Exceeded Production Guidance
Coterra Energy exceeded the high end of their guidance range for natural gas and total barrel of oil equivalent production. Oil volumes also came in well above the midpoint of guidance.
Strong Financial Performance
Pre-hedge oil and gas revenues came in at $1.7 billion, with a 7% increase in oil contribution quarter-over-quarter. Net income was $511 million or $0.67 per share, and adjusted net income was $367 million or $0.48 per share.
Operational Efficiency and Cost Reduction
Cash operating costs totaled $9.34 per BOE, down 6% quarter-over-quarter. Capital expenditures were 7% below the midpoint of guidance.
Increased Production Guidance
Coterra increased their annual MBoe per day production guidance midpoint by 4% and natural gas volume guidance midpoint by 5%.
Strong Asset Performance
New Harkey wells brought online have met or exceeded expectations. The Marcellus production significantly outperformed forecasts, with the most productive wells in their history.
New Power Netback Deal
Coterra announced a new power netback deal in the Permian with a 50,000 MMBtu per day long-term sale, adding additional power netback exposure to their gas sales portfolio.