased to 11.7 in Q1 2025, compared to 8.0 in Q1 2024, showing a 46.3% increase in operational capacity[21] Financial Performance - Net Income for Q1 2025 was $516 million, or $0.68 per share, while Adjusted Net Income was $608 million, or $0.80 per share[7] - Operating revenues increased to $1,904 million in Q1 2025, up 32.8% from $1,433 million in Q1 2024[27] - Net income for Q1 2025 was $516 million, representing a 46.5% increase compared to $352 million in Q1 2024[27] - Earnings per share (EPS) rose to $0.68 in Q1 2025, up 44.7% from $0.47 in Q1 2024[27] - Cash flow from operating activities was $1,144 million in Q1 2025, a 33.6% increase from $856 million in Q1 2024[44] - Free cash flow reached $663 million in Q1 2025, compared to $340 million in Q1 2024, indicating a significant increase[44] - Adjusted EBITDAX for Q1 2025 was $1,337 million, up 45.8% from $917 million in Q1 2024[48] Capital Expenditures and Budget - Coterra is lowering its 2025 capital budget range to $2.0 to $2.3 billion, down from $2.1 to $2.4 billion, due to reduced oil-directed activity[11] - Capital expenditures for drilling and completion were $472 million in Q1 2025, slightly higher than $457 million in Q1 2024[31] - Capital expenditures for 2025 are projected to be between $2,000 million and $2,300 million, with a midpoint of $2,150 million[63] Debt and Equity - Coterra's total debt outstanding as of March 31, 2025, was $4.25 billion, with a Net Debt to trailing twelve-month Adjusted Pro Forma EBITDAX ratio of 0.9x[10] - Long-term debt increased to $4,280 million as of March 31, 2025, compared to $3,535 million at the end of 2024[29] - The total debt to total capitalization ratio is 23.1% as of March 31, 2025, up from 21.2% as of December 31, 2024[54] - Net debt increased to $4,094 million as of March 31, 2025, compared to $1,497 million as of December 31, 2024, indicating a significant increase in leverage[57] - Stockholders' equity rose to $14,224 million as of March 31, 2025, up from $13,122 million at the end of 2024[29] Shareholder Returns - The company expects 2025 Free Cash Flow to total $2.1 billion, which will be used for dividends, debt reduction, and share repurchases[7] - The company declared a quarterly dividend of $0.22 per share, equating to a 3.4% annualized yield based on a closing share price of $25.67[11] - Coterra expects to return 50% or greater of annual Free Cash Flow to shareholders through dividends and share repurchases, while prioritizing debt reduction in 2025[11] - The company repurchased 0.9 million shares for $24 million during the quarter, leaving $1.1 billion remaining on its share repurchase authorization[11] Price and Market Outlook - Average sales price for natural gas (excluding hedges) rose to $3.28/Mcf in Q1 2025, compared to $2.00/Mcf in Q1 2024, marking a significant increase of 64%[20] - The average sales price for oil (excluding hedges) decreased to $69.73/Bbl in Q1 2025 from $75.16/Bbl in Q1 2024, a decline of about 7.2%[20] - The Company reported a weighted average floor price for WTI oil collars of $61.79/Bbl for Q2 2025, indicating a strategic hedging position to mitigate price volatility[25] - The Company has entered into financial commodity derivatives for natural gas with a weighted average ceiling price of $5.75/MMBtu for Q4 2026, reflecting proactive risk management[26] - The company has updated its guidance for WTI prices to $63 per barrel and Henry Hub prices to $3.70 per mmbtu for 2025[63] Future Projections - The company expects total equivalent production for 2025 to range from 720 MBoed to 770 MBoed, with a midpoint of 745 MBoed[63] - The company anticipates discretionary cash flow of $5.0 billion for 2025, with a free cash flow forecast of $2.7 billion[63] - The net debt to Adjusted EBITDAX ratio is projected to be 0.9x for the trailing twelve months ended March 31, 2025, compared to 0.4x for the trailing twelve months ended December 31, 2024[60] - The company plans to turn in line 150 to 165 net wells in the Permian Basin for 2025, with no changes in the Marcellus Shale and Anadarko Basin[63]

Coterra Energy Inc. (CTRA) is set to release first-quarter 2025 results on May 5. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 76 cents per share on revenues of $1.9 billion.Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the March quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.Highlights of CTRA's Q4 Earnings & Surprise HistoryIn the last reported quarter, the Houston, ...

Wall Street analysts expect Coterra Energy (CTRA) to post quarterly earnings of $0.76 per share in its upcoming report, which indicates a year-over-year increase of 49%. Revenues are expected to be $1.92 billion, up 34.1% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 8.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's ea ...