HOUSTON - Coterra Energy Inc. (NYSE: NYSE:CTRA) reported robust first-quarter financial results, surpassing Wall Street's expectations with an earnings per share (EPS) of $0.51, a significant $0.10 higher than the analyst estimate of $0.41.
The company's revenue also outperformed consensus estimates, coming in at $1.43 billion against the anticipated $1.39 billion. Following the earnings release, Coterra's stock price rose by 2.13%, indicating a positive investor response to the company's strong quarterly performance and increased oil production guidance for 2024.
In a statement, Tom Jorden, Chairman, CEO, and President, attributed the positive results to Coterra's high-quality asset portfolio and top-tier operating team. The company's focus on oil and liquids-rich plays, coupled with its ability to adapt to changes in the natural gas market, were highlighted as key drivers of success.
For the first quarter of 2024, Coterra's net income under GAAP was $352 million, translating to $0.47 per share. The adjusted net income, which excludes non-recurring items, stood at $383 million or $0.51 per share. The company's free cash flow (non-GAAP) reached $340 million, with shareholder returns totaling approximately 90% of this figure, including a quarterly base dividend and $150 million in share repurchases.
Coterra's production for the quarter was near the high end of guidance, with total equivalent production of 686 thousand barrels of oil equivalent per day (MBoepd), and oil production averaging 102.5 thousand barrels of oil per day (MBopd), exceeding the high end of guidance. Natural gas production also surpassed expectations, averaging 2,960 million cubic feet per day (MMcfpd).
Looking ahead, Coterra has reaffirmed its 2024 capital expenditure guidance, maintaining the range of $1.75 to $1.95 billion. The company has raised its 2024 oil production guidance, now expecting to produce between 102 to 107 MBopd, marking a 2.5% increase at the mid-point compared to prior forecasts. For the second quarter of 2024, Coterra anticipates total equivalent production to be in the range of 625 to 655 MBoepd, with oil production between 103 to 107 MBopd.
Coterra estimates its 2024 discretionary cash flow (non-GAAP) to be approximately $3.1 billion and free cash flow (non-GAAP) to be around $1.3 billion, based on $79/bbl West Texas Intermediate (WTI) and $2.35/mmbtu average NYMEX assumptions.
The company's financial position remains strong, with a net debt to trailing twelve-month EBITDAX ratio (non-GAAP) at March 31, 2024, of 0.3x. Coterra's commitment to shareholder returns and sustainable practices continues to be a cornerstone of its business strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.