Earnings Highlights CTRA, CIVI, & FANG

Coterra Energy (CTRA)
For Q4 2024, Coterra’s total barrels of oil equivalent, oil production and natural gas production beat the high-end of guidance by at least 3% while CapEx came in near the low-end of guidance.
Relative to last November, Permian drilling and completion capital expenditures are estimated to be approximately $70 million lower, driven by improved services costs and acquisition synergies.  Marcellus drilling and completion capital expenditures are estimated to be approximately $50 million higher than expected as the company expects to restart activity in the basin early in the second quarter of 2025.  Anadarko capital expenditures are expected to be relatively consistent.
While the midpoint of their full year 2025 natural gas production guidance is expected to be flat YOY, Coterra is notorious for being overly conservative on their natural gas production guidance.  Therefore, their 2025 natural gas production will very likely be significantly higher than flat YOY.  


Civitas Resources (CIVI)
During Q4 2024, Civitas’ capital expenditures were in the lower half of the Company's guidance, with total production approximately 5% above guidance adjusted for non-core DJ Basin divestments.  Midland Basin average two-mile well costs (drilling, completion and equipment) decreased from $850 per lateral foot to less than $725 per foot by the end of the year.  This represents a more than 15% YOY improvement. 

Diamondback Energy (FANG)
Diamondback closed the merger with Endeavor Energy Resources on September 10, 2024.  50% of the firm's estimated 2025 natural gas production is hedged.
The company issued new full year 2025 production guidance.  After adjusting for the acquisitions of Endeavor Energy and Double Eagle IV, the company's 2025 production is expected to be higher YOY by roughly 3%.