Coterra Energy posts lower Q3 profit on weak natural gas prices
Houston-based Coterra Energy, with operations in the Marcellus, Permian and Anadarko basins, said October 31 its Q3 2024 net income fell to $252mn from $323mn a year ago as weaker natural gas prices offset higher production.
Natural gas production averaged 2.7bn ft3/day, with more than half, or 1.9bn ft3/day, coming from the Marcellus Shale basin. Total gas production in the comparable 2023 period was 2.9bn ft3/day, with Marcellus production accounting for 2.3bn ft3/day.
Permian gas production in Q3 2024 averaged 531.2mn ft3/day, up from 446.4mn ft3/day, while production from the Anadarko basin in Oklahoma rose to 218.8mn ft3/day from 168.3mn ft3/day.
The strong production results were more than offset by a sharp drop in Coterra’s average natural gas selling price, excluding hedges, to $1.30/’000 ft3 in Q3 2024 from $1.80/’000 ft3 in Q3 2023. Coterra’s selling price in the Permian basin fell into negative territory, averaging ($0.63)/’000 ft3 compared to $1.58/’000 ft3 a year ago.
Including hedges, the average selling price fell to $1.41/’000 ft3 from $2.01/’000 ft3 in Q3 2023, Coterra said.