Publicly traded U.S. oil and gas companies are unlikely to increase spending or output significantly in 2022, as they keep a promise to focus on shareholder returns, Coterra Energy CEO Tom Jorden said on Jan. 6.

Jorden said he was bullish on oil and natural gas prices, but his company would concentrate on shareholder returns, including an ordinary and variable dividend. He said Coterra is also looking closely at share buybacks.

U.S. oil prices were close to $80/bbl on Jan. 6, up about 58% compared with last year as demand picks up in response to the economic recovery from the pandemic.

“I think the market is bullish on energy,” Jorden told a Goldman Sachs energy conference.

Find out more about U.S. tight oil’s uncharacteristic response to rising prices in Hart Energy’s Shale 2022 report.

Hart Energy Shale 2022 Report

Jorden said Coterra was experiencing some inflationary pressures, including from labor and supplies such as fuel. It anticipates mid to high single-digit cost increases this year.

With positions in the Permian Basin, Marcellus Shale and Anadarko Basin, Coterra also plans to bring on its first all-electric hydraulic fracturing operation with service provider Halliburton. The equipment, which was tested last year, will be connected to the electric grid.

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