Discretionary Cash Flow is widely accepted as a financial indicator of an oil and gas companys ability to generate available cash to internally fund exploration and development activities, return capital to shareholders through dividends and share repurchases, and service debt and is used by our management for that purpose. Adjusted EBITDAX is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities or net income, as defined by GAAP, or as a measure of liquidity. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Coterra's net debt to Adjusted EBITDAX ratio (non-GAAP) at June30, 2022 was 0.4x. We can provide no assurance that the forward-looking statements contained in this press release will occur as projected and actual results may differ materially from those projected. For second-quarter 2022, Coterra reported cash flow from operating activities of $879 million. By providing your email address below, you are providing consent to Coterra Energy to send you the requested Investor Email Alert updates. Coterra is committed to environmental stewardship, sustainable practices, and strong corporate governance. After completing its buyback authorization ($1.25 billion) during calendar 2022, the Board approved a new $2.0 billion authorization, representing approximately 11% of the Company's market capitalization as of market close on February 21, 2023. Thomas E. Jorden, Chief Executive Officer and President, commented, "Coterra delivered another strong quarter as we remain focused on capital efficiency, operational execution, and shareholder returns through our base dividend, variable dividend, share repurchase program, and debt reduction. For the six months ended June30, 2021, includes $2 million related to early retirements under the Company's 2021 Early Retirement Program. Q4: 2022-02-23 Earnings Summary. Committed to Sustainability and ESG Leadership. Person are built to brave the cycles with flexibility stylish capital allocation across high-quality, low-cost oil and gas net. Who We Are - Coterra Energy Additionally, as our planned expenditures are not expected to result in additional debt, our management believes it is appropriate to apply cash and cash equivalents to reduce debt in calculating the Net Debt to Adjusted Capitalization ratio. Cautionary Statement Regarding Forward-Looking Information. Expect annual average production of 610 - 650 MBoe/d, in line with 2022. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. With 2023 estimated Free Cash Flow approaching $2 billion, based on recent strip prices, we are projected to generate sufficient cash flow to fund the base dividend and make meaningful progress on the new buyback authorization., Full-Year 2022 and Fourth Quarter 2022 Shareholder Return Highlights. , , , , , , Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Coterra Energy Schedules Fourth-Quarter 2022 Results Conference Call for Thursday, February 23, 2023, Net income for second-quarter 2022 totaled, Generated cash flow from operating activities of. Discretionary Cash Flow is defined as cash flow from operating activities excluding changes in assets and liabilities. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Full-year 2022 total equivalent production averaged 633.8 MBoepd. Hannah Stuckey - Investor Relations Manager Full-year 2021 results include nine months of legacy Cabot results from January 1 to September 30, plus three months of Coterra beginning October 1, unless noted otherwise. Coterra Energy Inc. (CTRA) Q3 2022 Earnings Call Transcript HOUSTON, Aug. 2, 2022 /PRNewswire/ --Coterra Energy Inc. (NYSE: CTRA) ("Coterra" or the "Company") today reported second-quarter 2022 financial and operating results. This press release contains certain forward-looking statements within the meaning of federal securities laws. Coterra, formed by the combination of Cabot Oil & Gas Corporation and Cimarex Energy Co., has core positions in the top onshore U.S. oil and natural gas basins, giving the Company some of the best assets. See the reconciliations below that compare GAAP financial measures to non-GAAP financial measures for the periods indicated. The 40% Upper Marcellus weighting is expected to be the high-end over the next few years. At year-end 2022, proved undeveloped reserves accounted for 24 percent of total proved reserves, down from 26 percent at year-end 2021. Forward-looking statements are not statements of historical fact and reflect Coterra's current views about future events. daniel.guffey@coterra.com. Share repurchases represent an incremental 34 percent return of second-quarter 2022 cash flow from operating activities, or 30 percent of free cash flow (non-GAAP), to shareholders. Management - Coterra Energy Free Cash Flow is an indicator of a company's ability to generate cash flow after spending the money required to maintain or expand its asset base, and is used by our management for that purpose. Latest News Feb 22, 2023 Our executive management team provides leadership and experience through all facets of our business. By providing your email address below, you are providing consent to Coterra Energy to send you the requested Investor Email Alert updates. Except to the extent required by applicable law, Coterra does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Including the effect of commodity derivatives, average realized prices for oil and natural gas for fourth-quarter 2022 were $81.57 per Bbl and $4.74 per Mcf, respectively. PDF 2Q22 Earnings Presentation Combining our track record of execution with our deep inventory of high-quality assets, Coterra is positioned to succeed through commodity cycles.". a Coterra Energy Inc. logo is seen on . However, we believe certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results and results of prior periods. The tables below provide a summary of production