Coterra Energy Q2 Earnings and Revenues Beat Estimates, Both Rise Y/Y

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

Coterra Energy Inc. Price, Consensus and EPS Surprise

Coterra Energy Inc. price-consensus-eps-surprise-chart | Coterra Energy Inc. Quote

On Aug. 4, 2025, Coterra Energy's board of directors declared a quarterly dividend of 22 cents per share to its common shareholders of record on Aug. 14. The payout, which represents a 3.6% annualized yield, will be made on Aug. 28.

In addition to the shareholder return in the form of dividends, the Houston, TX-based independent oil and gas company actively engaged in share repurchases during the quarter by repurchasing 0.9 million shares for $23 million. As of June 30, 2025, Coterra Energy has $1.1 billion remaining under its $2 billion share repurchase authorization.

Consequently, during the quarter, total shareholder returns reached $191 million, comprising $168 million in declared dividends and $23 million in share repurchases. During the quarter, the company also focused on debt reduction and repaid debt of about $100 million.

Coterra Energy has a shareholder return strategy whereby it returns 50% of the annual free cash flow to shareholders via dividend payouts and share repurchases. However, in 2025, after the payment of the base dividend, the company is largely focused on debt reduction and expects to retire the outstanding $650 million term loans associated with its Delaware Basin acquisition.

Moreover, the company announced a new power netback gas sale agreement in the Permian, which is expected to start in 2028. This agreement will help the company to further diversify its natural gas marketing portfolio.

CTRA’s Production & Price Realizations

The average second-quarter daily production increased 17.1% to 783.9 thousand barrels of oil equivalent (Mboe) from the year-ago level of 669.2 Mboe. Moreover, the figure beat the Zacks Consensus Estimate of 741 Mboe. The daily production of natural gas increased 7.9% year over year to 2998.6 million cubic feet (Mmcf) per day. The figure surpassed the Zacks Consensus Estimate of 2844 Mmcf per day.

Turning to specific production types, oil production rose 45% to 155.4 thousand barrels (MBbl) per day. Moreover, the figure beat the Zacks Consensus Estimate of 154 MBbl per day. On the other end, natural gas liquids (“NGL”) production increased 30.3% to 128.7 MBbl per day in the quarter under review. Moreover, the figure beat the Zacks Consensus Estimate of 113 MBbl per day.

Regarding pricing, the average sales price for crude oil was $62.80 per barrel, indicating a 20.9% decrease from the prior-year level of $79.37. The figure was in line with the Zacks Consensus Estimate.

The average realized natural gas price was $2.20 per thousand cubic feet compared with $1.26 in the year-earlier period. Moreover, the figure slightly surpassed the consensus estimate of $2.19 per thousand cubic feet.

The average realized NGL was $18.72 per barrel compared with $19.53 in the year-earlier period. The figure marginally missed the Zacks Consensus Estimate of $18.73 per barrel.

CTRA’s Q2 Costs & Expenses

In the quarter under discussion, the average unit cost rose to $18.41 per barrel of oil equivalent from the previous year's $16.26. This increase was due to Coterra Energy's total operating expenses of $1261 million, which increased 29.2% from the year-ago quarter’s $976 million.

CTRA’s Financial Position

Cash flow from operations went up 68% to $937 million, while CTRA’s cash capital expenditure for drilling, completion and other fixed asset additions totaled $569 million. The company’s free cash flow for the quarter amounted to $329 million.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

CTRA’s Guidance for Q3 & 2025

Coterra Energy has lowered its full-year 2025 capital expenditures’ range from the existing $2.1-$2.4 billion to $2.1-$2.3 billion. The company has anticipated its full-year 2025 effective tax rate to be 22% and current tax to be 40% to 60%.

Moving to the third quarter guidance, CTRA expects total equivalent production in the range of 740-790 Mboe per day, with oil production in the band of 158-168 thousand barrels of oil per day and natural gas production between 2,750 MMcf/d and 2,900 MMcf/d. For the upcoming quarter, the company expects its capital expenditures to be in the range of $625 million to $675 million.

Furthermore, Coterra Energy expects an estimated discretionary cash flow (non-GAAP) of approximately $4.4 billion and free cash flow (non-GAAP) of around $2.1 billion for 2025 with commodity price assumptions of about $66 per bbl West Texas Intermediate and $3.67 per metric million British thermal unit Henry Hub.

CTRA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed CTRA’s second-quarter results in detail, let us take a look at three other key reports in this space.

The leading U.S.-based natural gas producer, Expand Energy Corporation EXE, reported second-quarter 2025 adjusted earnings per share of $1.10, which missed the Zacks Consensus Estimate of $1.14. However, the company’s bottom line surpassed the year-ago adjusted profit of 1 cent, fueled by strong production and higher natural gas price realization.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2 billion missed the Zacks Consensus Estimate by $74 million. However, the top line was outstandingly higher than the year-ago figure of $378 million.

As of June 30, 2025, the company had $731 million in cash and cash equivalents. Expand Energy had a long-term debt of $5.1 billion, reflecting a debt-to-capitalization of 22.2%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research