03:33 PM EDT, 07/08/2024 (MT Newswires) -- Coterra Energy's ( CTRA ) Q2 oil volume is expected to beat its guidance as 10 of its 54 wells in the Windham Row project have been brought online as of mid-June, UBS said Monday in a note.

As UBS maintained its "top pick" view on Coterra heading into the company's Q2 results, the investment firm said it is looking for "early color on performance" of the Windham Row development as it expects execution to help de-risk the project while offering potential upside to the full-year 2024 oil volume guidance.

UBS said it expects Q2 cash flow per share of $1, in line with analysts' forecast of $0.99, on total volumes of 642 mboepd, or thousand barrels of oil equivalent per day, slightly above the midpoint of the 625 to 655 mboepd guide.

"A key investor pushback remains CTRA's asset mix, but it continues to support cash flow stability and shareholder returns well above peers," the firm said. " Alongside a strong balance sheet, we see this combination supporting a positive re-rating.

UBS has a buy rating on the stock with a $36 price target.

Coterra plans to announce its Q2 earnings results on Aug. 1.

Price: 26.60, Change: +0.37, Percent Change: +1.41