Coterra Energy Reports Third-Quarter 2024 Results, Announces Quarterly Dividend, and Provides Guidance Update
Coterra Energy (CTRA) reported strong Q3 2024 results, exceeding production guidance across all metrics while keeping capital expenditures below guidance. The company reported net income of $252 million ($0.34 per share) and declared a quarterly dividend of $0.21 per share. Production highlights include 669 MBoepd total output, 112.3 MBopd oil production, and 2,682 MMcfpd natural gas production. Coterra signed three new LNG agreements totaling 200 MMcfpd, starting in 2027-2028. The company lowered its 2024 capital expenditure guidance by $50 million to $1.75-1.85 billion while increasing production guidance across all categories.
Coterra Energy (CTRA) ha riportato risultati solidi nel terzo trimestre del 2024, superando le previsioni di produzione su tutte le metriche, mantenendo al contempo le spese in conto capitale al di sotto delle attese. L'azienda ha registrato un introito netto di 252 milioni di dollari (0,34 dollari per azione) e ha dichiarato un dividendo trimestrale di 0,21 dollari per azione. Tra i punti salienti della produzione ci sono 669 MBoepd di produzione totale, 112,3 MBopd di produzione di petrolio e 2.682 MMcfpd di produzione di gas naturale. Coterra ha firmato tre nuovi accordi LNG per un totale di 200 MMcfpd, che inizieranno nel 2027-2028. L'azienda ha ridotto la sua previsione di spese in conto capitale per il 2024 di 50 milioni di dollari, portandola a 1,75-1,85 miliardi di dollari, aumentando al contempo le previsioni di produzione in tutte le categorie.
Coterra Energy (CTRA) reportó sólidos resultados en el tercer trimestre de 2024, superando las proyecciones de producción en todas las métricas, mientras mantenía los gastos de capital por debajo de las expectativas. La compañía informó ingresos netos de 252 millones de dólares (0.34 dólares por acción) y declaró un dividendo trimestral de 0.21 dólares por acción. Los aspectos destacados de la producción incluyen una producción total de 669 MBoepd, 112.3 MBopd de producción de petróleo y 2,682 MMcfpd de producción de gas natural. Coterra firmó tres nuevos acuerdos de GNL que totalizan 200 MMcfpd, comenzando en 2027-2028. La compañía redujo su guía de gastos de capital para 2024 en 50 millones de dólares, dejándola entre 1.75 y 1.85 mil millones de dólares, al mismo tiempo que aumentó la guía de producción en todas las categorías.
코테라 에너지 (CTRA)는 2024년 3분기 결과가 강하게 나타났으며, 모든 지표에서 생산 안내를 초과하면서 자본 지출을 지침 이하로 유지했습니다. 회사는 순이익 2억 5,200만 달러 (주당 0.34달러)를 보고하고 분기 배당금을 주당 0.21달러로 선언했습니다. 생산 하이라이트에는 총 생산량 669 MBoepd, 석유 생산 112.3 MBopd, 천연가스 생산 2,682 MMcfpd가 포함됩니다. 코테라는 2027-2028년에 시작되는 200 MMcfpd의 세 개의 새로운 LNG 계약을 체결했습니다. 회사는 2024년 자본 지출 가이드를 5천만 달러 줄여 17억 5천만에서 18억 5천만 달러 사이로 조정했으며, 모든 카테고리에서 생산 가이드를 증가시켰습니다.
Coterra Energy (CTRA) a annoncé de solides résultats pour le troisième trimestre 2024, dépassant les prévisions de production sur toutes les métriques tout en maintenant les dépenses d'investissement en dessous des prévisions. L'entreprise a déclaré un revenu net de 252 millions de dollars (0,34 dollar par action) et a déclaré un dividende trimestriel de 0,21 dollar par action. Les points forts de la production incluent une production totale de 669 MBoepd, une production pétrolière de 112,3 MBopd et une production de gaz naturel de 2 682 MMcfpd. Coterra a signé trois nouveaux accords de GNL totalisant 200 MMcfpd, commençant entre 2027 et 2028. L'entreprise a réduit sa prévision d'investissement pour 2024 de 50 millions de dollars à 1,75-1,85 milliard de dollars, tout en augmentant les prévisions de production dans toutes les catégories.
Coterra Energy (CTRA) hat im dritten Quartal 2024 starke Ergebnisse vorgestellt und die Produktionsziele in allen Kennzahlen übertroffen, während die Investitionsausgaben unter den Erwartungen blieben. Das Unternehmen berichtete von einem Nettogewinn von 252 Millionen Dollar (0,34 Dollar pro Aktie) und erklärte eine vierteljährliche Dividende von 0,21 Dollar pro Aktie. Zu den Produktionshighlights gehören eine Gesamtproduktion von 669 MBoepd, 112,3 MBopd Ölproduktion und 2.682 MMcfpd Erdgasproduktion. Coterra hat drei neue LNG-Vereinbarungen mit einem Gesamtvolumen von 200 MMcfpd unterzeichnet, die 2027-2028 beginnen. Das Unternehmen senkte die Leitlinie für die Investitionsausgaben 2024 um 50 Millionen Dollar auf 1,75 bis 1,85 Milliarden Dollar, während es die Produktionsprognose in allen Kategorien erhöhte.
- Q3 production exceeded guidance across all categories
- Capital expenditures came in below guidance at $418 million
- Secured three new LNG agreements for 200 MMcfpd starting 2027-2028
- Increased 2024 production guidance while lowering capital expenditure forecast by $50 million
- Strong balance sheet with $843 million cash and 0.3x net debt to EBITDAX ratio
- Returned 96% of Free Cash Flow to shareholders in Q3
- Natural gas realized prices were relatively low at $1.30 per Mcf
- Net income decreased compared to previous periods (implied by shareholder return metrics)
Insights
Strong operational execution in Q3 2024 with production exceeding guidance across all metrics. Free Cash Flow of
Notable strategic moves include three new LNG agreements for 200 MMcfpd starting 2027-2028, providing exposure to international markets. The company's increased production guidance and
The three new LNG agreements represent a strategic pivot towards international market exposure, particularly in Europe and Asia. This diversification reduces dependency on domestic natural gas prices and positions Coterra to capitalize on global energy demand. The
The Windham Row development progress, with 36 of 57 wells online and clear timeline for remaining wells, shows systematic execution of growth plans. The combination of increased production guidance and reduced capital expenditure indicates improving operational efficiency and cost control.
