On November 7, 2023, Coterra Energy Inc (CTRA, Financial) released its third-quarter 2023 financial and operating results. The company reported a GAAP net income of $323 million, or $0.43 per share. The adjusted net income (non-GAAP) was $373 million, or $0.50 per share. The company also declared a quarterly dividend of $0.20 per share.
Financial Highlights
The company's cash flow from operating activities (GAAP) totaled $758 million, while discretionary cash flow (non-GAAP) totaled $796 million. Capital expenditures for drilling, completion, and other fixed asset additions (GAAP) totaled $546 million. Accrued capital expenditures from drilling, completion, and other fixed asset additions (non-GAAP) totaled $542 million, near the low end of the guidance range of $540 - $610 million. Free cash flow (non-GAAP) totaled $250 million.
Production and Pricing
CTRA's total equivalent production of 670 MBoepd exceeded the high end of guidance, driven by improved cycle times and strong well performance in all three of its regions. Oil production averaged 91.9 MBopd, exceeding the high end of guidance. Natural gas production averaged 2,903 MMcfpd, also exceeding the high end of guidance. The realized average prices were $80.80 per Bbl for oil, $1.80 per Mcf for natural gas, and $19.52 per BOE for natural gas liquids.
Shareholder Return Highlights
During the quarter, the company repurchased 2.2 million shares for $60 million, leaving $1.6 billion remaining on the $2.0 billion share repurchase authorization. Total shareholder return for the quarter amounted to $211 million, representing 84% of Free Cash Flow (non-GAAP). Year-to-date, total shareholder return amounted to $839 million, representing 91% of Free Cash Flow (non-GAAP).
Guidance Update and Activity Outlook
CTRA is increasing its full-year 2023 production guidance, with total production expected to be 655-665 MBoepd, oil production of 94.5-95.5 MBopd, and natural gas production of 2,840-2,870 MMcfpd. The estimated 2023 accrued capital expenditures (non-GAAP) remain unchanged at $2.0 - $2.2 billion.
Strong Financial Position
The company exited the quarter with a cash balance of $847 million and no debt outstanding under its $1.5 billion five-year revolving credit facility, for total liquidity of approximately $2.3 billion. As of September 30, 2023, Coterra had total debt outstanding of $2.2 billion, comprised of $1.6 billion long-term debt and $575 million short-term debt due September 2024.
Explore the complete 8-K earnings release (here) from Coterra Energy Inc for further details.
