Coterra Energy (CTRA) Q3 Results - Nov 3
Posted: Wed Nov 03, 2021 9:51 am
Coterra Energy Inc. (NYSE: CTRA) ("Coterra" or the "Company") today reported third-quarter 2021 financial and operating results. On October 1, 2021, Coterra announced that the merger involving the Company, which previously was named Cabot Oil & Gas Corporation ("Cabot"), and Cimarex Energy Co. ("Cimarex") was completed. Results discussed within this release represent Coterra or legacy Cabot and exclude amounts related to legacy Cimarex, unless otherwise specified.
Net income for third-quarter 2021 totaled $62.7 million, or $0.16 per share. Adjusted net income (non-GAAP) for third-quarter 2021, excluding certain infrequent and non-cash items, was $207.0 million, or $0.52 per share.
Highlights
On November 3, 2021, Coterra's board approved the previously announced 14 percent increase to its annual base common stock dividend to $0.50 per share and an acceleration of its first variable dividend by one quarter. The approved base plus variable quarterly dividend equals $0.30 per share ($0.125 base, $0.175 variable), based on combined legacy Cabot and Cimarex free cash flow for third-quarter 2021, and will be paid on November 24, 2021 to holders of record on November 15, 2021.
On October 4, 2021, Coterra's board declared a special cash dividend of $0.50 per share; paid to shareholders on October 22, 2021.
Legacy Cabot generated net cash provided by operating activities of $245.2 million in third-quarter 2021.
Discretionary cash flow from legacy Cabot for third-quarter 2021 totaled $308.8 million (non-GAAP), inclusive of merger-related costs.
Combined Cabot and Cimarex free cash flow generation totaled $387.3 million (non-GAAP) in the period, inclusive of merger-related costs totaling $100.1 million.
See "Supplemental Non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as reconciliations of these measures to the associated GAAP measures.
Thomas E. Jorden, Chief Executive Officer and President, commented, "Today is just a first look at the power of Coterra's assets, financial strength, and commitment to peer-leading shareholder returns. Our strong operational performance in the third quarter can be attributed to our employees, who worked diligently to execute on both legacy company plans."
"Given the strong combined free cash flow generation in the third quarter, the improvement in commodity prices, and our disciplined capital allocation, we are confident in accelerating our first variable dividend by one quarter. We are proud to begin delivering competitive returns to our shareholders."
For third-quarter 2021, Legacy Cabot reported net cash provided by operating activities of $245.2 million. Discretionary cash flow (non-GAAP), inclusive of merger-related costs, was $308.8 million and free cash flow (non-GAAP) for third-quarter 2021 totaled $124.7 million, inclusive of merger-related costs.
Legacy Cabot incurred a total of $170.9 million of capital expenditures in third-quarter 2021, including $163.9 million of drilling and completion capital.
Legacy Cimarex's incurred capital expenditures in third-quarter 2021, excluding capitalized expenses, totaled $165.5 million and included $159.4 million in drilling and completion capital. Free cash flow generated by legacy Cimarex was $262.6 million (non-GAAP), inclusive of merger-related costs.
The combined free cash flow generated in third-quarter 2021 totaled $387.3 million (non-GAAP), and included $100.1 million of merger-related expenses.
Net income for third-quarter 2021 totaled $62.7 million, or $0.16 per share. Adjusted net income (non-GAAP) for third-quarter 2021, excluding certain infrequent and non-cash items, was $207.0 million, or $0.52 per share.
Highlights
On November 3, 2021, Coterra's board approved the previously announced 14 percent increase to its annual base common stock dividend to $0.50 per share and an acceleration of its first variable dividend by one quarter. The approved base plus variable quarterly dividend equals $0.30 per share ($0.125 base, $0.175 variable), based on combined legacy Cabot and Cimarex free cash flow for third-quarter 2021, and will be paid on November 24, 2021 to holders of record on November 15, 2021.
On October 4, 2021, Coterra's board declared a special cash dividend of $0.50 per share; paid to shareholders on October 22, 2021.
Legacy Cabot generated net cash provided by operating activities of $245.2 million in third-quarter 2021.
Discretionary cash flow from legacy Cabot for third-quarter 2021 totaled $308.8 million (non-GAAP), inclusive of merger-related costs.
Combined Cabot and Cimarex free cash flow generation totaled $387.3 million (non-GAAP) in the period, inclusive of merger-related costs totaling $100.1 million.
See "Supplemental Non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as reconciliations of these measures to the associated GAAP measures.
Thomas E. Jorden, Chief Executive Officer and President, commented, "Today is just a first look at the power of Coterra's assets, financial strength, and commitment to peer-leading shareholder returns. Our strong operational performance in the third quarter can be attributed to our employees, who worked diligently to execute on both legacy company plans."
"Given the strong combined free cash flow generation in the third quarter, the improvement in commodity prices, and our disciplined capital allocation, we are confident in accelerating our first variable dividend by one quarter. We are proud to begin delivering competitive returns to our shareholders."
For third-quarter 2021, Legacy Cabot reported net cash provided by operating activities of $245.2 million. Discretionary cash flow (non-GAAP), inclusive of merger-related costs, was $308.8 million and free cash flow (non-GAAP) for third-quarter 2021 totaled $124.7 million, inclusive of merger-related costs.
Legacy Cabot incurred a total of $170.9 million of capital expenditures in third-quarter 2021, including $163.9 million of drilling and completion capital.
Legacy Cimarex's incurred capital expenditures in third-quarter 2021, excluding capitalized expenses, totaled $165.5 million and included $159.4 million in drilling and completion capital. Free cash flow generated by legacy Cimarex was $262.6 million (non-GAAP), inclusive of merger-related costs.
The combined free cash flow generated in third-quarter 2021 totaled $387.3 million (non-GAAP), and included $100.1 million of merger-related expenses.