Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$27.45Last close (Nov 7, 2023)
Post-Earnings Price$27.41Open (Nov 8, 2023)
Price Change
$-0.04(-0.15%)
- Coterra Energy expects improved production and operational performance in the coming year, with the full Windham Row project, consisting of 51 wells, coming online in 2024, accelerating their production growth.
- Coterra continues to deliver strong asset productivity and capital efficiency, leveraging optimized well spacing and machine learning to extract more resources with fewer wells, leading to better financial returns and capital efficiency.
- Coterra is committed to high shareholder returns while maintaining consistent, profitable growth, returning up to 90% of free cash flow to shareholders and differentiating itself from peers by generating growth in the current price environment.
- The company's move towards wider well spacing and drilling fewer wells per pad could risk leaving stranded resources underground if their assumptions are incorrect, potentially impacting long-term production and reserves.
- The company acknowledges that operational interruptions are always part of their business and that they are "not immune from train wrecks," highlighting potential risks to production targets and financial performance.
- By prioritizing high shareholder returns over production growth, the company may limit its future production increases, which could be unsustainable if market conditions change.