Tom Jorden, Chairman, CEO and President of Coterra, noted, "Coterra continues to exceed its 2024 plan and has strong momentum with significant optionality heading into 2025. Our teams continue to deliver strong and improving capital efficiency through operational execution, all of which is guided by our relentless focus on economic returns. The Company's strong positioning is underpinned by its advantaged balance sheet, operational aptitude, diversified commodity mix and its durable, high-quality inventory.
We are also pleased to announce our three new LNG agreements. The
Key Takeaways & Updates
- For the third quarter of 2024, total barrels of oil equivalent (BOE) production, natural gas production, and oil production all beat the high-end of guidance, and capital expenditures (non-GAAP) came in below the low-end of guidance.
-
Increasing full-year 2024 production guidance mid-point for BOE, natural gas, and oil. The full-year 2024 oil guidance mid-point now assumes
12% year over year growth and a5% increase compared to the initial guidance mid-point provided in February. These upward revisions throughout the year have been driven by faster cycle times and strong well performance across our portfolio. -
Lowering full-year 2024 capital expenditure (non-GAAP) guidance by
$50 million $1.75 -1.85 billion - During the quarter, the Company signed three new LNG agreements to sell a total of 200 MMcfpd (million cubic feet per day) of natural gas, indexed to international price points. Sales will begin in 2027 and 2028 and will be sourced from the Permian Basin, Anadarko Basin, and Marcellus Shale.
-
For the third quarter of 2024, shareholder returns totaled
96% of Free Cash Flow (non-GAAP), inclusive of our declared quarterly base dividend and$111 million 1% excise tax). The Company remains committed to returning50% or greater of its annual Free Cash Flow (non-GAAP) to shareholders and has returned100% year to date, in addition to the retirement of$75 million -
To date, 36 of the 57 Windham Row wells have come online.
- Currently, 10 additional wells are expected to come online by the end of the year.
- The final 11 wells are expected to come online in first-quarter 2025.
Third-Quarter 2024 Highlights
-
Net Income (GAAP) totaled
$252 million $0.34 $233 million $0.32 -
Cash Flow From Operating Activities (GAAP) totaled
$755 million $670 million $277 million -
Cash paid for capital expenditures for drilling, completion and other fixed asset additions (GAAP) totaled
$393 million $418 million $450 $530 million -
Unit operating cost (reflecting costs from direct operations, transportation, production taxes and G&A) totaled
$8.73 $7.45 $9.55 -
Total equivalent production of 669 MBoepd (thousand barrels of oil equivalent per day), was
3% above the high-end of guidance (620 to 650 MBoepd), driven by timing and strong well performance in all three of our regions.-
Oil production averaged 112.3 MBopd (thousand barrels of oil per day), slightly exceeding the high-end of guidance (107 to 111 MBopd) by
1% . -
Natural gas production averaged 2,682 MMcfpd, exceeding the high end of guidance (2,500 to 2,630 MMcfpd) by
2% , driven primarily by Permian growth. - NGLs production averaged 109.7 MBopd.
-
Oil production averaged 112.3 MBopd (thousand barrels of oil per day), slightly exceeding the high-end of guidance (107 to 111 MBopd) by
-
Realized average prices:
-
Oil was
$74.04 $74.18 -
Natural Gas was
$1.30 $1.41 -
NGLs were
$18.42
-
Oil was
Shareholder Return Highlights
-
Common Dividend: On October 31, 2024, Coterra's Board of Directors (the "Board") approved a quarterly base dividend of
$0.21 3.5% annualized yield, based on the Company's$24.13 -
Share Repurchases: During the quarter, the Company repurchased 4.3 million shares for
$111 million $25.15 $1.2 billion $2.0 billion $401 million -
Shareholder Return: During the quarter, shareholder returns amounted to
$265 million $154 million $111 million -
Reiterate Shareholder Return Strategy: Coterra is committed to returning
50% or greater of annual Free Cash Flow (non-GAAP) to shareholders through its$0.84 100% of Free Cash Flow (non-GAAP) to shareholders.
Guidance Updates
-
Lowered 2024 capital expenditures (non-GAAP) to
$1.75 $1.85 billion $1.75 $1.95 billion - Increased 2024 oil production guidance to 107 to 108 MBopd, up 0.5 MBopd at the mid-point versus prior guidance.
-
Increased 2024 natural gas production guidance to 2,735 to 2,775 MMcfpd, up
1% at the mid-point versus prior guidance. -
Increased 2024 BOE production guidance to 660 to 675 MBoepd, up
1% at the mid-point versus prior guidance. -
Announced fourth-quarter 2024 total equivalent production of 630 to 660 MBoepd, oil production of 106 to 110 MBopd, natural gas production of 2,530 to 2,660 MMcfpd, and capital expenditures (non-GAAP) of
$410 $500 million -
Estimate 2024 Discretionary Cash Flow (non-GAAP) of approximately
$2.9 billion $1.1 billion $75.58 $2.22 - For more details on annual and fourth quarter 2024 guidance, see 2024 Guidance Section in the tables below.
Strong Financial Position
As of September 30, 2024, Coterra had total debt outstanding of
See “Supplemental non-GAAP Financial Measures” below for descriptions of the above non-GAAP measures as well as reconciliations of these measures to the associated GAAP measures.
Committed to Sustainability and ESG Leadership
Coterra is committed to environmental stewardship, sustainable practices, and strong corporate governance. The Company's sustainability report can be found under "ESG" on www.coterra.com. Coterra published its 2024 Sustainability report on August 1, 2024.
Third-Quarter 2024 Conference Call
Coterra will host a conference call tomorrow, Friday, November 1, 2024, at 8:00 AM CT (9:00 AM ET), to discuss third-quarter 2024 financial and operating results.
Conference Call Information |
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Date: |
November 1, 2024 |
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Time: |
8:00 AM CT / 9:00 AM ET |
||
Dial-in (for callers in the |
(800) 715-9871 |
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International dial-in: |
+1 (646) 307-1963 |
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Conference ID: |
7309925 |
||
The live audio webcast and related earnings presentation can be accessed on the "Events & Presentations" page under the "Investors" section of the Company's website at www.coterra.com. The webcast will be archived and available at the same location after the conclusion of the live event.
