On July 21 Coterra Energy Inc. (NYSE:CTRA) filed an 8-K report with the SEC showing their realized prices for crude oil, natural gas, and NGL during Q2 2025 net of cash settlements on their hedges during the quarter.
During the quarter, Coterra reported a post-hedge realized oil price of $64.01 per barrel, which was higher than the average WTI crude oil price during the quarter. Coterra's post-hedge realized gas price for the company came in at $2.27 per mmbtu, which was less than the Henry Hub average gas price of $3.43 mmbtu. < All of their Permian Basin gas sells at a big discount to HH prices until more pipeline takeaway capacity is built in West Texas.
TipRanks: Since July 21st six highly respected energy sector analysts have submitted updated price targets for CTRA that range from $32 to $35 with an average of $33.17. At six of them rate the stock a BUY or STRONG BUY. < My current valuation of CTRA is $35.50.
CTRA closed at $23.70 on August 1.
Keith Kohl, editor of The Energy Investor newsletter, recently sent out this note to his subscribers:
At the frontlines of natural gas supply is Coterra Energy, a premier exploration and
production (E&P) company with assets spanning the Marcellus Shale in Pennsylvania,
the Permian Basin in West Texas, and the Anadarko Basin in Oklahoma.
The company controls approximately 297,000 net acres in the Delaware Basin,
186,000 net acres in the gas-rich Marcellus of Pennsylvania, and 181,000 net acres in
Oklahoma’s Anadarko Basin.
Altogether, this gives Coterra a geological footprint of over 600,000 net acres — a
diversified, high-efficiency portfolio that delivers flexibility and cost control.
Recent News
As one of the recent additions to our model portfolio, there hasn’t been much news
released from Coterra this month except for the announcement that the company will
be releasing its Q2 financial and operating results on August 4, 2025.
Coterra is coming off two consecutive quarterly earning reports that beat consenus, and
this time around will be looking to beat the earnings consensus of $0.45 per share.
We did get a small sneak peek into what’s in store for this report after the company
filed an 8-K that revealed a few preliminary second-quarter metrics.
During the second quarter, management reported that they had realized sales prices of
$62.80/barrel for oil, $2.20/Mcf for natural gas, and $18.72/barrel for NGLs.
If we include Coterra’s hedges, oil sales prices averaged $64.01/barrel and gas
$2.27/mcf. More importantly, the company expects $35 million in net cash receipts from
derivative settlements — a modest but tidy boost to cash flow under soft gas pricing
conditions.
I hope to have more concrete details for you on their operations soon.
Coterra Resources (NYSE: CTRA) is rated a “Buy” under $30
Dan Steffens
Energy Prospectus Group
barchart.com |
