Coterra(US:CTRA)2025-11-04 21:45Financial Performance - Net income increased by $525 million from $824 million in 2024 to $1.3 billion in 2025, representing a 64% increase[92] - Operating revenues for the third quarter of 2025 were $1.817 billion, a 34% increase from $1.359 billion in the same quarter of 2024[125] - Operating revenues for the first nine months of 2025 reached $5,686 million, a 40% increase from $4,063 million in the same period of 2024[150] Production Metrics - Equivalent production increased by 25.9 MMBoe, from 184.9 MMBoe in 2024 to 210.8 MMBoe in 2025, a 14% increase[92] - Oil production increased by 12.8 MMBbl, from 29.4 MMBbl in 2024 to 42.2 MMBbl in 2025, a 43% increase[92] - Natural gas production increased by 44.0 Bcf, from 769.1 Bcf in 2024 to 813.1 Bcf in 2025, a 5.7% increase[92] Capital Expenditures - Total capital expenditures increased from $1.3 billion in 2024 to $1.8 billion in 2025, a 38% increase[92] - Capital expenditures for the nine months ended September 30, 2025, totaled $4.092 billion, with $2.473 billion allocated to proved oil and gas properties[116] Cash Flow - Net cash provided by operating activities rose by $882 million, from $2.2 billion in 2024 to $3.1 billion in 2025, a 41% increase[108] - Cash flows used in investing activities increased by $3.7 billion, from $1.3 billion in 2024 to $5.0 billion in 2025, a 279% increase[111] - Cash flows used in financing activities decreased by $767 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to $947 million higher proceeds from debt issuance and $350 million lower common stock repurchases[112] Debt and Equity - Total debt increased to $3.922 billion as of September 30, 2025, from $3.535 billion as of December 31, 2024, while stockholders' equity rose to $14.718 billion from $13.122 billion[113] - The company repurchased 2 million shares for $47 million during the nine months ended September 30, 2025, compared to 15 million shares for $404 million in the same period of 2024[114] - As of September 30, 2025, total debt stood at $3.9 billion, with $400 million outstanding under term loans and no balance under the revolving credit agreement[183] Dividends - The quarterly dividend was increased from $0.21 per share to $0.22 per share in February 2025[92] - The quarterly dividend was increased from $0.21 to $0.22 per share, resulting in total dividends of $510 million for the nine months ended September 30, 2025, compared to $474 million in 2024[115] Operating Expenses - Operating expenses increased by 30% to $1,347 million in Q3 2025 from $1,035 million in Q3 2024, with direct operations costs rising by 67% to $275 million[136] - Operating expenses totaled $3.81 billion, reflecting a $807 million (27%) increase compared to $3.00 billion in 2024[158] - Direct operations expenses rose by $246 million (51%) to $727 million, primarily due to higher production levels and costs in the Permian Basin[159] Acquisitions - The company closed two acquisitions in January 2025 for a total consideration of $3.3 billion in cash and 28,190,682 shares valued at $785 million[92] - The company completed the FME and Avant acquisitions in January 2025, expanding operations in the Permian Basin[134] Taxation - The effective income tax rate increased to 24.1% in Q3 2025 from 21.0% in Q3 2024, reflecting higher pre-tax income and adjustments[149] - Income tax expense increased by $176 million for the nine months ended September 30, 2025, primarily due to higher pre-tax income and an effective tax rate increase to 22.4% from 20.5%[169] Market Risks - The company is exposed to market risks associated with changes in commodity prices and interest rate movements on outstanding debt[173] - The company has entered into financial commodity derivatives to mitigate commodity price volatility, with significant portions of production currently unhedged[176]