Coterra Energy Inc (NYSE:CTRA) stock rose (As on November 7, 11:43:13 AM UTC-4, Source: Google Finance) after the company reported a third-quarter profit that beat analysts’ estimates, helped by an increase in production and higher realized prices. U.S. WTI crude prices rose 14% during the quarter compared with a year earlier as OPEC+ members Russia and Saudi Arabia extended output cuts, encouraging energy producing companies to drill more. Coterra reported third-quarter production of 670,000 barrels of oil equivalent per day (boepd), compared with its previous forecast of 625,000 to 655,000 boepd. Gas exports from the United States to Europe have also surged since last year as Europe scrambled to find new sources of gas after Russia’s invasion of Ukraine.

Meanwhile, the company has recently added a seventh rig in the Permian Basin, a few months ahead of schedule. This was driven by a recent decision to simul-frac and de-risk the timing of our largest 2024 project, the Windham Row in Culberson County. Simul-fracing has the potential to decrease dollar per foot on this project by up to 5%, bringing the project’s total estimated cost savings to 5-15% versus our current Culberson County average.

CTRA in the third quarter of FY 23 has reported the adjusted earnings per share of 50 cents, beating the analysts’ estimates for the adjusted earnings per share of 44 cents, according to Zacks Investment Research. The company had reported  the adjusted revenue to $1.36 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $1.38 billion. The Company exited the quarter with a cash balance of $847 million and no debt outstanding under its $1.5 billion five-year revolving credit facility, for total liquidity of approximately $2.3 billion.

The company forecast fourth-quarter production to be between 645,000 and 680,000 boepd and expected accrued capital expenditures (non-GAAP) to be in the range of $460 – $530 million.

For full year 2023, the company expects Total production of 655-665 MBoepd; mid-point +3% from prior guidance, Oil production of 94.5-95.5 MBopd; mid-point +3% from prior guidance and Natural gas production of 2,840-2,870 MMcfpd; mid-point +1% from prior guidance. Estimated 2023 accrued capital expenditures (non-GAAP) remains unchanged at $2.0 – $2.2 billion; still trending 1-2% above mid-point. Estimate 2023 Discretionary Cash Flow (non-GAAP) of approximately $3.5 billion, at recent strip prices. Estimate 2023 Free Cash Flow (non-GAAP) of approximately $1.3 billion, at recent strip prices.