Coterra Energy Inc. (CTRA) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 23, 2023 11:00 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 Fourth Quarter 2022 Earnings 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. Thank you.

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

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

Thank you, and good morning. Thank you for joining Coterra Energy’s fourth quarter 2022 earnings conference call. Today’s prepared remarks will include an overview from Tom Jorden, Chairman, 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 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 Web site.

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

Tom Jorden - Chairman, CEO and President

Thank you, Dan, and welcome to all of you who have joined us for our fourth quarter conference call. We're looking forward to a fruitful discussion on Coterra performance, outlook for 2023, three-year outlook and our tune up on our return of capital approach. We had an excellent fourth quarter and full year in 2022, driven by superior asset performance, good execution and some commodity price windage.

We finished the fourth quarter above the high end of our guidance on both oil and natural gas. This was made possible by the efforts we undertook during the year on weatherization. We experienced little downtime during the December winter storm events in the Permian, Anadarko and the Marcellus. This took careful planning, smart engineering, great field coordination and perseverance and a lot of grit on the part of our operational staff in all three regions.

The lack of significant downtime was also helped by collaboration between our Permian, Anadarko and Marcellus business units. We brought our teams together earlier in the fall to share experiences and best practices on weatherization, and it paid off. Kudos to our teams who kept us online and flowing during these challenging weather events. We also generated excellent financial results during the quarter and full year.