Coterra Energy is positioned for resilience in oil & gas cycles, with balanced production and diversified assets. Jorden sees near-term oil price risk to the downside, making gas infrastructure and in-basin consumption (like data centers) increasingly important. Key challenges ahead include water management, regulatory reform, and sustaining operational excellence while navigating market volatility.
Permian Oil & Gas Operator Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
Here’s a structured summary of the Coterra Energy & Industry Discussion with Tom Jorden at FossilFueled 2025:
🎤 Speaker & Context
- Tom Jorden – CEO of Coterra Energy, background in geoscience (Colorado School of Mines). Career with Superior, Union Pacific, Ki, before becoming CEO in 2021.
- Event – FossilFueled 2025, hosted by Dan Pickering (Pickering Energy Partners).
- Focus – The state of the energy industry, particularly the Permian Basin, and Cotera’s strategy.
⚡ Cotera Energy’s Business Model
- Balanced revenue stream: 150k+ bpd oil and ~1 BCF/d gas in the Permian.
- Diversified assets: Anadarko Basin + NE Pennsylvania.
- Strategy: Built for resilience across commodity cycles.
- View: Oil market is currently oversupplied; next $10 move likely downward.
🌍 Global Oil Market & OPEC
- OPEC curtailments possibly linked to U.S. policy encouraging Saudi-Israel normalization against Iran.
- White House prefers low oil prices to offset inflationary pressures.
- If OPEC boosts supply → prices could drop further.
📉 Response to Low Oil Prices
- Some companies profitable even at $50 oil.
- Wells now produce >1,000 bbl/d – unheard of pre-2016.
- If oil < $60 for long, activity slows to preserve capital.
- Past downturns:
- 2016 → 17 months
- 2020 → 9 months
- Lesson: Assume downturns last indefinitely, adjust conservatively.
🛢️ The Permian Basin
- “Most profitable basin” – multi-pay, forgiving geology.
- Key challenge: workforce availability.
- Natural gas becoming a bigger revenue driver as basin matures.
- Future requires stronger gas prices + new infrastructure.
🔌 Natural Gas & Infrastructure
- Permian gas output: 20–25 BCF/d needed for U.S. energy demand.
- Takeaway capacity is constrained; new pipelines depend on price support.
- Data centers in the Permian could absorb large volumes of gas, reducing need for long-haul transport.
🌱 Emissions & ESG
- Cotera committed to operational excellence + emissions reduction.
- Efforts include: spill reduction, cleaner facilities, improved safety.
- Policy durability is critical – should survive political shifts.
- Electrification (e.g., compression) ongoing, but dependent on grid access & gas price economics.
🏛️ Policy & Regulation
- Potential 14–28 day permit turnaround on BLM land → huge for NM operations.
- Current administration includes energy leaders (Chris Wright, Doug Bergam) focused on infrastructure and pragmatic solutions.
📊 Market Outlook
- Unlikely to see U.S. oil rise from 13 → 15 MMBbl/d.
- With $70–75 oil: basin decline manageable.
- Permian = marginal barrel of global supply; OPEC may return as swing producer.
🚰 Water Challenges
- Biggest existential issue: water management.
- Problems: swelling, geysering wells, reservoir encroachment.
- Solutions being explored: treatment, evaporative systems, out-of-basin pipelines, even surface discharge for reuse.
🔗 Consolidation
- Driven by need for lower cost structures.
- Bigger balance sheets → more flexibility, ability to test, withstand cycles.
⚡ Lightning Round Highlights
- WTI 2025: > $55/bbl.
- Gas: ~$2 MCF at some point pre-2030.
- Oil: $80 likely within 3 years.
- Permian Data Centers: “Take the over” on 5 by 2030.
- Favorite region: Delaware Basin.
- Favorite restaurant: Luigi’s Italian.
- Movie pick: The Godfather.
- S&P 500 expected to end 2025 higher.
