Latest news with #Coterra
CNBC
21 hours ago
- Business
- CNBC
Coterra shifts its view on oil, again. Here are our 3 takeaways as investors in the stock
Coterra Energy is refocusing on oil. CEO Thomas Jorden shared the company's decision not to reduce its oil rig count at the JPMorgan Energy conference earlier this week. Here are several key takeaways for investors. 1. For starters, the move signals that Coterra has regained confidence in the direction of oil markets — and inherent in that is more confidence in the outlook for the economy. Alongside its first-quarter earnings report in early May, Coterra said it planned to shift some capital expenditures from its oil assets into natural gas production amid concerns about a potential tariff-driven recession that would dent demand for oil, leading to lower prices. As part of the shift, the company said it planned to reduce its oil rig count in the Permian Basin to seven. They're now walking back that change. "We're holding firm right now at nine [oil rigs] and we have very few under contract, so we have the flexibility," Jorden said at the conference Tuesday. "We were looking at the possibility of a collapse," he added, explaining the company's view last month. "We're feeling a little better about that now." @CL.1 3M mountain WTI three month performance When Coterra reported its Q1 on May 5, U.S. oil benchmark West Texas Intermediate crude had fallen around 20% since President Donald Trump announced his "reciprocal" tariffs in early April. Oil cartel OPEC was also signaling that it would increase production. As Trump walked back his most aggressive trade policies, the outlook for the economy improved, which was supportive for oil prices. Then, in mid-June, the start of the Iran-Israel conflict caused a temporary oil price spike as traders worried about supply disruptions. Prices have given back those gains as tensions eased. WTI has dropped more than 11% this week alone as the market deemed Iran-Israel conflict, and last weekend's U.S. bombing of three Iranian nuclear sites, not systemically concerning for now. With few rigs under contract, Coterra can scale back if circumstances change yet again. But for now, we were encouraged to hear Coterra isn't worried about a price collapse driven by a recession. 2. In reacting to the first-quarter earnings, Mizuho analysts flagged concerns that Coterra's lower oil activity spending could have negative implications down the road, particularly as it relates to the company's three-year goal of oil production growth of at least 5% annually on average. "We believe the impact will be felt in 2026-27 given the loss in momentum," the analysts wrote in a note to clients. Those worries might be alleviated as maintaining nine rigs could help Coterra hit its three-year goal, which the company outlined in February . The increased rig count, however, does put Coterra's capital expenditure spending at the higher end of its 2025 guidance, which falls between $2 billion and $2.3 billion. Keep in mind, though, investors may not fret capex coming in at the high end of the range if it's the result of more rigs staying in operation with drilling being done efficiently. It would be concerning if drilling activity fell off, but capex went higher. 3. At the same time, Coterra's decision to keep its oil rig count steady for now is not impacting the company's plans to increase activity in the natural gas-focused Marcellus Shale. "We are proceeding," Jorden said at the conference. "Gas prices look very constructive and we really do see the Marcellus as a really meaningful part of our program go forward." @NG.1 3M mountain Natural Gas three month peformance Coterra stands to win big on natural gas if the Constitution Pipeline project, which starts in the Marcellus, were to get revived. Coterra also has active nat gas assets in the Anadarko Basin and started drilling again in the Dimock Township of Pennsylvania following a 12-year-long ban that was lifted in December 2023. The company plans to drill 11 wells this year and expects to have around 17 total in the years to come. (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.
