Key Messages Committed to Capital Discipline and Shareholder Returns Focused on Execution and Maximizing Return on Capital COMMITTED TO SHAREHOLDER RETURNS Returning 92% of 2Q22 CFFO or 80% of FCF1 via dividend and share buybacks…
2Q22 Core Performance Operational & Financial Results Highlights (mm, unless noted) 1Q22 2Q22 Discretionary Cash Flow equal to 1.49 bn, CFFO equal to 879 mm (including 614 mm deduction due Total Production (MBoepd) 630 632 to changes in…
Committed to Shareholder Returns Returning 92% of 2Q22 CFFO or 80% of FCF (non-GAAP) via Cash Dividends + Share Repurchases In addition, retiring of 124mm of debt and 39mm of preferred stock 3Q22 Quarterly Shareholder Return…
Leading Returns Across Sectors CAPACITY TO INCREASE Assumes 50% FCF1 payout, does not include share buybacks 10% 9% 8% 2022e Dividend Yield 6% 4% 2% 0% CTRA Energy Utilities Real Consumer Materials Financials…
2022 Outlook Execution, Capital Discipline, and Higher Commodity Prices Supporting Free Cash Flow 2022e Cash Flow and Uses of Cash1,2 Key Takeaways Return of Capital Remain committed to returning 50%+ of FCF2 and/or 30% of CFFO via…
Increasing 2022 Capital Budget Raising 2022 capital 10% above the high-end of initial guidance driven by inflation and operations 2022e Capital Guidance ( bn) 2022 Capital Increase Driven by Inflation and Operations Initial…
2022 Program Capital Up 10% Above High-End of Previous Guidance, No Change to TILs Region Capital Allocation Average Program Lateral Length & Total Capital Expenditures Drilling & Completion Anticipated Net TILs 50 - 60 Anadarko…
Coterra Margin Expansion Increased Commodity Prices Expanded Absolute Margins Expanded Operating Margins1 ( per Boe) Opex per Boe Cash Margin per Boe Margin expansion 45.90 Absolute margin expansion driven by higher 40-45 commodity…
Balance Sheet Strength Remains a Top Priority Announcing retirement of 124 mm of principal debt and 39 mm of preferred stock Top-Tier Balance Sheet Liquidity & Debt Maturity Profile (mm) Retiring 124 mm of notes (principal) through…
Permian Basin Overview 2022 Permian Basin Outlook CTRA Acreage Position 45% of 2022 CTRA drilling & completion budget Currently running 6 rigs & 2 completion crews 182 mm D&C investment in 2Q22 Expect to average 6 rigs and 2…
Marcellus Shale Overview 2022 Marcellus Outlook CTRA Acreage Position 45% of 2022 CTRA drilling & completion budget Currently running 3 rigs & running 1 completion crew 215 mm investment in 2Q22 Maintaining 3rd rig in 2H22 Activity: 3…
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 Expect to complete Leota Clark in 3Q22…
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 in 4Q22 Methane Emissions…
Appendix
2022 Outlook As of August 2, 2022 3Q22 2022 2022 Marcellus Natural Gas Price Exposure by Index Guidance Guidance Guidance Index 3Q22e 2022e Production February August NYMEX (3Q22 less 0.46, 2022 less 0.40) 34% 37% Total production…
Permian Basin Operational Efficiencies Average Project Size Growing Operated Permian Well Costs, Frac End1 More wells per project: steady increase in Permian Basin Dampening inflationary impact with operational efficiencies: development…
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 August 2, 2022 2022 2023 3Q 4Q Total 1Q 2Q 3Q 4Q Total Oil WTI oil collars1 Explanatory Notes Volume (Bbl/d) 23,000 23,000 23,000 15,000 15,000 - - 7,438 Weighted avg. floor 56.78 67.65 62.22 70.00 70.00 - -…
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