Coterra Energy Inc. is an independent oil and gas company engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids (NGLs) within the continental U.S. **[0000858470-24-000019_cog-20231231.htm:89]** **[0001104659-24-113520_tm2426413-1_s3asr.htm:2]**. The company operates in one segment, focusing on oil and natural gas development, exploration, and production, with its activities concentrated in areas conducive to multi-well, repeatable drilling programs **[0000858470-24-000019_cog-20231231.htm:89]** **[0001104659-24-113520_tm2426413-1_s3asr.htm:2]**. Coterra generates revenue from contracts to sell oil, natural gas, and NGLs produced from its interests in oil and gas properties **[0000858470-24-000019_cog-20231231.htm:94]**. The company sells its production under both long-term and short-term sales contracts at market-sensitive prices to a diverse portfolio of customers, including industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities **[0000858470-24-000019_cog-20231231.htm:8]**.

1. **Oil Sales** - Engages in the sale of oil produced from its interests in oil and gas properties, contributing significantly to the company's revenue.
2. **Natural Gas Sales** - Involves the sale of natural gas, which is extracted and marketed to various customers, forming a substantial part of the company's business.
3. **Natural Gas Liquids (NGLs) Sales** - Focuses on the sale of natural gas liquids, adding to the company's diverse energy product offerings.

019ecc8ae571b0692a1389543701c97031bc2f1f23824ca6ffdb2994338ddd46

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

7cf1602e6b094f423e7b5bb8d4ac59279a10d3885db3d41cd6ed08f8fbd9ea1d

32d5f71ab9f16c81caeac73996d373a23af24c5257c0dff49415a230e3aecead

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Natural Gas          | **1,246**  **[0000858470-23-000005_ctra-12312022xxexx991earni.htm:9]**  | **822**  **[0000858470-23-000028_cog-20230331.htm:11]**  | **436**  **[0000858470-23-000037_cog-20230630.htm:25]**  | **481**  **[0000858470-23-000056_ctra-20230930.htm:27]**  | **553**  **[0000858470-24-000006_ctra-12312023xxexx991earni.htm:9]**  | **538**  **[0000858470-24-000069_ctra-20240331.htm:23]**  | **319**  **[0000858470-24-000106_ctra-20240630.htm:24]**  | **320**  **[0000858470-24-000121_ctra-20240930.htm:26]**  |
| Oil                  | **686**  **[0000858470-23-000005_ctra-12312022xxexx991earni.htm:9]**  | **615**  **[0000858470-23-000028_cog-20230331.htm:11]**  | **626**  **[0000858470-23-000037_cog-20230630.htm:25]**  | **684**  **[0000858470-23-000056_ctra-20230930.htm:27]**  | **742**  **[0000858470-24-000006_ctra-12312023xxexx991earni.htm:9]**  | **701**  **[0000858470-24-000069_ctra-20240331.htm:23]**  | **774**  **[0000858470-24-000106_ctra-20240630.htm:24]**  | **765**  **[0000858470-24-000121_ctra-20240930.htm:26]**  |
| NGL (Natural Gas Liquids) | **180**  **[0000858470-23-000005_ctra-12312022xxexx991earni.htm:9]**  | **177**  **[0000858470-23-000028_cog-20230331.htm:11]**  | **129**  **[0000858470-23-000037_cog-20230630.htm:25]**  | **170**  **[0000858470-23-000056_ctra-20230930.htm:27]**  | **168**  **[0000858470-24-000006_ctra-12312023xxexx991earni.htm:9]**  | **173**  **[0000858470-24-000069_ctra-20240331.htm:23]**  | **176**  **[0000858470-24-000106_ctra-20240630.htm:24]**  | **186**  **[0000858470-24-000121_ctra-20240930.htm:26]**  |
| Other                | **18**  **[0000858470-23-000005_ctra-12312022xxexx991earni.htm:9]**  | **25**  **[0000858470-23-000028_cog-20230331.htm:11]**  | **6**  **[0000858470-23-000037_cog-20230630.htm:25]**  | **18**  **[0000858470-23-000056_ctra-20230930.htm:27]**  | **32**  **[0000858470-24-000006_ctra-12312023xxexx991earni.htm:9]**  | **21**  **[0000858470-24-000069_ctra-20240331.htm:23]**  | **18**  **[0000858470-24-000106_ctra-20240630.htm:24]**  | **24**  **[0000858470-24-000121_ctra-20240930.htm:26]**  |

3103d9263d869f197a0deda66a97258222a0b8f3afb1dd23d1d158f665d17095

| Metric / Period | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Volume of WTI Oil Collars | N/A | **1,350** | **920** | **920** | **1,840** | **2,730** **[0000858470-24-000019_cog-20231231.htm:101]** | **3,220** **[0000858470-24-000102_ctra-6302024xxexx991earnin.htm:7]** | **2,024** **[0000858470-24-000118_ctra-9302024xxexx991earnin.htm:7]** |
| Weighted Avg Floor for WTI Oil Collars | N/A | **$70.00** | **$65.00** | **$65.00** | **$65.00** | **$68.00** | **$65.00** | **$65.00** |
| Weighted Avg Ceiling for WTI Oil Collars | N/A | **$116.03** | **$89.66** | **$89.66** | **$90.01** | **$91.37** | **$87.17** | **$87.01** |
| Volume of WTI Midland Oil Basis Swaps | **1,365** | **1,350** | **920** | **2,760** | **1,840** | **2,730** | **1,820** | **1,840** |
| Weighted Avg Differential for WTI Midland Oil Basis Swaps | **$0.63** | **$0.63** | **$1.01** | **$1.16** | **$1.17** | **$1.16** | **$1.24** | **$1.11** |
| Natural Gas Collars Volume | **29,150,000** | **60.3 Bcf** | **32,200,000** | **20,240,000** | **29,150,000** | **34.5 Bcf** | **27,300,000** | **36,800,000** |
| Net Wells Turned-In-Line | **45.4** | **48.2** | **39.1** | **45.7** | **40.0** | **33.0** | **49.8** | **35.5** |
| Equivalent Production | **632** | **635** | **665** | **670** | **697** | **686** | **669** | **669** |
| Oil Production | **90.7** | **92.2** | **95.8** | **91.9** | **104.7** | **102.5** | **107.2** | **112.3** |
| Natural Gas Production | **2,780** | **2,757** | **2,904** | **2,903** | **2,970** | **2.96 Bcf/d** | **2,780** | **2,682** |
| NGL Volumes | **7.2 MMBbl** | **7.5 MMBbl** | **85.0** | **94.5** | **97.8** | **90.2** | **98.8** | **109.7** |
| Avg Realized Prices for Oil | **$81.57** | **$74.09** | **$72.17** | **$80.74** | **$77.21** | **$75.00** | **$79.39** | **$74.18** |
| Avg Realized Prices for Natural Gas | **$4.74** | **$3.72** | **$1.95** | **$2.01** | **$2.19** | **$2.10** | **$1.40** | **$1.41** |
| Avg Realized Prices for NGL | **$25.02** | **$23.66** | **$16.67** | **$19.52** | **$18.66** | **$21.09** | **$19.53** | **$18.42** |
| Depletion Expense | N/A | **$5.89** | **$5.98** | **$6.27** | **$6.20** | **$6.39** | **$6.80** | **$7.19** |