volumes, price realizations and operational activity by region and units costs for the Company for the periods indicated: Twelve Months Ended Including the effect of commodity derivatives, average realized prices for oil and natural gas for second-quarter 2022 were $92.78 per Bbl and $5.15 per Mcf, respectively. Payable Date. See "Supplemental non-GAAP Financial Measures" below for a description of free cash flow as well as reconciliations of this measures to discretionary cash flow and cash flow from operating activities. Additionally, the company beat its 2022 environmental goals and laid out ambitious 2023 goals. We will treat your data with respect and will not share your information with any third party. We strive to maintain minimal hierarchy, creating the opportunity for anyone who is inspired and offers ideas to have an impact. "Guided by principles focused on full-cycle value creation and disciplined capital allocation, Coterra expects to invest approximately 50 percent of its cash flow, at recent strip prices", commented Jorden. The EBITDAX used in the calculation below is reflective of nine months of legacy Cabot and Cimarex EBITDAX, plus three months of Coterra EBITDAX. After submitting your request, you will receive an activation email to the requested email address. See "Supplemental non-GAAP Financial Measures" below for a description of free cash flow as well as reconciliations of this measures to discretionary cash flow and cash flow from operating activities. Cision Distribution 888-776-0942 This ratio is a measurement which is presented in our annual and interim filings and our management believes this ratio is useful to investors in assessing our leverage. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited), Properties and equipment, net (successful efforts method), LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY, Long-term debt, net (excluding current maturities), CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited), Net cash paid in settlement of derivative instruments, Net cash provided by operating activities, Capital expenditures for drilling, completion and other fixed asset additions, Capital expenditures for leasehold and property acquisitions, Net cash (used in) provided by investing activities, Tax withholding on vesting of stock awards, Cash paid for conversion of redeemable preferred stock, Net (decrease) increase in cash, cash equivalents and restricted cash, Supplemental Non-GAAP Financial Measures (Unaudited). For the six months ended June30, 2022, includes severance expense related to accrued severance costs as a result of the Merger. In addition, the declaration and payment of any future dividends, whether regular base quarterly dividends, variable dividends or special dividends, will depend on Coterra's financial results, cash requirements, future prospects and other factors deemed relevant by Coterra's Board. Thomas E. Jorden, Chairman . Investor Relations: www.coterra.com . Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. "Our combined business will have top-tier assets that will generate substantial cash flow to drive peer-leading returns through commodity price cycles. Estimated cash flow from operating activities of approximately $4.0 billion, at recent commodity strip prices, Expected capital investment of $2.0 billion to $2.2 billion. Less: Impact of cash and cash equivalents, Net debt to adjusted capitalization ratio, Reconciliation of Net Debt to Adjusted EBITDAX. For additional information, visit the Company's homepage at www.cabotog.com. We strive to be a leading producer, delivering returns with a commitment to sustainability leadership. The total debt to total capitalization ratio is calculated by dividing total debt by the sum of total debt and total stockholders equity. Full-year 2022 discretionary cash flow (non-GAAP) was $5,642 million and free cash flow (non-GAAP) totaled $3,942 million, both of which are inclusive of merger-related costs. If you experience any issues with this process, please contact us for further assistance. Adjusted EBITDAX is defined as net income plus interest expense, other expense, income tax expense, depreciation, depletion, and amortization (including impairments), exploration expense, gain and loss on sale of assets, non-cash gain and loss on derivative instruments, stock-based compensation expense, severance expense and merger-related expense. Coterra Energy - Coterra Energy Reports Fourth-Quarter and Full-Year By providing your email address below, you are providing consent to Coterra Energy to send you the requested Investor Email Alert updates. The share repurchase program is supplemental to the Company's base plus variable dividend strategy. Coterra's average realized prices for oil, natural gas and NGLs for 2022, excluding the effect of commodity derivatives, were $94.47 per Bbl, $5.34 per Mcf, and $33.58 per Bbl, respectively. These risks and uncertainties include, without limitation, the risk that the businesses will not be integrated successfully the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected the effect of future regulatory or legislative actions on the companies or the industry in which they operate, including the risk of new restrictions with respect to well spacing, hydraulic fracturing, natural gas flaring or other oil and natural gas development activities disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers the diversion of management time on merger-related issues the volatility in commodity prices for crude oil and natural gas the continuing effects of the COVID-19 pandemic and the impact thereof on Cabot's and Cimarex's businesses, financial condition and results of operations actions by, or disputes among or between, the Organization of Petroleum Exporting Countries and other producer countries the presence or recoverability