About Coterra Energy
Coterra is a premier exploration and production company based in
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not statements of historical fact and reflect Coterra's current views about future events. Such forward-looking statements include, but are not limited to, statements about returns to shareholders, enhanced shareholder value, reserves estimates, future financial and operating performance, and goals and commitment to sustainability and ESG leadership, strategic pursuits and goals, and other statements that are not historical facts contained in this press release. The words "expect," "project," "estimate," "believe," "anticipate," "intend," "budget," "plan," "predict," "potential," "possible," "may," "should," "could," "would," "will," "strategy," "outlook", "guide" and similar expressions are also intended to identify forward-looking statements. We can provide no assurance that the forward-looking statements contained in this press release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the volatility in commodity prices for crude oil and natural gas; cost increases; the effect of future regulatory or legislative actions; actions by, or disputes among or between, the Organization of Petroleum Exporting Countries and other producer countries; market factors; market prices (including geographic basis differentials) of oil and natural gas; impacts of inflation; labor shortages and economic disruption, (geopolitical disruptions such as the war in
Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Except to the extent required by applicable law, Coterra does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
Operational Data |
|||||||||||||
The tables below provide a summary of production volumes, price realizations and operational activity by region and units costs for the Company for the periods indicated: |
|||||||||||||
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
PRODUCTION VOLUMES |
|
|
|
|
|
|
|
||||||
Marcellus Shale |
|
|
|
|
|
|
|
||||||
Natural gas (Mmcf/day) |
|
1,928.5 |
|
|
|
2,286.4 |
|
|
2,117.2 |
|
|
|
2,248.5 |
Daily equivalent production (MBoepd) |
|
321.4 |
|
|
|
381.1 |
|
|
352.9 |
|
|
|
374.7 |
|
|
|
|
|
|
|
|
||||||
Permian Basin |
|
|
|
|
|
|
|
||||||
Natural gas (Mmcf/day) |
|
531.2 |
|
|
|
446.4 |
|
|
500.9 |
|
|
|
426.9 |
Oil (MBbl/day) |
|
102.7 |
|
|
|
86.6 |
|
|
99.8 |
|
|
|
86.9 |
NGL (MBbl/day) |
|
82.7 |
|
|
|
75.4 |
|
|
77.0 |
|
|
|
68.3 |
Daily equivalent production (MBoepd) |
|
273.9 |
|
|
|
236.3 |
|
|
260.2 |
|
|
|
226.3 |
|
|
|
|
|
|
|
|
||||||
Anadarko Basin |
|
|
|
|
|
|
|
||||||
Natural gas (Mmcf/day) |
|
218.8 |
|
|
|
168.3 |
|
|
186.6 |
|
|
|
178.8 |
Oil (MBbl/day) |
|
9.5 |
|
|
|
5.2 |
|
|
7.5 |
|
|
|
6.4 |
NGL (MBbl/day) |
|
26.9 |
|
|
|
19.1 |
|
|
22.6 |
|
|
|
19.3 |
Daily equivalent production (MBoepd) |
|
72.9 |
|
|
|
52.3 |
|
|
61.1 |
|
|
|
55.5 |
|
|
|
|
|
|
|
|
||||||
Total Company |
|
|
|
|
|
|
|
||||||
Natural gas (Mmcf/day) |
|
2,682.0 |
|
|
|
2,903.2 |
|
|
2,806.8 |
|
|
|
2,855.3 |
Oil (MBbl/day) |
|
112.3 |
|
|
|
91.9 |
|
|
107.4 |
|
|
|
93.3 |
NGL (MBbl/day) |
|
109.7 |
|
|
|
94.5 |
|
|
99.6 |
|
|
|
87.7 |
Daily equivalent production (MBoepd) |
|
669.1 |
|
|
|
670.3 |
|
|
674.8 |
|
|
|
656.9 |
|
|
|
|
|
|
|
|
||||||
AVERAGE SALES PRICE (excluding hedges) |
|
|
|
|
|
|
|||||||
Marcellus Shale |
|
|
|
|
|
|
|
||||||
Natural gas ($/Mcf) |
$ |
1.78 |
|
|
$ |
1.80 |
|
$ |
1.89 |
|
|
$ |
2.39 |
|
|
|
|
|
|
|
|
||||||
Permian Basin |
|
|
|
|
|
|
|
||||||
Natural gas ($/Mcf) |
$ |
(0.63 |
) |
|
$ |
1.58 |
|
$ |
(0.06 |
) |
|
$ |
1.31 |
Oil ($/Bbl) |
$ |
73.96 |
|
|
$ |
80.84 |
|
$ |
76.14 |
|
|
$ |
75.50 |
NGL ($/Bbl) |
$ |
17.30 |
|
|
$ |
18.56 |
|
$ |
18.83 |
|
|
$ |
18.75 |
|
|
|
|
|
|
|
|
||||||
Anadarko Basin |
|
|
|
|
|
|
|
||||||
Natural gas ($/Mcf) |
$ |
1.66 |
|
|
$ |
2.37 |
|
$ |
1.68 |
|
|
$ |
2.39 |
Oil ($/Bbl) |
$ |
74.83 |
|
|
$ |
80.35 |
|
$ |
76.34 |
|
|
$ |
76.15 |
NGL ($/Bbl) |
$ |
21.90 |
|
|
$ |
23.30 |
|
$ |
22.20 |
|
|
$ |
23.95 |
|
|
|
|
|
|
|
|
||||||
Total Company |
|
|
|
|
|
|
|
||||||
Natural gas ($/Mcf) |
$ |
1.30 |
|
|
$ |
1.80 |
|
$ |
1.53 |
|
|
$ |
2.23 |
Oil ($/Bbl) |
$ |
74.04 |
|
|
$ |
80.80 |
|
$ |
76.16 |
|
|
$ |
75.54 |
NGL ($/Bbl) |
$ |
18.42 |
|
|
$ |
19.52 |
|
$ |
19.59 |
|
|
$ |
19.90 |
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
2023 |
|||||||
AVERAGE SALES PRICE (including hedges) |
|
|
|
|
|
|
|||||||
Total Company |
|
|
|
