Latest news with #Coterra
CNBC
05-08-2025
- Business
- CNBC
Coterra's earnings beat doesn't change the big picture for the oil producer
Coterra Energy's second-quarter results beat expectations on the top and bottom lines, sending shares modestly higher Tuesday. Still, the report and conference call weren't enough for us to warm up to this poorly performing stock. Revenue in the three months ended June 30 totaled $1.97 billion, ahead of the $1.7 billion consensus, according to LSEG. Adjusted earnings per share (EPS) came in at 48 cents, topping estimates by 3 cents, LSEG data showed. Shares of Coterra are up about 0.5% Tuesday, overcoming earlier losses of roughly 2%. The stock entered the session down 6.3% year to date, trailing both the S & P 500's energy sector and the broader index. It's become a difficult environment for prices of both natural gas and oil, hurting Coterra in the process. The stock's fortunes this year turned around the time of President Donald Trump's April 2 tariff announcement, which sent oil prices tumbling as traders recalibrated their expectations for global economic growth. For its part, Coterra's poor earnings report in early May, marked by operational issues in some of its Texas acreage, sparked another leg lower for the stock and cast another pall over shares ever since. Bottom line As far as the numbers go, Coterra reported a solid quarter driven by higher-than-expected total production. But when you step back and consider the bigger picture — the downbeat market for oil and gas prices alongside the operational hiccup that Coterra is working through — it's hard to get too excited about the stock. West Texas Intermediate, the U.S. oil benchmark, has slipped around 5% year to date, while natural gas futures are down even more. We trimmed our position on July 8 when shares traded above $25 apiece, and we continue to view Coterra as a stock to trim into any potential strength. There was a short-lived rally in oil prices above $70 a barrel when the Israel-Iran conflict intensified in June. But when tensions simmered and crude retreated, so did Coterra's share price. "You can't outrun your commodity, not if both commodities you're in are bad," Jim Cramer said Tuesday. We're reiterating our 3 rating, meaning sell into strength, and lowering our price target on the stock to $28 a share from $30. Commentary As expected, Coterra provided an update on the excessive water levels afflicting some of the wells it drilled in the Harkey sandstone located in Culberson County, Texas. It's part of the massive Permian Basin, the most prolific oil field in the U.S., spanning West Texas and eastern New Mexico. CEO Tom Jorden said some of the design changes that Coterra implemented are working and the water issue appears localized rather than widespread across its Culberson County land. Indeed, new wells drilled in the Harkey nearby the problematic ones are producing without issue, Jorden said. Nevertheless, the remedied Harkey wells are still not producing meaningful oil volumes, and Jorden said Coterra is being "very conservative" in its production forecast for them. "We are full steam ahead on Harkey and really do look forward to getting this problem behind us," the CEO said. Across its entire Permian portfolio, Coterra said it still intends keep nine rigs running this year — in line with its late June update to investors when it walked back plans to drop down to seven. Additionally, Coterra is standing by its previously announced plans to run two rigs in the natural gas-focused Marcellus Shale in Pennsylvania, as well as one to two rigs in Oklahoma's Anadarko Basin. Coterra's desire to maintain consistent activity levels stands in contrast to national trends, with rig counts across the U.S. trending down, according to weekly data from oilfield services provider Baker Hughes . Jorden defended Coterra's approach on the conference call with investors, emphasizing that is has "deep inventory of low-cost assets." He added, "Our long-term goal ... isn't production. It's generating free cash flow and demonstrating to the market that we have durability there. One of the things that our asset complexion and our mixture gives us the luxury of is having stable cash flow and having the ability to ride through the cycles." One interesting nugget in Coterra's earnings release: The company struck a natural gas supply agreement with a forthcoming power plant — the CPV Basin Ranch Energy Center — being built in the Permian Basin. The seven-year deal to sell 50 million standard cubic feet (MMcf) worth of natural gas per day is slated to begin in 2028. Coterra said this is its first supply