of estimated reserves the ability to replace reserves environmental risks drilling and operating risks exploration and development risks competition the ability of management to execute its plans to meet its goals and other risks inherent in Cabot's and Cimarex's businesses. News. Wells completed includes wells completed during the period, regardless of when they were drilled. These risks and uncertainties include, without limitation, the risk that the combined businesses will not be integrated successfully the risk that the cost savings and any other synergies from the Merger may not be fully realized or may take longer to realize than expected the volatility in commodity prices for crude oil and natural gas cost increases; supply chain disruptions; the effect of future regulatory or legislative actions, including the risk of new restrictions with respect to well spacing, hydraulic fracturing, natural gas flaring, seismicity, produced water disposal, or other oil and natural gas development activities disruption from the Merger making it more difficult to maintain relationships with customers, employees or suppliers the diversion of management time on integration-related issues the potential effects of further developments to the long-term impact of the COVID-19 pandemic and variants thereof on Coterra's business, financial condition and results of operations actions by, or disputes among or between, the Organization of Petroleum Exporting Countries and other producer countries market factors; market prices (including geographic basis differentials) of oil and natural gas; impacts of inflation; labor shortages and economic disruption (including as a result of the pandemic or geopolitical disruptions such as the war in Ukraine); the presence or recoverability of estimated reserves the ability to replace reserves environmental risks drilling and operating risks exploration and development risks competition the ability of management to execute its plans to meet its goals and other risks inherent in Coterra's businesses. https://www.businesswire.com/news/home/20230222005369/en/, Investor Contact En vous inscrivant la newsletter, vous consentez la rception de contenus de notre part. After submitting your request, you will receive an activation email to the requested email address. At the recent commodity strip, we expect to generate free cash flow of approximately $4.5 billion in 2022. click here. Due to market conditions and the value proposition of our shares, in 2023 we are realigning our strategy to focus on buybacks ahead of variable dividends. 1Free cash flow is a . Coterra repurchased 11.0 million shares in the second quarter at a cost of $303 million, which implies an additional 34 percent return of second-quarter 2022 cash flow from operating activities, or 30 percent of free cash flow (non-GAAP), to shareholders. Record Date. Coterra Energy - Flexible and built for the future. HOUSTON--(BUSINESS WIRE)-- Oil production averaged 88.2 MBopd and natural gas production averaged 2,790 MMcfpd, both exceeding the high-end of guidance. Our management uses Adjusted EBITDAX for that purpose. Present Value of Investment (PVI10) is often used by management as a return-on-investment metric and defined as the estimated net present value (using a 10% discount rate) of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs), adding back our direct net costs incurred in drilling and adding back our completing, constructing facilities, and flowing back such wells, and then dividing that sum by our direct net costs incurred in drilling, completing, constructing facilities, and flowing back such wells. The base plus variable dividend reflects a $0.15 per share base component and a variable component of $0.50 per share, on the Company's common stock. Driven by relatively high commodity prices and strong execution during 2022, the company returned $3.25 billion to shareholders through our base dividend ($480 million), variable dividend ($1.51 billion) and share repurchases ($1.25 billion). For the three and twelve months ended December 31, 2022, includes severance expense of $11 million and $62 million, respectively, related to accrued severance costs as a result of the Merger. The Company exited the year with a cash balance of $0.7 billion and no debt outstanding under its revolving credit facility. ", Jorden added, "We are pleased to announce that we will return 80 percent of our second-quarter 2022 free cash flow to shareholders, which includes 50 percent in the form of cash dividends and 30 percent in the form of share repurchases. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the 'unsubscribe' section below. Coterra entered third-quarter 2022 with an outstanding share repurchase authorization of $763 million. Forward-looking statements are not statements of historical fact and reflect Coterra's current views about future events. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. 281.589.4875 See "Supplemental non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as reconciliations of these measures to the associated GAAP measures. PDF Coterra Energy: Climate Policy Engagement Overview - InfluenceMap Web3 firm Relation Labs announced the launch of the first airdrop season for the native token of its blockchain, REL. Non-cash (gain) loss on derivative instruments, Cimarex Adjusted EBITDAX (nine months ended September 30, 2021). Adjusted Net Income and Adjusted Earnings per Share are not measures of financial performance under GAAP and should not be considered as alternatives to net income and earnings per share, as defined by GAAP. This retirement was the result of the voluntary conversion by certain holders of the Cimarex preferred stock into 0.8 million shares of our common stock and $10 million in cash pursuant to the terms of the Cimarex preferred stock.