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Coterra Energy (CTRA) Q4 Earnings and Revenues Miss Estimates
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Coterra Energy Inc. (CTRA - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 52 cents, which missed the Zacks Consensus Estimate of 56 cents. The bottom line also declined from the year-ago quarter’s level of $1.16. The underperformance could be primarily attributed to weaker oil and natural gas realizations.
This oil and gas exploration and production firm’s operating revenues of $1.6 billion missed the Zacks Consensus Estimate by $54 million. The figure also fell 30.4% from the year-ago level of $2.3 billion.
Coterra Energy's board of directors approved a quarterly base dividend of 21 cents per share, up 5% year over year. The dividend will be paid on Mar 28, 2024, to shareholders of record as of Mar 14, 2024.
Coterra Energy Inc. Price, Consensus and EPS Surprise
The average fourth-quarter daily production increased 10.3% from the year-ago level to 697.4 thousand barrels of oil equivalent (Mboe). The figure also surpassed the Zacks Consensus Estimate of 672 Mboe.
The daily production of natural gas increased 6.8% year over year to 2,970 Mmcf/day. Oil production rose 15.4% to 104.7 MBbl/day, and natural gas liquids (NGL) production increased 25.2% to 97.8 MBbl/day during the same time frame.
The average sales price for crude during the fourth quarter was $77.1 per barrel, indicating a 13.4% decrease from the prior-year level of $82.26. The figure was also lower than the consensus mark of $80 per barrel.
The average realized natural gas price was $2.17 per thousand cubic feet compared with $5.16 in the year-earlier period. The figure was also lower than the consensus estimate of $2.31 per thousand cubic feet.
Costs & Expenses
The average unit cost in the quarter fell to $16 per barrels of oil equivalent (boe) from the year-ago quarter’s $17.11. This was mainly on account of a decline in unit operating cost, which dropped 4.8% year over year to $8.41 per boe. Furthermore, Coterra’s depreciation outlay decreased 5.7% year over year on a per barrel basis.
Financial Position
Cash flow from operations went down 48.8% to $760 million, while Coterra’s cash capital expenditure for drilling and development totaled $468 million. The company’s free cash flow for the quarter was $413 million. It also executed $29 million in share repurchases during the period.
As of Dec 31, 2023, the company had $956 million in cash and cash equivalents. Coterra Energy had a long-term debt (including the current portion) of $2.2 billion as of the same date, reflecting a debt-to-capitalization of 14.2%.
Guidance
Coterra Energy expects its budgeted capital spending to be between $1.75 billion and $1.95 billion for 2024.
The company expects a discretionary cash flow (non-GAAP) of $3.15 billion and a free cash flow (non-GAAP) of $1.3 billion.
CTRA expects total equivalent production in the range of 660-690 thousand barrels of oil equivalent per day (MBoepd), oil production in the band of 95-99 thousand barrels of oil per day (MBopd), natural gas production in the 2,850-2,950 million cubic feet per day (MMcfpd) range, and capital expenditures in the band of $460-$540 million for the first quarter of 2024.
The company presents a new three-year outlook spanning from 2024 through 2026, estimating growth rates of 0-5% in barrels of oil equivalent and more than 5% in oil Compound Annual Growth Rates (CAGRs). This prediction is based on annual incurred capital expenditures (non-GAAP) averaging between $1.75 billion and $1.95 billion.
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Coterra Energy (CTRA) Q4 Earnings and Revenues Miss Estimates
Coterra Energy Inc. (CTRA - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 52 cents, which missed the Zacks Consensus Estimate of 56 cents. The bottom line also declined from the year-ago quarter’s level of $1.16. The underperformance could be primarily attributed to weaker oil and natural gas realizations.
This oil and gas exploration and production firm’s operating revenues of $1.6 billion missed the Zacks Consensus Estimate by $54 million. The figure also fell 30.4% from the year-ago level of $2.3 billion.
Coterra Energy's board of directors approved a quarterly base dividend of 21 cents per share, up 5% year over year. The dividend will be paid on Mar 28, 2024, to shareholders of record as of Mar 14, 2024.
Coterra Energy Inc. Price, Consensus and EPS Surprise
Coterra Energy Inc. price-consensus-eps-surprise-chart | Coterra Energy Inc. Quote
Production & Price Realizations
The average fourth-quarter daily production increased 10.3% from the year-ago level to 697.4 thousand barrels of oil equivalent (Mboe). The figure also surpassed the Zacks Consensus Estimate of 672 Mboe.
The daily production of natural gas increased 6.8% year over year to 2,970 Mmcf/day. Oil production rose 15.4% to 104.7 MBbl/day, and natural gas liquids (NGL) production increased 25.2% to 97.8 MBbl/day during the same time frame.
The average sales price for crude during the fourth quarter was $77.1 per barrel, indicating a 13.4% decrease from the prior-year level of $82.26. The figure was also lower than the consensus mark of $80 per barrel.
The average realized natural gas price was $2.17 per thousand cubic feet compared with $5.16 in the year-earlier period. The figure was also lower than the consensus estimate of $2.31 per thousand cubic feet.
Costs & Expenses
The average unit cost in the quarter fell to $16 per barrels of oil equivalent (boe) from the year-ago quarter’s $17.11. This was mainly on account of a decline in unit operating cost, which dropped 4.8% year over year to $8.41 per boe. Furthermore, Coterra’s depreciation outlay decreased 5.7% year over year on a per barrel basis.
Financial Position
Cash flow from operations went down 48.8% to $760 million, while Coterra’s cash capital expenditure for drilling and development totaled $468 million. The company’s free cash flow for the quarter was $413 million. It also executed $29 million in share repurchases during the period.
As of Dec 31, 2023, the company had $956 million in cash and cash equivalents. Coterra Energy had a long-term debt (including the current portion) of $2.2 billion as of the same date, reflecting a debt-to-capitalization of 14.2%.
Guidance
Coterra Energy expects its budgeted capital spending to be between $1.75 billion and $1.95 billion for 2024.
The company expects a discretionary cash flow (non-GAAP) of $3.15 billion and a free cash flow (non-GAAP) of $1.3 billion.
CTRA expects total equivalent production in the range of 660-690 thousand barrels of oil equivalent per day (MBoepd), oil production in the band of 95-99 thousand barrels of oil per day (MBopd), natural gas production in the 2,850-2,950 million cubic feet per day (MMcfpd) range, and capital expenditures in the band of $460-$540 million for the first quarter of 2024.
The company presents a new three-year outlook spanning from 2024 through 2026, estimating growth rates of 0-5% in barrels of oil equivalent and more than 5% in oil Compound Annual Growth Rates (CAGRs). This prediction is based on annual incurred capital expenditures (non-GAAP) averaging between $1.75 billion and $1.95 billion.
Zacks Rank and Key Picks
Currently, CTRA carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) and Energy Transfer LP (ET - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. (MUSA - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 is valued at $4.03 billion. The company currently pays a dividend of 38 cents per share, or 2.89%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $50.1 billion. The company currently pays a dividend of $1.26 per share, or 8.48%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Murphy USA is valued at around $8.25 billion. In the past year, its shares have risen 52.8%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.