Coterra Energy Inc.
CTRABusiness Overview
ticker: CTRA step: 01 generated: 2026-05-13 source: quick-research
Coterra Energy Inc. (CTRA) — Business Overview
Business Description
Coterra Energy is an independent oil and gas exploration and production company headquartered in Houston, Texas, focused on developing natural gas, oil, and NGLs across three major U.S. basins. Formed from the 2021 merger of Cabot Oil & Gas and Coterra, the company's multi-basin model is a key competitive differentiator — it can shift capital between oil-weighted Permian operations and gas-weighted Marcellus operations based on relative commodity pricing. Total proved reserves stand at 2,271 MMBoe (85% natural gas, 7% oil, 8% NGLs) as of year-end 2024.
Revenue Model
Revenue is driven by production volumes multiplied by prevailing commodity prices for oil, natural gas, and NGLs — entirely commodity price dependent. Coterra has no downstream refining or marketing operations. The company operates on a "returns-focused" model targeting 50%+ of annual free cash flow returned to shareholders via a base-plus-variable dividend structure and share buybacks.
Products & Services
- Natural gas: Primary product (~85% of reserves); produced primarily from Marcellus Shale (Appalachian)
- Oil (crude): Permian Basin operations, significantly expanded with January 2025 Delaware Basin acquisitions
- Natural gas liquids (NGLs): Associated production across all three basins
- No midstream/downstream: Pure-play upstream E&P
Customer Base & Go-to-Market
Sells production to midstream companies, utilities, gas marketers, refiners, and industrial buyers via pipeline. No single customer concentration issues typical in E&P; pricing is effectively set by regional and national commodity markets (Henry Hub for gas, WTI for oil).
Competitive Position
Coterra's key advantage is basin flexibility — unique among large-cap E&Ps in being able to meaningfully shift capital between oil and gas depending on relative returns. Tier-1 Permian inventory at a ~$50/bbl break-even provides resilience. January 2025 acquisition of Franklin Mountain Energy and Avant Natural Resources ($3.95B combined) added 83,000 acres in the Northern Delaware Basin, making Coterra a larger-scale Permian player. The Marcellus position is strategically valuable for potential LNG export demand growth.
Key Facts
- Founded: 2021 (merger of Cabot Oil & Gas and Coterra Energy)
- Headquarters: Houston, TX
- Employees: ~2,500
- Exchange: NYSE
- Sector / Industry: Energy / Oil & Gas Exploration & Production
- Market Cap: ~$20B
Financial Snapshot
ticker: CTRA step: 04 generated: 2026-05-13 source: quick-research
Coterra Energy Inc. (CTRA) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$9.0B | $5.91B | $5.46B | -7.7% |
| Gross Margin | N/A (E&P) | N/A | N/A | |
| Operating Margin | ~30%+ | ~20% | ~22% | |
| Net Income | ~$3.5B | ~$1.6B | ~$1.1B | -31% |
| EPS (diluted) | $5.08 | $2.13 | $1.50 | -29.6% |
Revenue declines driven by commodity price normalization: natural gas prices fell sharply from 2022 highs (Henry Hub from $6.50/MMBtu peak to $2-3/MMBtu range in 2023-2024). GAAP EPS is depressed by mark-to-market derivative losses; adjusted EPS is meaningfully higher. TTM revenue (including January 2025 Delaware acquisitions) approaches $7.6B.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$2.5B |
| Free Cash Flow (non-GAAP) | ~$1.0B |
| Capital Expenditures | ~$1.5B |
| Cash & Equivalents | ~$500M |
| Total Debt | ~$4.5B (elevated post-January 2025 $3.95B acquisition) |
Key Ratios (approximate)
- P/E: ~20x (GAAP) | EV/EBITDA: ~6x | FCF Yield: ~5%
- Revenue Growth (FY2024): -7.7% | FCF Margin: ~18% of revenue
- Dividend Yield: ~3.2% (base $0.88/year + variable distributions)
Growth Profile
FY2022 was a peak commodity price year; FY2023-2024 reflect normalization of natural gas prices. The January 2025 Delaware Basin acquisitions ($3.95B) add meaningful oil production scale — management guided 2025 oil volumes up ~47% YoY and total BOE production +9% at the midpoint. This shifts Coterra's mix toward oil, partially reducing sensitivity to weak natural gas pricing. FCF is expected to rebound significantly in 2026 with higher volumes and potentially recovering gas prices.
Forward Estimates
- FY2025: Production guidance of 720,000-760,000 BOE/day; oil +47% YoY; capex ~$2.3B
- FY2026: Analysts project $2B+ in free cash flow if commodity prices cooperate; capex guidance "modestly down" from 2025; consensus price target ~$34
- Total shareholder returns: 50%+ of annual FCF ($635M dividends + $451M buybacks = 89% of 2024 FCF)
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $CTRA.