86dc08e38c0266aa86c22e0f780a0484adfdae27c758daea2b017b0be920a821

The documents do not provide any specific reasons for the increase in Other current assets in Q4 2023.  **[0000858470-24-000019_cog-20231231.htm:86]** **[0000858470-24-000006_ctra-12312023xxexx991earni.htm:9]** 

What drove the sharp increase in Other current assets in Q4 2023?

The spike in **Long-term debt** for Q1 2024 was primarily driven by the **issuance of $500 million aggregate principal amount of senior unsecured notes due 2034** at a coupon rate of **5.60% per annum**. The net proceeds from this offering, along with available cash, were intended to fund the repayment of the **$575 million outstanding principal amount of its 3.67% Series L Senior Notes due September 18, 2024**.  **[0000858470-24-000069_ctra-20240331.htm:30]** **[0000858470-24-000069_ctra-20240331.htm:2]** **[0000858470-24-000063_ctra-3312024xxexx991earnin.htm:0]** 

Why did Long-term debt spike in Q1 2024?

The jump in Cash and cash equivalents in Q1 2024 was largely driven by a **$500 million issuance of 5.60% senior notes** that bolstered financing activities, along with **$278 million lower dividend payments** and **$118 million lower common stock repurchases** boosting the net cash from financing activities. This financing boost more than offset declines in operating cash flows—stemming from lower natural gas revenue, higher operating costs, and diminished improvements in working capital—and was also influenced by increased cash outflows in investing activities due to the **$250 million purchase of short-term investments** (partially offset by lower capital expenditure payments).  **[0000858470-24-000069_ctra-20240331.htm:20]** **[0000858470-24-000069_ctra-20240331.htm:15]** **[0000858470-24-000069_ctra-20240331.htm:3]** **[0000858470-24-000063_ctra-3312024xxexx991earnin.htm:7]** 

What factors contributed to the jump in Cash and cash equivalents in Q1 2024?

The documents indicate that **Restricted cash dropped from $9 million as of Q4 2023 to $5 million as of Q3 2024**. However, they do not provide specific reasons for this change.  **[0000858470-24-000121_ctra-20240930.htm:2]** 

Why did Restricted cash drop in Q3 2024?

In Q1 2024, **Total Assets increased by $538 million** mainly due to an **increase in cash and cash equivalents** (rising by **$333 million**, from **$956 million** to **$1,289 million**), the **addition of short-term investments** (increasing by **$250 million** from **$0 million**), and a **rise in accounts receivable** (increasing from **$843 million** to **$878 million**).  **[0000858470-24-000069_ctra-20240331.htm:2]** 

What caused Total Assets to increase in Q1 2024?

97fd5ff2333bad67479bd924852aef7d4af660150c271ad07318b755862b8c4b

**Natural gas revenue** was notably low in Q2 2024 primarily due to two factors. First, there was a significant **drop in the average realized natural gas price**, from **$1.65 per Mcf** in Q2 2023 to **$1.26 per Mcf** in Q2 2024, resulting in a **$98 million** revenue reduction. Second, **production volumes decreased** from **264.3 Bcf** to **253.0 Bcf**, further reducing revenue by **$19 million**. Combined, these changes led to a **$117 million** decline in revenue, which explains the low figure for Q2 2024.  **[0000858470-24-000106_ctra-20240630.htm:24]** 

Why was Natural gas Revenue so low in Q2 2024?

The documents explain that the reported **income tax expense in Q4 2023 was $153 million**, which is actually **$103 million lower** than Q4 2022’s expense of **$256 million**.  **[0000858470-24-000006_ctra-12312023xxexx991earni.htm:9]**  They also mention that the lower tax expense in 2023 was primarily due to **lower pre-tax income**, adjustments from **valuation allowances**, and changes in the **effective tax rate**.  **[0000858470-24-000019_cog-20231231.htm:75]** **[0000858470-24-000019_cog-20231231.htm:112]**  Although the Q4 2023 figure represents an increase from **$94 million in Q3 2023**, the available information does not provide a specific explanation for this quarter‐to‐quarter spike. Therefore, based on the documents, the detailed reasons focus on the year‐over‐year comparison rather than the rise from Q3 2023 to Q4 2023.