agreement in the Permian. It has two such deals in the Marcellus. Analysts at Mizuho Securities said in note to clients that Coterra's Permian deal could be a "potentially attractive opportunity" to increase the amount of money it makes on gas produced in that region. These types of deals usually include an agreed-upon price that is different than the market price, which in this case would the Waha Hub in West Texas. "We're really thrilled to have it from a pricing standpoint," Jorden said, though he noted that it another benefit is Coterra will receive the ability to also buy power from the plant once it's online. "And availability of power is a growing concern in the Permian Basin, so that really ticks both those boxes." A side note: Fellow Club name GE Vernova, which makes the gas turbines used to generate electricity, is involved with the development of the Basin Ranch project. GE Vernova has seen a surge in orders for its turbines thanks to the boom in AI-focused data center construction and the related uptick in electricity consumption. The Texas market, in particular, is expected to see "rapid" electricity demand growth, according to the U.S. Energy Information Administration . 2025 guidance Coterra updated some parts of its full-year guidance. All estimates are from FactSet. Capex of $2.3 billion, which would be at the high end of its new $2.1 billion to $2.3 billion range. Its previous guidance issued in May called for $2 billion to $2.3 billion, or $2.15 billion at the midpoint. Free cash flow of roughly $2.1 billion, down from its prior projection of $2.7 billion. However, the revised figure still came in modestly above Wall Street expectations. Total equivalent production of 755 to 780 Mboe/d. The midpoint of the range is 768 Mboe/d, up 3.8% from previous guidance and ahead of the 752.7 Mboe/d stands for thousand barrels of oil equivalent per day. Natural gas production in the range of 2,875 to 2,950 MMcf/d, resulting in a midpoint of 2,913, which is up about 5% from the previous guidance and matches the Street consensus. Oil production in the range of 157 to 163 Mbo/d. The midpoint of 160 is unchanged from its prior forecast and in line with consensus. (Jim Cramer's Charitable Trust is long CTRA and GEV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
23-07-2025
- Business
- Yahoo
Jim Cramer Says 'We Should be in ConocoPhillips'
ConocoPhillips (NYSE:COP) is one of the stocks that Jim Cramer shed light on. When a caller asked about the company during the lightning round, Cramer commented: 'All right. Buy COP. Let me tell you, I just told Jeff Marks, my partner for the club, that we're in the wrong one now. Coterra is not delivering. We should be in ConocoPhillips. I just said it today. I'm not going to say it behind… I tell it to you, I say it to him. That's how I play it.' Pixabay/Public Domain ConocoPhillips (NYSE:COP) engages in the exploration, production, and transportation of crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Earlier in June, when a caller expressed their wish to sell COP shares for LLY shares, Cramer replied: 'I like your idea. I like your idea. I like your idea. I think Lily's at a great level, and Conoco is not nearly as all the oils go to like 4 or 5% yield, this is only three and a half. I want you to sell the Conoco and buy the Lilly. I like that idea.' While we acknowledge the potential of COP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
CNBC
16-07-2025
- Business
- CNBC
Here's why Jim Cramer is ready sell more of the portfolio's sole oil and nat gas stock
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. 1. The S & P 500 moved lower since the Morning Meeting was recorded Wednesday, after a senior White House official told CNBC that President Donald Trump would likely fire Federal Reserve chief Jerome Powell soon. Shortly after that, Trump told reporters that firing Powell would be "highly unlikely" unless there is fraud, referring to White House questions about the Fed's renovation project. The president has been calling for interest rate cuts, and he did so again. Powell has held rates steady, looking for more time to gauge how tariffs might impact the economy and inflation. Speaking of inflation, the June producer price index was unchanged month over month following an uptick seen in Tuesday's release of the consumer price index. Bond yields were lower Wednesday after jumping on the CPI. And, after 10 straight sessions, the S & P Short Range Oscillator moved out of overbought territory. 