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Coterra Energy (CTRA)
NYSE:CTRA
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Coterra Energy
(NYSE:CTRA)
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Rating:72Outperform
Price Target:
$27.00
▲(15.98% Upside)
Coterra Energy's overall stock score is driven by its strong financial performance and positive earnings call results. The company's robust profitability and cash flow generation, coupled with attractive valuation metrics, provide a solid foundation. Technical analysis shows mixed signals, but the company's strategic focus on production and cost management supports a positive outlook.
Positive Factors
Strong Cash Flow Generation
Coterra's robust free cash flow growth indicates strong cash generation capabilities, enhancing its ability to reinvest in operations and return value to shareholders.
Production Guidance Exceeded
Exceeding production guidance demonstrates operational efficiency and the ability to capitalize on market opportunities, supporting long-term growth.
Stable Balance Sheet
A low debt-to-equity ratio reflects conservative financial management, providing stability and flexibility for future investments and growth.
Negative Factors
Revenue Growth Challenges
Negative revenue growth indicates challenges in expanding sales, which could impact long-term profitability and market position if not addressed.
Weak Commodity Prices
Softening commodity prices can pressure margins and reduce revenue, impacting the company's ability to sustain profitability in the long term.
Increased Capital Expenditures
Higher capital expenditures may strain cash flow and limit financial flexibility, potentially impacting the company's ability to invest in other growth opportunities.
Coterra Energy (CTRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.77B
Dividend Yield3.74%
Average Volume (3M)5.83M
Price to Earnings (P/E)11.2
Beta (1Y)0.55
Revenue Growth16.56%
EPS Growth20.21%
CountryUS
Employees915
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.48
Shares Outstanding763,139,950
10 Day Avg. Volume6,562,282
30 Day Avg. Volume5,825,116
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.44
Price to Sales (P/S)3.47
P/FCF Ratio18.51
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit10.47
Enterprise Value/Ebitda5.70
Forecast
1Y Price Target
$32.94Price Target Upside41.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Coterra Energy Business Overview & Revenue Model
Company DescriptionCoterra Energy Inc., an independent oil and gas company, engages in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania. The company also holds Permian Basin properties with approximately 306,000 net acres; and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. As of December 31, 2021, it had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas, and 220,615 thousand barrels of natural gas liquids. The company was incorporated in 1989 and is headquartered in Houston, Texas.
How the Company Makes MoneyCoterra Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company employs a revenue model that capitalizes on market prices for these commodities, with sales driven by production volumes from its extensive portfolio of developed and undeveloped assets. Key revenue streams include direct sales to refineries, marketers, and other end-users, as well as contracts and agreements that often include hedging strategies to mitigate price volatility. Additionally, Coterra benefits from strategic partnerships and joint ventures that enhance operational efficiency and market reach, further contributing to its earnings. The company's focus on cost-effective production and technological advancements also plays a significant role in maximizing profitability.
Coterra Energy Key Performance Indicators (KPIs)
Coterra Energy Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Coterra Energy's second quarter showed strong production and financial results, exceeding guidance in several areas and maintaining robust cash flow and balance sheet strength. However, challenges with certain wells and softening commodity prices present ongoing concerns.Q2-2025 Updates
Positive Updates
Exceeding Production Guidance
Coterra's second quarter oil production was 2% above the midpoint of guidance, while natural gas was above the high end of the guidance range. Overall BOEs were also above the high end of the guidance range.
Strong Financial Performance
Pre-hedge oil and gas revenues were $1.7 billion, with a 7% increase in oil contribution quarter-over-quarter. Net income for the quarter was $511 million, and adjusted net income was $367 million.
Successful New Harkey Wells
Six new Harkey wells in Culberson County came online, meeting or exceeding expectations, indicating the localized nature of previous issues.
Robust Cash Flow and Balance Sheet
Discretionary cash flow for the quarter was $949 million, and free cash flow was $329 million. Coterra ended the quarter with an undrawn $2 billion credit facility and total liquidity of $2.2 billion.
Dividend and Shareholder Returns
Coterra announced a $0.22 per share dividend, one of the highest yielding base dividends in the industry, and returned $191 million to shareholders through dividends and share repurchases.
Successful Cost Reduction
In the Permian, all-in costs are projected at $940 per foot, down 2% from the start of the year and down 12% year-over-year.
Positive Marcellus and Anadarko Results
Significant outperformance in Marcellus production with peak 30-day rate of 450 million cubic feet per day across 11 wells. Strong Anadarko program with a 9-well project achieving a 30-day equivalent IP of 173 million cubic feet per day.
Innovative Gas Marketing Strategy
Coterra announced a new power netback deal in the Permian, providing a differentiated gas sales strategy and additional power netback exposure.
Negative Updates
Challenges with Windham Harkey Wells
Remediation efforts on Windham Harkey wells are almost complete, but the wells are not yet contributing material incremental oil volumes. Full recovery may not achieve original predrill volumes.
Weak Natural Gas and Oil Prices
Weakening natural gas prices and the cessation of OPEC+ curtailments have led to a softening of oil markets.
