Core Viewpoint - Coterra Energy's stock has underperformed in recent trading sessions, with a notable decline in the past month, while upcoming earnings are anticipated to show significant growth in both EPS and revenue compared to the previous year [1][2][3]. Company Performance - Coterra Energy closed at $23.09, reflecting a -5.33% change from the previous day, underperforming against the S&P 500's gain of 0.14% [1]. - The stock has decreased by 9.57% over the past month, contrasting with the Oils-Energy sector's loss of 0.85% and the S&P 500's gain of 5.35% [1]. Upcoming Earnings - The company is set to announce its earnings on August 4, 2025, with an expected EPS of $0.45, indicating a growth of 21.62% year-over-year [2]. - Revenue is projected to reach $1.71 billion, reflecting a 34.45% increase compared to the same quarter last year [2]. Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $2.6 per share, with revenue expected to be $7.59 billion, representing increases of +54.76% and +39.07% respectively from the previous year [3]. Analyst Estimates - Recent changes in analyst estimates for Coterra Energy are crucial for investors, as positive revisions indicate optimism about the business outlook [4]. - The Zacks Rank system, which incorporates estimate changes, currently ranks Coterra Energy as 3 (Hold) [6]. Valuation Metrics - Coterra Energy has a Forward P/E ratio of 9.37, which is lower than the industry average of 10.74, suggesting a valuation discount [7]. - The company holds a PEG ratio of 0.32, significantly below the industry average PEG ratio of 1.45, indicating favorable growth expectations relative to its valuation [8]. Industry Context - The Oil and Gas - Exploration and Production - United States industry, to which Coterra Energy belongs, ranks in the bottom 37% of all industries according to the Zacks Industry Rank [9].

[Coterra Energy Inc. Form 8-K Report (July 21, 2025)](index=1&type=section&id=Form%208-K) [Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) The report details preliminary Q2 2025 realized sales prices, hedging effects, and derivative settlement cash receipts [Realized Prices](index=2&type=section&id=Realized%20Prices) The company reports Q2 2025 average commodity sales prices, including the impact of hedging on oil and natural gas Average Sales Price (Q2 2025) | Average Sales Price (Q2 2025) | Excluding Hedges | Including Hedges | | :--- | :--- | :--- | | Oil ($/Bbl) | $62.80 | $64.01 | | Natural gas ($/Mcf) | $2.20 | $2.27 | | NGL ($/Bbl) | $18.72 | $18.72 | [Derivative Activity](index=2&type=section&id=Derivative%20Activity) Coterra anticipates a net cash receipt from derivative settlements for Q2 2025, pending final closing procedures - For Q2 2025, Coterra anticipates receiving a net of **$35 million in cash** from the settlement of derivative instruments[6](index=6&type=chunk) - The reported realized prices and hedge impacts are **preliminary and subject to final adjustments** upon completion of financial closing procedures[6](index=6&type=chunk) [Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the Cover Page Interactive Data File as the sole exhibit filed with the report - **Exhibit 104**, the Cover Page Interactive Data File, is included with this filing[7](index=7&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report includes a safe harbor statement regarding forward-looking information and associated risks and uncertainties - The report includes forward-looking statements concerning the **anticipated effects of derivatives for Q2 2025**[8](index=8&type=chunk) - Readers are cautioned not to place undue reliance on these statements as they involve **risks and uncertainties** detailed in other SEC filings[8](index=8&type=chunk)

Company Overview - Coterra Energy Inc. is an independent upstream operator engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids, with a focus on the Permian Basin, Marcellus Shale, and Anadarko Basin [11] - The company was formed following the merger between Cabot Oil & Gas Corporation and Cimarex Energy Co. in October 2021 [11] Investment Ratings - Coterra Energy has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid overall rating [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 9.37, which may appeal to value investors [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.07 to $2.61 per share [12] - Coterra Energy has an average earnings surprise of +1.5%, suggesting a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Coterra Energy should be considered for investors' short lists [13]

