Coterra Energy Inc. (CTRA) Bundle
A Brief History of Coterra Energy Inc.
Company Overview
Coterra Energy Inc. is a prominent player in the oil and gas industry, focusing on the exploration, production, and development of energy resources. The company emerged from the merger between Cabot Oil & Gas Corporation and Cimarex Energy Co. in October 2021, creating a diversified portfolio of assets primarily in the Permian Basin and the Appalachian region.
Financial Performance
As of September 30, 2024, Coterra reported a net income of $824 million, or $1.11 per share, a significant decrease from $1.2 billion, or $1.59 per share, in the same period of 2023. The net cash provided by operating activities also saw a decline, dropping to $2.2 billion from $2.9 billion year-over-year.
Production Volumes
For the nine months ended September 30, 2024, Coterra's equivalent production increased to 184.9 million barrels of oil equivalent (MMBoe), or 674.8 MMBoe per day, up from 179.3 MMBoe in 2023. Oil production rose to 29.4 million barrels, representing a 15% increase from 25.5 million barrels in the previous year.
| Production Type | 2024 (MMBoe) | 2023 (MMBoe) | Change (%) |
|---|---|---|---|
| Oil | 29.4 | 25.5 | +15% |
| Natural Gas | 769.1 | 779.5 | -1% |
| NGL | 27.3 | 23.9 | +14% |
Commodity Prices
The average realized prices for Coterra's products in 2024 have been as follows:
- Oil: $76.17 per barrel, up 1% from $75.64 in 2023
- Natural Gas: $1.65 per Mcf, down 35% from $2.53 in 2023
- NGL: $19.59 per barrel, down 2% from $19.90 in 2023
Capital Expenditures
Coterra's total capital expenditures for drilling, completion, and other fixed assets were $1.3 billion for the nine months ended September 30, 2024, compared to $1.6 billion in the corresponding period of 2023. The company has been focusing its capital program on the Permian Basin, Marcellus Shale, and Anadarko Basin.
| Expenditure Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Drilling and Facilities | 1,261 | 1,537 |
| Pipeline and Gathering | 73 | 84 |
| Other | 11 | 26 |
Shareholder Returns
Coterra's Board of Directors approved an increase in the base quarterly dividend from $0.20 per share to $0.21 per share in February 2024. The total dividends paid for the first three quarters of 2024 amounted to $474 million.
| Quarter | Dividend per Share | Total Dividends (in millions) |
|---|---|---|
| Q1 2024 | $0.21 | $160 |
| Q2 2024 | $0.21 | $158 |
| Q3 2024 | $0.21 | $156 |
Market Conditions and Outlook
The financial results of Coterra Energy are heavily influenced by commodity price fluctuations, operational efficiency, and market demand. As of 2024, the company has strategically adjusted its production in response to lower natural gas prices, particularly in the Marcellus Shale region. The outlook for natural gas prices is cautiously optimistic as seasonal demands are expected to rise due to colder temperatures.
Debt and Capitalization
As of September 30, 2024, Coterra reported total debt of $2.066 billion and stockholders’ equity of $13.034 billion. This gives a debt-to-capitalization ratio of 14%, consistent with the previous year.
| Financial Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Debt | 2,066 | 2,161 |
| Stockholders’ Equity | 13,034 | 13,039 |
| Total Capitalization | 15,100 | 15,200 |
A Who Owns Coterra Energy Inc. (CTRA)
Institutional Ownership
As of 2024, Coterra Energy Inc. (CTRA) has a significant portion of its shares held by institutional investors. The following table summarizes the top institutional shareholders of Coterra Energy Inc.
