Coterra(US:CTRA)2025-08-05 14:00Financial Performance & Outlook - 2Q25 production exceeded guidance, leading to an increase in the full-year 2025 BOE (Barrels of Oil Equivalent) guidance by 4% at the midpoint[20] - The company estimates a 2025 Free Cash Flow (FCF) of $2.1 billion, supported by a balanced commodity exposure between oil and natural gas[20] - Coterra's pro forma leverage is approximately 0.9x, with $350 million of Term Loans retired during 1H25[20] - The company anticipates a 2025 reinvestment rate of approximately 52%[23] Capital Allocation & Investment - The company expects to be near the high end of the $2.1 billion to $2.3 billion 2025 capex guidance range due to increased gas activity[23] - Approximately $1.52 billion is allocated to Permian D&C (Drilling & Completion), $350 million to Marcellus D&C, and $230 million to Anadarko D&C for 2025[24] - Coterra has approximately $31 billion of economic capex opportunities, with approximately 45% expected to generate a 20x PVI10 or better, based on benchmark prices of $75/bbl WTI and $3.75/mmbtu[35] Asset Overview & Operational Highlights - The Permian asset has a midpoint D&C capex of $1.52 billion, targeting 150-165 net wells online with an average lateral length of 10,600 feet[45] - The Marcellus asset has a midpoint D&C capex of $350 million, targeting 10-15 net wells online with an average lateral length of 19,000 feet[54] - The Anadarko asset has a midpoint D&C capex of $230 million, targeting 15-25 net wells online with an average lateral length of 11,060 feet[57] Shareholder Returns - Coterra offers an attractive shareholder return with a 36% dividend yield[9] - The company's 2025 estimated FCF is projected to increase by 73% year-over-year[29]