Industry Overview - The U.S. Energy Information Administration (EIA) reported a natural gas storage build of 55 billion cubic feet (Bcf) for the week ending June 27, bringing total inventories to 2,953 Bcf, which is above expert expectations and continues an 11-week trend of larger-than-average additions [1][8] - Current storage levels are 6.2% above the five-year average but nearly 6% below last year's levels, indicating potential for supply tightening if cooling demand remains strong [6] Demand Dynamics - Total natural gas usage, including LNG exports, is projected to exceed 106 Bcf per day, up from 103.7 Bcf per day the previous week, driven by hot weather and increased demand for cooling [4] - LNG exports are gradually recovering, averaging 15.4 Bcf per day in early July, despite some minor roadblocks due to softer global prices [4] Price Movements - Natural gas prices have been volatile, with U.S. natural gas futures for August delivery dropping 2.26% to $3.44 per million British thermal units (MMBtu) following the EIA's storage report, reflecting concerns over excess supply [5] - Spot prices recently reached a three-year high for June, averaging $3.02/MMBtu, indicating traders are closely monitoring weather patterns for potential demand increases [5] Investment Opportunities - Companies such as Expand Energy (EXE), Coterra Energy (CTRA), and Antero Resources (AR) are highlighted as potential investment opportunities due to their strong fundamentals and positioning in the natural gas market [3][8] - Expand Energy has become the largest natural gas producer in the U.S. and is well-positioned to benefit from increasing demand, with a projected 461.7% year-over-year surge in 2025 earnings per share [9][10] - Coterra Energy, with a significant share of natural gas in its production, has an expected earnings growth rate of 29.1% over the next three to five years, outperforming the industry average [11][12] - Antero Resources, a leading natural gas producer, has a strong production outlook with a projected 1,457.1% year-over-year growth in 2025 earnings per share [13][14]

Core Viewpoint - Investors are reassessing their portfolios after a strong end to the second quarter, with a focus on avoiding underperforming stocks like Coterra Energy Inc (CTRA), which is highlighted as one of the worst energy stocks for July [1]. Group 1: Coterra Energy Performance - Coterra Energy (CTRA) has averaged a 1.5% loss in July over the last decade, with only two instances of positive performance during this period [1]. - The stock is one of six oil, gas, and coal companies listed among the worst performers in July [1]. - CTRA's stock was last seen trading at $25.19, reflecting a 0.6% increase, but it has experienced six consecutive losses and its worst quarter since September 2019 [2]. Group 2: Market Context - CTRA's performance is part of a broader trend, with the average return for oil, gas, and coal stocks being negative, as indicated by the average return of -1.52% for CTRA [2]. - The stock has shown modest year-to-date and year-over-year losses, trading below several key long- and short-term moving averages [2]. - An unwinding of optimism in the options market could further pressure CTRA, as indicated by a high call/put volume ratio of 12.31, which is above 93% of readings from the past year [3].

Group 1 - Coterra Energy (NYSE: CTRA) has partially reversed its decision to reduce its H2 2025 Permian development plans, now planning to operate 10 drilling rigs in the Permian during the second half of the year [2] - The company is focusing on both value opportunities and distressed plays, with a significant emphasis on the energy sector [2] - The analyst Aaron Chow has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks, contributing to the insights on Coterra Energy [2] Group 2 - The article highlights the importance of exclusive research and access to a portfolio of historic research, which includes over 1,000 reports on more than 100 companies [1] - The investment group Distressed Value Investing aims to provide insights into various companies and opportunities within the energy sector [1] - The article does not provide specific financial metrics or performance data for Coterra Energy [3]

Core Viewpoint - Coterra Energy Inc. (CTRA) has decided to maintain its rig count at nine in the Permian Basin, indicating renewed confidence in the oil market despite previous plans to reduce operations due to market uncertainties [1][9]. Group 1: Rig Count and Capital Expenditures - In May, Coterra had planned to reduce its rig count to seven by the second half of 2025 and cut capital expenditures in the Permian by $150 million due to concerns over potential oil price collapses [2]. - The company now expects to keep its rig count steady at nine, which will push its capital spending to the high end of the updated annual guidance of $2 billion to $2.3 billion [3][9]. Group 2: Profitability and Market Conditions - Coterra has expressed confidence in its ability to remain profitable even in lower price environments, stating it can deliver solid returns with West Texas Intermediate (WTI) crude priced between $60 and $65 per barrel, and can still be viable with prices dipping to $50 [4][9]. - The company’s flexibility is enhanced by the fact that only a few of its rigs are locked into long-term contracts, allowing for quick adjustments in response to market conditions [5]. Group 3: Market Sentiment and Strategic Outlook - The decision to maintain the rig count reflects Coterra's cautious optimism in a still-fragile market, as the sentiment around oil prices stabilizes [5]. - This strategic pivot indicates a recalibration towards resilience rather than retreat in the face of market uncertainties [5].

