Coterra Energy ( NYSE: CTRA ) is one of Thursday's top five gainers on the S&P 500, +6.9% after beating expectations for Q4 adjusted earnings and revenues , benefiting from higher crude oil prices.
Coterra's ( CTRA ) board also approved an increase to the quarterly base dividend to $0.20/share from $0.15/share and a $0.37/share variable dividend, as well as a new $2B stock buyback authorization, as the company targets paying at least half of free cash flow via base and variable dividends.
Q4 net income increased to $1.03B, or $1.32/share, from $939M, or $1.16/share, in the year-earlier quarter, while revenues rose 2.5% Y/Y to $2.28B.
Q4 production fell 7.8% Y/Y to 632K boe/day, including oil output of 90.7K bbl/day and natural gas production of 2.78M cf/day, both at the high end of company guidance.
Q4 average realized prices for oil increased 8.8% Y/Y to $82.26/bbl, natural gas rose 9.9% to $4.87/Mcf, while natural gas liquids fell 26.8% to $25.02/bbl.
Coterra ( CTRA ) said it expects to invest roughly half its cash flow, which is expected to result in flat production in 2023 of 610K-650K boe/day before returning to modest growth in 2024-25.
The company guided for FY 2023 capital spending of $2B-$2.2B, including $1.825B-$2.025B allocated to drilling and completion activities.
Coterra Energy ( CTRA ) shares have gained 7% so far this year and 17.5% during the past 12 months .
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Coterra Energy surges 7% after rolling to Q4 earnings beat