Oil and gas producer Coterra's Q3 adjusted EPS misses analyst expectations

Reuters
Nov 04
Oil and gas producer Coterra's Q3 adjusted EPS misses analyst expectations

Overview

  • Coterra Q3 adjusted EPS and net income missed analyst expectations

  • Company declared Q3 dividend of $0.22 per share, totaling $168 mln

  • Coterra repaid $250 mln of term loans, resumed share repurchases

Outlook

  • Coterra increases 2025 total equivalent production guidance to 772-782 MBoepd

  • Company expects 2025 capital expenditures (non-GAAP) around $2.3 bln

  • Coterra anticipates 2026 capital expenditures to be modestly down from 2025

Result Drivers

  • PERMIAN PROGRAM - Nine-rig program in the Permian Basin is capital efficient and generating strong returns, per CEO Tom Jorden

  • DIVERSIFIED ASSET BASE - High-quality asset portfolio provides strong returns across price cycles, driven by quality of rock and low cost structure

  • PRODUCTION NEAR GUIDANCE - Total BOE, natural gas, and oil production neared high-end of guidance ranges, exceeding mid-points by 2.5%

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

$0.41

$0.44 (22 Analysts)

Q3 EPS

$0.42

Q3 Adjusted Net Income

Miss

$312 mln

$364.69 mln (13 Analysts)

Q3 Net Income

$322 mln

Q3 Free Cash Flow

$971 mln

Q3 Dividend

$0.22

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for Coterra Energy Inc is $33.00, about 28.3% above its October 31 closing price of $23.66

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw3W187Sa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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