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Coterra Energy to Report Q1 Earnings: Key Metrics to Watch

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Coterra Energy Inc. (CTRA - Free Report) is set to release first-quarter 2025 results on May 5. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 76 cents per share on revenues of $1.9 billion.

Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the March quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.

Highlights of CTRA's Q4 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based upstream energy company topped the consensus mark on strong operational performance, particularly in daily oil and natural gas production volumes. CTRA reported adjusted earnings per share of 49 cents, outperforming the Zacks Consensus Estimate of 42 cents. However, revenues of $1.4 billion missed the Zacks Consensus Estimate by a marginal 0.4% due to weaker realizations.

Coterra Energy beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, resulting in an earnings surprise of 6.9%, on average. This is depicted in the graph below:

Coterra Energy Inc. Price and EPS Surprise

Coterra Energy Inc. Price and EPS Surprise

Coterra Energy Inc. price-eps-surprise | Coterra Energy Inc. Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised a penny (or 1.3%) upward in the past seven days. The estimated figure indicates 49% year-over-year growth. Moreover, the Zacks Consensus Estimate for revenues suggests a 34.1% increase from the year-ago period.

Factors to Consider Ahead of CTRA's Q1 Results

Coterra’s first-quarter revenues and earnings are expected to have been driven by the successful completion of the Franklin Mountain Energy and Avant Natural Resources acquisitions. A strong Gulf Coast LNG demand also signals a bullish outlook. In the fourth quarter, the company’s total equivalent production surpassed the high end of guidance. We expect this uptick to continue in the first quarter of 2025. The company also has a positive outlook for the quarter to be reported. As such, the consensus mark for Coterra Energy’s average daily output is pegged at 739 thousand barrels, implying a 7.7% increase from the year-ago period.

On a further bullish note, Coterra Energy is likely to have benefited from higher natural gas realizations, which constitute more than 65% of its production. The Zacks Consensus Estimate for the company’s first-quarter natural gas realization is pegged at $3.25 per thousand cubic feet (Mcf), indicating a substantial rise of 62.5% from the year-ago quarter. This is likely to boost CTRA’s earnings and cash flows in the quarter to be reported.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Why a Likely Positive Surprise?

Our proven model predicts an earnings beat for Coterra Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

CTRA’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +2.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CTRA’s Zacks Rank: Coterra Energy currently carries a Zacks Rank #3.

Other Stocks With the Favorable Combination

Here are some other energy firms that you may want to consider, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

Calumet, Inc. (CLMT - Free Report) has an Earnings ESP of +15.32% and a Zacks Rank #3. The firm is scheduled to release earnings on May 9.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the Zacks Consensus Estimate for Calumet’s 2025 earnings per share indicates 73.4% year-over-year growth. Valued at around $951.4 million, Calumet’s shares have lost 34.6% in a year.

Delek US Holdings, Inc. (DK - Free Report) has an Earnings ESP of +18.05% and a Zacks Rank #3. The firm is scheduled to release earnings on May 7.

Notably, the Zacks Consensus Estimate for Delek US Holding’s 2025 earnings per share indicates 21.5% year-over-year growth. Valued at around $850.8 million, Delek US Holdings’ shares have lost 55.4% in a year.

ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank #3. The firm is scheduled to release earnings on May 8.

Notably, the Zacks Consensus Estimate for ConocoPhillips’ 2025 revenues indicates 9.88% year-over-year growth. Valued at around $117.5 million, ConocoPhillips’ shares have lost 26.1% in a year.

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