Coterra Energy (NYSE: CTRA) reported Q4 EPS of $0.52, $0.03 worse than the analyst estimate of $0.55. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.53 billion.

OUTLOOK

Estimate Discretionary Cash Flow (non-GAAP) of approximately $3.15 billion and Free Cash Flow (non-GAAP) of approximately $1.3 billion, at approximately flat $75/bbl and $2.50/mmbtu pricing.
Expect 2024 incurred capital expenditures (non-GAAP) of $1.75 - $1.95 billion

Mid-point down approximately $250 million relative to 2023, primarily due to lower Marcellus spending and lower service cost expectations.
Modestly increasing Permian and Anadarko capital expenditures.
Total Marcellus drilling and completion capital expenditures estimated to be approximately $350 - 400 million, down approximately 55% or approximately $460 million year-over-year at the mid-point. As a result, Marcellus volumes are expected to be down 6% year-over-year.

Expect 2024 total equivalent production of 635-675 MBoepd, down approximately 2% year-over-year at the mid-point; oil production of 99-105 MBopd, up approximately 6% year-over-year at the mid-point; and natural gas production of 2,650 - 2,800 MMcfpd, down approximately 6% year-over-year at the mid-point.
Expect 1Q24 total equivalent production of 660 to 690 MBoepd, oil production of 95 to 99 MBopd, natural gas production of 2,850 to 2,950 MMcfpd, and capital expenditures of $460 to $540 million.

Three Year Outlook: 2024-2026

New three-year outlook (2024 through 2026), guiding to 0-5% barrel of oil equivalent and 5+% oil CAGRs, based on annual incurred capital expenditures (non-GAAP) averaging between $1.75-$1.95 billion.
The Company maintains significant flexibility to adjust its total capital investment level and allocation of capital across its three basins. This flexibility is supported by limited long-term service contracts. While the Company is choosing to lower natural gas-directed activity in 2024, it maintains options that could significantly grow natural gas volumes over the next three years.

For earnings history and earnings-related data on Coterra Energy (CTRA) click here.