COTERRA ENERGY Reports Second Quarter FY2023 Earnings Results on June 30, 2023
August 21, 2023
☀️Earnings Overview
On June 30, 2023, COTERRA ENERGY ($NYSE:CTRA) announced that their revenue for the second quarter of FY2023 was USD 1.2 billion, a decrease of 54.1% compared to the same period in the previous year. Net income for the quarter was reported to be USD 0.21 billion, a decrease of 82.9% compared to the prior year.
Stock Price
COTERRA ENERGY’S stock opened at $27.7 and closed at $27.8, which was a 0.8% increase from the previous closing price of $27.6. Overall, the earnings results were strong and the company saw a period of growth during the period ending June 30th. The company reported strong earnings as a result of its focus on organic growth initiatives, new customer acquisitions, and cost containment measures.
Additionally, COTERRA ENERGY saw an increase in its oil and gas production and revenue for the quarter. The company also announced their plans to invest in renewable energy initiatives, which should further strengthen their financial performance in the future. Investors welcomed the news as COTERRA ENERGY’s stock closed 0.8% higher compared to last closing price. Going forward, investors will be watching to see how COTERRA ENERGY continues to grow its business. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coterra Energy. More…
| Total Revenues | Net Income | Net Margin |
| 7.76k | 3.11k | 40.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coterra Energy. More…
| Operations | Investing | Financing |
| 5.39k | -1.98k | -3.63k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coterra Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.88k | 7.22k | 16.69 |
Key Ratios Snapshot
Some of the financial key ratios for Coterra Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 69.0% | 112.6% | 52.1% |
| FCF Margin | ROE | ROA |
| 43.1% | 20.0% | 12.7% |
Analysis
At GoodWhale, we analyzed COTERRA ENERGY‘s fundamentals and found that the company has a high health score of 9/10, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. In terms of its individual financial metrics, COTERRA ENERGY is strong in dividend, growth, profitability, and medium in asset. After careful analysis of the company’s performance, we have classified COTERRA ENERGY as a ‘gorilla’, a type of company we conclude that achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors looking for strong long-term growth potential may be interested in COTERRA ENERGY. Its classification as a ‘gorilla’ indicates that it is likely to remain resilient during economic downturns. In addition, its dividend and growth scores suggest that investors can expect dividends and returns in the long-run. While the company carries some risk by being medium in asset, all things considered COTERRA ENERGY is likely an attractive investment opportunity. More…
Peers
Cotterra Energy Inc is an American oil and gas company with headquarters in Fort Worth, Texas. The company is engaged in the exploration, development, and production of oil and natural gas properties. Cotterra Energy is active in the Permian Basin of west Texas and southeast New Mexico. As of December 31, 2015, the company had net proved reserves of 182.9 million barrels of oil equivalent. The company’s competitors include Diamondback Energy Inc, Pioneer Natural Resources Co, Devon Energy Corp.
– Diamondback Energy Inc ($NASDAQ:FANG)
Founded in 2007, Diamondback Energy is an oil and natural gas exploration and production company headquartered in Midland, Texas. Its operations are focused in the Permian Basin of west Texas. As of December 2020, the company had estimated proved reserves of 5.4 billion barrels of oil equivalent. In 2020, Diamondback Energy was ranked #3 on Fortune’s list of 100 Fastest-Growing Companies.
The company’s market cap is 28.18B as of 2022. Its ROE is 25.11%.
Diamondback Energy is focused on the development of unconventional oil and natural gas reserves in the Permian Basin. The company employs a horizontal drilling and fracture stimulation technique to maximize production from its wells. Diamondback Energy is one of the largest producers of oil and natural gas in the Permian Basin.
– Pioneer Natural Resources Co ($NYSE:PXD)
Pioneer Natural Resources is an American oil and gas exploration and production company with operations in the United States, Canada, Egypt, and the United Kingdom. The company has a market cap of $60.74 billion as of 2022 and a return on equity of 24.61%. Pioneer Natural Resources is engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company was founded in 1997 and is headquartered in Irving, Texas.
– Devon Energy Corp ($NYSE:DVN)
Devon Energy Corporation is a leading independent energy company engaged in the exploration, development, production, and marketing of natural gas and oil. The company has a market capitalization of $46.26 billion as of 2022 and a return on equity of 43.53%. Devon Energy operates in various locations across the United States and Canada, with a focus on the development of unconventional oil and gas resources. The company’s strategy is to grow its production and reserves through a combination of organic growth and acquisitions.
Summary
Investors appear to be cautious on COTERRA ENERGY stock despite the company’s reported second quarter of FY2023 earnings. Revenue for the quarter was down 54.1% year-over-year to USD 1.2 billion, while net income decreased 82.9% to USD 0.21 billion. Looking ahead, investors remain concerned about the company’s ability to generate strong returns in the face of challenging economic conditions. As such, COTERRA ENERGY stock may remain volatile in the near term, but could have potential for longer term gains if the company can execute on its strategies.
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