03:37 PM EDT, 10/15/2024 (MT Newswires) -- Coterra Energy ( CTRA ) is seeing "sequential oil growth" and solid execution supported by the ramp-up at Windham Row and its oil volumes are expected to exceed market expectations over the next three years, UBS Securities said in an earnings preview Tuesday.

The investment firm estimates Q3 total production volumes of about 640 thousand barrels of oil equivalent per day, within the company's guidance.

"Our projected about 4% quarter-over-quarter production drop largely reflects curtailed Marcellus gas volumes, as crude production is forecast to rise 3% quarter-over-quarter," UBS added.

The company will likely place between 15 and 25 net wells online in Q3, expanding on the 21 gross wells added in the previous quarter with plans to expand Windham Row's well count to 73 from 57, according to the note.

The firm expects around $50 million in share buybacks for Q3, with a larger buyback of over $200 million anticipated in Q4 as the company maintains its repurchase program.

UBS reiterated a buy rating and a $31 per share price target.

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