Coterra Energy (CTRA) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 8, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Thank you for standing by. At this time, I would like to welcome everyone to the Coterra Energy Second Quarter 2023 Earnings Call. [Operator Instructions].

Dan Guffey, Vice President, Finance, Planning and Analysis and Investor Relations, you may begin your conference.

Daniel Guffey

Thank you, Cheryl, and good morning, and thank you for joining Coterra Energy's Second Quarter 2023 Earnings Conference Call. Today's prepared remarks will include an overview from Tom Jorden, CEO and President; and Shane Young, Executive Vice President and CFO. Also on the call are Blake Sirgo, Senior Vice President of Operations; and Scott Schroeder. Following our prepared remarks, we will take your questions during our Q&A session.

As a reminder, on today's call, we will make forward-looking statements based on our current expectations. Additionally, some of our comments will reference non-GAAP financial measures. Forward-looking statements and other disclaimers as well as reconciliations to the most directly comparable GAAP financial measures were provided in our earnings release and updated investor presentation, both of which can be found on our website.

With that, I'll turn the call over to Tom.

Thomas Jorden

Thank you, Dan, and welcome to all of you who have joined our call this morning. We're looking forward to discussing our second quarter results as well as our approach to the business and outlook for the years ahead.

First, some remarks on our second quarter results. We had an excellent quarter driven by production beats on oil, natural gas and natural gas liquids. Volumes on all 3 commodities exceeded the high end of our guidance. Our production beat was primarily driven by well productivity that exceeded our expectations. This was true in the Marcellus, Anadarko and the Permian. This beat was driven by many factors, including optimization of completion design, spacing, landing zone selection and better-than-expected performance from a project of 3-mile laterals. Our go-forward well productivity should closely approximate current trends in the coming years.

We are highly confident in our sustainable asset performance. Excellent results are easy to describe, but tremendously hard to achieve. It takes dedication and teamwork between our operations, marketing, midstream and regulatory teams. It takes support from our corporate engineering group, our machine learning team, our IT team and our accounting team. Mostly, it takes the dedication and passion of our field staff, who put their shoulder to the wheel 24/7, 365 days a year with a commitment to excellence and safety.