Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| If gas prices really recover, as we hope they will, within our capital guide, we have plans to get back to work this year and set ourselves up for nice growth over the next two years |
| This remains one of the highest yielding base dividends in the industry at well over 3% |
| In summary, Coterra’s team delivered another quarter of high-quality results, both operationally and financially |
| More importantly, we generated excellent returns |
| We also made great progress on emissions reduction and continue to push the envelope on our environmental initiatives |
| Coterra had an excellent fourth quarter, as shown by the results that we released last night |
| We remain highly optimistic on the 12-month to 18-month outlook for the gas macro |
| But production is not the input, it’s the output of good, solid capital allocation |
| Missing a few months of the recovery is much better than fully participating in the downside |
| And we’d really like to see a sustained ratio that’s somewhere in the neighborhood of 20 to 1 oil-to-gas and we’re really optimistic we’re going to see that when the market recessed with LNG exports |
| As noted, strong execution in the field pulled a few Q1 tills into Q4, which contributed to the Q4 2023 production beat |
| We are poised for a strong first quarter of 2024, which we believe will set a solid foundation for the full year 2024 and beyond |
| There’s definitely some room for upside there with some of the allocations, but I’d expect another strong year |
| This outperformance was driven by a combination of better-than-expected well timing and beats unexpected well productivity |
| Our frac efficiencies are coupled with new contracts that offer increased cost savings to Coterra as we gain in efficiency |
| This plan leverages our deep, high-quality inventory, demonstrates improving capital efficiency and clearly displays the confidence we have in our ability to continue a cadence of operational excellence |
| And so I just say we expect 2024 to fall well within that band to deliver another good year on productivity |
| We believe this is a robust, capital-efficient plan that delivers consistent, profitable growth for our shareholders |
| I’ll say up front, I know a lot of people think of the Anadarko in a lot of ways and I’d like them to keep thinking that way, because we think the Anadarko is a tremendous basin with great opportunity |
| All three business units, however, are poised and ready for out-year acceleration should conditions warrant |
| The Coterra brand stands for operational excellence, leading-edge technology and innovation, best-in-class development of outstanding assets, and the ability to adapt nimbly to changing market conditions |
| We are pleased with our continued execution in 2023 and expect to deliver on our goals outlined in our 2024 plans |
| Consistency of execution paired with strong well results have made our Anadarko assets a stout competitor for capital allocation at Coterra |
| Our Anadarko team had a great year executing with improved drilling times and frac efficiency |
| All production streams came in above the high end of guidance driven by well performance and acceleration of till timing during the quarter |
| Our 2024 program includes 20 to 25 turn-in lines across five projects focused on our liquids-rich assets, which we expect will continue to yield strong returns |
| For the full year 2023, Coterra produced outstanding results |
| We have a tremendous program ahead of us in 2024 and we are excited to be increasing activity in both the Permian and Anadarko |
| This outlook incorporates an appropriate level of reinvestment and delivers meaningful free cash flow to underpin shareholder returns |
| Oil production for the year was 96.2 MBoe per day, exceeding the high end of initial guidance by over 4% |
| Statement |
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| And so, we’re reallocating a little under $300 million between the Permian and Anadarko, and that’s just it was challenging because we have great returns everywhere |
| We anticipate first quarter oil production to have the lowest average for any quarter during 2024, primarily as a result of tilt timing that pulled some volume forward and into the fourth quarter of 2023 |
| One of the things that was a challenge for Anadarko team was just showing repeatability |
| We project that this slowdown in the Marcellus will result in our natural gas volume shrinking 6% in the Marcellus in 2024 |
| Cash operating costs per unit totaled $8.37 per Boe for the year, slightly below our initial guidance midpoint |
| These wells will have a $1 per foot of $1,075, down approximately 10% year-over-year |
| Look, it’s very challenging today |
| Incurred capital expenditures in the fourth quarter totaled $457 million, just below the low end of our guidance range |
| It’s great to see -- to hear some discipline in the marketplace, but it’s unclear that it’s enough and it’s unclear that it’s sort of broad-based enough at this point |
| You have on your slide, I believe it’s slide six, you show that 10% decline in Marcellus production for 2024, but then actually a slight incline for 2025 |
| So we’re cautious on gas and you see that in our 2024 planning and budgeting |
| Had we done anything other than that, we would have throttled back or pulled the plug on their continuing activity |
| Fourth quarter accrued capital expenditures totaled $457 million, coming in just below the low end of our guidance |
| But we’re now seeing several operators obviously take actions to reduce activity in the Marcellus |
| In the Permian, we are planning to turn in line 75 to 90 wells in 2024, which is down 13% over 2023 |
| Look, on the buyback, we remained active in the market during the quarter, but we were a little bit cautious |
| Natural gas is expected to be between 2.65 Bcf per day and 2.8 Bcf per day, approximately 5.5% lower at the midpoint than gas production was in 2023 |
| So it’s deeper, it’s higher pressure, the drilling can be more difficult |
| We remain deeply curious about what consolidation could offer for Coterra owners |
| In this case, that means throttling back on our Marcellus program |
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