Coterra(US:CTRA) ZACKSยท2024-11-06 12:46Core Viewpoint - Coterra Energy Inc. reported weaker-than-expected third-quarter 2024 earnings, primarily due to lower oil and natural gas prices and increased operating expenses compared to the previous year [1][2]. Financial Performance - Adjusted earnings per share for Q3 2024 were 30 cents, missing the Zacks Consensus Estimate of 35 cents and down from 47 cents in the same quarter last year [1]. - Operating revenues totaled $1.4 billion, falling short of the Zacks Consensus Estimate by $11 million but showing a slight increase of 0.2% year-over-year [2]. - Total shareholder returns for the quarter reached $265 million, comprising $154 million in declared dividends and $111 million in share repurchases [3]. Production and Pricing - Average daily production decreased by 0.2% year-over-year to 670.3 thousand barrels of oil equivalent (Mboe), exceeding the Zacks Consensus Estimate of 642 Mboe [5]. - Natural gas production fell by 7.6% to 2,682 million cubic feet (Mmcf) per day, while oil production increased by 22.2% to 112.2 thousand barrels (MBbl) per day [6]. - The average realized price for crude oil was $73.96 per barrel, an 8.5% decrease from $80.84 a year ago [6]. Costs and Expenses - Total operating expenses rose to $1,035 million, up from $939 million in the previous year, with average unit costs increasing to $16.96 per barrel of oil equivalent from $15.15 [8]. - Cash flow from operations decreased by 0.4% to $755 million, while cash capital expenditures for drilling and development amounted to $393 million [9]. Financial Position - As of September 30, 2024, Coterra Energy had $843 million in cash and cash equivalents and long-term debt of $2.1 billion, resulting in a debt-to-capitalization ratio of 13.7% [10]. Guidance - The company anticipates a capital expenditure budget between $1.75 billion and $1.85 billion for 2024, with expected discretionary cash flow of approximately $2.9 billion and free cash flow of about $1.1 billion [11]. - For Q4 2024, Coterra expects total equivalent production in the range of 660-690 Mboe per day and oil production between 107-108 MBopd [12].