Coterra Energy missed Wall Street expectations for sales and earnings, but boosted production targets.

From CNBC: 2024-08-02 13:37:54

Coterra Energy missed Wall Street expectations for sales and earnings in Q2. Revenue increased to $1.27 billion but fell short of the $1.33 billion consensus forecast. Adjusted diluted earnings per share dropped to 37 cents, missing expectations. Despite the stock drop, management raised production and cash flow targets for the year, showing strong execution. Coterra returned $295 million to shareholders in Q2. This amounts to 120% of free cash flow generated, demonstrating the commitment to focus on cash returns. The company had $1.3 billion remaining under its buyback authorization. CEO Tom Jorden highlighted the benefit of flexibility in allocating resources between oil and natural gas based on commodity economics. Full-year guidance includes an upward revision of discretionary cash flow to $3.2 billion and a production target of 645 to 675 MBoepd. Q3 guidance projects total equivalent production of 620 to 650 MBoepd, oil production of 107 to 111 MBopd, and natural gas production of 2,500 to 2,630 MMcfd. Capital expenditures are estimated at $450 million to $530 million for Q3.



Read more at CNBC:: Coterra’s strong energy production allowed for big cash returns to shareholders