116e5bcaecc450f62f3d20ee91a7b400b08ce4247ce6f72f27224930c5d8b271

1c4aa977041d846a5bfea2e17ed5dcb7ab43cfcc15aa6fecdf6bc71eecb06532

1. Given that the giant row developments like Windham Row are unique to Culberson County due to your acreage position, how do you intend to achieve similar economies of scale and operational efficiencies in other areas of the Permian where you lack such contiguous acreage, particularly in the crowded New Mexico portion?  **[CTRA_3396267_19]** 

2. Despite not having conclusive evidence about interference between the Harkey and Upper Wolfcamp formations, you've decided to default to codeveloping them; how do you justify this strategy, and what are the potential risks to recovery and returns if further data suggests independent development would have been more optimal?  **[CTRA_3396267_20]** 

3. With the ongoing oversupply in natural gas markets and your decision to curtail Marcellus production, how do you balance short-term cash flow optimization with potential long-term impacts on your production profile and market share, especially if low prices persist?  **[CTRA_3396267_11]** **[CTRA_3396267_18]** 

4. Considering your reluctance to overpay for additional acreage due to frothy market conditions and the acknowledgement that you don't have ample acreage anywhere, particularly in the Anadarko Basin, what is your strategy for maintaining or expanding your inventory without compromising on capital discipline?  **[CTRA_3396267_12]** 

5. Given your ability to pivot operations across different regions in response to market conditions, how do you ensure that such shifts don't adversely affect your operational efficiency and execution excellence, especially when dealing with regions that have differing operational challenges and infrastructure?  **[CTRA_3396267_11]** **[CTRA_3396267_15]** 

316f5d2e1846fd0bc1c0ef57943705b14196cbe5ee3af7356ca82a0f3e35cafb

Volume of WTI Oil Collars

Weighted Avg Floor for WTI Oil Collars

Weighted Avg Ceiling for WTI Oil Collars

Volume of WTI Midland Oil Basis Swaps

Weighted Avg Differential for WTI Midland Oil Basis Swaps

Natural Gas Collars Volume

Net Wells Turned-In-Line

Equivalent Production

Oil Production

Natural Gas Production

NGL Volumes

Avg Realized Prices for Oil

Avg Realized Prices for Natural Gas

Avg Realized Prices for NGL

Depletion Expense

b02e977ce2d5b5644a21228ce946e4b15691d1489b7121041b6352074f615180

1db7198512cc496571a28e102fe965ada45ceedce745a29a8aafcf2425de88d3

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Oil Production Guidance**: Increased to between **105.5 and 108.5 MBo per day** for 2024, up approximately 2.4% from May guidance  **[CTRA_3396267_4]** .
  2. **Natural Gas Production Guidance**: Maintained at the midpoint for the full year 2024  **[CTRA_3396267_4]** .
  3. **BOE Production Guidance**: Increased by **5 MBoe per day** at the midpoint from May for 2024  **[CTRA_3396267_4]** .
  4. **Capital Expenditure Guidance**: Full year incurred capital between **$1.75 billion and $1.95 billion**, 12% lower at the midpoint than 2023  **[CTRA_3396267_4]** .
  5. **Per BOE Cost Guidance**: No changes to 2024 per BOE cost guidance  **[CTRA_3396267_4]** .
  6. **Q3 2024 Production Guidance**:
     - Total production: **620 to 650 MBoe per day**.
     - Oil production: **107 to 111 MBo per day**.
     - Natural gas production: **2.5 to 2.63 Bcf per day**  **[CTRA_3396267_3]** .
  7. **Q3 2024 Capital Expenditure Guidance**: Expected total incurred capital between **$450 million and $530 million**  **[CTRA_3396267_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Full Year 2024 Capital Guidance**: Incurred capital between **$1.75 billion and $1.95 billion**, 12% lower at the midpoint than 2023  **[CTRA_3383229_3]** .
  2. **Full Year 2024 Oil Production Guidance**: Increased by 2.5 MBo per day to between **102 and 107 MBo per day**  **[CTRA_3383229_2]** .
  3. **Full Year 2024 BOE and Natural Gas Production Guidance**: No changes  **[CTRA_3383229_2]** .
  4. **Q2 2024 Production Guidance**:
     - Total production: **625 to 655 MBoe per day**.
     - Oil production: **103 to 107 MBo per day**.
     - Natural gas production: **2.6 to 2.7 Bcf per day**  **[CTRA_3383229_2]** .
  5. **Q2 2024 Capital Expenditure Guidance**: Total incurred capital between **$470 million and $550 million**  **[CTRA_3383229_2]** .
  6. **Unit Cost Guidance**: Total unit costs between **$7.45 to $9.55 per BOE**  **[CTRA_3383229_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  1. **Q1 2024 Production Guidance**:
     - Total production: **660 to 690 MBOE per day**.
     - Oil production: **95 to 99 MBO per day**.
     - Natural gas production: **2.85 to 2.95 Bcf per day**  **[CTRA_3374845_3]** .
  2. **Full Year 2024 Production Guidance**:
     - Total production: **635 to 675 MBOE per day**.
     - Oil production: **99 to 105 MBO per day**, 6% higher at the midpoint than 2023  **[CTRA_3374845_3]** .
  3. **Capital Expenditure Guidance**:
     - Q1 2024: **$460 million to $540 million**  **[CTRA_3374845_3]** .
     - Full Year 2024: **$1.75 billion to $1.95 billion**, 12% lower at the midpoint than 2023  **[CTRA_3374845_3]** **[CTRA_3374845_1]** .
  4. **Natural Gas Production Guidance for 2024**: **2.65 to 2.8 Bcf per day**, 5.5% lower at the midpoint than 2023  **[CTRA_3374845_4]** .
  5. **3-Year Outlook (2024-2026)**:
     - Average annual CapEx: **$1.75 billion to $1.95 billion**.
     - Expected annual growth: Low single digits for BOE and 5% plus for oil growth  **[CTRA_3374845_1]** **[CTRA_3374845_4]** .
  6. **Shareholder Returns**: Base dividend for Q4 2023: **$0.21 per share**, increasing the annual base dividend by 5% to **$0.84 per share**  **[CTRA_3374845_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information from the Q3 2024 earnings call for Coterra Energy (CTRA). Therefore, I cannot provide the guidance metrics from that specific earnings call.

