Core Viewpoint - Coterra Energy Inc. reported strong operational performance in Q1 2025, with adjusted earnings per share of 78 cents, surpassing estimates and the previous year's performance, despite missing revenue expectations due to weaker oil prices. Financial Performance - Adjusted earnings per share for Q1 2025 were 78 cents, beating the Zacks Consensus Estimate of 76 cents and up from 50 cents in the year-ago quarter [1] - Operating revenues were $1.9 billion, missing estimates by $37 million but significantly higher than $1.4 billion from the previous year [2] - Cash flow from operations increased by 33.6% to $1.1 billion, with free cash flow for the quarter amounting to $663 million [13] Production and Pricing - Average daily production rose 8.8% to 746.8 thousand barrels of oil equivalent (Mboe), exceeding the Zacks Consensus Estimate of 740 Mboe [7] - Oil production increased 37.8% to 141.2 thousand barrels (MBbl) per day, although it missed the estimate of 144 MBbl [8] - Average realized crude oil price was $69.73 per barrel, down 7.2% from $75.16 a year ago, slightly missing the estimate of $70 [9] Shareholder Returns - The board declared a quarterly dividend of 22 cents per share, representing a 3.4% annualized yield [3] - Total shareholder returns for the quarter reached $192 million, including $168 million in dividends and $24 million in share repurchases [5] - The company repurchased 0.9 million shares for $24 million at an average price of $27.54 per share [4] Debt Management - Coterra is focused on debt reduction, repaying approximately $250 million during the quarter and planning to retire $750 million in term loans maturing in 2027 and 2028 [6][5] - As of March 31, 2025, the company had $186 million in cash and cash equivalents and a total liquidity of about $2.2 billion [14] Guidance - For Q2 2025, Coterra expects total equivalent production between 710 to 760 thousand barrels of oil equivalent per day [16] - The company has lowered its full-year 2025 capital expenditures range to $2-$2.3 billion [15] - Estimated discretionary cash flow for 2025 is approximately $4.3 billion, with free cash flow around $2.1 billion based on commodity price assumptions [17]

Financial Performance - Net income increased by $164 million from $352 million in 2024 to $516 million in 2025, representing a 46.5% increase[88] - Net cash provided by operating activities rose by $288 million, from $856 million in 2024 to $1.1 billion in 2025, a 33.6% increase[88] - Total operating revenues for the first quarter of 2025 were $1,904 million, a 33% increase from $1,433 million in 2024[123] - Natural gas revenues rose by $360 million, primarily due to a 64% increase in average sales price to $3.28 per Mcf[128] - Total dividends declared for Q1 2025 were $170 million, compared to $160 million in Q1 2024[110] Production Metrics - Equivalent production increased by 4.8 MMBoe, from 62.4 MMBoe in 2024 to 67.2 MMBoe in 2025, a 7.7% increase[88] - Oil production increased by 3.4 MMBbl, from 9.3 MMBbl in 2024 to 12.7 MMBbl in 2025, a 36.6% increase[88] - Oil production increased by 37% to 12.7 million barrels in Q1 2025 from 9.3 million barrels in Q1 2024[126] - The average daily production of oil increased by 38% to 141.2 MBbl in Q1 2025 compared to 102.5 MBbl in Q1 2024[126] Capital Expenditures - Total capital expenditures increased to $552 million in 2025 from $450 million in 2024, a 22.8% increase[88] - Capital expenditures for the first quarter of 2025 totaled $599 million, up from $456 million in the same period of 2024[113] - The company expects a full year capital program in the range of $2.0 billion to $2.3 billion for 2025[95] - The company expects its full-year 2025 capital program to be approximately $2.0 billion to $2.3 billion[114] Acquisitions and Dividends - The company closed two acquisitions in January 2025 for a total consideration of $3.2 billion in cash and stock[88] - The quarterly base dividend was increased from $0.21 per share to $0.22 per share in February 2025[88] Operating Expenses - Operating expenses for Q1 2025 totaled $1,202 million, a 21% increase from $992 million in Q1 2024[133] - Direct operations expenses rose to $216 million, up 38% from $156 million in Q1 2024, primarily due to higher production levels and costs in the Permian Basin[134] - Gathering, processing, and transportation costs increased by $32 million, driven by higher production and transportation rates in the Permian and Anadarko Basins[136] - Taxes other than income rose by $22 million to $96 million, with production taxes increasing due to higher production volumes in the Permian and Anadarko Basins[138] - Depreciation, depletion, and amortization (DD&A) expenses increased by $74 million to $506 million, primarily due to a higher depletion rate and increased production[139] - General and administrative expenses increased by $17 million to $92 million, largely due to acquisition and transition costs associated with the FME and Avant acquisitions[142] Debt and Interest - As of March 31, 2025, the company had total debt of $4.3 billion, with $3.5 billion under fixed-rate debt instruments[159] - Interest expense surged by $34 million to $53 million, mainly due to new debt issued to fund the FME and Avant acquisitions[144] - A hypothetical 100 basis point increase in the average interest rate under the term loan would increase interest expense by approximately $2 million for the three months ended March 31, 2025[161] - The fair value of the company's long-term debt as of March 31, 2025, was estimated at $4.159 billion[164] Commodity Price Volatility - The company anticipates continued volatility in commodity prices and may utilize derivative instruments to hedge a portion of its production[151] - The company has a significant portion of its expected oil and natural gas production for 2025 and beyond currently unhedged and exposed to price volatility[155] Derivative Instruments - The company has outstanding oil collars covering 5.0 MMBbls, or 40% of oil production, at a weighted-average price of $69.12 per Bbl[156] - Natural gas collars covered 55.5 Mcf, or 20% of natural gas production, at a weighted-average price of $3.68 per MMBtu[157] - The company entered into financial commodity derivatives in April 2025, including NYMEX gas collars with a volume of 9,150,000 MMBtu and a weighted average ceiling of $5.21 per MMBtu[155] - Oil swaps covered 1.7 MMBbls, or 13% of oil production, at a weighted-average price of $69.18 per Bbl[156] - The company has not incurred any losses related to non-performance risk of counterparties in its derivative contracts[158]