Why did Income tax expense spike in Q4 2023?

CTRA’s Q2 2024 net income was constrained by several interacting factors. **Lower natural gas prices** severely impacted revenue, with prices dropping from **$2.81 per Mcf** in the first half of 2023 to **$1.76 per Mcf** in 2024, which resulted in a **$117 million decline in natural gas revenues**. This was compounded by **higher operating costs**, including increased lease operating expenses and related production costs, as well as worsening **derivative losses**—rising from **$12 million** in Q2 2023 to **$16 million** in Q2 2024. These negative influences outweighed the modest revenue gains from oil and NGL production, keeping net income relatively low during Q2 2024.  **[0000858470-24-000106_ctra-20240630.htm:16]** **[0000858470-24-000102_ctra-6302024xxexx991earnin.htm:1]** **[0000858470-24-000106_ctra-20240630.htm:3]** 

Why was net income so low in Q2 2024?

The significant drop in **Basic EPS** in Q2 2024 was primarily driven by several factors. **Net income** declined by **$314 million** compared to the same period in 2023, which directly reduced EPS.  **[0000858470-24-000106_ctra-20240630.htm:16]**  Additionally, **realized natural gas prices** were substantially lower—**42% less** than in Q1 2024 and **37% lower** year-over-year—further impacting revenue and profitability.  **[CTRA_3396267_1]** **[0000858470-24-000106_ctra-20240630.htm:16]**  The decrease was also compounded by a drop in **operating cash flow** by **$726 million**, indicating weaker cash generation, along with an **oversupplied natural gas market** that put additional pressure on prices and overall earnings.  **[0000858470-24-000106_ctra-20240630.htm:16]** **[CTRA_3396267_1]** 

What caused Basic EPS to drop in Q2 2024?

f55f68d948618d9b6c63288de163c64a407cfc7c2c56c368cd9f49456bc57571

Oil Revenue (USD, millions)

Natural gas Revenue (USD, millions)

NGL Revenue (USD, millions)

Gain on derivative instruments (USD, millions)

Other Revenue (USD, millions)

Total Operating Revenues (USD, millions)

Direct operations (USD, millions)

Gathering, processing and transportation (USD, millions)

Taxes other than income (USD, millions)

Exploration (USD, millions)

Depreciation, depletion and amortization (USD, millions)

General and administrative (USD, millions)

Total Operating Expenses (USD, millions)

Gain on sale of assets (USD, millions)

Income from operations (USD, millions)

Interest expense (USD, millions)

Interest income (USD, millions)

Income before income taxes (USD, millions)

Income tax expense (USD, millions)

Net income (USD, millions)

Basic Earnings per share (USD)

Diluted Earnings per share (USD)

4c27ce3cc8d431949557d20cf5fd7ab9c4ca23e8e099749fdf95a8dde691a14f

Cash and cash equivalents (USD, millions)

Restricted cash (USD, millions)

Accounts receivable, net (USD, millions)

Income taxes receivable (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Properties and equipment, net (successful efforts method) (USD, millions)

Other assets (USD, millions)

Total Assets (USD, millions)

Accounts payable (USD, millions)

Current portion of long-term debt (USD, millions)

Accrued liabilities (USD, millions)

Interest payable (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Deferred income taxes (USD, millions)

Asset retirement obligations (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Cimarex redeemable preferred stock (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive income (USD, millions)

Total stockholders' equity (USD, millions)

Total Liabilities, Redeemable Preferred Stock and Stockholders' Equity (USD, millions)

Coterra Energy (CTRA)

Financials