HighGravityDataCoterra Energy — May 5, 2025 release
Fiscal 2025 first-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000858470-25-000103
Showing in the filing
Second-half 2025 Permian rig count
“seven Permian rigs”
Period
H2 FY2025
Measure
Company-defined measure
Source
Prose
All guidance in this release · 45
Quarterly dividend
“$0.22 per share”
Permian rigs for H2 FY2025
“seven”
Second-half 2025 Permian rig count for H2 FY2025
“seven Permian rigs”
Capital budget range for FY2025
“$2.0 to $2.3 billion”
Capital expenditures for FY2025
“$2.0 to $2.3 billion”
Reinvestment rate (non-GAAP) for FY2025
“approximately 50%”
Permian capital reduction for FY2025
“approximately $150 million”
Incremental capital (second rig option throu…
“an incremental $50 million”
Incremental Marcellus capital (option to kee… for FY2025
“$50 million”
Annualized dividend yield
“3.4% annualized yield”
Annual Free Cash Flow returned to shareholders for FY2025
“50% or greater”
Shareholder return target for the long term
“50% or greater of annual Free Cash Flow (non-GAAP)”
Term loans for FY2025
“$750 million”
Total equivalent production for FY2025
“710 to 760 MBoepd”
Total equivalent production for Q2 FY2025
“710 to 760 MBoepd”
Oil production for FY2025
“147 to 157 MBopd”
Oil production for Q2 FY2025
“147 to 157 MBopd”
Natural gas production for FY2025
“2,700 to 2,850 MMcfpd”
Natural gas production for Q2 FY2025
“2,700 to 2,850 MMcfpd”
Capital expenditures (non-GAAP) for Q2 FY2025
“$575 to $650 million”
Discretionary Cash Flow (non-GAAP) for FY2025
“approximately $4.3 billion”
WTI price assumption for FY2025
“approximately $63 per bbl”
Commodity price assumption - Henry Hub ($ pe… for FY2025
“$3.70”
Net wells turned in line - Marcellus Shale for Q2 FY2025
“3”
Net wells turned in line - Anadarko Basin for Q2 FY2025
“9”
Total Equivalent Production (MBoed) for FY2025
“720 — 745 — 770”
Gas (Mmcf/day) for FY2025
“2,725 — 2,800 — 2,875”
Oil (MBbl/day) for FY2025
“155 — 160 — 165”
Capital expenditures Total Company ($ in mil… for FY2025
“$2,000 — $2,150 — $2,300”
Drilling and completion Marcellus Shale for FY2025
“$300 midpoint”
Drilling and completion Permian Basin for FY2025
“$1,450 midpoint”
Midstream, saltwater disposal and infrastruc… for FY2025
“$170 midpoint”
Commodity price assumption - WTI ($ per bbl) for FY2025
“$63”
Capital Expenditures ($ in billions) for FY2025
“$2.0 — $2.2 — $2.3”
Free Cash Flow (DCF - incurred capex) ($ in … for FY2025
“$2.1”
Lease operating expense + workovers + region… for FY2025
“$2.50 — $3.05 — $3.60”
Gathering, processing, & transportation ($/b… for FY2025
“$3.25 — $3.75 — $4.25”
Taxes other than income ($/boe) for FY2025
“$1.25 — $1.50 — $1.75”
General & administrative ($/boe) for FY2025
“$0.90 — $1.00 — $1.10”
Unit Operating Cost ($/boe) for FY2025
“$7.90 — $9.30 — $10.70”
Total Equivalent Production (MBoed) for Q2 FY2025
“710 — 735 — 760”
Gas (Mmcf/day) for Q2 FY2025
“2,700 — 2,775 — 2,850”
Oil (MBbl/day) for Q2 FY2025
“147 — 152 — 157”
Net wells turned in line - Permian Basin for Q2 FY2025
“45 — 55 — 65”
Capital expenditures - Total Company ($ in m… for Q2 FY2025
“$575 — $613 — $650”
Exhibit 99.1 · the passage around this item
… earlier in the release
Tom Jorden, Chairman, CEO and President of Coterra, noted, "The company's top-tier balance sheet, diversified portfolio of high-quality oil and natural gas-focused assets and low reinvestment rate position Coterra to prosper throughout cyclical commodity price environments." "As our industry faces macroeconomic uncertainty and oil price headwinds, we believe it is prudent to reduce oil-directed activity at this time. As such, we are lowering Permian investment in 2025 and now expect to average seven Permian rigs during the second half of the year, down 30% from our original guidance of ten. As planned, we added two natural gas-focused rigs in the Marcellus in April and may keep this activity running for the balance of 2025. These decisions to reduce and reallocate capital bolster free cash flow in 2025, allow for a conservative investment ratio at lower commodity prices, and allow us to maintain our oil production guidance while slightly increasing our natural gas and BOE volumes for 2025. Additionally, these actions support free cash flow upside over the medium and long-term while generating attractive full-cycle returns in each of our operating regions in the current environment." Mr. Jorden continued, "Due to the short-term nature of our service contracts and limited marketing commitments, Coterra maintains significant flexibility to adjust our capital investment and maintains a series of activity off-ramps in 2025 that could further reduce activity and investment should fundamentals warrant. The Company remains committed to further reducing debt in 2025 to ensure we maintain one of the best balance sheets in our industry." Key Takeaways & Updates • For the first quarter of 2025, total
later in the release …
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.