Coterra misses its quarterly profit forecasts, pointing to winter storm as a factor in Q1 output

Coterra Energy missed Wall Street's expectations for the fourth quarter profit on lower crude prices and warned that its first-quarter production would be affected by the U.S. winter storm.

Venezuela is expected to increase its barrel production, putting pressure on global crude prices.

The average oil price was $58.16 a barrel, down from $68.57 per barrel a quarter earlier.

It produced 813.100 barrels of equivalent oil per day, up from the 681.500 boepd it produced a year ago.

The company forecasts that the total production in 2026 will be between 750,000 and 810,00 boepd. This includes the impact of winter storms during the first quarter.

Coterra stated that they expect the first quarter to be below average production, even after taking into account the winter'storm Fern.

After the bell, shares of the company dropped 1.4% to $29.59.

Analysts and traders estimate that the winter storm cut down on U.S. oil output by as much as two million barrels a day, or 15% of total national production. This affected companies such as Coterra.

The company anticipates that its full-year capital spending will be in the $2.18 billion to $2.3 billion range.

This month, Coterra Energy and Devon announced a $58 Billion merger. The goal was to increase scale and efficiency, as oil prices are falling.

The companies aim to save $1 billion annually in pre-tax revenue by 2027.

According to data compiled and analyzed by LSEG, Coterra?posted a profit adjusted of?39cents per share - compared to analysts' average estimates of 48 cents. (Reporting by Sumit Saha in Bengaluru; Editing by Shinjini Ganguli)

(source: Reuters)