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Coterra Energy Inc. CTRA is set to release first-quarter 2025 results on May 5. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 76 cents per share on revenues of $1.9 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the March quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of CTRA's Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company topped the consensus mark on strong operational performance, particularly in daily oil and natural gas production volumes. CTRA reported adjusted earnings per share of 49 cents, outperforming the Zacks Consensus Estimate of 42 cents. However, revenues of $1.4 billion missed the Zacks Consensus Estimate by a marginal 0.4% due to weaker realizations.
Coterra Energy beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, resulting in an earnings surprise of 6.9%, on average. This is depicted in the graph below:
Coterra Energy Inc. Price and EPS Surprise
Coterra Energy Inc. price-eps-surprise | Coterra Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised a penny (or 1.3%) upward in the past seven days. The estimated figure indicates 49% year-over-year growth. Moreover, the Zacks Consensus Estimate for revenues suggests a 34.1% increase from the year-ago period.
Factors to Consider Ahead of CTRA's Q1 Results
Coterra’s first-quarter revenues and earnings are expected to have been driven by the successful completion of the Franklin Mountain Energy and Avant Natural Resources acquisitions. A strong Gulf Coast LNG demand also signals a bullish outlook. In the fourth quarter, the company’s total equivalent production surpassed the high end of guidance. We expect this uptick to continue in the first quarter of 2025. The company also has a positive outlook for the quarter to be reported. As such, the consensus mark for Coterra Energy’s average daily output is pegged at 739 thousand barrels, implying a 7.7% increase from the year-ago period.
On a further bullish note, Coterra Energy is likely to have benefited from higher natural gas realizations, which constitute more than 65% of its production. The Zacks Consensus Estimate for the company’s first-quarter natural gas realization is pegged at $3.25 per thousand cubic feet (Mcf), indicating a substantial rise of 62.5% from the year-ago quarter. This is likely to boost CTRA’s earnings and cash flows in the quarter to be reported.