The chart below shows how CTRA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CTRA sees a +0.82% change in stock price 10 days leading up to the earnings, and a +1.01% change 10 days following the report. On the earnings day itself, the stock moves by -0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Production Performance: Coterra Energy reported a strong third quarter with total production averaging 669 MBOE per day, driven by oil averaging 112.3 MBOPD and natural gas averaging 2.68 Bcf per day, slightly above the high end of guidance.
Production Guidance Increase: The company raised its production guidance and lowered its capital guidance for the fully year, indicating a positive outlook for 2024 with expectations of continued organic oil growth.
Quarterly Net Income Report: Coterra's net income for the quarter was reported at $252 million, or $0.34 per share, with adjusted net income of $233 million, or $0.32 per share, reflecting strong profitability.
Cash Hedge Gains Impact: During the third quarter, cash hedge gains totaled $28 million, contributing positively to the financial results and enhancing cash flow.
Shareholder Returns and Dividends: The company returned $265 million to shareholders during the quarter, representing 96% of free cash flow, and announced a dividend of $0.21 per share, which annualizes to $0.84 per share, one of the highest yielding dividends in its peer group.
Negative
Net Income Decline: Coterra Energy reported a net income of $252 million or $0.34 per share, which is a decrease compared to the adjusted net income of $233 million or $0.32 per share from the previous year.
Unit Cost Analysis: Total unit costs during the quarter, including LOE, transportation, production taxes, and G&A, totaled $8.73 per BOE, near the midpoint of the annual guidance range of $7.45 to $9.55 per BOE.
Capital Expenditures Shortfall: Accrued capital expenditures in the third quarter were $418 million below the low end of our guidance range as we spent less on midstream infrastructure and SWD capital.
Hedging Strategy Gains: Cash hedge gains during the quarter totaled $28 million, indicating reliance on hedging strategies to mitigate revenue fluctuations.
Capital Expenditure Increase: We expect total capital expenditures during the fourth quarter to be between $410 million and $500 million, indicating a potential increase in spending despite previous reductions.
Coterra Energy, Inc. (CTRA) Q3 2024 Earnings Call Transcript
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