fca4cabd714083de1414bf0e151b31544094a588d9648592b50ee49413929b1d

Natural Gas

Crude Oil and Condensate

Brokered Natural Gas

Other

Gain on Derivative Instruments

Total Revenue

5af6a2d7fc542bd19b3948f63b9a0b6f1ea3559465199c97f4e52a79d8e343e0

| Name                  | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Thomas E. Jorden      | Chairman, CEO, and President                  | October 1, 2021    | Thomas E. Jorden is the Chairman, CEO, and President of Coterra Energy Inc. He began his role following the merger with Cimarex. He was appointed Chairman on January 1, 2023  **[0000858470-24-000019_cog-20231231.htm:59]** **[0001104659-24-032399_tm2319070d5_pre14a.htm:27]** .                                                          |
| Shannon E. Young III  | Executive Vice President and CFO              | July 2023          | Shannon E. Young III is the Executive Vice President and CFO at Coterra Energy Inc. He joined in July 2023, previously serving as EVP and CFO of Talos Energy Inc.  **[0000858470-24-000019_cog-20231231.htm:59]** .                                                                         |
| Stephen P. Bell       | Executive Vice President, Business Development| October 2021       | Stephen P. Bell serves as EVP of Business Development at Coterra Energy Inc. He was appointed following the merger with Cimarex, having previously held senior roles at Cimarex since 2002  **[0000858470-24-000019_cog-20231231.htm:59]** **[0000858470-23-000011_cog-20221231.htm:59]** .                                             |
| Andrea M. Alexander   | Senior Vice President and CHRO                | July 2023          | Andrea M. Alexander was appointed as SVP and CHRO at Coterra Energy Inc. in July 2023. She was previously Chief People Officer at Rent the Runway  **[0000858470-24-000019_cog-20231231.htm:59]** .                                                                                          |
| Blake Sirgo           | Senior Vice President, Operations             | October 2022       | Blake Sirgo is the SVP of Operations at Coterra Energy. He was appointed in October 2022, having served as VP of Operations since October 2021  **[0000858470-24-000019_cog-20231231.htm:60]** **[0000858470-23-000011_cog-20221231.htm:60]** .                                                                                          |
| Adam M. Vela          | Senior Vice President and General Counsel     | August 2023        | Adam M. Vela is the SVP and General Counsel at Coterra Energy Inc. He was promoted to this role in August 2023, having been with Coterra and Cimarex since 2005  **[0000858470-24-000019_cog-20231231.htm:59]** **[0000858470-24-000019_cog-20231231.htm:60]** **[0000858470-23-000011_cog-20221231.htm:60]** .                                                                      |
| Michael D. DeShazer   | Vice President of Business Units              | October 2021       | Michael D. DeShazer was appointed as VP of Business Units at Coterra Energy Inc. following the merger with Cimarex in October 2021. He joined Cimarex in 2007  **[0000858470-24-000019_cog-20231231.htm:60]** **[0000858470-23-000011_cog-20221231.htm:60]** .                                                                           |
| Gary Hlavinka         | Vice President, Marcellus Business Unit       | April 2022         | Gary Hlavinka was appointed as VP of the Marcellus Business Unit in April 2022. He has been with Coterra since 1989, serving in various engineering and management roles  **[0000858470-24-000019_cog-20231231.htm:60]** .                                                                  |
| Todd M. Roemer        | Vice President and Chief Accounting Officer   | July 2019          | Todd M. Roemer has been serving as VP and Chief Accounting Officer at Coterra Energy Inc. since July 2019. He joined Coterra in 2010, previously working at PricewaterhouseCoopers LLP  **[0000858470-24-000019_cog-20231231.htm:60]** **[0000858470-23-000011_cog-20221231.htm:59]** .                                                  |
| Kevin W. Smith        | Vice President and Chief Technology Officer   | October 2021       | Kevin W. Smith was appointed as VP and CTO at Coterra Energy Inc. following the merger with Cimarex in October 2021. He began his career with Cimarex in 2007  **[0000858470-24-000019_cog-20231231.htm:60]** **[0000858470-23-000011_cog-20221231.htm:60]** .                                                                           |

61c59f106f14d8a3f443da705fd778cf6747e2c533629b3e09430c4b1667166d

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | February 2023  **[0000858470-24-000121_ctra-20240930.htm:41]**  |
| End Date/Duration        | No expiration date  **[0000858470-24-000121_ctra-20240930.htm:41]**  |
| Total additional amount  | **$2.0 billion**  **[0000858470-24-000121_ctra-20240930.htm:41]**  |
| Remaining authorization amount | **$1.2 billion** (as of September 30, 2024)  **[0000858470-24-000121_ctra-20240930.htm:13]**  |
| Details                  | Authorized repurchase of common stock  **[0000858470-24-000121_ctra-20240930.htm:41]**  |

427a4726ac305b8b08c9bcb3d149c1358d8da2fd9b417f171d2f9f8915004d46

**Quarterly guidance for Q4 2024:**
- **Total Production**: 630 to 660 MBoe per day  **[CTRA_3405421_3]**  (no prior guidance)  
- **Oil Production**: 106 to 110 MBO per day  **[CTRA_3405421_3]**  (no prior guidance)  
- **Natural Gas Production**: 2.53 to 2.66 Bcf per day  **[CTRA_3405421_3]**  (no prior guidance)  
- **Capital Expenditures**: $410 million to $500 million  **[CTRA_3405421_3]**  (no prior guidance)  