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 74.5 | 9.9% |
| BlackRock, Inc. | 70.1 | 9.4% |
| State Street Corporation | 48.3 | 6.5% |
| Wellington Management Group LLP | 29.2 | 3.9% |
| Invesco Ltd. | 24.7 | 3.3% |
Insider Ownership
Insider ownership is also a critical factor in understanding the ownership structure of Coterra Energy Inc. The following table outlines the key insiders and their ownership stakes.
| Name | Position | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|---|
| Tom J. McNulty | CEO | 1.2 | 0.16% |
| John M. McGinnis | CFO | 0.8 | 0.11% |
| Mary L. Rose | Director | 0.5 | 0.07% |
| David R. Antin | Director | 0.4 | 0.05% |
Shareholder Composition
The ownership composition of Coterra Energy Inc. as of 2024 can be broken down into the following categories:
| Ownership Type | Percentage of Total Shares |
|---|---|
| Institutional Investors | 50.0% |
| Insiders | 1.0% |
| Retail Investors | 49.0% |
Recent Share Repurchase Activity
Coterra Energy has actively engaged in share repurchase programs. In 2024, the company repurchased approximately 15 million shares for $404 million. This program is indicative of management's confidence in the company's future prospects.
Dividends and Financial Performance
In February 2024, Coterra Energy increased its quarterly dividend to $0.21 per share, reflecting a commitment to returning value to shareholders. The total dividends paid in 2024 amounted to approximately $474 million.
| Quarter | Dividend per Share | Total Dividends (in millions) |
|---|---|---|
| Q1 2024 | $0.21 | $160 |
| Q2 2024 | $0.21 | $158 |
| Q3 2024 | $0.21 | $156 |
As of September 30, 2024, Coterra Energy's total stockholders' equity was reported at $13.034 billion, with total debt at $2.066 billion, indicating a strong balance sheet position.
Coterra Energy Inc. (CTRA) Mission Statement
Mission Statement Overview
Coterra Energy Inc. aims to deliver sustainable energy solutions while maximizing shareholder value through operational excellence and innovative practices in the exploration and production of oil and natural gas.
Core Values
- Integrity: Upholding the highest standards of ethics and compliance in all operations.
- Safety: Committed to ensuring the safety of employees, contractors, and the communities in which they operate.
- Innovation: Embracing technology and innovative practices to enhance efficiency and sustainability.
- Environmental Stewardship: Promoting responsible resource management and minimizing environmental impact.
- Community Engagement: Building strong relationships with local communities and stakeholders.
Financial Performance Metrics
As of September 30, 2024, Coterra Energy's financial performance reflects its commitment to operational excellence:
| Financial Metric | 2024 | 2023 | Variance | Percentage Change |
|---|---|---|---|---|
| Net Income (in millions) | $824 | $1,209 | $(385) | (32)% |
| Earnings Per Share | $1.11 | $1.59 | $(0.48) | (30)% |
| Net Cash Provided by Operating Activities (in millions) | $2,169 | $2,898 | $(729) | (25)% |
| Total Revenues (in millions) | $4,063 | $4,318 | $(255) | (6)% |
| Total Debt (in millions) | $2,066 | $2,161 | $(95) | (4)% |
Production Statistics
Production volumes reflect the company’s operational capabilities and market conditions:
| Production Type | 2024 | 2023 | Variance | Percentage Change |
|---|---|---|---|---|
| Oil (MMBbl) | 29.4 | 25.5 | 3.9 | 15% |
| Natural Gas (Bcf) | 769.1 | 779.5 | (10.4) | (1)% |
| NGL (MMBbl) | 27.3 | 23.9 | 3.4 | 14% |
Market Conditions
The market conditions affecting Coterra Energy include fluctuations in commodity prices:
| Commodity | Average Price 2024 | Average Price 2023 | Variance | Percentage Change |
|---|---|---|---|---|
| Oil ($/Bbl) | $76.17 | $75.64 | $0.53 | 1% |
| Natural Gas ($/Mcf) | $1.65 | $2.53 | $(0.88) | (35)% |
| NGL ($/Bbl) | $19.59 | $19.90 | $(0.31) | (2)% |
Capital Expenditures
Coterra Energy's capital expenditures demonstrate its commitment to growth and sustainability:
| Expenditure Type | 2024 (in millions) | 2023 (in millions) | Variance | Percentage Change |
|---|---|---|---|---|
| Drilling and Completion | $418 | $542 | $(124) | (23)% |
| Total Capital Expenditures | $1,329 | $1,621 | $(292) | (18)% |
Dividend Policy
Coterra Energy has maintained a consistent dividend policy:
| Dividend Payment | 2024 (per share) | 2023 (per share) | Variance |
|---|---|---|---|
| Base Dividend | $0.63 | $0.97 | $(0.34) |
Share Repurchase Program
The company has actively engaged in share repurchases:
| Year | Shares Repurchased (in millions) | Total Cost (in millions) |
|---|---|---|
| 2024 | 15 | $404 |
| 2023 | 15 | $388 |
How Coterra Energy Inc. (CTRA) Works
Company Overview
Coterra Energy Inc. (CTRA) operates primarily in the exploration and production of oil and natural gas, focusing on key regions such as the Permian Basin and the Anadarko Basin. The company was formed through the merger of Cabot Oil & Gas and Cimarex Energy, positioning it as a significant player in the energy sector.
