Coterra Energy Inc. (CTRA) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 3, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Thank you for standing by. My name is Cheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coterra Energy Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session.

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

Dan Guffey - VP of Finance, Planning and Analysis and IR

Thank you, Cheryl, and good morning, and thank you for joining Coterra Energy's second quarter 2022 earnings conference call. Today's prepared remarks will include an overview from Tom Jorden, CEO and President; and Scott Schroeder, Executive Vice President and CFO. Also on the call, we have Blake Sirgo and Todd Roemer. Following our prepared remarks, we will take your questions during the Q&A session.

As a reminder, on today's call, we will make forward-looking statements based on 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.

Tom Jorden - CEO & President

Thank you, Dan, and thank all of you who are joining us today for our Q2 2022 recap. As you read from our earnings release, we had an excellent second quarter. If I were asked to write the news headline describing our release, it would be Coterra Hits Its Stride. With these quarterly results, which are our third since forming Coterra, we have affirmed our commitment to capital discipline, prudent capital allocation and returning free cash to our owners.

We beat on all three product streams: oil, gas and natural gas liquids. This was a result of outstanding organizational execution during the quarter as well as having some great rock. I want to give a big shout out to our organization, particularly our field staff who worked relentlessly during the quarter and brought wells online ahead of their planned first production date.

Our solid execution was turbocharged by excellent reservoir performance. We continue to see positive results from our spacing configurations, landing zone selections and completion designs. You will also note that we increased our capital guidance for the year. This was a combination of two factors, inflation and a modest increase in activit I will discuss these individually.