US-based exploration and production company Coterra Energy has declared a 5% dividend increase to $0.22 per share for the fourth quarter (Q4) of 2024.
The announcement reflects the company's financial performance amid higher oil and natural gas liquids (NGLs) production.
This increase brings the new annualised dividend to $0.88 per share, representing a 3.1% yield.
The company reported net income of $297m for Q4 and $1.12bn for the full year (FY24). Cash flow from operating activities (GAAP) reached $626m in Q4.
These results come as the US Energy Information Administration reported a record high in national oil production due to improved drilling efficiencies.
Coterra's daily equivalent production was reported at 681,500 barrels of oil equivalent per day (boepd), a slight decrease from 697,400boepd produced in the previous year's quarter.
The production mix showed an increase in oil and NGLs, although overall production was down.
Coterra expects total production for 2025 to be between 710,000 and 770,000boepd, an approximate 9% year-over-year increase at the mid-point.
The company predicts that oil production will surge by roughly 47% to between 152,000 and 168,000bopd, while natural gas production is expected to remain relatively flat at the mid-point, ranging from 2,675 to 2,875 million cubic feet per day.
The company is focusing on organic growth through its legacy assets and expansion in the Permian Basin.
Coterra expects average oil growth of 5% or greater from 2025 through 2027, with average annual capital investments projected at between $2.1bn and $2.4bn. This includes combined growth for the years 2026 and 2027.
Coterra's strategic acquisitions, including assets from Avant Natural Resources and Franklin Mountain Energy for a combined $3.95bn, have expanded its operations in the Delaware Basin.
Following the closure of these transactions in January, the company's capital expenditure (capex) for 2025 is projected to be 28% higher than the $1.76bn spent in 2024.
Additionally, Coterra anticipates an increase in drilling and completion capex in the Marcellus Basin by $50m more than initially expected, as it resumes activities in Q2.
Coterra chairman, CEO and president Tom Jorden said: “I am proud to report that Coterra continued its trend of excellent operational execution throughout 2024. Capital expenditures came in near the low end and production was above the high end of guidance, delivering improved capital efficiency.
“We are pleased to announce that we expect to restart our Marcellus development programme in the coming months, which will provide incremental natural gas volumes next winter. We remain committed to value creation through operational excellence, disciplined capital allocation driven by full-cycle returns and returning value to shareholders.”