|
|
|
|||||||
Natural gas ($/Mcf) |
$ |
1.41 |
|
$ |
2.01 |
$ |
1.65 |
$ |
2.53 |
||||
Oil ($/Bbl) |
$ |
74.18 |
|
$ |
80.74 |
$ |
76.17 |
$ |
75.64 |
||||
NGL ($/Bbl) |
$ |
18.42 |
|
$ |
19.52 |
$ |
19.59 |
$ |
19.90 |
||||
|
Quarter Ended
|
|
|
Nine Months Ended
|
|||||||||
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
WELLS DRILLED(1) |
|
|
|
|
|
|
|
||||||
Gross wells |
|
|
|
|
|
|
|
||||||
Marcellus Shale |
4 |
|
17 |
|
26 |
|
53 |
||||||
Permian Basin |
63 |
|
43 |
|
174 |
|
115 |
||||||
Anadarko Basin |
20 |
|
13 |
|
39 |
|
30 |
||||||
|
87 |
|
73 |
|
239 |
|
198 |
||||||
|
|
|
|
|
|
|
|
||||||
Net wells |
|
|
|
|
|
|
|
||||||
Marcellus Shale |
4.0 |
|
17.0 |
|
25.0 |
|
53.0 |
||||||
Permian Basin |
25.9 |
|
25.6 |
|
75.9 |
|
63.5 |
||||||
Anadarko Basin |
6.3 |
|
7.9 |
|
20.0 |
|
16.3 |
||||||
|
36.2 |
|
50.5 |
|
120.9 |
|
132.8 |
||||||
|
|
|
|
|
|
|
|
||||||
TURN IN LINES |
|
|
|
|
|
|
|
||||||
Gross wells |
|
|
|
|
|
|
|
||||||
Marcellus Shale |
7 |
|
14 |
|
30 |
|
59 |
||||||
Permian Basin |
61 |
|
43 |
|
159 |
|
122 |
||||||
Anadarko Basin |
10 |
|
9 |
|
41 |
|
16 |
||||||
|
78 |
|
66 |
|
230 |
|
197 |
||||||
|
|
|
|
|
|
|
|
||||||
Net wells |
|
|
|
|
|
|
|
||||||
Marcellus Shale |
7.0 |
|
14.0 |
|
30.0 |
|
59.0 |
||||||
Permian Basin |
23.9 |
|
24.7 |
|
68.4 |
|
66.9 |
||||||
Anadarko Basin |
4.6 |
|
7.0 |
|
19.9 |
|
7.1 |
||||||
|
35.5 |
|
45.7 |
|
118.3 |
|
133.0 |
||||||
|
|
|
|
|
|
|
|
||||||
AVERAGE RIG COUNTS |
|
|
|
|
|
|
|
||||||
Marcellus Shale |
0.6 |
|
2.3 |
|
1.3 |
|
2.8 |
||||||
Permian Basin |
8.0 |
|
7.0 |
|
8.0 |
|
6.3 |
||||||
Anadarko Basin |
1.0 |
|
1.0 |
|
1.4 |
|
1.3 |
||||||
_______________________________________________________________________________ |
|||||||||||||
(1) Wells drilled represents wells drilled to total depth during the period. |
|||||||||||||
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
|||||
AVERAGE UNIT COSTS ($/Boe) (1) |
|
|
|
|
|
|
|||||||
Direct operations |
$ |
2.69 |
|
$ |
2.22 |
|
|
$ |
2.60 |
$ |
2.24 |
||
Gathering, processing and transportation |
|
3.97 |
|
|
3.81 |
|
|
|
3.98 |
|
4.07 |
||
Taxes other than income |
|
1.08 |
|
|
1.00 |
|
|
|
1.05 |
|
1.18 |
||
General and administrative (excluding stock-based compensation and severance expense) |
|
0.99 |
|
|
0.96 |
|
|
|
0.91 |
|
0.89 |
||
Unit Operating Cost |
$ |
8.73 |
|
$ |
7.99 |
|
|
$ |
8.54 |
$ |
8.38 |
||
Depreciation, depletion and amortization |
|
7.73 |
|
|
6.82 |
|
|
|
7.32 |
|
6.61 |
||
Exploration |
|
0.15 |
|
|
0.08 |
|
|
|
0.10 |
|
0.08 |
||
Stock-based compensation |
|
0.23 |
|
|
0.35 |
|
|
|
0.23 |
|
0.25 |
||
Severance expense |
|
— |
|
|
(0.02 |
) |
|
|
0.03 |
|
0.06 |
||
Interest expense, net |
|
0.12 |
|
|
0.12 |
|
|
|
0.14 |
|
0.10 |
||
|
$ |
16.96 |
|
$ |
15.32 |
|
|
$ |
16.36 |
$ |
15.46 |
||
_______________________________________________________________________________ |
|||||||||||||
(1) Total unit costs may differ from the sum of the individual costs due to rounding. |
|||||||||||||
Derivatives Information |
|||
As of September 30, 2024, the Company had the following outstanding financial commodity derivatives: |
|||
|
|
2024 |
|
Oil |
|
Fourth Quarter |
|
WTI oil collars |
|
|
|
Volume (MBbl) |
|
|
3,680 |
Weighted average floor ($/Bbl) |
|
$ |
65.00 |
Weighted average ceiling ($/Bbl) |
|
$ |
86.20 |
|
|
|
|
WTI Midland oil basis swaps |
|
|
|
Volume (MBbl) |
|
|
4,600 |
Weighted average differential ($/Bbl) |
|
$ |
1.13 |
|
|
2025 |
||||||||||
Oil |
|
First Quarter |
|
Second Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||
WTI oil collars |
|
|
|
|
|
|
|
|
||||
Volume (MBbl) |
|
|
3,330 |
|
|
3,367 |
|
|
2,024 |
|
|
2,024 |
Weighted average floor ($/Bbl) |
|
$ |
61.89 |
|
$ |
61.89 |
|
$ |
62.05 |
|
$ |
62.05 |
Weighted average ceiling ($/Bbl) |
|
$ |
81.40 |
|
$ |
81.40 |
|
$ |
81.15 |
|
$ |
81.15 |
|
|
|
|
|
|
|
|
|
||||
WTI Midland oil basis swaps |
|
|
|
|
|
|
|
|
||||
Volume (MBbl) |
|
|
3,150 |
|
|
3,185 |
|
|
1,840 |
|
|
1,840 |
Weighted average differential ($/Bbl) |
|
$ |
1.18 |
|
$ |
1.18 |
|
$ |
1.11 |
|
$ |
1.11 |
|
|
2024 |
|
Natural Gas |
|
Fourth Quarter |
|
NYMEX collars |
|
|
|
Volume (MMBtu) |
|
|
34,990,000 |
Weighted average floor ($/MMBtu) |
|
$ |
2.75 |
Weighted average ceiling ($/MMBtu) |
|
$ |
4.46 |
|
|
2025 |
||||||||||
Natural Gas |
|
First Quarter |
|
Second Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||
NYMEX collars |
|
|
|
|
|
|
|
|
||||
Volume (MMBtu) |
|
|
36,000,000 |