Yahoo
2 days ago
- Business
- Yahoo
Coterra Holds Rig Count Steady in the Permian as Market Jitters Ease
Coterra Energy Inc. CTRA is keeping its rig count steady at nine in the Permian Basin, a sharp pivot from the earlier plan to scale back operations amid oil market uncertainty. The shift signals renewed confidence of the company, which recently updated its stance on capital spending and production plans at an energy conference held in New York. In May, Coterra decided to cut its rig count to seven by the second half of 2025, trimming capital expenditures in the Permian by $150 million. The move was a precautionary step, caused by fears of a potential collapse in oil prices triggered by weak demand signals, high inventories and unpredictability surrounding OPEC+ supply cuts. The company earlier predicted a possible collapse of the oil market due to price headwinds, but it is now confident, given a change in macroeconomic activities. Coterra now expects to reverse its earlier decision of cutting down rig count and maintain it at nine rigs. The decision will push its capital spending to the high end of the updated $2-$2.3 billion annual range. At the energy conference, Coterra announced that it is in a good position to stay profitable even in leaner price environments. The company stated that it can deliver solid returns even with West Texas Intermediate ('WTI') crude priced between $60 and $65 per barrel, and still be profitable with a dip to $50. Importantly, only a few of Coterra's rigs are locked into long-term contracts, giving it room to scale back quickly if needed. This optionality provides a cushion against market swings while keeping upside potential intact. The decision to maintain the rig count rather than cut it highlights Coterra's cautious optimism in a still-fragile market. As sentiment around oil prices stabilizes, producers like Coterra are recalibrating for resilience rather than retreat. Houston, TX-based Coterra is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Currently, CTRA has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like BKV Corporation BKV, Subsea 7 S.A. SUBCY and Oceaneering International, Inc. OII. While BKV and Subsea 7 currently sport a Zacks Rank #1 (Strong Buy) each, Oceaneering carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. BKV Corporation is an energy company that produces natural gas from its owned and operated upstream businesses. The Zacks Consensus Estimate for BKV's 2025 earnings indicates 338.18% year-over-year growth. Subsea 7 operates as an engineering, construction and services contractor to the offshore energy industry worldwide. The Zacks Consensus Estimate for SUBCY's 2025 earnings indicates 95.52% year-over-year growth. Houston, TX-based Oceaneering is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. The Zacks Consensus Estimate for OII's 2025 earnings indicates 57.02% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Subsea 7 SA (SUBCY) : Free Stock Analysis Report Coterra Energy Inc. (CTRA) : Free Stock Analysis Report BKV Corporation (BKV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Business
- Yahoo
Analysts are Highly Bullish on This Natural Gas Stock
Coterra Energy Inc. (NYSE:CTRA) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts. An oil rig pumping under the open sky of the Permian Basin. Coterra Energy Inc. (NYSE:CTRA) received a boost recently after Raymond James analyst John Freeman raised the stock's price target from $33 to $38, while maintaining an 'Outperform' rating on its shares. The development follows Coterra's performance in the first quarter of 2025, which saw production levels at the upper end of expectations and capital expenditure surpassing estimates. However, the company is pausing development in the Eastern Culberson Harkey to address wellbore cement issues caused by elevated water volumes. Additionally, Piper Sandler maintained an 'Overweight' rating on Coterra Energy Inc. (NYSE:CTRA), with a price target of $36. The analyst highlighted the company's enhanced reinvestment opportunities following its recent acquisitions in the New Mexico Delaware Basin. The share price of Coterra Energy Inc. (NYSE:CTRA) has grown by 10% over the last month. Coterra Energy Inc. (NYSE:CTRA) is a premier, diversified energy company that engages in the exploration, development, and production of oil, natural gas, and NGLs in the United States. While we acknowledge the potential of CTRA 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: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. Sign in to access your portfolio
Business Wire
17-06-2025
- Business
- Business Wire
Coterra Energy to Participate at Upcoming J.P. Morgan Conference
HOUSTON--(BUSINESS WIRE)-- Coterra Energy Inc. (NYSE: CTRA) ('Coterra' or the 'Company') today announced that Thomas E. Jorden, Chairman, Chief Executive Officer and President, will participate in a fireside chat at the J.P. Morgan Energy, Power, Renewables & Mining Conference. The fireside chat will begin at 8:00 AM ET on Tuesday, June 24, 2025. A live webcast of the presentation will be available on the 'Events & Presentations' page under the 'Investors' section of the Company's website at The webcast will be archived and available for 30 days 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
16-05-2025
- Business
- CNBC
Cramer would not sell Meta Platforms on WSJ report: 'I still like it very much'
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 Friday's key moments. 1. The stock market is higher on Friday and pacing for a five-day winning streak. The S & P 500 is on track to gain more than 4% this week. Interest rates are finally on the descent, with the 10-year Treasury yield floating around 4.4%. "We're in such a dynamic time when things are changing constantly day over day," said Jeff Marks, director of portfolio analysis for the Club. The S & P 500 Oscillator moved further into overbought territory, which signals the market could be due for a pullback. 2. The CEO of Coterra Energy spoke with Jim Cramer on "Mad Money" Thursday . "I feel very good about it because they're switching a little more to natural gas," Jim said, explaining that while he doesn't want to own an oil-and-gas stock, company leaning more toward gas is preferable. Coterra recently faced some operational issues that Jorden reiterated would be resolved soon and said were not related to inventory. Despite the reassurance, Jim said, "I can't get behind the [oil stock] group." Jeff highlighted the latest oil industry woes as factors going against Coterra. 3. Meta shares are down again Friday after dipping Thursday following a report in The Wall Street Journal that it is delaying the roll out of its flagship AI language model called "Behemoth." Separately, analysts at Loop Capital raised their price target on the company to $888 from $695, and increased their forecast for a better-than-expected second quarter. "There are so many irons in the fire for Meta, I would not sell on this," advised Jim. "I still like it very much." 4 . Stocks covered in Friday's rapid fire at the end of the video were: Applied Materials , Cava , and Take-Two Interactive . (Jim Cramer's Charitable Trust is long . 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.
