Coterra Energy Inc. reported strong financial and operational results for Q1 2024, exceeding production guidance and delivering solid earnings.
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Coterra Energy Wells Drilled Since 2023
The company declared a quarterly dividend of $0.21 per share and repurchased $150 million worth of shares, totaling approximately 90% of its Free Cash Flow for the quarter. Guidance for 2024 was updated, with increased oil production forecasts and maintained capital expenditure guidance. Coterra issued $500 million in senior unsecured notes to manage its debt, maintaining a healthy financial position with significant liquidity. Additionally, the company emphasized its commitment to sustainability and environmental stewardship.
Drilling & Completions
The report mentions that cash paid for capital expenditures related to drilling, completion, and other fixed asset additions totaled $457 million, with incurred capital expenditures at $450 million, below the low end of the guidance range. Additionally, the company noted improved cycle times and strong well performance across all three regions, contributing to near-high-end total equivalent production. This suggests efficient and effective drilling operations during the quarter, resulting in operational success and cost management.
Natural Gas
The report provides details on natural gas production, stating that it averaged 2,960 MMcfpd (million cubic feet per day) during the first quarter of 2024. This figure exceeded the high end of the guidance range (2,850 to 2,950 MMcfpd), indicating strong performance in natural gas production. Additionally, guidance for the second quarter of 2024 includes projections for natural gas production, suggesting that natural gas remains a significant component of Coterra Energy Inc.’s operations.
Production
The provided information outlines various production metrics for Coterra Energy Inc. during the first quarter of 2024:
- Total equivalent production for the quarter was 686 MBoepd (thousand barrels of oil equivalent per day), which was near the high end of the guidance range (660 to 690 MBoepd).
- Oil production averaged 102.5 MBopd (thousand barrels of oil per day), exceeding the high end of guidance (95 to 99 MBopd).
- Natural gas production averaged 2,960 MMcfpd (million cubic feet per day), surpassing the high end of guidance (2,850 to 2,950 MMcfpd).
- NGLs (Natural Gas Liquids) production averaged 90.2 MBoepd.
These production figures indicate strong performance across various categories, with oil and natural gas production exceeding guidance expectations. Additionally, the report highlights improved cycle times and strong well performance contributing to overall production success.
Budget
The report provides details on Coterra Energy Inc.’s budget and capital expenditure plans:
- Reiterated guidance for 2024 incurred capital expenditures (non-GAAP) of $1.75 to $1.95 billion.
- Increased 2024 oil production guidance by 2.5% at the mid-point compared to prior guidance, suggesting allocation of budget towards activities aimed at boosting oil production.
- Expectations for second-quarter 2024 total equivalent production, oil production, natural gas production, and incurred capital expenditures (non-GAAP), providing insights into budget allocation for upcoming operations.
- The company maintains a commitment to shareholder returns while managing its budget, aiming to return 50% or greater of annual Free Cash Flow (non-GAAP) to shareholders through dividends and share repurchases.
Overall, the report indicates that Coterra Energy Inc. is carefully managing its budget to align with operational objectives, focusing on maximizing shareholder value while ensuring efficient capital allocation.