**Annual guidance for FY 2024:**
- **Oil Production**: 107 to 108 MBO per day  **[CTRA_3405421_3]**  (raised from 105.5 to 108.5 MBO per day  **[CTRA_3396267_4]** )  
- **Natural Gas Production**: Up 1% at midpoint from August guidance  **[CTRA_3405421_3]**  (raised from prior guidance  **[CTRA_3396267_4]** )  
- **Barrel of Oil Equivalent (BOE) Production**: Up 1% at midpoint from August guidance  **[CTRA_3405421_3]**  (raised from prior guidance  **[CTRA_3396267_4]** )  
- **Total Capital Expenditures**: $1.75 to $1.85 billion  **[CTRA_3405421_4]**  (lowered from $1.75 to $1.95 billion  **[CTRA_3396267_4]** )  

199c8d8fae30d9b0fc48789a6202f525d3863ddc3308f9a5f09358899e2c1dfa

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1989  **[0000858470-24-000019_cog-20231231.htm:85]**    | Present  | Current auditor   |

b5808af78518ae3c4cf1d2c7c86a89bc62b01ce66418ba3b107eef19a34f5943

c0a71f1202ec73efbfb97aa1a366f5c5956557bc7cc80130a625cda4779ea583

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,359 million  **[0000858470-24-000121_ctra-20240930.htm:26]** , up 0.2% YoY from $1,356 million  **[0000858470-23-000056_ctra-20230930.htm:27]**   
- Natural Gas Revenue: $320 million  **[0000858470-24-000121_ctra-20240930.htm:26]** , down **33%** YoY from $481 million  **[0000858470-23-000056_ctra-20230930.htm:27]**   
- Oil Revenue: $765 million  **[0000858470-24-000121_ctra-20240930.htm:26]** , up 12% YoY from $684 million  **[0000858470-23-000056_ctra-20230930.htm:27]**   
- NGL Revenue: $186 million  **[0000858470-24-000121_ctra-20240930.htm:26]** , up 9% YoY from $170 million  **[0000858470-23-000056_ctra-20230930.htm:27]**   
- Operating Income: $327 million  **[0000858470-24-000121_ctra-20240930.htm:2]** , down **23%** YoY from $424 million  **[0000858470-23-000056_ctra-20230930.htm:2]**   
- Net Income: $252 million  **[0000858470-24-000121_ctra-20240930.htm:2]** , down **22%** YoY from $323 million  **[0000858470-23-000056_ctra-20230930.htm:2]**   
- EPS: $0.34  **[0000858470-24-000121_ctra-20240930.htm:2]** , down **21%** YoY from $0.43  **[0000858470-23-000056_ctra-20230930.htm:2]** **[0000858470-23-000056_ctra-20230930.htm:16]**   

a50bccfc20cf4403eba633a9062a5481ee0b7a18ffbe2ce120c6d91cc2d5263c

| Year | Amount Due (in millions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|---------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2026     | $250                         | Private Placement Senior Notes | 3.65                 | 12.1% = (250 / 2066) * 100 **[0000858470-24-000121_ctra-20240930.htm:5]**                                                |
| 2027     | $750                         | Senior Notes                  | 3.90                 | 36.3% = (750 / 2066) * 100 **[0000858470-24-000121_ctra-20240930.htm:5]**                                                |
| 2029     | $500                         | Senior Notes                  | 4.375                | 24.2% = (500 / 2066) * 100 **[0000858470-24-000121_ctra-20240930.htm:5]**                                                |
| 2034     | $500                         | Senior Notes                  | 5.60                 | 24.2% = (500 / 2066) * 100 **[0000858470-24-000121_ctra-20240930.htm:5]**                                                |

ccaab94210e95d7de7d02419641b8d618c048f22a471392d16ec969270d5d2ae

acb6cd392c1df1d3723ccb2deccbc2a164a949497322442bfd62e3a2f82e70bc

Oil Production Volume (MMBbl)

Natural Gas Production Volume (Bcf)

NGL Production Volume (MMBbl)

Average Daily Oil Production (MBbl per day)

Average Daily Natural Gas Production (MMcf per day)

Average Daily NGL Production (MBbl per day)

Oil Price (USD per Bbl)

Natural Gas Price (USD per Mcf)

NGL Price (USD per Bbl)

Total Equivalent Production Volume (MMBoe)

Total Equivalent Daily Production Volume (MBoe per day)

Number of Wells Drilled - Gross (gross wells)

Number of Wells Drilled - Net (net wells)

Number of Wells Turned in Line - Gross (gross wells)

Number of Wells Turned in Line - Net (net wells)

3d56d67a470566ed16e4772a0a370f2dc05f59365e2a2460a2431622c643e762

- **CTRA is curtailing Marcellus production and delaying turn-in-lines due to low natural gas prices, which may negatively impact future production volumes.**  **[CTRA_3396267_11]** **[CTRA_3396267_15]**
- **The company is prepared to reduce drilling and completion activity in the Marcellus to zero if economic conditions do not improve, indicating potential significant declines in production.**  **[CTRA_3396267_11]** **[CTRA_3396267_15]**
- **Current gas prices make the Marcellus assets less competitive within CTRA's portfolio, leading to potential capital reallocation away from the region.**  **[CTRA_3396267_11]** **[CTRA_3396267_15]**

42dabec2a661d6b525e76067efde522baaf45fa6f14a4606cd91771bfa121ae9

- **Strong track record of exceeding production targets:** Coterra has delivered significant oil growth in the last two years, exceeding their own expectations by adding **10% oil growth**.  **[CTRA_3383229_12]**  They maintain a firm conviction in achieving **5%+ oil growth** over the next three years, supported by operational excellence and efficiency gains.  **[CTRA_3383229_12]**
- **Flexible capital allocation and diverse asset portfolio:** Coterra's flexible capital planning allows them to adjust investments based on market conditions, optimizing returns across their portfolio of assets.  **[CTRA_3383229_20]**  This flexibility is a competitive advantage, enabling them to shift capital to the most profitable projects in response to commodity price changes.  **[CTRA_3383229_5]**
- **Well-positioned to capitalize on increasing natural gas demand:** Coterra is strategically located to benefit from the potential significant increase in natural gas demand from AI-driven data center growth on the East Coast.  **[CTRA_3383229_16]**  Their assets are proximate to these markets, and they are engaging with potential customers to participate in this growing demand.  **[CTRA_3383229_16]**

