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Jun 30, 2025
Coterra Q2 2025 Earnings Report
Coterra Energy reported its second-quarter 2025 financial and operating results, announced a quarterly dividend, and provided an updated guidance.
Key Takeaways
Coterra Energy delivered an excellent second quarter in 2025, with production volumes exceeding guidance ranges and capital expenditures coming in below the low end of guidance. The company reported strong financial results, including $511 million in net income and $0.48 in adjusted EPS, and continued its commitment to shareholder returns and debt reduction.
Total BOE and natural gas production exceeded the high-end of guidance ranges, while oil volumes beat the midpoint by approximately 2%.
Capital expenditures (non-GAAP) were below the low-end of the guidance range, indicating strong capital efficiency.
Full-year 2025 total equivalent and natural gas production guidance was increased, with the oil production midpoint maintained.
Direct shareholder returns totaled approximately 58% of Free Cash Flow (non-GAAP), including a $0.22 per share dividend and $23 million in share repurchases, alongside $100 million in term loan repayments.
Revenue by Segment
Forward Guidance
Coterra Energy provided updated full-year 2025 guidance, increasing total equivalent and natural gas production estimates while maintaining oil production. The company expects consistent activity in the second half of the year and projects $2.1 billion in Free Cash Flow.
Positive Outlook
- Increased full-year 2025 total equivalent production guidance to 755-780 MBoepd.
- Increased full-year 2025 natural gas production guidance to 2,875-2,950 MMcfpd.
- Maintained full-year 2025 oil production midpoint at 160 MBopd.
- Projected 2025 Free Cash Flow (non-GAAP) to total $2.1 billion at recent strip prices.
- Announced a new power netback gas sale agreement in the Permian, expected to start in 2028, further diversifying the natural gas marketing portfolio.
Challenges Ahead
- Full-year 2025 capital expenditures (non-GAAP) are expected to be approximately $2.3 billion, which is at the higher end of the previous guidance range.
- The company is prioritizing debt reduction in 2025 after payment of its base dividend, which may limit opportunistic share repurchases in the near term.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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