Coterra Energy (CTRA) Updated Valuation - May 3
Posted: Tue May 03, 2022 12:11 pm
At the time of this post CTRA was trading at $31.01. I have updated my forecast/valuation and I have increased my valuation by $9 to $47/share.
Coterra is one of five "gassers" in the Sweet 16.
> 2022 production mix is approximately 75% natural gas, 13.5% crude oil and 11.5% NGLs
> There is upside to my valuation if natural gas prices stay close to the current NYMEX Strip, which is over $8.00/MMBtu for JUN22 to FEB23
> Coterra has a "base + variable" dividend policy (this year's "fad"), which was $0.60/share for Q1. Equals annualized yield of 7.7% at today's share price.
> Based on my forecast, dividends should be going higher as we move thru the year as their "Bad Hedges" roll off.
> I do expect the Company to increase production in 2H 2022 to take advantage of what should be extremely high gas prices during the winter.
My plan is to move CTRA to our High Yield Income Portfolio in my next newsletter.
Other price target updates this morning.
> Gabriele Sorbara at Siebert Williams Shank & Co rates CTRA a BUY with a price target of $42.00
> Michael Scialla at Stifel Nicolaus rates CTRA a BUY with a price target of $46.00
Coterra is one of five "gassers" in the Sweet 16.
> 2022 production mix is approximately 75% natural gas, 13.5% crude oil and 11.5% NGLs
> There is upside to my valuation if natural gas prices stay close to the current NYMEX Strip, which is over $8.00/MMBtu for JUN22 to FEB23
> Coterra has a "base + variable" dividend policy (this year's "fad"), which was $0.60/share for Q1. Equals annualized yield of 7.7% at today's share price.
> Based on my forecast, dividends should be going higher as we move thru the year as their "Bad Hedges" roll off.
> I do expect the Company to increase production in 2H 2022 to take advantage of what should be extremely high gas prices during the winter.
My plan is to move CTRA to our High Yield Income Portfolio in my next newsletter.
Other price target updates this morning.
> Gabriele Sorbara at Siebert Williams Shank & Co rates CTRA a BUY with a price target of $42.00
> Michael Scialla at Stifel Nicolaus rates CTRA a BUY with a price target of $46.00