Coterra Energy Reports Second-Quarter 2025 Results

Coterra Energy Inc., a prominent exploration and production company based in Houston, Texas, has released its financial and operational results for the second quarter of 2025. The company also announced a quarterly dividend and provided updated guidance for the remainder of the year.

Financial Highlights

For the second quarter of 2025, Coterra reported a net income of $511 million, translating to $0.67 per share. Adjusted net income, a non-GAAP measure, stood at $367 million or $0.48 per share. The company's cash flow from operating activities was $937 million, while discretionary cash flow totaled $949 million. Free cash flow, another non-GAAP measure, amounted to $329 million.

Capital expenditures for drilling, completion, and other fixed asset additions were $620 million on a GAAP basis, and $569 million on a non-GAAP basis, which was below the low end of the company's guidance range. The unit operating cost was $9.34 per BOE, aligning with the midpoint of the annual guidance range.

Business and Operational Highlights

Coterra's total equivalent production for the quarter was 783.9 thousand barrels of oil equivalent per day (MBoepd), surpassing the high end of the guidance range. Oil production averaged 155.4 thousand barrels per day (MBopd), and natural gas production averaged 2,998.6 million cubic feet per day (MMcfpd), both exceeding expectations. The company realized average prices of $62.80 per barrel for oil, $2.20 per Mcf for natural gas, and $18.72 per barrel for NGLs, excluding the effect of commodity derivatives.

Strategic Initiatives and Corporate Developments

During the quarter, Coterra declared a quarterly dividend of $0.22 per share, amounting to approximately $168 million. The company also repurchased 0.9 million shares for $23 million and repaid $100 million of term loans. These actions resulted in direct shareholder returns totaling approximately 58% of free cash flow. Additionally, Coterra announced a new power netback gas sale agreement in the Permian Basin, expected to start in 2028, further diversifying its natural gas marketing portfolio.

Management's Perspective

Tom Jorden, Chairman, CEO, and President of Coterra, expressed satisfaction with the company's performance, highlighting strong capital efficiency driven by lower-than-expected capital expenditures and higher-than-expected production. He emphasized the company's operational flexibility and commitment to maintaining a steady activity cadence to support capital efficiency in 2026.

Future Outlook

Coterra has updated its full-year 2025 guidance, increasing total equivalent and natural gas production expectations while maintaining the oil production midpoint. The company expects 2025 capital expenditures to be approximately $2.3 billion and free cash flow to total $2.1 billion at recent strip prices. For the third quarter of 2025, Coterra anticipates total equivalent production of 740 to 790 MBoepd, oil production of 158 to 168 MBopd, and natural gas production of 2,750 to 2,900 MMcfpd.

SEC Filing: Coterra Energy Inc. [ CTRA ] - 8-K - Aug. 04, 2025