Coterra Energy slightly missed earnings expectations on Thursday, but the oil and natural gas producer delivered where it matters most: free cash flow.
This new era rewards the energy players that focus on dividends and buybacks, both of which depend on strong, consistent cash flow production.
And Coterra delivered, with beats on discretionary and free cash flow.
Though the discretionary cash flow guide is disappointing, the ultimate impact is mitigated by this flexibility because it allows for the most efficient use of cash.
A flare burns excess natural gas in the Permian Basin in Loving County, Texas, U.S. November 23, 2019.
Persons:
Coterra, Tom Jorden, Marcellus, Jim Cramer's, Jim Cramer, Jim, Angus Mordant
Organizations:
Energy, LSEG, Coterra, Management, CNBC
Locations:
Loving County , Texas, U.S