Coterra Energy cuts FY25 capex view to $2.0B-$2.3B from $2.1B-$2.4B

The company states: “For the first quarter of 2025, total barrels of oil equivalent (BOE) production, natural gas production, and oil production were all above the midpoint of guidance, and capital expenditures (non-GAAP) were below the midpoint of guidance. Raising BOE and natural gas production guidance at the midpoint and maintaining full-year 2025 oil production midpoint guidance. Lowering 2025 capital budget range to $2.0 to $2.3 billion, driven by less oil-directed activity partially offset by higher natural gas-directed activity. The Company’s reinvestment rate (non-GAAP), which is capital expenditures (non-GAAP) as a percentage of Discretionary Cash Flow, at recent strip prices, is expected to remain conservative at approximately 50% in 2025. Reducing 2025 Permian activity to seven rigs from our original plan of ten rigs during the second half of 2025 and reducing total Permian capital by approximately $150 million. Added two Marcellus rigs in April, as planned. We now expect to keep both rigs running into the second half of 2025, adding an incremental $50 million of capital to our 2025 Marcellus program. We also maintain an option to keep the second rig running through year-end, which could add an incremental $50 million of capital in the year. We expect to make this decision during the third quarter. Expected 2025 Free Cash Flow to total $2.1 billion, at recent strip prices, which we expect will be used to fund our dividend, reduce debt and execute share repurchases.”