In a shift that reflects renewed confidence in the oil market, Coterra Energy CEO Tom Jorden announced the company will maintain nine active rigs in the Permian Basin, backing away from previously announced plans to scale down operations. This update, shared during the J.P. Morgan Energy, Power & Renewables Conference, comes as macro conditions stabilize and crude price outlooks improve.
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Coterra Energy (NYSE: CTRA) – Permian Activity Update
Rig Count Reversal:
- New Plan: Hold Permian rig count steady at nine rigs.
- Original Plan: Reduce to seven rigs in H2 2025 (from ten at the start of the year).
- Previous Cutback Reason: $150M capex reduction due to oil price and macroeconomic uncertainty.
CEO Commentary (Tom Jorden):
- Cautious outlook earlier in the year due to oil price volatility.
- Quote: “We’re feeling a little better about that now.”
- Compared past market cycles where oil prices “wobble” before sudden collapse.
Market Context:
- Earlier pressure on crude prices due to:
- Slowing global demand.
- Elevated inventories.
- Ongoing OPEC+ supply uncertainty.
This signals cautious optimism from Coterra and a more stable near-term outlook for Permian operations, likely influenced by recent resilience in WTI prices and improving sentiment in upstream capital discipline.
