Coterra Energy's profit beats expectations in the second quarter due to higher gas prices and strong output

Coterra Energy beat Wall Street expectations for the second quarter profit on Monday as higher production volumes, a rebound of U.S. Natural Gas prices and lower oil prices were offset.

Houston-based shale producers benefited from increased production across the Permian basin and Anadarko Basin. The total production increased to 783.900 barrels equivalent of oil per day (boepd), from 669.200 boepd, during the second quarter.

The production gains helped boost results but were partly offset by lower crude prices. The average Brent crude price fell over 20% compared to a year ago amid U.S. Tariffs, weak demand globally and increased supply from OPEC+.

Coterra's results for the quarter were also cushioned due to an increase in U.S. Natural Gas prices. These have risen from the multi-year lows they reached last year. This was boosted by record flows into liquefied gas export facilities, and by rising electricity consumption.

The average realized price of oil, the price received by the company for each barrel it produced, was $62.80 while that for natural gas averaged $2.20 for every thousand cubic feet.

LSEG data shows that Coterra's adjusted profit for the three-month period ended June 30 was 48 cents, compared to analysts' expectations of 45 cents. Reporting by Vallari Shrivastava, Bengaluru. Editing by Tasim Zaid.

(source: Reuters)