Coterra CEO Tom Jorden goes one-on-one with Jim Cramer
Coterra Chairman, President and CEO Tom Jorden joins 'Mad Money' host Jim Cramer to talk quarterly earnings, the state of the energy sector, what they expect to see moving forward and more.
Chief Executive Officer, President & Chairman, Coterra
Search every verified Thomas Jorden interview, podcast appearance, and on-the-record quote β each transcript cross-checked by AI and human review to confirm speaker identity. In March 2024, Jorden discussed Coterra's strategy of maintaining flexibility to pivot capital between oil and gas assets, describing the company as "nimble" and designed to move capital between bases in short order. He stated that Coterra manages by capital allocation rather than production growth alone, and noted the company planned a single-digit production decline of five to six percent for the year while retaining contingency plans to ramp up. Jorden said the company had looked at potential mergers but felt "pretty comfortable" with its current position given its low cost of supply and ability to execute. In a March 2022 appearance, Jorden said Coterra was investing less than 35% of its cash flow in its capital program and had authorized a stock buyback, describing the decision as "not a very difficult decision" given the company's cash and dividend capacity. He called natural gas "an amazing resource" for the U.S. and said the ability of U.S. producers to supply the global LNG market is "second to none," while adding that the industry needs "cooperation out of policy makers" to build pipelines and fast-track terminals.
“We built Coterra to have a team that is nimble, always looking at iterations and ready to pivot; we've built our service contracts so we don't have any long-term commitments, which means we can move capital from one base to another in fairly short order.”
“Because of our asset quality and organization we can project a stability of revenue and cash flow that gives us the luxury to keep our debt low and be a low-cost supplier while building an organization like a capital allocator.”
“We don't manage by production growth alone; we manage by capital allocation to the most profitable places we can invest, and we've just got some tremendous projects from our oil assets, particularly in the Delaware Basin, that give us capital efficiency and economy of scale.”
“The real question on any transaction is what's better: a share of the company today versus a share of the combined company; we've looked at a lot of potential combinations, but we feel pretty comfortable where we sit right now given our duration, low cost of supply and ability to execute nimbly.”
“We announced our plan: production will decline single digits, five or six percent this year, but we have contingency plans to ramp back up if things look better; what we want to do is pause investing in future wells and redirect that capital to other assets when appropriate.”
“I'm surprised natural gas has fallen as far as it has, but until we get more LNG exports opened up or see weather-driven demand, storage remains ample; that's why having the ability to pivot from one asset to another is what we're designed for.”
“OPEC is still underwriting prices for some time, but there's been a psychology of supply in the global marketplace where people just don't worry the way they used to β to be honest, that's a credit to our industry; I think we created that psychology of supply and we're going to continue to do it.”
“Well margins are quite high as we reported in our release but as we also said we are only investing less than 35% of our cash flow in our capital program.”
“The power of our portfolio is really unprecedented in my experience.”
“We believe in our story, we believe in the future, we believe in the power of our ability to sustain it and we look at intrinsic and relative value.”
“It was not a very difficult decision β we have the cash, we have the wherewithal and in addition to returning that ordinary and variable dividend ... we have the wherewithal to buy some of our shares.”
“Natural gas is an amazing resource for the United States both domestic and internationally β the ability of the U.S. producer to supply the world LNG market is second to none.”
“We do however need some cooperation out of policy makers β we need to build some pipelines, we need to fast track some terminals and the U.S. producer in particular has the opportunity to respond to the challenges of the next decade and further bolster U.S. geopolitical security.”
Coterra Chairman, President and CEO Tom Jorden joins 'Mad Money' host Jim Cramer to talk quarterly earnings, the state of the energy sector, what they expect to see moving forward and more.
Thomas Jorden, CEO of Coterra Energy, appeared on Tuesday's episode of "Mad Money." Sign up and learn more about the CNBC Investing Club with Jim Cramer https://cnb.cx/3Ei22n4 Β» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision Β» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBCβs daily news podcast providing deep, non-partisan coverage and perspective on the dayβs most important stories. Availabβ¦
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