Financial Performance
For the nine months ended September 30, 2024, Coterra reported the following financial highlights:
| Metric | 2024 | 2023 | Variance |
|---|---|---|---|
| Net Income (in millions) | $824 | $1,209 | ($385) |
| Earnings per Share (EPS) | $1.11 | $1.59 | ($0.48) |
| Net Cash Provided by Operating Activities (in millions) | $2,169 | $2,898 | ($729) |
| Capital Expenditures (in millions) | $1,329 | $1,621 | ($292) |
Production Volumes
Coterra's operational metrics for the nine months ending September 30, 2024, are as follows:
| Production Type | 2024 (MMBbl/Bcf) | 2023 (MMBbl/Bcf) | Variance |
|---|---|---|---|
| Oil Production | 29.4 MMBbl | 25.5 MMBbl | +3.9 MMBbl |
| Natural Gas Production | 769.1 Bcf | 779.5 Bcf | (10.4 Bcf) |
| NGL Production | 27.3 MMBbl | 23.9 MMBbl | +3.4 MMBbl |
Revenue Breakdown
The revenue breakdown for Coterra for the nine months ended September 30, 2024, is detailed below:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Variance |
|---|---|---|---|
| Oil Revenue | $2,240 | $1,925 | $315 |
| Natural Gas Revenue | $1,177 | $1,739 | ($562) |
| NGL Revenue | $535 | $476 | $59 |
| Gain on Derivative Instruments | $48 | $129 | ($81) |
| Other Revenue | $63 | $49 | $14 |
Operating Costs
Coterra's operating expenses for the nine months ended September 30, 2024, are listed below:
| Expense Type | 2024 (in millions) | 2023 (in millions) | Variance |
|---|---|---|---|
| Direct Operations | $481 | $401 | $80 |
| Gathering, Processing and Transportation | $737 | $729 | $8 |
| Taxes Other Than Income | $194 | $211 | ($17) |
| Exploration | $19 | $14 | $5 |
| Depreciation, Depletion and Amortization | $1,354 | $1,185 | $169 |
| General and Administrative | $218 | $213 | $5 |
Market Conditions
The company operates in a volatile market, heavily influenced by commodity prices:
- Oil Prices: Average realized oil price was $76.17 per Bbl in 2024, compared to $75.64 per Bbl in 2023.
- Natural Gas Prices: Average realized natural gas price was $1.65 per Mcf in 2024, down from $2.53 per Mcf in 2023.
- NGL Prices: Average NGL price was $19.59 per Bbl in 2024, compared to $19.90 per Bbl in 2023.
Debt and Capitalization
Coterra's capitalization as of September 30, 2024, includes:
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Debt | $2,066 | $2,161 |
| Stockholders' Equity | $13,034 | $13,039 |
| Total Capitalization | $15,100 | $15,200 |
| Debt to Total Capitalization | 14% | 14% |
Dividends and Share Repurchase
Coterra increased its quarterly base dividend to $0.21 per share in February 2024. The company repurchased 15 million shares for $404 million during the nine months ended September 30, 2024.
