Coterra Shifting Focus and $$ from Marcellus Gas to Permian Oil

This is precisely what we feared might happen and why we were against the merger of Cimarex Energy and Cabot Oil & Gas, now called Coterra Energy (see Cimarex Takes Over Cabot, Merged Co. Called “Coterra Energy”). In Friday’s quarterly update, we learned that Coterra is dropping two rigs and cutting back to one frac crew in the Marcellus (a plan that was announced earlier this year). We also learned that Coterra will milk the Marcellus cash cow and use that money to finance more work in the oily Permian (Texas) play.