
Blake Sirgo, Coterra’s senior vice-president of operations, said on the conference call that the company’s Marcellus team went back to the drawing board last fall to re-engineer its processes and improve costs.
Their new plan, which Sirgo said has produced a “dramatic reduction,” increases the company’s lateral length by 60% and target a drilling cost of $800 per lateral foot.
As a result, Coterra will restart operation in April with two rigs and be prepared to boost its activity if merited.
Fourth-quarter results, broader capex plans
Coterra produced 682,000 boe/d in the fourth quarter and 113,000 b/d of oil. Net income came in at $297 million (on operating revenues of $1.4 billion) compared with $416 million in late 2023, when higher prices had pushed revenues to $1.6 billion.
Looking to 2025, Coterra is forecasting total production of 710,000-770,000 boe/d, with oil production of 152,000-168,000 b/d. In the first quarter, the company expects total production of 710,000-750,000 boe/d.
Leaders are planning for 2025 capex of $2.1-2.4 billion—in line with November estimates when announcing the $4-billion acquisition of some Permian basin assets from Franklin Mountain Energy and Avant Natural Resources—and up from 2024’s nearly $1.8 billion (OGJ Online, Nov. 13, 2024).
In 2025, the Permian is in line to get $1.57 billion, the Anadarko basin $230 million, and midstream, saltwater disposal, and infrastructure needs about $200 million.
In afternoon trading Feb. 25, shares of Coterra (Ticker: CTRA) were down about 2% to $27.42. Over the past 6 months, however, they have risen about 13%, a move that has grown the company’s market capitalization to more than $20 billion.