Coterra Energy (CTRA) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Thank you for standing by. My name is Kaila, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Cotera Energy First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the call over to Dan Guffey, VP of Finance, Investor Relations a ...

Coterra Energy (CTRA) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Company Participants Daniel Guffey - Vice President of Finance, Planning & Analysis and Investor RelationsThomas Jorden - CEO, President & ChairmanShane Young - EVP & CFOBlake Sirgo - Senior Vice President of OperationsBetty Jiang - Managing DirectorMichael Deshazer - Senior Vice President of Business UnitsJosh Silverstein - Managing DirectorMatthew Portillo - Partner & Head of ResearchDerrick Whitfield - Managing DirectorKevin MacCurdy - ...

Financial Performance - Coterra Energy reported revenue of $1.9 billion for the quarter ended March 2025, reflecting a year-over-year increase of 32.9% [1] - Earnings per share (EPS) for the quarter was $0.80, up from $0.51 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $1.94 billion, resulting in a revenue surprise of -1.89% [1] - The company achieved an EPS surprise of +2.56%, with the consensus EPS estimate being $0.78 [1] Production Volumes - Total daily equivalent production was 746.8 MBOE/d, exceeding the average estimate of 739.75 MBOE/d by analysts [4] - Natural gas liquids production was 98.3 MBbl, below the six-analyst average estimate of 110.65 MBbl [4] - Natural gas production reached 3,043.8 MMcf/d, surpassing the estimated 2,914.38 MMcf/d [4] - Oil production was reported at 141.2 MBbl/d, slightly below the average estimate of 143.73 MBbl/d [4] Average Sales Prices - Average sales price for natural gas liquids (NGL) was $23.23 per barrel, higher than the estimated $22.47 per barrel [4] - Average sales price for oil, including hedges, was $69.3 per barrel, compared to the estimate of $69.55 per barrel [4] - Average sales price for natural gas was $3.21 per thousand cubic feet, exceeding the estimated $3.02 per thousand cubic feet [4] Operating Revenues - Operating revenues from oil amounted to $886 million, slightly above the average estimate of $882.52 million, representing a year-over-year increase of 26.4% [4] - Operating revenues from natural gas reached $898 million, significantly higher than the average estimate of $832.47 million, with a year-over-year change of 66.9% [4] - Operating revenues from NGL were reported at $206 million, below the average estimate of $223.80 million, with a year-over-year change of 19.1% [4] - Other operating revenues were $26 million, exceeding the average estimate of $14.50 million, representing a year-over-year change of 23.8% [4]

Group 1: Company Performance - Coterra Energy reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 2.56% [1] - Cabot reported revenues of $1.9 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.89%, compared to $1.43 billion in the same quarter last year [2] - Cabot has surpassed consensus EPS estimates two times over the last four quarters, while it has topped consensus revenue estimates just once [2] Group 2: Market Outlook - The sustainability of Cabot's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for Cabot is $0.60 on $1.84 billion in revenues for the coming quarter, and $2.78 on $7.85 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3: Estimate Revisions - The estimate revisions trend for Cabot is mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

1Q25 Earnings Presentation May 2025 Disclaimer Cautionary Statement Regarding Forward-Looking Information Investor Contacts This presentation contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not statements of historical fact and reflect Coterra's current views about future events. Such forward-looking statements include, but are not limited to, statements about returns to shareholders, growth rates, enhanced shareholder value, reserves ...

