Coterra Energy Reports Mixed Q3 Results with Increased Oil Production and Revenues, Declining Net Income

Coterra Energy Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, Coterra's operating revenues reached $1,359 million, a slight increase from $1,356 million in Q3 2023. Oil revenues rose to $765 million, up 12% from $684 million, driven by a 21% increase in oil production to 10.3 million barrels. However, natural gas revenues fell sharply by 33% to $320 million, primarily due to lower prices and production curtailments in the Marcellus Shale. The company reported a gain on derivative instruments of $64 million, a significant increase from $3 million in the prior year.

Net income for Q3 2024 was $252 million, down from $323 million in Q3 2023, resulting in earnings per share of $0.34 compared to $0.43. For the nine months ended September 30, 2024, net income totaled $824 million, a decrease from $1,209 million in the same period of 2023, with earnings per share dropping from $1.59 to $1.11.

Coterra's total current assets decreased to $1,735 million from $2,015 million at the end of 2023, with cash and cash equivalents also declining to $843 million. Long-term debt increased to $2,066 million, up from $1,586 million, reflecting the issuance of $500 million in senior notes in March 2024. The company amended its revolving credit agreement, increasing commitments from $1.5 billion to $2.0 billion, maturing in September 2029.

In terms of operational performance, Coterra's equivalent production for the nine months ended September 30, 2024, was 184.9 million barrels of oil equivalent (MMBoe), an increase from 179.3 MMBoe in the same period of 2023. The company drilled 120.9 net wells and turned in line 118.3 net wells across its operating regions.

Coterra also continued its share repurchase program, buying back 15 million shares for $404 million during the nine months ended September 30, 2024. The company increased its quarterly dividend from $0.20 to $0.21 per share in February 2024, with total dividends paid amounting to $474 million for the year to date.

Overall, Coterra Energy's financial results reflect a mixed performance, with increased oil production and revenues offset by declines in natural gas revenues and net income. The company continues to focus on strategic financial management and operational efficiency amid fluctuating market conditions.