CTRA $28.78
I have been holding SD for exposure to ngas in the US. Been disappointed in relatively poor performance, in spite of generally strong ngas prices. So bought some Coterra Energy on Friday to see if a different horse can help me.
Coterra is 50/50 oil gas. They have exposure to Permian, Marcellus and Anadarko basins. They are relatively big cap at 22 billion vs only 700 million for SD. They have big acreage and reserves. While I was looking for primarily ngas exposure, I like the 50/50 balance of their production and the cheap production costs in the Marcellus for ngas. Coterra has a low p/e of 7 vs 3 for SD. I think market likes strong margins at CTRA AND growth in production.
SD has been maintaining production by opening shut in wells from the prior price collapse of a few years ago. As a result, they have very low capex requirements and NO HEDGES! So I love the free cashflow but apparently the market does not. So even though I will stubbornly hold SD, I wanted to try a bigger cap energy stock to see if I can capture what I think will be an energy bull market going forward.
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If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