|
|
36,400,000 |
|
|
36,800,000 |
|
|
36,800,000 |
Weighted average floor ($/MMBtu) |
|
$ |
2.88 |
|
$ |
2.88 |
|
$ |
2.88 |
|
$ |
2.88 |
Weighted average ceiling ($/MMBtu) |
|
$ |
4.70 |
|
$ |
4.15 |
|
$ |
4.15 |
|
$ |
6.00 |
|
|
2026 |
|
Natural Gas |
|
First Quarter |
|
NYMEX collars |
|
|
|
Volume (MMBtu) |
|
|
27,000,000 |
Weighted average floor ($/MMBtu) |
|
$ |
2.75 |
Weighted average ceiling ($/MMBtu) |
|
$ |
7.66 |
In October 2024, the Company entered into the following financial commodity derivatives: |
|||||||||||||||
|
|
2024 |
|
2025 |
|||||||||||
Oil |
|
Fourth Quarter |
|
First Quarter |
|
Second Quarter |
|
Third Quarter |
|
Fourth Quarter |
|||||
WTI oil collars |
|
|
|
|
|
|
|
|
|
|
|||||
Volume (MBbl) |
|
|
305 |
|
|
810 |
|
|
819 |
|
|
1,288 |
|
|
1,288 |
Weighted average floor ($/Bbl) |
|
$ |
60.00 |
|
$ |
57.78 |
|
$ |
57.78 |
|
$ |
58.57 |
|
$ |
58.57 |
Weighted average ceiling ($/Bbl) |
|
$ |
92.57 |
|
$ |
80.18 |
|
$ |
80.18 |
|
$ |
80.09 |
|
$ |
80.09 |
|
|
|
|
|
|
|
|
|
|
|
|||||
WTI Midland oil basis swaps |
|
|
|
|
|
|
|
|
|
|
|||||
Volume (MBbl) |
|
|
— |
|
|
540 |
|
|
546 |
|
|
1,012 |
|
|
1,012 |
Weighted average differential ($/Bbl) |
|
$ |
— |
|
$ |
1.00 |
|
$ |
1.00 |
|
$ |
1.02 |
|
$ |
1.02 |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(In millions, except per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
OPERATING REVENUES |
|
|
|
|
|
|
|
||||||||
Oil |
$ |
765 |
|
|
$ |
684 |
|
|
$ |
2,240 |
|
|
$ |
1,925 |
|
Natural gas |
|
320 |
|
|
|
481 |
|
|
|
1,177 |
|
|
|
1,739 |
|
NGL |
|
186 |
|
|
|
170 |
|
|
|
535 |
|
|
|
476 |
|
Gain (loss) on derivative instruments |
|
64 |
|
|
|
3 |
|
|
|
48 |
|
|
|
129 |
|
Other |
|
24 |
|
|
|
18 |
|
|
|
63 |
|
|
|
49 |
|
|
|
1,359 |
|
|
|
1,356 |
|
|
|
4,063 |
|
|
|
4,318 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||||||||
Direct operations |
|
165 |
|
|
|
137 |
|
|
|
481 |
|
|
|
401 |
|
Gathering, processing and transportation |
|
245 |
|
|
|
235 |
|
|
|
737 |
|
|
|
729 |
|
Taxes other than income |
|
66 |
|
|
|
62 |
|
|
|
194 |
|
|
|
211 |
|
Exploration |
|
9 |
|
|
|
5 |
|
|
|
19 |
|
|
|
14 |
|
Depreciation, depletion and amortization |
|
475 |
|
|
|
421 |
|
|
|
1,354 |
|
|
|
1,185 |
|
General and administrative (excluding stock-based compensation and severance expense) |
|
61 |
|
|
|
59 |
|
|
|
175 |
|
|
|
159 |
|
Stock-based compensation |
|
14 |
|
|
|
21 |
|
|
|
43 |
|
|
|
44 |
|
Severance expense |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
10 |
|
|
|
1,035 |
|
|
|
939 |
|
|
|
3,003 |
|
|
|
2,753 |
|
Gain on sale of assets |
|
3 |
|
|
|
7 |
|
|
|
3 |
|
|
|
12 |
|
INCOME FROM OPERATIONS |
|
327 |
|
|
|
424 |
|
|
|
1,063 |
|
|
|
1,577 |
|
Interest expense |
|
24 |
|
|
|
17 |
|
|
|
77 |
|
|
|
50 |
|
Interest income |
|
(16 |
) |
|
|
(10 |
) |
|
|
(51 |
) |
|
|
(32 |
) |
Income before income taxes |
|
319 |
|
|
|
417 |
|
|
|
1,037 |
|
|
|
1,559 |
|
Income tax provision (benefit) |
|
|
|
|
|
|
|
||||||||
Current |
|
104 |
|
|
|
102 |
|
|
|
273 |
|
|
|
331 |
|
Deferred |
|
(37 |
) |
|
|
(8 |
) |
|
|
(60 |
) |
|
|
19 |
|
Total income tax provision |
|
67 |
|
|
|
94 |
|
|
|
213 |
|
|
|
350 |
|
NET INCOME |
$ |
252 |
|
|
$ |
323 |
|
|
$ |
824 |
|
|
$ |
1,209 |
|
Earnings per share - Basic |
$ |
0.34 |
|
|
$ |
0.43 |
|
|
$ |
1.11 |
|
|
$ |
1.59 |
|
Weighted-average common shares outstanding |
|
738 |
|
|
|
753 |
|
|
|
743 |
|
|
|
757 |
|
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) |
|||||
(In millions) |
September 30,
|
|
December 31,
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
843 |
|
$ |
956 |
Other current assets |
|
892 |
|
|
1,059 |
Properties and equipment, net (successful efforts method) |
|
17,941 |
|
|
17,933 |
Other assets |
|
450 |
|
|
467 |
|
$ |
20,126 |
|
$ |
20,415 |
|
|
|
|
||
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY |
|
|
|
||
Current liabilities |
$ |
1,080 |
|
$ |
1,085 |
Current portion of long-term debt |
|
— |
|
|
575 |
Long-term debt, net (excluding current maturities) |
|
2,066 |
|
|
1,586 |
Deferred income taxes |
|
3,359 |
|
|
3,413 |
Other long term liabilities |
|
579 |
|
|
709 |
Cimarex redeemable preferred stock |
|
8 |
|
|
8 |
Stockholders’ equity |
|
13,034 |
|
|
13,039 |
|
$ |
20,126 |
|
$ |
20,415 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
252 |
|
|
$ |
323 |
|
|
$ |
824 |
|
|
$ |
1,209 |
|
Depreciation, depletion and amortization |
|
475 |
|
|
|
421 |
|
|
|
1,354 |
|
|
|
1,185 |
|
