Coterra

"Coterra" has crossed my in-box twice in the past 24 hours.

Jim Cramer is sold on "Coterra," from his program last night, February 2, 2022, or maybe the night before. I forget.

Whatever.

The strategic merger, October 1, 2021, Cabot Oil + Cimarex Energy = Coterra Energy.

Cimarex?

Cimarex was founded in 2002. The company was a corporate spin-off of Helmerich & Payne, which sought to separate its exploration and production business from its drilling business. In September 2002, shareholders of Helmerich & Payne received shares in Cimarex.

Cimarex, over at SeekingAlpha, Michael Filloon:

• XEC has value after a significant sell off.
• it has leasehold in some of the best acreage in the country, and its NM acreage continues to improve.
• XEC has the ability to increase liquids production, and much of its current issues are already priced in. 

Cimarex (XEC) has seen its share price decrease significantly from its high of $130.16 earlier this year. There are several reasons for the decline which includes logistical issues in the Permian. Its valuation is also hampered as a natural gas heavy name. That said, its has excellent acreage and has value at its current share price. We believe XEC will continue to increase liquids production, and improve Delaware well design. The sell off seems overdone, and has been compounded by world economic fears.

The Permian continues to be a favorite play for analysts centered on unconventional oil production. This makes sense, as multiple intervals in concert better average oil production is pushing cap ex to West Texas. The Permian covers a large area. Geology changes from section to section, and it is important to focus on results to identify the best economics. The Permian has three parts. This includes the Central Basin Platform, Midland and Delaware basins.

Trivia: name two main channels in the broader Permian Basin.

• San Simon channel: Separated the Central basin Platform from the Northwestern shelf during Leonardian and early Guadalupian times.
• Hovey channel: Situated in the southern edge of the Delaware Basin, providing access to open sea during Guadalupian times. 

Coterra:

• Permian (Delaware): 234,000 acres; 184,000 boepd
• Anadarko: 189,000 acres; 68,000 boepd
• Marcellus: 175,000 acres; 2,344 million cfe/d (400,000 boepd?)

Permian, back-of-the-envelope:

• 40,000 x 1 boepd = 40,000 x 184,000 = $7.4 billion
• 20,000 x 1 boepd = 20,000 x 184,000 = $3.7 billion
• 20,000 x 234,000 acres = $4.7 billion
• Market cap, Coterra: $420 million