Coterra Energy's Q3 Earnings Fall Short of Expectations, Production Guidance Raised

HOUSTON - Coterra Energy Inc. (NYSE: CTRA) reported that its third-quarter earnings fell short of analyst expectations; however, it raised its full-year production guidance due to exceeding expectations across all regions.

The oil and gas producer announced adjusted earnings of $0.32 per share, below analysts' expectations of $0.35 per share.

Despite the earnings missing expectations, Coterra increased its 2024 production outlook, citing faster cycle times and strong well performance. The company now expects full-year oil production to be between 107,000 and 108,000 barrels per day (MBopd), which is higher than the previous guidance of 105.5-108.5 MBopd.

In the third quarter, total production averaged 669,000 barrels of oil equivalent per day (MBoepd), exceeding the top end of guidance by 3%. Oil production of 112.3 MBopd also surpassed the company's forecast.

CEO Tom Jorden stated, "Coterra continues to exceed its 2024 plans and enters 2025 with strong momentum and significant flexibility." He added, "Our teams continue to deliver strong and evolving capital efficiency through operational excellence."

The company reduced its full-year capital expenditure guidance to $1.75-$1.85 billion, lowering the midpoint by $50 million, citing decreased midstream, saltwater disposal, and infrastructure spending alongside reduced activity in the Marcellus shale.

Coterra returned 96% of its $277 million in free cash flow to shareholders through dividends and share buybacks in the third quarter. The company declared a quarterly dividend of $0.21 per share.