Key Messages Committed to Capital Discipline and Shareholder Returns Focused on Execution and Maximizing Return on Capital COMMITTED TO SHAREHOLDER RETURNS Regional and Revenue Diversification Returning 50% of 1Q22 CFFO or 69% of FCF1…
1Q22 Core Performance Operational & Financial Results Highlights (mm, unless noted) 4Q21 1Q22 Strengthened commodity price environment supported cash flow generation Total Production (MBoepd) 686 630 Gas Production (MMcfpd) 3,123 2,850…
Committed to Shareholder Returns Returning 50% of 1Q22 CFFO or 69% of FCF (non-GAAP) via Cash Dividends + Share Repurchases Shareholder Returns1 Quarterly Shareholder Return Calculation per share Based on 1Q22 Results 0.830 1,232 mm…
Leading Returns Across Sectors CAPACITY TO INCREASE Assumes 50% FCF1 payout, does not include potential dividend payout 50% of FCF or share buybacks 10% 9.5% 2022e Dividend Yield 8% 6% 4% 2% 0% CTRA 2 Energy…
2022 Outlook Discipline Coupled with Higher Prices Driving Free Cash Flow Higher 2022e Cash Flow and Uses of Cash1,2 Key Takeaways Return of Capital 5.9 bn 1,066 mm share repurchase authorization remaining as of March 31, 2022 (up…
2022 Program Executing On Plan Maintaining Discipline Region Capital Allocation Average Program Lateral Length & Total Capital Expenditures Drilling & Completion Anticipated Net TILs 50 - 60 Anadarko SWD & Infra Basin 9…
Coterra Margin Expansion Increased Commodity Prices Expanding Absolute Margins Expanding Operating Margins1 ( per Boe) Opex per Boe Cash Margin per Boe Margin expansion 41.00 Absolute margin expansion driven by higher 36.51 commodity…
Balance Sheet Strength Top-Tier Balance Sheet Liquidity & Debt Maturity Profile (mm) Leverage target: 1.0x at mid-cycle prices Current combined leverage ratio: 0.41x 2,947 No meaningful maturities until 2024 1,325 Current cash…
Permian Basin Overview CTRA Acreage Position 2022 Permian Basin Outlook Currently running 6 rigs & 2 completion crews 49% of 2022 CTRA drilling & completion budget Received 182 mm investment in 1Q22 2022e TILs Expect to average 6…
Marcellus Shale Overview 2022 Marcellus Shale Outlook CTRA Acreage Position 44% of 2022 CTRA drilling & completion budget Currently running 3 rigs & running 1-2 completion Received 116 mm investment in 1Q22 crews in 2Q22 Activity: 2.5…
Anadarko Basin Overview 2019 2020 2021 CTRA Acreage Position Reduced Anadarko Strategic acreage swaps; Sold non-core acreage; development capital; focused on acreage delineated Lone Rock with Currently running 2 rigs & 1 completion…
Focused on Emissions Setting our Goals ESG metrics added to Coterras 2022 executive short-term incentive targets, 15% of total incentive potential Expect to publish SASB & TCFD aligned Sustainability report early 4Q22 Methane Emissions…
Appendix
2022 Outlook As of May 2, 2022 2Q22 2022 Marcellus Natural Gas Price Exposure by Index Guidance Guidance Index 2Q22e 2022e Production (unchanged) NYMEX (2Q22 less 0.46, 2022 less 0.42) 34% 36% Total production (MBoepd) 605 - 625…
Dampening Inflationary Environment Development Projects Growing Operated Permian Well Costs, Frac End1 More wells per pad: steady increase in Permian Basin Dampening inflationary impact with operational development size efficiencies and…
Owned & Operated Permian Infrastructure Provides operational efficiencies, cost savings, and can mitigate environmental impact Saltwater Disposal System Electric Grid Gas Gathering System Saltwater disposal (SWD) system services…
Reconciliation of Discretionary Cash Flow and Free Cash Flow Non-GAAP reconciliation Supplemental Non-GAAP Financial Measures (Unaudited)We report our financial results in accordance with accounting principles generally accepted in the…
EBITDAX, Net Debt and Net Debt to EBITDAX Non-GAAP reconciliation EBITDAX Net Debt and Net Debt to EBITDAX EBITDAX is defined as net income plus interest expense, other expense, income tax expense and benefit, Net Debt is calculated by…
Hedge Position As of May 2, 2022 2022 2023 2Q 3Q 4Q Total 1Q 2Q Oil Explanatory Notes 1 WTI oil collars Volume (Bbl/d) 27,000 18,000 18,000 20,978 10,000 10,000 1 WTI Weighted avg. floor 43.74 47.56 61.44 49.92 65.00 65.00 refers to…
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