Coterra Ups Production Guidance despite Q1 Income Slump

Coterra Energy Inc. has posted a net income of $352 million for the first quarter, well below the $677 million it reported for the corresponding period of 2023.

The company said in its quarterly financial report that its total equivalent production of 686,000 thousand barrels of oil equivalent per day (boepd) was near the high end of guidance (660,000 to 690,000 boepd. Oil production averaged 102,500 bpd, exceeding the high end of guidance (95,000 to 99,000 bpd). Natural gas production averaged 2,960 million cubic feet per day (MMcfpd), exceeding the high end of guidance (2,850 to 2,950 MMcfpd). Natural gas liquids production averaged 90,200 boepd.

"Coterra continues to deliver outstanding operational and financial results driven by the company's high-quality asset portfolio and top-tier operating team. Coterra continues to fire on all cylinders, and shifting our near-term capital program to focus on oil and liquids-rich plays remains prudent. However, the Company maintains optionality to take advantage of a structural change in the natural gas macro as LNG exports grow and electricity demand increases. One of our core principles at Coterra is maintaining flexibility and our low-cost, diversified asset portfolio provides ample opportunity to generate consistent, profitable growth through the cycles", Chairman, CEO, and President Tom Jordan said.

Buoyed by the first-quarter results, Coterra maintained its 2024 incurred capital expenditures guidance of $1.75 billion to $1.95 billion. The company said it is lifting its 2024 oil production guidance to 102,000 to 107,000 bpd, up 2.5 percent at the mid-point versus the prior guidance.

Coterra said it expects second-quarter 2024 total equivalent production of 625,000 to 655,000 boepd, oil production of 103,000 to 107,000 bpd, natural gas production of 2,600 to 2,700 MMcfpd, and incurred capital expenditures of $470 million to $550 million.

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