Capital expenditures were $44 million (7%) below the midpoint of guidance, driven by timing and cost savings.
Cash operating costs were $9.34 per BOE, down 6% quarter-over-quarter and aligned with annual guidance midpoint.
Coterra Energy exceeded the high end of guidance for natural gas and total barrel of oil equivalent (BOE) production and surpassed the midpoint on oil volumes in Q2 2025.
Coterra repaid $100 million of term loans in Q2, totaling $350 million in the first half of 2025, and returned $191 million to shareholders through dividends and share repurchases, representing 58% of free cash flow.
Discretionary cash flow was $949 million, with free cash flow of $329 million after capital expenditures.
Liquidity remained strong with an undrawn $2 billion credit facility and total liquidity of $2.2 billion.
Net income was $511 million or $0.67 per share, with adjusted net income of $367 million or $0.48 per share.
Revenues were balanced between oil and natural gas, including natural gas liquids (NGLs), with pre-hedge oil and gas revenues at $1.7 billion and 52% of revenues from oil production.
AEP delivered the strongest ever second quarter operating earnings in its 100-year history with $1.43 per share or $766 million, a 14% increase year-over-year.
Corporate and Other segment was relatively flat, demonstrating focus on cost controls.
FERC affirmed the appropriate treatment of NOLCs within transmission formula rates, resulting in a $480 million or $0.90 per share increase to GAAP earnings, excluded from operating earnings.
Generation & Marketing produced $0.17 per share, up $0.05 from last year, with favorable energy margins partially offset by lower distributed generation margins.
Liquidity remains strong at above $5.6 billion, supported by $6 billion of credit facilities, and the balance sheet is healthy with a BBB+ credit rating and stable outlook from S&P.
Operating earnings for the first quarter totaled $1.43 per share compared to $1.25 per share in 2024, highlighting solid momentum heading into the second half of 2025.
Transmission & Distribution Utilities segment earned $0.42 per share, up $0.01 from last year, supported by rate changes and retail sales gains from large loads.
Transmission Holdco segment contributed $0.42 per share, up $0.03 from last year, driven by investments in transmission assets.
Vertically Integrated Utilities segment earnings were $0.56 per share, up $0.10 from a year earlier, driven by rate changes and increasing load from data centers.
Dafinchi