Coterra Energy Inc. (CTRA), headquartered in Houston, Texas, is an oil and gas exploration and production company with operations in the Permian Basin, Marcellus Shale, and Anadarko Basin. Valued at $19.19 billion by market cap, the company operates natural gas and saltwater gathering and disposal systems in Texas. It sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. The leading energy producer is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Thursday, Aug. 1.
Ahead of the event, analysts expect CTRA to report a profit of $0.41 per share on a diluted basis, up 7.9% from $0.38 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. During the previous quarter, the company repurchased 5.6 million shares for $150 million.
For fiscal 2024, analysts expect CTRA to report EPS of $2.04, down 6.9% from $2.19 in fiscal 2023.
CTRA stock has underperformed the S&P 500’s ($SPX) 13.8% gains on a YTD basis, with shares up 1.1% during this period. Similarly, it underperformed the S&P 500 Energy Sector SPDR’s (XLE) 7.6% gains over the same time frame.
On May 2, CTRA reported its Q1 results. Its operating revenues fell 19.4% year-over-year to $1.43 billion. The company’s adjusted net income and EPS came in at $383 million and $0.51, representing a decline of 42.1% and 41.4% year over year, respectively. Driven by strong well performance and faster cycle times, it raised its full-year 2024 oil production guidance to 102 to 107 MBopd, up 2.5% at the mid-point compared to the initial guidance.
CTRA reiterated its full-year non-GAAP incurred capital expenditures of $1.75 billion to $1.95 billion. The company expects Q2 total equivalent production of 625 to 655 MBoepd, oil production of 103 to 107 MBopd, natural gas production of 2,600 to 2,700 MMcfpd, and non-GAAP incurred capital expenditures of $470 to $550 million. CTRA shares closed up marginally on the day the results were released but have been on a downtrend since then.
On Apr. 10, CTRA shares closed up more than 1% after Barclays initiated coverage of the stock with an Overweight recommendation and a price target of $36.
Analysts’ consensus opinion on CTRA stock is bullish, with a “Strong Buy” rating overall. Out of 24 analysts covering the stock, 17 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and six recommend a “Hold.” The average analyst price target for CTRA is $33.67, indicating a 30.6% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