2. We might be gearing up for another trim of Coterra Energy . With U.S. oil prices down over 1% Wednesday, Jim warned investors to "keep track of oil." He added, "Oil could break [below] $60 here. If it breaks $60, you're going to hear a new inflation [lower] story." Our sole oil and natural gas name Coterra could be at an unfortunate crossroads after opting late last month to hold its Permian rig count after previously signaling a cut. Jim said he wants to "sell" Coterra because he doesn't "like their operating ability." We sold 500 shares last week for this exact reason and downgraded the stock to our 3 rating . "We can definitely look to sell more," said Jeff Marks, director of portfolio analysis for the Club. 3. Club name Disney got a price target hike to $138 per share from $120 from UBS. The analysts project ongoing double-digit earnings-per-share growth. They're betting that Disney's fiscal third-quarter results, due out on Aug. 6, will show resilient park demand and further improvements in direct-to-consumer profitability. "I love this call," Jim said. This year's strong performance by the stock led the Club to sell some shares back on June 27. The Club, however, still owns a sizeable position, and Jim is still a long-term believer in the stock. 4. Stocks covered in Wednesday's rapid fire at the end of the video were: Johnson & Johnson , Bank of America , ASML , and Rockwell Automation . (Jim Cramer's Charitable Trust is long CTRA, DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Business Wire
08-07-2025
- Business
- Business Wire
Coterra Energy Schedules Second-Quarter 2025 Results Conference Call for Tuesday, August 5, 2025
HOUSTON--(BUSINESS WIRE)-- Coterra Energy Inc. ('Coterra' or the 'Company') (NYSE: CTRA) today announced it will host a conference call on Tuesday, August 5, 2025, at 9:00 AM CT (10:00 AM ET) to discuss second-quarter 2025 financial and operating results. The Company plans to announce second-quarter 2025 results after the market closes on Monday, August 4, 2025. Conference Call Information Time: 9:00 AM CT / 10:00 AM ET USA / International Toll +1 (646) 307-1963 USA / Canada - Toll-Free (800) 715-9871 Conference ID: 4309719 To access the live webcast, visit the 'Events & Presentations' page under the 'Investors' section of the Company's website at The replay will be archived and available at the same location after the conclusion of the live event. About Coterra Energy Coterra is a premier exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale and Anadarko Basin. We strive to be a leading energy producer, delivering sustainable returns through the efficient and responsible development of our diversified asset base. Learn more about us at
CNBC
08-07-2025
- Business
- CNBC
We're trimming our position in a middling stock to avoid a cardinal sin of investing
We are selling 500 shares of Coterra Energy at roughly $25.56 each. Following the trade, Jim Cramer's Charitable Trust will own 2,600 shares, decreasing our weighting to about 1.80% from about 2.17%. We've recently made several sales in winners, trimming our positions in Goldman Sachs , Broadcom , Disney , and CrowdStrike , as well as Eaton , following some significant moves to new highs. However, limiting sales to winners is a cardinal sin of managing a portfolio. If you never sell the bad ones in a portfolio, you'll be stuck waiting for a bunch of underperforming stocks to improve and risk missing out on better opportunities. Coterra has not gotten going this year like we thought it would have. It had too much natural gas when the market wanted oil, and through a couple of acquisitions late last year, it's now got too much oil when the market wants natural gas. The stock also got hit when the company's oil volumes were impacted by an operational miscue at one of its sites. The company moved quickly to address this problem, but it caught us by surprise because we always thought of Coterra as excellent operator. We've also owned Coterra as a "hedge" against geopolitical risk. Our thinking was that if something happened geopolitically that caused oil prices to spike, we'd be glad to have a stock that was up in what would likely be a bad day for the rest of the market. That played out in June through the Iran-Israel conflict, but Coterra couldn't hold onto its gains as oil prices retreated. With Coterra Energy shares up nearly 3% on Tuesday, we see an opportunity to balance our sales of winners with a trim of stock that has been very disappointing over the past few years. Lastly, we are downgrading our Coterra rating to a 3, meaning sell into strength. From this sale, we will realize a disappointing loss of about 11% on stock purchased in 2022. (Jim Cramer's Charitable Trust is long CTRA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
