Coterra Energy Q3 earnings miss estimates, production guidance raised

HOUSTON - Coterra Energy Inc. (NYSE: NYSE:CTRA ) reported third quarter earnings that missed analyst estimates, but raised its full-year production guidance as output exceeded expectations across all regions.

The oil and gas producer posted adjusted earnings of $0.32 per share, below the $0.35 per share analysts were expecting.

Despite the earnings miss, Coterra increased its 2024 production outlook, citing faster cycle times and strong well performance. The company now expects full-year oil production of 107-108 thousand barrels per day (MBopd), up from its previous guidance of 105.5-108.5 MBopd.

Total production in Q3 averaged 669 thousand barrels of oil equivalent per day (MBoepd), exceeding the high end of guidance by 3%. Oil production of 112.3 MBopd also beat the top end of the company's forecast.

"Coterra continues to exceed its 2024 plan and has strong momentum with significant optionality heading into 2025," said CEO Tom Jorden. "Our teams continue to deliver strong and improving capital efficiency through operational execution."

The company lowered its full-year capital expenditure guidance by $50 million at the midpoint to $1.75-1.85 billion, citing lower midstream, saltwater disposal and infrastructure spending as well as reduced activity in the Marcellus shale.

Coterra returned 96% of its $277 million in free cash flow to shareholders in Q3 through dividends and share repurchases. The company declared a quarterly dividend of $0.21 per share.

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Source: Investing.com