Deferred income tax (benefit) expense |
|
(37 |
) |
|
|
(8 |
) |
|
|
(60 |
) |
|
|
19 |
|
(Gain) / loss on sale of assets |
|
(3 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(12 |
) |
Exploratory dry hole cost |
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
(Gain) / loss on derivative instruments |
|
(64 |
) |
|
|
(3 |
) |
|
|
(48 |
) |
|
|
(129 |
) |
Net cash received in settlement of derivative instruments |
|
28 |
|
|
|
55 |
|
|
|
90 |
|
|
|
238 |
|
Stock-based compensation and other |
|
18 |
|
|
|
18 |
|
|
|
43 |
|
|
|
43 |
|
Income charges not requiring cash |
|
(4 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
|
|
(13 |
) |
Changes in assets and liabilities |
|
85 |
|
|
|
(38 |
) |
|
|
(23 |
) |
|
|
358 |
|
Net cash provided by operating activities |
|
755 |
|
|
|
758 |
|
|
|
2,169 |
|
|
|
2,898 |
|
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Capital expenditures for drilling, completion and other fixed asset additions |
|
(393 |
) |
|
|
(546 |
) |
|
|
(1,329 |
) |
|
|
(1,621 |
) |
Capital expenditures for leasehold and property acquisitions |
|
(3 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(8 |
) |
Purchases of short-term investments |
|
— |
|
|
|
— |
|
|
|
(250 |
) |
|
|
— |
|
Proceeds from sale of short-term investments |
|
250 |
|
|
|
— |
|
|
|
250 |
|
|
|
— |
|
Proceeds from sale of assets |
|
7 |
|
|
|
7 |
|
|
|
8 |
|
|
|
40 |
|
Net cash used in investing activities |
|
(139 |
) |
|
|
(541 |
) |
|
|
(1,327 |
) |
|
|
(1,589 |
) |
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of debt |
|
— |
|
|
|
— |
|
|
|
499 |
|
|
|
— |
|
Repayments of debt |
|
(575 |
) |
|
|
— |
|
|
|
(575 |
) |
|
|
— |
|
Common stock repurchases |
|
(111 |
) |
|
|
(60 |
) |
|
|
(401 |
) |
|
|
(385 |
) |
Dividends paid |
|
(156 |
) |
|
|
(151 |
) |
|
|
(470 |
) |
|
|
(739 |
) |
Other |
|
(5 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(12 |
) |
Net cash used in financing activities |
|
(847 |
) |
|
|
(211 |
) |
|
|
(959 |
) |
|
|
(1,136 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
$ |
(231 |
) |
|
$ |
6 |
|
|
$ |
(117 |
) |
|
$ |
173 |
|
Reconciliation of Capital Expenditures |
|||||||||||||
Capital expenditures is defined as cash paid for capital expenditures for drilling, completion and other fixed asset additions less changes in accrued capital costs. |
|||||||||||||
|
|
Quarter Ended
|
|
Nine Months Ended
|
|||||||||
(In millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Cash paid for capital expenditures for drilling, completion and other fixed asset additions (GAAP) |
|
$ |
393 |
|
$ |
546 |
|
|
$ |
1,329 |
|
$ |
1,621 |
Change in accrued capital costs |
|
|
20 |
|
|
(4 |
) |
|
|
11 |
|
|
26 |
Exploratory dry-hole cost |
|
|
5 |
|
|
— |
|
|
|
5 |
|
|
— |
Capital expenditures for drilling, completion and other fixed asset additions (non-GAAP) |
|
$ |
418 |
|
$ |
542 |
|
|
$ |
1,345 |
|
$ |
1,647 |
Supplemental Non-GAAP Financial Measures (Unaudited)
We report our financial results in accordance with accounting principles generally accepted in
We have also included herein certain forward-looking non-GAAP financial measures. Due to the forward-looking nature of these non-GAAP financial measures, we cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as changes in assets and liabilities (including future impairments) and cash paid for certain capital expenditures. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Reconciling items in future periods could be significant.
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted Earnings per Share are presented based on our management's belief that these non-GAAP measures enable a user of financial information to understand the impact of identified adjustments on reported results. Adjusted Net Income is defined as net income plus gain and loss on sale of assets, non-cash gain and loss on derivative instruments, stock-based compensation expense, severance expense, and tax effect on selected items. Adjusted Earnings per Share is defined as Adjusted Net Income divided by weighted-average common shares outstanding. Additionally, we believe these measures provide beneficial comparisons to similarly adjusted measurements of prior periods and use these measures for that purpose. Adjusted Net Income and Adjusted Earnings per Share are not measures of financial performance under GAAP and should not be considered as alternatives to net income and earnings per share, as defined by GAAP.
