Latest news with #CoterraEnergy
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
Reuters
4 days ago
- Business
- Reuters
Coterra Energy to hold Permian rig count steady as oil market fears ease
June 24 (Reuters) - U.S. oil and gas producer Coterra Energy (CTRA.N), opens new tab will hold its rig count steady at nine in the Permian Basin, CEO Tom Jorden said Tuesday, reversing earlier plans to scale back activity as the company grows more confident in the outlook for oil prices. "I've seen these periods of my career where when oil markets wobble, they don't glide gently down to their low, they kind of wobble for a while, and then they suddenly collapse," Jorden said at the J.P. Morgan Energy, Power & Renewables Conference. "We were looking at the possibility of a collapse. We're feeling a little better about that now." Oil prices had been under pressure earlier this year due to concerns about slowing global demand, high inventories, and uncertainty around OPEC+ supply cuts. Jorden said the company had previously planned to cut to seven rigs in the second half of 2025, bracing for a potential collapse in prices.
Business Insider
6 days ago
- Business
- Business Insider
Coterra Energy (CTRA) Receives a Buy from Wells Fargo
Wells Fargo analyst Roger Read maintained a Buy rating on Coterra Energy (CTRA – Research Report) on June 20 and set a price target of $31.00. The company's shares closed last Friday at $26.97. Confident Investing Starts Here: According to TipRanks, Read is a 3-star analyst with an average return of 1.7% and a 53.80% success rate. Read covers the Energy sector, focusing on stocks such as Valero Energy, EOG Resources, and Phillips 66. In addition to Wells Fargo, Coterra Energy also received a Buy from Piper Sandler's Mark Lear in a report issued on June 16. However, on June 9, Morgan Stanley maintained a Hold rating on Coterra Energy (NYSE: CTRA). Based on Coterra Energy's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $924 million and a net profit of $516 million. In comparison, last year the company earned a revenue of $1.37 billion and had a net profit of $352 million Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTRA in relation to earlier this year. Last month, Stephen Bell, the EVP – Business Development of CTRA sold 100,000.00 shares for a total of $2,525,000.00.
Yahoo
18-06-2025
- Business
- Yahoo
Is Coterra Energy Stock Underperforming the Dow?
Valued at a market cap of $20.4 billion, Coterra Energy Inc. (CTRA) is an independent oil and gas company that engages in the exploration, development, and production of oil, natural gas, and natural gas liquids. Based in Houston, Texas, the company focuses its operations on the Permian Basin, Marcellus Shale, and Anadarko Basin. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Coterra Energy fits this description perfectly. The company also operates natural gas and saltwater gathering and disposal systems in Texas. It sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, energy companies, pipeline companies, and power generation facilities. Trump Is Giving Tesla's Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now? Dear Nvidia Stock Fans, Mark Your Calendars for July 16 The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Coterra Energy's stock dropped 10.9% from its 52-week high of $29.95. Shares of CTRA have declined 5.2% over the past three months, lagging behind the broader Dow Jones Industrials Average's ($DOWI) marginal increase. In the longer term, shares of Coterra Energy have risen marginally over the past 52 weeks, underperforming the Dow Jones' 8.9% return over the same time frame. However, on a YTD basis, CTRA stock has gained 4.5%, outpacing the DOWI's marginal decrease. The stock is trading above its 50-day and 200-day moving averages since early June. Coterra Energy's stock fell 9.3% following the release of its mixed Q1 2025 results on May 5. The company reported revenue of $1.9 billion, marking a 32.9% increase from the prior year quarter, but below analysts' forecasts. Its adjusted EPS came in at $0.80, a strong 56.9% increase from the prior-year quarter, and topped Street estimates. However, shares declined as investor sentiment soured following the company's decision to trim its full-year 2025 capital expenditures guidance to a range of $2 billion to $2.3 billion. In contrast, rival Devon Energy Corporation (DVN) has underperformed CTRA's stock over the past 52 weeks, declining 24.2%. Although DVN stock has soared 6.1% on a YTD basis, surpassing CTRA stock. Despite the stock's underperformance relative to the Dow over the past year, analysts have a bullish outlook. With 23 analysts covering the stock, the consensus rating is 'Strong Buy,' and it is currently trading below the mean price target of $33.17. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
