Feb 22 (Reuters) - Coterra Energy (CTRA.N) , opens new tab on Thursday forecast a decline in natural gas production for 2024 after it reported its quarterly profit below Wall Street estimate.

The company sees total equivalent production of 635,000 barrels of oil equivalent per day (boepd) to 675,000 boepd in 2024, down about 2% at the mid-point from a year earlier.

Companies producing natural gas have struggled with low prices during 2023, with average natural gas prices (.NGc1) , opens new tab declining more than 50% in the fourth quarter compared with last year. They have also hit a three-and-a-half year low this month.

Coterra joins natural gas producer Chesapeake Energy (CHK.O) , opens new tab in cutting down rigs and trimming production this year, citing oversupply in the market.

Houston-based Coterra is expected to operate one rig and drop spot crew during 2024 in Marcellus, Coterra's biggest operating area in terms of production volumes, in response to the weak near-term natural gas outlook.

Coterra expects to slash its 2024 capital expenditure for Marcellus by less than 55% and adjusted spending for the company to between $1.75 billion and $1.95 billion, the midpoint of which is down compared to 2023.

However, the company reported a rise in production during the fourth quarter to 697,400 boepd, compared to 632,200 boepd a year earlier, helping offset lower crude prices.

Coterra said its U.S. average crude realized price fell to $77.10 per barrel in the reported quarter, from $82.26 per barrel.

The company's adjusted profit was 52 cents per share for the three months ended Dec. 31, compared with analysts' average estimate of 55 cents per share, according to LSEG data.

However, Coterra hiked its quarterly dividend by 5% to 21 cents per share, sending the company's shares up about 3% in after-hours trading.

https://www.reuters.com/business/energy/coterra-energy-misses-quarterly-profit-estimates-2024-02-22/