Coterra(US:CTRA)2024-11-01 12:48Financial Performance & Capital Allocation - Coterra expects to reinvest 50-70% of cash flow at mid-cycle prices[6, 21] - The company is committed to returning a minimum of 50% of annual Free Cash Flow (FCF) to shareholders through base dividends and buybacks[6] - Coterra has a $20 billion share repurchase authorization, with $12 billion remaining as of September 30, 2024[6] - The annualized 3Q24 declared dividend is $084 per share, a 5% year-over-year increase, resulting in a 35% yield based on the share price as of October 30, 2024[6] - Coterra returned 100% of Year-To-Date 2024 FCF to shareholders via declared base dividends and buybacks[6] Production & Operations - The company anticipates a 5%+ oil Compound Annual Growth Rate (CAGR) over 2024-2026, with 0-5% BOE CAGR[6] - Coterra expects 2024 capital expenditures to be down 14% year-over-year at the mid-point, driven by deflation, Permian efficiencies, and lower Marcellus activity, while expecting 12% year-over-year oil volume growth[6] - The company has secured new LNG contracts to diversify its gas portfolio, with 200 mmcfd tied to international pricing and 550 mmcfd participating in the LNG market, representing approximately 7% and 20% of 2024 estimated gas volumes, respectively[9, 10] Asset Portfolio - Coterra estimates ~$25 billion, or ~95%, of its capital expenditure opportunities are expected to generate a 13x PVI10 or better[12] - The company's Permian asset has a mid-point D&C CapEx of $1050 million, targeting 80-90 net wells online with an average lateral length of 9600 feet[36] - Coterra's Marcellus asset has a mid-point D&C CapEx of $300 million, targeting 10-12 net wells online[7, 57]