Workflow
Coterra Energy Q1 Earnings Surpass Estimates, Revenues Miss
CTRACoterra(CTRA) ZACKS·2025-05-07 10:35

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 1.9billion,missingestimatesby1.9 billion, missing estimates by 37 million but significantly higher than 1.4billionfromthepreviousyear[2]−Cashflowfromoperationsincreasedby33.61.4 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 663million[13]ProductionandPricing−Averagedailyproductionrose8.8663 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 75.16ayearago,slightlymissingtheestimateof75.16 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 192million,including192 million, including 168 million in dividends and 24millioninsharerepurchases[5]−Thecompanyrepurchased0.9millionsharesfor24 million in share repurchases [5] - The company repurchased 0.9 million shares for 24 million at an average price of 27.54pershare[4]DebtManagement−Coterraisfocusedondebtreduction,repayingapproximately27.54 per share [4] Debt Management - Coterra is focused on debt reduction, repaying approximately 250 million during the quarter and planning to retire 750millionintermloansmaturingin2027and2028[6][5]−AsofMarch31,2025,thecompanyhad750 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 2.2billion[14]Guidance−ForQ22025,Coterraexpectstotalequivalentproductionbetween710to760thousandbarrelsofoilequivalentperday[16]−Thecompanyhaslowereditsfull−year2025capitalexpendituresrangeto2.2 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 2-2.3billion[15]−Estimateddiscretionarycashflowfor2025isapproximately2.3 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]