Cash Flows
Coterra's cash flows for the nine months ended September 30, 2024, are summarized as follows:
| Cash Flow Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Flows from Operating Activities | $2,169 | $2,898 |
| Cash Flows Used in Investing Activities | ($1,327) | ($1,589) |
| Cash Flows Used in Financing Activities | ($959) | ($1,136) |
How Coterra Energy Inc. (CTRA) Makes Money
Revenue Streams
Coterra Energy Inc. generates revenue primarily through the production and sale of oil, natural gas, and natural gas liquids (NGLs). The breakdown of operating revenues for the nine months ended September 30, 2024, is as follows:
| Revenue Source | 2024 (In millions) | 2023 (In millions) | Change (In millions) | Percentage Change |
|---|---|---|---|---|
| Oil | $2,240 | $1,925 | $315 | 16% |
| Natural Gas | $1,177 | $1,739 | $(562) | (32%) |
| NGL | $535 | $476 | $59 | 12% |
| Gain on Derivative Instruments | $48 | $129 | $(81) | (63%) |
| Other | $63 | $49 | $14 | 29% |
| Total Operating Revenues | $4,063 | $4,318 | $(255) | (6%) |
Production Volumes
The production volumes for oil, natural gas, and NGLs for the nine months ended September 30, 2024, are as follows:
| Production Type | 2024 (In MMBoe) | 2023 (In MMBoe) | Change (In MMBoe) | Percentage Change |
|---|---|---|---|---|
| Oil | 29.4 | 25.5 | 3.9 | 15% |
| Natural Gas | 769.1 | 779.5 | (10.4) | (1%) |
| NGL | 27.3 | 23.9 | 3.4 | 14% |
Average Realized Prices
The average realized prices for oil, natural gas, and NGLs in 2024 compared to 2023 are as follows:
| Commodity | 2024 Price | 2023 Price | Change | Percentage Change |
|---|---|---|---|---|
| Oil (per Bbl) | $76.16 | $75.54 | $0.62 | 1% |
| Natural Gas (per Mcf) | $1.53 | $2.23 | $(0.70) | (31%) |
| NGL (per Bbl) | $19.59 | $19.90 | $(0.31) | (2%) |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, are broken down as follows:
| Expense Type | 2024 (In millions) | 2023 (In millions) | Change (In millions) | Percentage Change |
|---|---|---|---|---|
| Direct Operations | $481 | $401 | $80 | 20% |
| Gathering, Processing, and Transportation | $737 | $729 | $8 | 1% |
| Taxes Other Than Income | $194 | $211 | $(17) | (8%) |
| Exploration | $19 | $14 | $5 | 36% |
| Depreciation, Depletion, and Amortization | $1,354 | $1,185 | $169 | 14% |
| General and Administrative | $218 | $213 | $5 | 2% |
| Total Operating Expenses | $3,003 | $2,753 | $250 | 9% |
Net Income and Cash Flows
Net income for the nine months ended September 30, 2024, decreased to $824 million from $1.2 billion in 2023. The net cash provided by operating activities also decreased from $2.9 billion in 2023 to $2.2 billion in 2024.
Market Conditions and Commodity Prices
Commodity prices have fluctuated significantly, impacting revenues and production strategies. In 2024, oil prices averaged $76.17 per Bbl, while natural gas prices averaged $1.65 per Mcf, reflecting a decrease of 35% compared to the previous year. The company strategically curtailed some natural gas production in response to lower prices, particularly in the Marcellus Shale region, where production was reduced by an estimated 275 MMcf per day.
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Article updated on 8 Nov 2024
Resources:
- Coterra Energy Inc. (CTRA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Coterra Energy Inc. (CTRA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Coterra Energy Inc. (CTRA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.