Production and Operational Performance - For Q1 2025, total BOE production was 747 MBoepd, exceeding guidance of 710 to 750 MBoepd[4] - Total production volumes for the Company increased to 3,043.8 Mmcf/day in Q1 2025, up from 2,960.1 Mmcf/day in Q1 2024, representing a growth of approximately 2.8%[20] - The average daily equivalent production in the Permian Basin increased to 303.4 MBoepd in Q1 2025, up from 248.2 MBoepd in Q1 2024, representing a growth of 22.3%[20] - The Company drilled a total of 75 gross wells in Q1 2025, compared to 70 gross wells in Q1 2024, reflecting a 7.1% increase in drilling activity[21] - The average operated rig count in the Permian Basin increased to 11.7 in Q1 2025, compared to 8.0 in Q1 2024, showing a 46.3% increase in operational capacity[21] Financial Performance - Net Income for Q1 2025 was $516 million, or $0.68 per share, while Adjusted Net Income was $608 million, or $0.80 per share[7] - Operating revenues increased to $1,904 million in Q1 2025, up 32.8% from $1,433 million in Q1 2024[27] - Net income for Q1 2025 was $516 million, representing a 46.5% increase compared to $352 million in Q1 2024[27] - Earnings per share (EPS) rose to $0.68 in Q1 2025, up 44.7% from $0.47 in Q1 2024[27] - Cash flow from operating activities was $1,144 million in Q1 2025, a 33.6% increase from $856 million in Q1 2024[44] - Free cash flow reached $663 million in Q1 2025, compared to $340 million in Q1 2024, indicating a significant increase[44] - Adjusted EBITDAX for Q1 2025 was $1,337 million, up 45.8% from $917 million in Q1 2024[48] Capital Expenditures and Budget - Coterra is lowering its 2025 capital budget range to $2.0 to $2.3 billion, down from $2.1 to $2.4 billion, due to reduced oil-directed activity[11] - Capital expenditures for drilling and completion were $472 million in Q1 2025, slightly higher than $457 million in Q1 2024[31] - Capital expenditures for 2025 are projected to be between $2,000 million and $2,300 million, with a midpoint of $2,150 million[63] Debt and Equity - Coterra's total debt outstanding as of March 31, 2025, was $4.25 billion, with a Net Debt to trailing twelve-month Adjusted Pro Forma EBITDAX ratio of 0.9x[10] - Long-term debt increased to $4,280 million as of March 31, 2025, compared to $3,535 million at the end of 2024[29] - The total debt to total capitalization ratio is 23.1% as of March 31, 2025, up from 21.2% as of December 31, 2024[54] - Net debt increased to $4,094 million as of March 31, 2025, compared to $1,497 million as of December 31, 2024, indicating a significant increase in leverage[57] - Stockholders' equity rose to $14,224 million as of March 31, 2025, up from $13,122 million at the end of 2024[29] Shareholder Returns - The company expects 2025 Free Cash Flow to total $2.1 billion, which will be used for dividends, debt reduction, and share repurchases[7] - The company declared a quarterly dividend of $0.22 per share, equating to a 3.4% annualized yield based on a closing share price of $25.67[11] - Coterra expects to return 50% or greater of annual Free Cash Flow to shareholders through dividends and share repurchases, while prioritizing debt reduction in 2025[11] - The company repurchased 0.9 million shares for $24 million during the quarter, leaving $1.1 billion remaining on its share repurchase authorization[11] Price and Market Outlook - Average sales price for natural gas (excluding hedges) rose to $3.28/Mcf in Q1 2025, compared to $2.00/Mcf in Q1 2024, marking a significant increase of 64%[20] - The average sales price for oil (excluding hedges) decreased to $69.73/Bbl in Q1 2025 from $75.16/Bbl in Q1 2024, a decline of about 7.2%[20] - The Company reported a weighted average floor price for WTI oil collars of $61.79/Bbl for Q2 2025, indicating a strategic hedging position to mitigate price volatility[25] - The Company has entered into financial commodity derivatives for natural gas with a weighted average ceiling price of $5.75/MMBtu for Q4 2026, reflecting proactive risk management[26] - The company has updated its guidance for WTI prices to $63 per barrel and Henry Hub prices to $3.70 per mmbtu for 2025[63] Future Projections - The company expects total equivalent production for 2025 to range from 720 MBoed to 770 MBoed, with a midpoint of 745 MBoed[63] - The company anticipates discretionary cash flow of $5.0 billion for 2025, with a free cash flow forecast of $2.7 billion[63] - The net debt to Adjusted EBITDAX ratio is projected to be 0.9x for the trailing twelve months ended March 31, 2025, compared to 0.4x for the trailing twelve months ended December 31, 2024[60] - The company plans to turn in line 150 to 165 net wells in the Permian Basin for 2025, with no changes in the Marcellus Shale and Anadarko Basin[63]

Coterra Energy Inc. (CTRA) is set to release first-quarter 2025 results on May 5. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 76 cents per share on revenues of $1.9 billion.Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the March quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.Highlights of CTRA's Q4 Earnings & Surprise HistoryIn the last reported quarter, the Houston, ...

Wall Street analysts expect Coterra Energy (CTRA) to post quarterly earnings of $0.76 per share in its upcoming report, which indicates a year-over-year increase of 49%. Revenues are expected to be $1.92 billion, up 34.1% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 8.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's ea ...