Coterra Energy Q3 Earnings on Deck: Here's How It Will Fare

Core Viewpoint - Coterra Energy Inc. is expected to report third-quarter results on October 31, with a consensus estimate of a profit of 37 cents per share and revenues of $1.3 billion, reflecting challenges due to low natural gas prices and a strategic shift towards oil-rich assets [1][4]. Financial Performance - In the previous quarter, Coterra Energy reported adjusted earnings per share of 37 cents, missing the consensus estimate of 40 cents, and revenues of $1.3 billion, which was 5.6% below expectations [3]. - The Zacks Consensus Estimate for the second-quarter earnings indicates a 26% year-over-year drop, while revenues are expected to decline by 2.4% from the previous year [3]. Market Factors - Natural gas prices have significantly decreased, impacting Coterra's revenue streams, with a projected realization of $1.31 per thousand cubic feet, a 27% drop from the previous year [4][5]. - The company's natural gas volume for the third quarter is estimated at 2,574 million cubic feet per day, down from 2,903 million cubic feet per day in the same quarter last year, with natural gas accounting for approximately 70% of total output [4]. Strategic Adjustments - Coterra is shifting focus towards oil-rich assets in the Delaware Basin, which is expected to help capitalize on higher oil prices, with crude output projected at 110 thousand barrels per day, a 20% increase from the previous year [5]. Earnings Expectations - The Earnings ESP for Coterra Energy is -5.48%, indicating uncertainty in beating estimates for the upcoming quarter, and the company currently holds a Zacks Rank of 4 (Sell) [6][7].