Coterra Energy (CTRA) Valuation Update - Mar 30
Posted: Sat Mar 30, 2024 9:00 am
Our updated profile and forecast model for Coterra Energy have been posted to the EPG website.
I have lowered my stock valuation my $0.50 to $30.00. TipRanks' price target is $32.06.
Coterra is the only "Gasser" in the High Yield Income Portfolio. It has a strong balance sheet and it should generate over $1billion of free cash flow this year despite low U.S. natural gas prices. This year's drilling program is focused on increasing their oil production approximately 6%, while they allow their natural gas production to decline by ~6%.
The wells that they will drill this year in Appalachia will be in the liquids prone areas, so their NGL production is expected to increase by ~5% YOY.
CTRA is a solid company with a lot of Running Room, but not much near-term upside unless U.S. natural gas prices rebound. They will only be paying the base dividend for at least two more quarters.
I have lowered my stock valuation my $0.50 to $30.00. TipRanks' price target is $32.06.
Coterra is the only "Gasser" in the High Yield Income Portfolio. It has a strong balance sheet and it should generate over $1billion of free cash flow this year despite low U.S. natural gas prices. This year's drilling program is focused on increasing their oil production approximately 6%, while they allow their natural gas production to decline by ~6%.
The wells that they will drill this year in Appalachia will be in the liquids prone areas, so their NGL production is expected to increase by ~5% YOY.
CTRA is a solid company with a lot of Running Room, but not much near-term upside unless U.S. natural gas prices rebound. They will only be paying the base dividend for at least two more quarters.