6c66a0e943cbb6bec3c4f20c7f4a1775c86c6a8558efcca6441607624b3edc36

1. **Capital Allocation and Production Growth**  
   **Q:** How will you allocate capital across assets given your production growth?  
   **A:** We're estimating our cash flow based on commodity prices and decide our investment accordingly, maintaining a return of capital in the **40% to 70%** range.  **[CTRA_3405421_7]**  We ensure our projects are profitable even at oil prices down to **sub-$50** per barrel.  **[CTRA_3405421_7]**  Growth is an output of disciplined capital allocation, and we remain flexible to adjust investment based on market conditions.  **[CTRA_3405421_7]** 

2. **Simul-Frac and Capital Efficiency**  
   **Q:** Will you continue using simul-frac in 2025 to improve capital efficiency?  
   **A:** We haven't made a firm decision yet but recognize that continuing simul-frac could save about **$30 million** annually  **[CTRA_3405421_11]**  and reduce costs by at least **$25 per foot**.  **[CTRA_3405421_11]**  We're evaluating market conditions and will release detailed plans next quarter, aiming to maintain operational flexibility.  **[CTRA_3405421_11]** 

3. **M&A Strategy and Potential Acquisitions**  
   **Q:** Are you considering acquisitions to expand your asset base?  
   **A:** We're open to smart bolt-on acquisitions, especially in the Anadarko Basin  **[CTRA_3405421_12]** , if they compete with our existing assets. We'd stretch for opportunities to build a new focus area with high-quality resources, but we're cautious not to overpay in the current market.  **[CTRA_3405421_21]** 

4. **Regulatory Risks in New Mexico**  
   **Q:** How do potential New Mexico setback rules affect you?  
   **A:** We believe the setback concerns are overblown and unlikely to be implemented materially.  **[CTRA_3405421_9]**  Such rules would harm New Mexico's revenue, which relies **50%** on oil and gas.  **[CTRA_3405421_9]**  We operate in a responsible regulatory environment with tough standards but don't see serious risk from these proposals at this time.  **[CTRA_3405421_9]** 

5. **Capital Efficiency Improvements**  
   **Q:** What drives your capital efficiency gains, and are they sustainable?  
   **A:** Approximately **two-thirds** of our efficiency gains come from faster operations, and **one-third** from improved productivity.  **[CTRA_3405421_10]**  Our teams continually push for operational excellence, and we believe these efficiencies are repeatable into **2025** and beyond.  **[CTRA_3405421_10]** 

6. **LNG Contracts and Netback Sales**  
   **Q:** How will your new LNG contracts impact gas realizations?  
   **A:** Our LNG deals are physical gas sales tied directly to foreign indexes like JKM and TTF.  **[CTRA_3405421_16]**  While we can't disclose specific improvement figures, these netback sales minimize variability and align our gas prices with global markets.  **[CTRA_3405421_16]**  We wish these contracts were in force today.  **[CTRA_3405421_16]** 

7. **Marcellus Activity and Gas Prices**  
   **Q:** How are you managing Marcellus operations amid low gas prices?  
   **A:** We have paused drilling and completion activity, managing curtailments month-to-month.  **[CTRA_3405421_19]**  We dewater new wells but treat all molecules equally after capital is spent.  **[CTRA_3405421_19]**  We're ready to ramp up quickly with on-ramps in our capital program when gas prices improve.  **[CTRA_3405421_19]** 

8. **Permian Gas Production and Matterhorn Pipeline**  
   **Q:** What drives your Permian gas growth, and will Matterhorn help?  
   **A:** Unexpected higher gas-to-oil ratios contributed to strong gas production.  **[CTRA_3405421_18]**  While we've had flow assurance, Matterhorn's startup should improve pricing, especially for Waha-settled volumes, although it's not a complete solution for Waha pricing challenges.  **[CTRA_3405421_25]** 

9. **Anadarko Basin Expansion**  
   **Q:** Will you acquire more acreage in the Anadarko Basin?  
   **A:** With a deep inventory at current investment levels, we would consider additional assets in the Anadarko Basin if they compete for capital and enhance our program  **[CTRA_3405421_12]** , allowing us to run a steadier operation.

10. **Shareholder Returns and Buybacks**  
    **Q:** Will shareholder returns remain higher than average?  
    **A:** We are committed to returning **50%+** of free cash flow to shareholders.  **[CTRA_3405421_13]**  We assess buybacks based on intrinsic value, free cash flow outlook, and liquidity. With about **$840 million** in cash  **[CTRA_3405421_13]** , we have the ability to continue buybacks while evaluating other opportunities.

11. **Natural Gas Demand from Power Generation**  
    **Q:** What's your view on gas demand growth from power generation?  
    **A:** We see natural gas as a major driver for power demand this decade, potentially supplying over **40%** of incremental power needs.  **[CTRA_3405421_26]**  Given reliability requirements, there's no other solution in the required timeframe, which should be very constructive for gas demand and prices.  **[CTRA_3405421_26]** 

62d9b24026e3336f21016b053a18dd9dbde887806a4d65c099d4c7e4976fc629

- **Coterra is significantly reducing capital expenditure in the Marcellus by over 50% in 2024**, expecting a **6% decline in Marcellus gas production** due to low natural gas prices.  **[CTRA_3374845_1]** **[CTRA_3374845_4]** **[CTRA_3374845_3]** **[CTRA_3374845_10]**
- **Management expresses caution about the gas market**, noting that high storage levels and resilient production may prolong low prices, impacting operations.  **[CTRA_3374845_21]**
- **Future growth plans are uncertain and contingent on commodity price recovery**, with management not assuming similar capital allocations in 2025 and 2026, indicating potential uncertainties in future production growth.  **[CTRA_3374845_24]** **[CTRA_3374845_19]** **[CTRA_3374845_15]**

