Coterra Energy Inc (NYSE:CTRA) stock rose 5.13% (As on May 3, 11:21:11 AM UTC-4, Source: Google Finance) after the company posted mixed results for the first quarter of FY 22. As of March 31, 2022, Coterra had total long-term debt of $3.1 billion with a principal amount of $2.9 billion, and no substantial maturities until 2024. The Company exited the quarter with a cash balance of $1.4 billion and no debt outstanding under its revolving credit facility. For first-quarter 2022, Coterra reported cash flow from operating activities of $1,322 million. First-quarter 2022 discretionary cash flow (non-GAAP) was $1,232 million and free cash flow (non-GAAP) totaled $961 million, both of which are inclusive of merger-related costs. Coterra incurred a total of $326 million of capital expenditures in first-quarter 2022, including $314 million of drilling and completion capital.
Moreover, the first-quarter 2022 total equivalent production averaged 630 thousand barrels of oil equivalent per day (MBoepd), at the high-end of guidance. Oil production averaged 83.1 thousand barrels per day (MBopd), exceeding the high-end of guidance, and natural gas production averaged 2,850 million cubic feet per day (MMcfpd), at the high-end of guidance.
CTRA in the first quarter of FY 22 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of 81 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.68 billion in the first quarter of FY 22, missing the analysts’ estimates for revenue of $1.82 billion.
Additionally, the company has declared a quarterly base plus variable dividend of $0.60 per share. Coterra entered second-quarter 2022 with an outstanding share repurchase authorization of $1,066 million, or approximately five percent of the Company’s current market capitalization.
Coterra is currently running six rigs and two completion crews in the Permian Basin. The Company is currently running three rigs in the Marcellus and plans to run one to two completion crews in second-quarter 2022. Coterra is currently running two rigs and one completion crew in the Anadarko Basin, and expects to release one drilling rig and its completion crew in June 2022. Coterra is maintaining its previously announced 2022 capital expenditure guidance of $1,400 to $1,500 million, supported by the Company’s procurement of key materials and services in 2022. Production volumes in second-quarter 2022 are expected to average between 605 and 625 MBoepd, with oil volumes estimated to average between 82.0 and 84.0 MBopd. Natural gas volumes in the second quarter are projected to average between 2,725 and 2,775 MMcfpd.