Coterra Energy (CTRA) Update - July 17

[dan_s]

CTRA closed on July 14 at $25.44. I am lowering my current valuation by $1 to $30 per share.

Coterra is a "gasser" in our High Yield Income Portfolio. They lowered their dividend to $0.20 in Q1 after paying total dividends of $2.73 per share during 2022. I do expect them to raise their dividends in 2H 2023 and 2024, but dividends won't return to the level of 2022 anytime soon. That said, Coterra is a company with a strong balance sheet and lots of running room.

Current production is ~640,000 Boepd (73% natural gas, 13% NGLs and 14% crude oil), with growth to ~645,000 Boepd by year end.

TipRanks: "In the last 3 months, 11 ranked analysts set 12-month price targets for CTRA. The average price target among the analysts is $30.29. The three price targets submitted to TipRanks in June were $29, $31 and $34."