39d06ed540a61c1daf2fd67285b4bdd50c36667d4390f73fb6e05e91d23f080a

- **Coterra has the flexibility to reallocate capital and increase production when gas prices recover, allowing them to capitalize on favorable market conditions.**  **[CTRA_3374845_20]** ,  **[CTRA_3374845_10]** ,  **[CTRA_3374845_15]**
- **The company has confidence in its deep inventory and has provided a detailed multi-year outlook, highlighting the strength of its assets and future growth potential.**  **[CTRA_3374845_19]** ,  **[CTRA_3374845_22]**
- **Coterra has gained a strong understanding of the complex geology in the Anadarko Basin, giving them confidence to re-engage in capital programs there, potentially unlocking significant value.**  **[CTRA_3374845_11]**

381dc7a5ac0a79f52c3e0718523d7adf8c971a4cd56a46062e725cf0a251f213

1. **Capital Allocation to Anadarko Basin**  
   **Q:** Why increase activity in the Anadarko Basin despite it being seen as a gas basin?  
   **A:** Management views the Anadarko Basin as a tremendous opportunity with outstanding returns. Despite perceptions, they increased allocation to let their team continue activity after demonstrating repeatability and strong projects in 2023. They are reallocating a little under **$300 million** between the Permian and Anadarko to capitalize on these opportunities and anticipate increased outside-operated activity as peers also expand there.  **[CTRA_3374845_6]** 

2. **Marcellus Activity and Gas Prices**  
   **Q:** At what gas price does Marcellus activity increase?  
   **A:** The company would like to see gas prices close to or above **$3** per MMBtu before significantly ramping up activity in the Marcellus. Additionally, they consider the oil-to-gas ratio, aiming for a sustained ratio of around **20:1**. They are optimistic about reaching these levels with the market reset from LNG exports.  **[CTRA_3374845_10]** 

3. **Gas Market Outlook**  
   **Q:** How do you view the gas market setup this year?  
   **A:** Management acknowledges the challenging gas market due to high storage levels and resilient production exceeding expectations. While some industry discipline is evident, it's unclear if it's sufficient. They remain cautious on gas, reflecting this in their 2024 planning and balance sheet management, but are prepared to react when the market turns.  **[CTRA_3374845_21]** 

4. **Return of Capital Strategy**  
   **Q:** Why increase the base dividend instead of buying back more shares?  
   **A:** While they remained active in share buybacks, management was cautious due to uncertain winter weather impacting gas prices, resulting in a cash balance of around **$1 billion**. This positions them well to be more aggressive with buybacks in a potentially soft gas market in 2024. They increased the base dividend by **5%**, maintaining a commitment to responsibly raise it annually while ensuring they deliver over **50%** of free cash flow to shareholders each year.  **[CTRA_3374845_16]** 

5. **Well Productivity Expectations**  
   **Q:** What is the well productivity outlook for 2024?  
   **A:** Management expects 2024 well productivity in the Delaware Basin to be very similar to 2023, with potential upside due to allocations. They anticipate another strong year within their established performance range, noting that their Permian program rotates across assets to deliver consistent results over multi-year periods.  **[CTRA_3374845_8]** **[CTRA_3374845_9]** 

6. **Cost Efficiencies in Anadarko Basin**  
   **Q:** Can you improve the cost structure in the Anadarko Basin?  
   **A:** Management believes there is room to enhance efficiencies in the Anadarko Basin by applying learnings from other areas. While the basin is deeper with higher pressure, consistent drilling activity in 2023 led to cost reductions. They've already leveraged pad efficiencies and are open to enlarging projects to achieve economies of scale.  **[CTRA_3374845_17]** 

7. **Service Cost Savings Potential**  
   **Q:** Do you expect additional service cost savings beyond 5%?  
   **A:** Management hopes to achieve further service cost savings beyond the estimated **5%** deflation, especially in the Marcellus. They strategically entered 2024 with minimal long-term contracts to capitalize on market opportunities while maintaining relationships with premium service providers who share their safety culture and drive for excellence.  **[CTRA_3374845_18]** 

8. **Marcellus Inventory Management**  
   **Q:** Has your Marcellus inventory strategy changed?  
   **A:** The company's approach to Marcellus inventory hasn't changed. While there's reduced inventory in the Lower Marcellus, they will continue drilling there for many years. Current focus on the Lower Marcellus is due to available capacity in their gathering system and newly accessible areas. Lower investment levels have extended their inventory life beyond the previously estimated **3 to 6 years**.  **[CTRA_3374845_12]** 

9. **Row Development Projects**  
   **Q:** Will you continue large-scale row development projects annually?  
   **A:** Management expects to undertake a row project almost every year. These projects involve developing multiple standard drilling units in a sequence to maximize efficiencies. Their teams carefully plan to mitigate execution risks, and they've integrated learnings to enhance operational efficiency, such as owning water infrastructure to ensure ample supply without building produced water pits.  **[CTRA_3374845_13]** 

10. **Assumptions Behind Growth Outlook**  
    **Q:** Does your growth outlook assume efficiency gains or cost reductions?  
    **A:** The growth outlook does not incorporate anticipated future efficiency gains or cost reductions. Management bases forecasts on their most recent operational efficiencies, stress-tested to ensure they're part of the program, and pushes teams to continually improve without baking unachieved advancements into projections.  **[CTRA_3374845_14]** **[CTRA_3374845_22]** 

11. **Potential Capital Reallocation with Improved Gas Prices**  
    **Q:** How would higher gas prices affect capital allocation?  
    **A:** If the gas market improves significantly, management would consider reallocating capital to the Marcellus or potentially increasing overall CapEx within their investment fairway of **40% to 70%** of cash flow. They plan to react to changing conditions but do not include such adjustments in their current outlook.  **[CTRA_3374845_20]** **[CTRA_3374845_15]** 

12. **Marcellus Production Decline and Future Growth**  
    **Q:** Why is Marcellus production declining, and will it rebound?  
    **A:** The decline in Marcellus production is due to current capital allocation reflecting gas market conditions. Management has contingency plans to increase activity if gas prices recover as hoped. Projects have multi-year cycles, and current activities set up future production increases, so annual snapshots may not fully capture the long-term outlook.  **[CTRA_3374845_23]** **[CTRA_3374845_24]** 

