Coterra Energy Inc. has recently released its 10-Q report, providing a detailed overview of its financial and operational performance for the three and six month periods ended June 30, 2024. The independent oil and gas company is primarily engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. Coterra's key properties include the Marcellus Shale, Permian Basin, and Anadarko Basin, along with operating natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to various customers, including industrial companies, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities.
In the financial and operating overview, Coterra Energy reported a decrease in net income from $886 million in 2023 to $572 million in 2024, with net cash provided by operating activities decreasing from $2.1 billion to $1.4 billion for the same periods. However, equivalent production increased from 117.7 MMBoe in 2023 to 123.3 MMBoe in 2024. The company's average realized prices for oil, natural gas, and NGLs in 2024 were $77.25 per Bbl, $1.76 per Mcf, and $20.28 per Bbl, respectively. Coterra also reduced its total capital expenditures for drilling, completion, and other fixed assets to $927 million in 2024 from $1.1 billion in the corresponding period of the prior year.
The report also discussed market conditions and commodity prices, highlighting the impact of factors such as changes in market supply and demand, pipeline capacity constraints, inventory storage levels, basis differentials, weather conditions, and geopolitical and economic factors on commodity prices. The company noted that while the outlook on oil and natural gas prices is generally favorable, it expects commodity price volatility to continue.
Looking ahead, Coterra Energy provided an outlook for its 2024 full year capital program, with expected capital expenditures of approximately $1.75 billion to $1.95 billion. The company anticipates funding these capital expenditures with its operating cash flow and plans to turn-in-line 138 to 160 total net wells in 2024 across its three operating regions.
In terms of liquidity and capital resources, Coterra Energy stated that it strives to maintain an adequate liquidity level to address commodity price volatility and risk. The company's primary sources of liquidity are cash on hand, net cash provided by operating activities, and available borrowing capacity under its revolving credit agreement. As of June 30, 2024, Coterra had no borrowings outstanding under its revolving credit agreement, with unused commitments of $1.5 billion and unrestricted cash on hand and short-term investments totaling $1.1 billion and $250 million, respectively.
The report also detailed the company's cash flows from operating activities, investing activities, and financing activities for the six months ended June 30, 2024, along with its capitalization, share repurchases, and dividends. Additionally, Coterra Energy provided information about its capital and exploration expenditures, emphasizing its focus on funding most of its capital expenditures with cash flow provided by operating activities.
The market has reacted to these announcements by moving the company's shares -5.1% to a price of $24.11. If you want to know more, read the company's complete 10-Q report here.
