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 ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------|-------|-------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | | ...

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 ...

Coterra Energy Inc. (CTRA) reported second-quarter 2024 adjusted earnings per share of 35 cents, which missed the Zacks Consensus Estimate of 40 cents. The bottom line also declined from the year-ago quarter's level of 38 cents per share. The year-over-year underperformance was due to weaker natural gas realizations and a 7.4% increase in operating expenses. This oil and gas exploration and production firm's operating revenues of $1.3 billion missed the Zacks Consensus Estimate by $75 million. However, the ...

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 ...