13. **M&A Strategy and Consolidation Views**  
    **Q:** What are your thoughts on potential M&A activities?  
    **A:** Management evaluates potential combinations by assessing if owning a share of the combined company adds more value than a share of Coterra alone. While they remain curious about consolidation opportunities, the bar for any M&A activity is very high, and they've not encountered any opportunities they've regretted missing.  **[CTRA_3374845_7]** 

eff4ac0ecbe49c54911b1427e5600ac79a78045fb006a71daf74ba4a079f2846

- 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.  **[CTRA_3364887_28]** **[CTRA_3364887_27]**
- 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.  **[CTRA_3364887_31]**
- By prioritizing high shareholder returns over production growth, the company may limit its future production increases, which could be unsustainable if market conditions change.  **[CTRA_3364887_23]**

0550d0fa266332ee546ce9f29fe20903efe5e918f4d8309f114f6bd3afc690e5

1. **Cash Return Philosophy**  
   **Q:** How will you approach cash returns given stock valuation?  
   **A:** Management emphasized that they are inclined to increase share buybacks due to the stock's **compelling valuation** and strong liquidity position.  **[CTRA_3383229_8]**  They recently issued **$500 million** in notes to refinance existing debt, which clarified their liquidity and allowed them to lean into the share buyback program.  **[CTRA_3383229_8]**  They target maintaining **$1 billion** in liquidity but are comfortable operating between **$600 million** and **$1.4 billion**.  **[CTRA_3383229_8]**  They believe the company is not overleveraged and focus on prudent balance sheet management.  **[CTRA_3383229_8]** 

2. **M&A Strategy**  
   **Q:** What's your view on future consolidation and M&A?  
   **A:** Management stated they are active in evaluating assets for potential acquisitions.  **[CTRA_3383229_10]**  They focus on financials and asset quality rather than commodity type.  **[CTRA_3383229_11]**  While they haven't announced any transactions, they remain curious and active in the space.  **[CTRA_3383229_10]**  They would consider adding more oil to the portfolio but prioritize sound financials and asset quality.  **[CTRA_3383229_11]** 

3. **Marcellus Wells Deferral**  
   **Q:** What market conditions affect deferred Marcellus wells?  
   **A:** The company is monitoring received prices, particularly the **Leidy index**.  **[CTRA_3383229_6]**  When netbacks are below **$1**, they consider deferring turn-in-lines on a month-to-month basis.  **[CTRA_3383229_6]**  They currently plan to bring additional wells online in **July** but will be guided by market conditions.  **[CTRA_3383229_6]** 

4. **Future Outlook and Efficiency**  
   **Q:** Will efficiency gains improve the 3-year outlook?  
   **A:** Management believes efficiency gains reinforce their confidence in delivering **5% plus** oil growth within the **$1.75 to $1.95 billion** annual capital range.  **[CTRA_3383229_12]**  They do not factor future cost reductions into their guidance but continually strive for operational excellence.  **[CTRA_3383229_12]** 

5. **Cost Reductions in Permian**  
   **Q:** Can you elaborate on cost reductions in Windham Row?  
   **A:** The simul-frac operations in Windham Row have achieved cost savings of about **$25 per foot**, exceeding the initial expectation of **$20 per foot**.  **[CTRA_3383229_7]**  While these savings are significant, simul-frac is most effective on pads with many wells, and they are exploring how to expand this technique where it makes economic sense.  **[CTRA_3383229_7]** **[CTRA_3383229_15]** 

6. **Capital Allocation if Gas Prices Improve**  
   **Q:** How will you allocate capital between Anadarko and Marcellus if gas prices rise?  
   **A:** The company will allocate capital based on incremental economics.  **[CTRA_3383229_16]**  They have tremendous gas resources in both basins and would likely increase activity in both if gas prices improve to the **$3.50 to $4** range in 2025–2026.  **[CTRA_3383229_16]**  They are also considering creative long-term contracts to benefit from increased gas demand.  **[CTRA_3383229_16]** 

7. **Marcellus Strategy in Second Half**  
   **Q:** What's your approach to Marcellus operations later this year?  
   **A:** They plan to bring wells online in **July** but will make decisions based on market conditions.  **[CTRA_3383229_21]**  They do not typically ramp production up and down based on near-term price changes but are cautious due to structurally low gas prices.  **[CTRA_3383229_21]** 

8. **Reallocation of CapEx if Gas Prices Underperform**  
   **Q:** How would you adjust CapEx if gas prices stay low?  
   **A:** They built flexibility into their capital planning and may decelerate investment in the Marcellus if gas prices remain weak.  **[CTRA_3383229_20]**  They have a strong inventory in other areas that would attract capital in such a scenario.  **[CTRA_3383229_20]** 

9. **Effect of Deferring Wells**  
   **Q:** Does deferring wells affect completion effectiveness?  
   **A:** Management does not see degradation due to shut-in time.  **[CTRA_3383229_21]**  Data indicates that the reservoirs do not suffer from deferred completions, and they anticipate turning wells online later in the year without issues.  **[CTRA_3383229_21]** 

10. **CapEx Trends**  
    **Q:** Is second quarter CapEx the peak for the year?  
    **A:** Yes, they expect second quarter to be a **peak capital quarter**, with capital spending moderating in the second half of the year.  **[CTRA_3383229_22]** 

11. **Upper Marcellus Activity**  
    **Q:** Will Upper Marcellus activity increase?  
    **A:** Yes, as Lower Marcellus inventory is drilled out, the Upper Marcellus will become the focus.  **[CTRA_3383229_23]**  They are testing and delineating the Upper Marcellus, which will be a larger part of the program.  **[CTRA_3383229_23]** 

12. **Inventory and Well Spacing**  
    **Q:** How do you view inventory estimates given recent trends?  
    **A:** They include only deliverable inventory based on current knowledge.  **[CTRA_3383229_18]**  While they have future landing zones not modeled, they prefer to promise what they can deliver and continually optimize well spacing and development.  **[CTRA_3383229_18]** 

13. **Windham Row Simul-Frac Limitations**  
    **Q:** Why not use simul-frac on all Windham Row wells?  
    **A:** Simul-frac is most cost-effective on pads with many wells.  **[CTRA_3383229_17]**  Not all pads have sufficient wellheads to optimize savings, so they apply simul-frac where it makes economic sense.  **[CTRA_3383229_17]** 

