By: Reuters – U.S. oil and gas producer Coterra Energy (CTRA.N) joined its peers in posting a sharp drop in quarterly profit on Monday, as gas prices scaled back from last year’s peaks, sending shares down about 2% after the bell.
U.S. natural gas prices averaged 63% lower during the reported quarter compared to last year when they had soared following supply concerns propelled by Russia’s invasion of Ukraine.
Excluding hedges, Houston-Texas-based Coterra’s average realized price for natural gas fell 71.5% to $1.65 per thousand cubic feet from a year earlier.
Oil prices also retreated on recession fears and a banking crisis earlier this year, though production cuts from OPEC+ countries have offered some support.
Coterra posted a net income of $209 million, or $0.28 per share, for the second quarter ended June 30, compared with $1.23 billion, or $1.53 per share, a year earlier.
Total production rose 5.2% to 665,000 barrels of oil equivalent per day (BOEPD) for the reported quarter, aided by strong well performances.
On an adjusted basis, the company reported earnings of 39 cents, ahead of analysts estimate of 34 cents, according to Refinitiv data.
Coterra, which formed after a merger between Cabot Oil & Gas and Cimarex Energy in 2021, said it expects full-year production volumes to be between 630,000 BOEPD and 655,000 BOEPD, 2% higher than its prior forecast at mid-point.