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(In millions, except per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
As reported - net income |
$ |
252 |
|
|
$ |
323 |
|
|
$ |
824 |
|
|
$ |
1,209 |
|
Reversal of selected items: |
|
|
|
|
|
|
|
||||||||
Gain on sale of assets |
|
(3 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(12 |
) |
(Gain) loss on derivative instruments(1) |
|
(36 |
) |
|
|
52 |
|
|
|
42 |
|
|
|
109 |
|
Stock-based compensation expense |
|
14 |
|
|
|
21 |
|
|
|
43 |
|
|
|
44 |
|
Severance expense |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
10 |
|
Tax effect on selected items |
|
6 |
|
|
|
(15 |
) |
|
|
(19 |
) |
|
|
(34 |
) |
Adjusted net income |
$ |
233 |
|
|
$ |
373 |
|
|
$ |
887 |
|
|
$ |
1,326 |
|
As reported - earnings per share |
$ |
0.34 |
|
|
$ |
0.43 |
|
|
$ |
1.11 |
|
|
$ |
1.59 |
|
Per share impact of selected items |
|
(0.02 |
) |
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.16 |
|
Adjusted earnings per share |
$ |
0.32 |
|
|
$ |
0.50 |
|
|
$ |
1.19 |
|
|
$ |
1.75 |
|
Weighted-average common shares outstanding |
|
738 |
|
|
|
753 |
|
|
|
743 |
|
|
|
757 |
|
_______________________________________________________________________________ |
|||||||||||||||
(1) This amount represents the non-cash mark-to-market changes of our commodity derivative instruments recorded in Gain (loss) on derivative instruments in the Condensed Consolidated Statement of Operations. |
|||||||||||||||
Reconciliation of Discretionary Cash Flow and Free Cash Flow
Discretionary Cash Flow is defined as cash flow from operating activities excluding changes in assets and liabilities. Discretionary Cash Flow is widely accepted as a financial indicator of an oil and gas company’s ability to generate available cash to internally fund exploration and development activities, return capital to shareholders through dividends and share repurchases, and service debt and is used by our management for that purpose. Discretionary Cash Flow is presented based on our management’s belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies that use the full cost method of accounting for oil and gas producing activities or have different financing and capital structures or tax rates. Discretionary Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities or net income, as defined by GAAP, or as a measure of liquidity.
Free Cash Flow is defined as Discretionary Cash Flow less cash paid for capital expenditures. Free Cash Flow is an indicator of a company’s ability to generate cash flow after spending the money required to maintain or expand its asset base, and is used by our management for that purpose. Free Cash Flow is presented based on our management’s belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Free Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities or net income, as defined by GAAP, or as a measure of liquidity.
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flow from operating activities |
$ |
755 |
|
|
$ |
758 |
|
|
$ |
2,169 |
|
|
$ |
2,898 |
|
Changes in assets and liabilities |
|
(85 |
) |
|
|
38 |
|
|
|
23 |
|
|
|
(358 |
) |
Discretionary cash flow |
|
670 |
|
|
|
796 |
|
|
|
2,192 |
|
|
|
2,540 |
|
Cash paid for capital expenditures for drilling, completion and other fixed asset additions |
|
(393 |
) |
|
|
(546 |
) |
|
|
(1,329 |
) |
|
|
(1,621 |
) |
Free Cash Flow |
$ |
277 |
|
|
$ |
250 |
|
|
$ |
863 |
|
|
$ |
919 |
|
Reconciliation of Adjusted EBITDAX
Adjusted EBITDAX is defined as net income plus interest expense, interest income, income tax expense, depreciation, depletion, and amortization (including impairments), exploration expense, gain and loss on sale of assets, non-cash gain and loss on derivative instruments, stock-based compensation expense, and severance expense. Adjusted EBITDAX is presented on our management’s belief that this non-GAAP measure is useful information to investors when evaluating our ability to internally fund exploration and development activities and to service or incur debt without regard to financial or capital structure. Our management uses Adjusted EBITDAX for that purpose. Adjusted EBITDAX is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities or net income, as defined by GAAP, or as a measure of liquidity.
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
252 |
|
|
$ |
323 |
|
|
$ |
824 |
|
|
$ |
1,209 |
|
Plus (less): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
24 |
|
|
|
17 |
|
|
|
77 |
|
|
|
50 |
|
Interest income |
|
(16 |
) |
|
|
(10 |
) |
|
|
(51 |
) |
|
|
(32 |
) |
Income tax expense |
|
67 |
|
|
|
94 |
|
|
|
213 |
|
|
|
350 |
|
Depreciation, depletion and amortization |
|
475 |
|
|
|
421 |
|
|
|
1,354 |
|
|
|
1,185 |
|
Exploration |
|
9 |
|
|
|
5 |
|
|
|
19 |
|
|
|
14 |
|
Gain on sale of assets |
|
(3 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(12 |
) |
Non-cash loss on derivative instruments |
|
(36 |
) |
|
|
52 |
|
|
|
42 |
|
|
|
109 |
|
Severance expense |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
10 |
|
Stock-based compensation |
|
14 |
|
|
|
21 |
|
|
|
43 |
|
|
|
44 |
|
Adjusted EBITDAX |
$ |
786 |
|
|
$ |
915 |
|
|
$ |
2,518 |
|
|
$ |
2,927 |
|
|
Trailing Twelve Months Ended |
||||||
(In millions) |
September 30,
|
|
December 31,
|
||||
Net income |
$ |
1,240 |
|
|
$ |
1,625 |
|
Plus (less): |
|
|
|
||||
Interest expense |
|
100 |
|
|
|
73 |
|
Interest income |
|
(66 |
) |
|
|
(47 |
) |
Income tax expense |
|
366 |
|
|
|
503 |
|
Depreciation, depletion and amortization |
|
1,810 |
|
|
|
1,641 |
|
Exploration |
|
25 |
|
|
|
20 |
|
Gain on sale of assets |
|
(3 |
) |
|
|
(12 |
) |
Non-cash loss on derivative instruments |
|
(13 |
) |
|
|
54 |
|
Severance expense |
|
2 |
|
|
|
12 |
|
Stock-based compensation |
|
58 |
|
|
|
59 |
|
Adjusted EBITDAX (trailing twelve months) |
$ |
3,519 |
|
|
$ |
3,928 |
|
Reconciliation of Net Debt
The total debt to total capitalization ratio is calculated by dividing total debt by the sum of total debt and total stockholders’ equity. This ratio is a measurement which is presented in our annual and interim filings and our management believes this ratio is useful to investors in assessing our leverage. Net Debt is calculated by subtracting cash and cash equivalents and short-term investments from total debt. The Net Debt to Adjusted Capitalization ratio is calculated by dividing Net Debt by the sum of Net Debt and total stockholders’ equity. Net Debt and the Net Debt to Adjusted Capitalization ratio are non-GAAP measures which our management believes are also useful to investors when assessing our leverage since we have the ability to and may decide to use a portion of our cash and cash equivalents and short-term investments to retire debt. Our management uses these measures for that purpose. Additionally, as our planned expenditures are not expected to result in additional debt, our management believes it is appropriate to apply cash and cash equivalents and short-term investments to reduce debt in calculating the Net Debt to Adjusted Capitalization ratio.
