Coterra Energy 2023 Outlook

2023 Outlook

“Coterra’s by principles focused on full-cycle value creation and disciplined capital allocation, Coterra expects to invest approximately 50 percent of its cash flow, at recent strip prices”, commented Jorden. “This is expected to result in a 2023 production profile that will be relatively flat year-over-year before returning to modest growth in 2024 and 2025. Coterra’s dynamic organization, top-tier assets and industry-leading balance sheet are poised to generate long-term consistent profitable growth.”

Estimated cash flow from operating activities of approximately $4.0 billion, at recent commodity strip prices
Expected capital investment of $2.0 billion to $2.2 billion
$1,825 to $2,025 million is allocated to drilling and completion activities.
Approximately 49 percent of drilling and completion capital will be invested in the Permian Basin, 44 percent in the Marcellus Shale and the balance in the Anadarko Basin.
Represents approximately 50 percent of projected cash flow from operating activities at recent commodity strip prices.
Capital increase driven by inflation (10% y/y) and a modest activity increase.
Expect annual average production of 610 – 650 MBoe/d, in line with 2022.
Expect annual average oil production of 86-92 MBbls/d, up 2% y/y.
Expect annual average natural gas production of 2,700 – 2,850 MMcf/d, down modestly y/y as Upper Marcellus delineation increases in 2023 (~40% of 2023 Marcellus activity). The 40% Upper Marcellus weighting is expected to be the high-end over the next few years.
Expect to turn-in-line 150 to 175 total net wells.
Estimate free cash flow (non-GAAP) of approximately $1.9 billion, at recent commodity strip prices.

Coterra’s assets are primarily located in the Anadarko Basin, where it holds an acreage position of 182,000 net acres and in the Permian core acreage position includes 234,000 net acres.

Coterra Energy ranks #18 in wells drilled in 2022 with 112 wells drilled in the Mid Continent of the US. The Mid Continent region includes Texas, Oklahoma, New Mexico and Louisiana.