Core Insights - Coterra Energy is participating in the 2025 J.P. Morgan Energy, Power, Renewables and Mining Conference, highlighting its strategic importance in the energy sector [1] - The company has a unique capital allocation strategy that invests in both liquids and oil as well as natural gas, which is particularly relevant given the current volatility in energy markets [3] Company Overview - Thomas E. Jorden, the CEO, emphasizes the macroeconomic concerns surrounding oil prices, indicating a renewed focus on oil within the industry [4] - Coterra's approach to capital allocation allows it to leverage its strong asset base across different segments of the commodity price spectrum, providing a competitive advantage [3]

Summary of Conference Call Industry Overview - The discussion primarily revolves around the oil and gas industry, particularly focusing on the impact of the shale revolution on U.S. oil production and energy independence [2][3][4]. Key Company Insights Company Position and Strategy - The company, Kotera, emphasizes its strong position in the market, highlighting its stability in cash flow and low cost of supply, which allows for flexible capital allocation [5][6]. - Kotera has a balanced asset portfolio that enables it to maintain capital efficiency despite price volatility in the oil and gas markets [5][6]. Capital Allocation - The company has adjusted its capital allocation strategy, moving some capital from oil to gas due to market uncertainties, particularly in the Middle East [6][10]. - Kotera can achieve returns at oil prices as low as $50 per barrel, indicating a robust operational efficiency [6][10]. Natural Gas Production - Kotera produces approximately 3 billion cubic feet (BCF) of natural gas per day, with a balanced revenue stream from both oil and gas [11][12]. - The company is actively drilling in the Marcellus and Anadarko regions, with plans to drill 11 wells this year and 17 in the next couple of years [12][13]. Inventory Depth and Growth - Kotera asserts that it has a deep inventory across its three core business units, with a focus on maintaining high-quality inventory for future growth [15][17]. - The company is confident in its ability to grow volumes while investing only 50% of its cash flow, which is a significant improvement from a decade ago when it was outspending its cash flow [16][21]. Mechanical Issues and Response - Kotera faced a mechanical issue with 11 wells in the Harkie shale, which temporarily affected its market cap by approximately $2 billion [22][24]. - The company has identified a solution to the mechanical issue and is optimistic about bringing the affected wells back online [26][32]. Future Outlook - The company maintains its production guidance despite the mechanical issues, indicating a strong operational outlook [38]. - Kotera is redirecting some capital to the more productive Wolfcamp program due to the Harkie issue, which is expected to yield higher returns [39][40]. Regulatory and Market Considerations - The potential reactivation of the Constitution pipeline is a significant factor for Kotera's capital planning, as it could enhance gas transportation and market access [51][52]. - The company is optimistic about the regulatory environment for the Constitution pipeline, which could lead to increased natural gas supply to New England [56][57]. Cash Return Strategy - Kotera plans to maintain its ordinary dividend as a priority, while also focusing on debt reduction following recent acquisitions [60][61]. - The company took on additional debt for acquisitions but aims to pay it off within the year [61][62]. Conclusion - Kotera is positioned well within the oil and gas industry, with a focus on operational efficiency, strategic capital allocation, and addressing mechanical challenges. The company remains optimistic about future growth and market opportunities, particularly in natural gas and pipeline infrastructure.

Group 1: Company Performance - Coterra Energy (CTRA) closed at $26.70, with a +2.14% increase from the previous day, outperforming the S&P 500's daily loss of 1.13% [1] - The company has gained 5.87% in the past month, while the Oils-Energy sector gained 5.03% and the S&P 500 gained 3.55% [1] - The forecasted EPS for the upcoming release is $0.51, reflecting a 37.84% increase from the same quarter last year, with expected revenue of $1.76 billion, indicating a 38.54% growth [2] Group 2: Annual Estimates - For the annual period, earnings are anticipated to be $2.59 per share and revenue is expected to be $7.59 billion, representing increases of +54.17% and +39.14% respectively from the previous year [3] - Recent changes to analyst estimates indicate positive revisions, suggesting analysts' confidence in the company's performance and profit potential [3] Group 3: Valuation Metrics - Coterra Energy has a Forward P/E ratio of 10.11, which is lower than the industry's Forward P/E of 11.19, indicating a valuation discount [6] - The company has a PEG ratio of 0.35, significantly lower than the average PEG ratio of 2.55 for the Oil and Gas - Exploration and Production - United States industry [7] Group 4: Industry Context - The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector and currently holds a Zacks Industry Rank of 172, placing it in the bottom 31% of over 250 industries [8] - The Zacks Industry Rank assesses the strength of industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]