U.S. oil and gas producer Coterra Energy reported a massive fall in quarterly profit on Monday as gas prices scaled back from last year’s peaks.
Natural gas prices averaged 63% lower during the reported quarter compared to last year when they had soared following supply concerns propelled by Russia’s invasion of Ukraine.
U.S. oil prices have scaled back from last year’s peaks on recession fears and a banking crisis earlier this year, though production cuts from OPEC+ countries have offered some support.
Coterra’s total production averaged 665,000 barrels of oil equivalent per day (boepd) for the reported quarter, compared with 632,000 boepd last year reported Reuters.
The Houston-Texas based company with extensive operations in Oklahoma, posted a net income of $209 million, or $0.28 per share, for the second quarter ended June 30, compared with $1.23 billion, or $1.53 per share, a year earlier.
“As such we are increasing our 2023 BOE and natural gas production guidance by 2% and our oil guidance by 3%, at the mid-point. Coterra remains committed to maximizing shareholder value through consistent, profitable growth,” said Thomas E. Jorden, Chairman, Chief Executive Officer and President, commented.
Jorden noted, “Given that commodity prices were down more than 30% quarter-over-quarter, Coterra will return 184% of 2Q23 Free Cash Flow to shareholders, which is significantly above our minimum 50% return commitment, as our cash position has afforded us the luxury to transact counter-cyclically on share repurchases.”
Coterra is currently running six rigs and three completion crews in the Permian Basin, one rig and one completion crew in the Anadarko Basin, and two rigs and one completion crew in the Marcellus.