(Reuters) – U.S. shale producer Coterra Energy reported a rise in first-quarter profit on Monday, but said it would lower its annual capital expenditure plan in response to the macroeconomic uncertainty.
The U.S. energy sector is bracing for potential fallout from President Donald Trump’s sweeping tariffs and an intense trade war with China — factors that could weigh on demand for oil and natural gas.
Earlier today Diamondback Energy also trimmed its annual capital budget and production forecasts as macroeconomic uncertainty has weighed on global energy demand.
Coterra also said it plans to operate seven rigs in the Permian Basin during the second half of the year, compared to its initial plan to run ten rigs.
The Houston, Texas-based company said its net income rose to $516 million, or 68 cents per share, for the three months ended March 31, compared with $352 million, or 47 cents per share, a year ago.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Mohammed Safi Shamsi)
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