14. **Deferring Completions vs. Curtailment**  
    **Q:** How did you decide between deferring completions and curtailing production?  
    **A:** While continuous frac operations are preferred for efficiency, current gas prices necessitate slowing down capital investment in the Marcellus.  **[CTRA_3383229_15]**  They accept some loss of efficiency to make prudent capital decisions.  **[CTRA_3383229_15]** 

36a8bce02b2937df646940f1eb55f7f6dfff9002c9d0d4d5b3b661e0efe46873

- **Coterra's successful execution of the Windham Row project in Culberson County is leading to significant cost savings of **10% to 15%**, exceeding projections, and reaffirms their operational capabilities and reservoir quality.**  **[CTRA_3396267_19]** **[CTRA_3396267_7]**
- **The company is returning significant cash to shareholders, trending above **100% cash return of free cash flow** in the first six months of the year, and considers their own shares a very attractive opportunity, likely continuing share buybacks.**  **[CTRA_3396267_8]**
- **Coterra's operational flexibility allows them to optimize capital allocation, curtail production when prices are low, and quickly ramp up activity when prices improve, maximizing efficiency and returns.**  **[CTRA_3396267_15]** **[CTRA_3396267_11]**

27bbb633a82babf11211db0e1bd45adb1a94aa9e9357105badc473e3875e488c

1. **Cash Returns and Capital Allocation**  
   **Q:** Will you maintain over 100% cash returns this year?  
   **A:** While we're trending above **100%** cash return of free cash flow in the first six months  **[CTRA_3396267_8]** , we're not pre-guiding for the rest of the year. We remain opportunistic and see our shares as a very attractive opportunity, likely continuing active buybacks.  **[CTRA_3396267_8]** 

2. **Oil Production Guidance and Outperformance**  
   **Q:** Will higher oil output affect your three-year outlook?  
   **A:** We're ahead of our plan, and while we won't update our three-year guide until next year, we're well-positioned to meet or exceed it.  **[CTRA_3396267_9]**  We're not managing by production goals but focusing on returns and capital efficiency.  **[CTRA_3396267_9]** 

3. **Curtailing Gas Production and Flexibility**  
   **Q:** At what gas prices will you increase activity?  
   **A:** We'd like to see NYMEX prices north of **$3** for Lower Marcellus and mid-**$3s** for Upper Marcellus.  **[CTRA_3396267_11]**  We can move fairly quickly and are willing to adjust activity based on market conditions.  **[CTRA_3396267_11]** 

4. **Operational Efficiencies and Cost Savings**  
   **Q:** What have you learned from Windham Row?  
   **A:** Our simul-frac performance is exceeding projections, leading to **10–15%** cost savings.  **[CTRA_3396267_7]**  We're increasing wells in Windham Row and applying these efficiencies across other assets where possible.  **[CTRA_3396267_7]** 

5. **Anadarko Activity and Capital Allocation**  
   **Q:** Will you consider shifting capital to Anadarko?  
   **A:** We're willing to allocate capital where returns are highest.  **[CTRA_3396267_21]**  If Anadarko offers better returns, it could receive more capital in 2025.  **[CTRA_3396267_21]** 

6. **Election Year Impact**  
   **Q:** How does the election year affect your outlook?  
   **A:** We'll approach this constructively, recognizing pressures regardless of who wins.  **[CTRA_3396267_13]**  We're prepared to adapt and focus on making the country strong.  **[CTRA_3396267_13]** 

7. **Higher Cash Taxes**  
   **Q:** What's your long-term cash tax rate outlook?  
   **A:** We're a full cash taxpayer this year due to changes in tax code.  **[CTRA_3396267_14]**  Deferred taxes will normalize over the next few years, but near-term we'll continue as a full cash taxpayer.  **[CTRA_3396267_14]** 

8. **Co-developing Harkey and Upper Wolfcamp**  
   **Q:** Any updates on codeveloping Harkey wells?  
   **A:** We haven't completed Harkey wells yet  **[CTRA_3396267_17]** **[CTRA_3396267_20]** . Based on data, we're defaulting to codeveloping Harkey and Upper Wolfcamp where possible.  **[CTRA_3396267_20]** 

9. **Marcellus Base Performance**  
   **Q:** What's driving better Marcellus base performance?  
   **A:** Lower field pressures and an outperforming wellhead compression program are boosting base production.  **[CTRA_3396267_15]** 

10. **New Mexico Activity and "Chicken Season"**  
    **Q:** How is the second-half well mix changing?  
    **A:** Activity shifts to New Mexico post-"chicken season" due to regulatory constraints.  **[CTRA_3396267_10]**  We're not strategically allocating stronger rock but planning based on operational considerations.  **[CTRA_3396267_10]** 

c70ad138079cf1e9eabd437f60522e5503e9a2a2d001d5371d437fc4125937ee

- **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.  **[CTRA_3364887_11]**
- **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.  **[CTRA_3364887_27]** **[CTRA_3364887_28]**
- **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.  **[CTRA_3364887_23]**

eb87c494ebdcb98a49f60a2e455396bc749423e5620e9898eb00d2a8c761dbc4

- **Declining Natural Gas Prices Impacting Operations:** Due to **low natural gas prices**, Coterra Energy is delaying the turn-in-line of **12 Marcellus wells** and decelerating activity in the Marcellus Basin. They do not anticipate bringing any projects online in the Marcellus during the second quarter, resulting in **lower gas volumes quarter-over-quarter before flattening in the second half of the year**.  **[CTRA_3383229_2]** ,  **[CTRA_3383229_5]**
- **Reduced Operational Efficiency Leading to Potential Cost Increases:** The decision to delay Marcellus completions and reduce frac crew activity leads to decreased operational efficiencies. While continuous frac crew operation provides better efficiencies, current gas prices are causing Coterra to **throttle down**, even if it means **giving up a little bit of efficiency** and potentially increasing costs per unit.  **[CTRA_3383229_15]**
- **Uncertainty in Capital Allocation and Growth Plans Due to Commodity Price Volatility:** If **natural gas prices continue to underperform throughout 2024**, Coterra may need to **reallocate capital** and adjust their capital planning, which could impact growth and financial performance. They may shift capital away from gas assets to other opportunities, indicating **uncertainty in future production and capital expenditure plans**.  **[CTRA_3383229_20]**

1f48420994649a7371be35d07697f969700783137eb5ec5e45d2a77a77bdc1e7

Coterra Energy Inc (CTRA)

Financials