Coterra Energy (CTRA) Reports Strong Q4 and 2023 Results, Increases Dividend

By Bobby Samwell • Friday, February 23 10:06 • Permanent Link

Coterra Energy Reports Strong Fourth-Quarter and Full-Year 2023 Results, Declares Dividend Increase, and Provides 2024 Outlook

Houston, February 22, 2024 - Coterra Energy Inc. (NYSE: CTRA) ("Coterra") has released its fourth-quarter and full-year 2023 results, outlined its 2024 outlook, and announced an increase in its quarterly dividend.

Key Takeaways & Updates Fourth-quarter 2023 total barrels of oil equivalent and oil production exceeded guidance, while incurred capital expenditures came in lower than expected. Shareholder returns amounted to 77% of 2023 free cash flow, with the company committed to returning 50% or more of its annual free cash flow to shareholders. A quarterly dividend of $0.21 per share for the fourth quarter of 2023 was declared, representing a 5% increase year-over-year. Expected 2024 incurred capital expenditures to decrease by 12% year-over-year at the mid-point, driven by lower Marcellus activity and anticipated cost reductions. * New three-year outlook for 2024 through 2026 projects 0-5% barrel of oil equivalent and 5+% oil compound annual growth rates (CAGRs), with annual incurred capital expenditures averaging between $1.75-$1.95 billion.

Financial Highlights Net income for the fourth quarter of 2023 totaled $416 million, or $0.55 per share. Adjusted net income was $387 million, or $0.52 per share. Cash flow from operating activities totaled $760 million, with discretionary cash flow at $881 million. * Free cash flow for the fourth quarter amounted to $413 million.

2024 Outlook Estimated discretionary cash flow of approximately $3.15 billion and free cash flow of approximately $1.3 billion, at approximately flat pricing. Anticipated 2024 total equivalent production of 635-675 mboepd, with oil production expected to increase by approximately 6% year-over-year at the mid-point.

Full-Year 2023 and Fourth Quarter 2023 Shareholder Return Highlights The board approved a quarterly base dividend of $0.21 per share, marking a 5% increase year-over-year. Share repurchases during the quarter totaled 1.1 million shares for $29 million.

Strong Financial Position As of December 31, 2023, Coterra had total debt of $2.161 billion with a cash balance of $956 million and no debt outstanding under its revolving credit facility, resulting in total liquidity of approximately $2.46 billion.

Today the company's shares have moved -1.9% to a price of $25.84. For more information, read the company's full 8-K submission here.

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