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HOUSTON - Coterra Energy Inc. (NYSE:CTRA) reported second-quarter earnings that met analyst expectations while significantly exceeding revenue forecasts, as the company benefited from higher-than-anticipated production volumes and lower capital expenditures.
CTRA shares were slightly higher in after-hours trading, up 0.29%.
The oil and gas producer posted adjusted earnings of $0.48 per share for the quarter, matching analyst estimates. Revenue came in at $1.97 billion, substantially above the consensus estimate of $1.73 billion. The company’s shares edged up 0.29% following the announcement.
Coterra’s total production reached 783,900 barrels of oil equivalent per day (BOE/d), exceeding the high end of its guidance range of 710,000 to 760,000 BOE/d. Oil production averaged 155,400 barrels per day, while natural gas production of 2.99 billion cubic feet per day surpassed the company’s guidance.
"We are pleased to report an excellent quarter with strong capital efficiency driven by lower than expected capital expenditures and higher than expected production," said Tom Jorden, Chairman, CEO and President of Coterra.
The company maintained its steady operational pace with nine rigs in the Permian Basin, two in the Marcellus, and one to two in the Anadarko Basin. Capital expenditures for the quarter totaled $569 million, below the company’s guidance range of $575 million to $650 million.
Coterra generated $329 million in free cash flow during the quarter, returning approximately 58% to shareholders through a $0.22 per share quarterly dividend and $23 million in share repurchases. The company also repaid $100 million in term loans, bringing its total debt reduction to $350 million in the first half of 2025.
For the third quarter, Coterra expects total production of 740,000 to 790,000 BOE/d and capital expenditures between $625 million and $675 million. The company raised its full-year natural gas production guidance while maintaining its oil production targets, with total 2025 capital expenditures projected at approximately $2.3 billion.
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