(In millions) |
September 30,
|
|
December 31,
|
||||
Current portion of long-term debt |
$ |
— |
|
|
$ |
575 |
|
Long-term debt, net |
|
2,066 |
|
|
|
1,586 |
|
Total debt |
|
2,066 |
|
|
|
2,161 |
|
Stockholders’ equity |
|
13,034 |
|
|
|
13,039 |
|
Total capitalization |
$ |
15,100 |
|
|
$ |
15,200 |
|
|
|
|
|
||||
Total debt |
$ |
2,066 |
|
|
$ |
2,161 |
|
Less: Cash and cash equivalents |
|
(843 |
) |
|
|
(956 |
) |
Net debt |
$ |
1,223 |
|
|
$ |
1,205 |
|
|
|
|
|
||||
Net debt |
$ |
1,223 |
|
|
$ |
1,205 |
|
Stockholders’ equity |
|
13,034 |
|
|
|
13,039 |
|
Total adjusted capitalization |
$ |
14,257 |
|
|
$ |
14,244 |
|
|
|
|
|
||||
Total debt to total capitalization ratio |
|
13.7 |
% |
|
|
14.2 |
% |
Less: Impact of cash and cash equivalents |
|
5.1 |
% |
|
|
5.7 |
% |
Net debt to adjusted capitalization ratio |
|
8.6 |
% |
|
|
8.5 |
% |
Reconciliation of Net Debt to Adjusted EBITDAX
Total debt to net income is defined as total debt divided by net income. Net debt to Adjusted EBITDAX is defined as net debt divided by trailing twelve month Adjusted EBITDAX. Net debt to Adjusted EBITDAX is a non-GAAP measure which our management believes is useful to investors when assessing our credit position and leverage.
(In millions) |
September 30,
|
|
December 31,
|
||||
Total debt |
$ |
2,066 |
|
$ |
2,161 |
||
Net income |
|
1,240 |
|
|
1,625 |
||
Total debt to net income ratio |
1.7 x |
|
1.3 x |
||||
|
|
|
|
||||
Net debt (as defined above) |
$ |
1,223 |
|
$ |
1,205 |
||
Adjusted EBITDAX (Trailing twelve months) |
|
3,519 |
|
|
3,928 |
||
Net debt to Adjusted EBITDAX |
0.3 x |
|
0.3 x |
||||
2024 Guidance |
||||||||||||
The tables below present full-year and third quarter 2024 guidance. |
||||||||||||
|
|
Full Year Guidance |
||||||||||
|
|
2024 Guidance (August) |
|
Updated 2024 Guidance |
||||||||
|
|
Low |
|
Mid |
|
High |
|
Low |
|
Mid |
|
High |
Total Equivalent Production (MBoed) |
|
645 |
— |
660 |
— |
675 |
|
660 |
— |
668 |
— |
675 |
Gas (Mmcf/day) |
|
2,675 |
— |
2,725 |
— |
2,775 |
|
2,735 |
— |
2,755 |
— |
2,775 |
Oil (MBbl/day) |
|
105.5 |
— |
107 |
— |
108.5 |
|
107 |
— |
107.5 |
— |
108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net wells turned in line |
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus Shale |
|
37 |
— |
40 |
— |
43 |
|
40 |
||||
Permian Basin |
|
80 |
— |
85 |
— |
90 |
|
No change |
||||
Anadarko Basin |
|
21 |
— |
24 |
— |
27 |
|
No change |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
|
|
— |
|
— |
|
|
|
— |
|
— |
|
Drilling and completion |
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus Shale |
|
|
|
|
||||||||
Permian Basin |
|
|
|
|
||||||||
Anadarko Basin |
|
|
|
|
||||||||
Midstream, saltwater disposal and infrastructure |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity price assumptions: |
|
|
|
|
|
|
|
|
|
|
|
|
WTI ($ per bbl) |
|
|
|
|
|
|
|
|
|
|
|
|
Henry Hub ($ per mmbtu) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow & Investment ($ in billions) |
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures |
|
|
— |
|
— |
|
|
|
— |
|
— |
|
Free Cash Flow (DCF - cash capex) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ per boe, unless noted: |
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expense + workovers + region office |
|
|
— |
|
— |
|
|
No change |
||||
Gathering, processing, & transportation |
|
|
— |
|
— |
|
|
No change |
||||
Taxes other than income |
|
|
— |
|
— |
|
|
No change |
||||
General & administrative (1) |
|
|
— |
|
— |
|
|
No change |
||||
Unit Operating Cost |
|
|
— |
|
— |
|
|
No change |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________________________________________________________________ |
||||||||||||
(1) Excludes stock-based compensation and severance expense |
||||||||||||
|
|
Quarterly Guidance |
||||||||||||
|
|
Third Quarter 2024
|
|
Third Quarter
|
|
Fourth Quarter 2024
|
||||||||
|
|
Low |
|
Mid |
|
High |
|
|
|
Low |
|
Mid |
|
High |
Total Equivalent Production (MBoed) |
|
620 |
— |
635 |
— |
650 |
|
669 |
|
630 |
— |
645 |
— |
660 |
Gas (Mmcf/day) |
|
2,500 |
— |
2,565 |
— |
2,630 |
|
2,682 |
|
2,530 |
— |
2,595 |
— |
2,660 |
Oil (MBbl/day) |
|
107.0 |
— |
109.0 |
— |
111.0 |
|
112.3 |
|
106.0 |
— |
108.0 |
— |
110.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net wells turned in line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus Shale |
|
0 |
— |
4 |
— |
7 |
|
7 |
|
11 |
|
|||
Permian Basin |
|
15 |
— |
20 |
— |
25 |
|
24 |
|
13 |
— |
18 |
— |
23 |
Anadarko Basin |
|
5 |
— |
5 |
— |
5 |
|
5 |
|
1 |
— |
4 |
— |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
|
|
— |
|
— |
|
|
|
|
|
— |
|
— |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031609078/en/
Investor Contact
Daniel Guffey - Vice President of Finance, IR & Treasury
281.589.4875
Hannah Stuckey - Investor Relations Manager
281.589.4983
Source: Coterra Energy Inc.
FAQ
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