Coterra Energy Inc., Houston, confirmed its plan to drop two rigs and one completion crew from its Marcellus activity for the remainder of the year, raising its 2023 oil production guidance to 87,000-93,000 b/d from 86,000-92,000 b/d in response to low gas prices.
Currently, the operator is running six rigs and two completion crews in the Permian basin, two rigs in the Anadarko basin, and three rigs and two completion crew in the Marcellus (pre-drop), the company said as part of its first-quarter 2023 earnings report last week.
Production volumes for this year’s second quarter are expected to average 620,000-650,000 boe/d, with oil estimated at 88,500-91,500 b/d and natural gas volumes estimated at 2,750-2,850 MMcfd.
Accrued capital expenditures of $510-570 million for second-quarter 2023 are expected. The company’s 2023 capital budget remains unchanged at $2.0-2.2 billion.
First-quarter 2023 net income was $677 million. Adjusted net income was $661 million. Cash flow from operating activities totaled $1,494 million.
Cash capital expenditures for drilling, completion, and other fixed asset additions for first-quarter 2023 totaled $483 million. Accrued capital expenditures totaled $569 million, in line with the company’s first-half 2023-weighted capital program, the company said.
Total equivalent production of 635,000 boe/d exceeded the high-end of guidance, driven by strong well performance and improved cycle times, Coterra said.
Oil production averaged 92,200 b/d, exceeding the high-end of guidance. Natural gas production averaged 2,757 MMcfd, also exceeding the high-end of guidance.