Increased Capital Expenditures
Capital expenditures for the full year 2025 are expected to be about $2.3 billion, with an increase of $100 million in the Marcellus due to additional activity.
Company Guidance
During the Coterra Energy Second Quarter 2025 Earnings Call, the company provided several key metrics and guidance for the remainder of the year. Coterra exceeded its guidance range for natural gas and total barrel of oil equivalent production, with oil volumes above the midpoint. The company reported pre-hedge oil and gas revenues of $1.7 billion, with oil contributing 52% to the revenue, marking a 7% increase quarter-over-quarter. Cash operating costs were $9.34 per BOE, down 6% from the previous quarter. Net income was $511 million, or $0.67 per share, with adjusted net income at $367 million, or $0.48 per share. Capital expenditures were $44 million below the midpoint of the guidance range. Looking forward, Coterra expects third-quarter production to average between 740 and 790 MBoe per day, with oil production between 158 and 168 MBoe per day, and natural gas between 2.75 and 2.9 Bcf per day. The company increased its full-year 2025 production guidance midpoint by 4% to 768 MBoe per day and its natural gas volume guidance midpoint by 5% to 2.9 Bcf per day. Capital expenditures for the year are projected to be about $2.3 billion, equating to a reinvestment rate of approximately 50% of cash flow. Coterra also announced a $0.22 per share dividend, with a focus on maintaining a strong balance sheet by repaying $650 million of term loans during 2025. The company ended the quarter with $2.2 billion in total liquidity.Coterra Energy Financial Statement Overview
Summary
Coterra Energy demonstrates strong profitability and cash flow generation, despite facing challenges in revenue growth. The company maintains a stable balance sheet with low leverage, supporting its financial health. While revenue growth has been inconsistent, the company's ability to generate profits and cash flow remains a key strength.Income Statement
Coterra Energy's income statement shows a mixed performance. The TTM data indicates a strong net profit margin of 42.04% and an EBIT margin of 42.81%, reflecting solid profitability. However, the revenue growth rate is negative at -0.92%, indicating a decline in sales. Historical data shows fluctuating revenue growth, with a significant drop from 2022 to 2023. Despite these challenges, the company maintains strong profitability metrics, which is a positive sign.65
Positive
Balance Sheet
The balance sheet of Coterra Energy is relatively strong, with a low debt-to-equity ratio of 0.30 in the most recent annual report, indicating conservative leverage. The return on equity (ROE) is healthy at 14.22% in the TTM period, suggesting efficient use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. Overall, the balance sheet shows financial stability with manageable debt levels.70
Positive
Cash Flow
Coterra Energy's cash flow statement is robust, with a significant free cash flow growth rate of 156.65% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 3.27, suggesting efficient cash conversion. The free cash flow to net income ratio is 0.73, highlighting the company's ability to generate cash relative to its net income. These metrics reflect strong cash flow management and liquidity.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.49B | 5.46B | 5.68B | 9.51B | 3.67B | 1.41B |
| Gross Profit | 2.26B | 1.69B | 2.20B | 6.07B | 2.06B | 340.01M |
| EBITDA | 4.15B | 3.30B | 3.84B | 6.87B | 2.26B | 689.78M |
| Net Income | 1.58B | 1.12B | 1.63B | 4.07B | 1.16B | 200.53M |
Balance Sheet | ||||||
| Total Assets | 23.98B | 21.63B | 20.41B | 20.15B | 19.90B | 4.52B |
| Cash, Cash Equivalents and Short-Term Investments | 192.00M | 2.04B | 956.00M | 673.00M | 1.04B | 140.00M |
| Total Debt | 4.39B | 3.80B | 2.53B | 2.60B | 3.46B | 1.17B |
| Total Liabilities | 9.43B | 8.50B | 7.38B | 7.50B | 8.16B | 2.31B |
| Stockholders Equity | 14.56B | 13.12B | 13.04B | 12.66B | 11.74B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 3.24B | 1.02B | 1.56B | 3.75B | 939.00M | 202.39M |
| Operating Cash Flow | 4.43B | 2.79B | 3.66B | 5.46B | 1.67B | 778.24M |
| Investing Cash Flow | -4.94B | -1.76B | -2.06B | -1.67B | 313.00M | -584.00M |
| Financing Cash Flow | 620.00M | 279.00M | -1.32B | -4.14B | -1.09B | -255.85M |
Coterra Energy Technical Analysis
Negative
23.28
Price Trends
23.95
Negative
24.41
Negative
25.33
Negative
Market Momentum
<0.01
Positive
38.92
Neutral
34.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRA, the sentiment is Negative. The current price of 23.28 is below the 20-day moving average (MA) of 24.15, below the 50-day MA of 23.95, and below the 200-day MA of 25.33, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTRA.
Coterra Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 21.56B | 7.61 | 18.88% | 2.77% | 10.98% | -19.25% | |
72 Outperform | 30.70B | 26.46 | 5.34% | 1.28% | 59.12% | 12.12% | |
72 Outperform | $17.77B | 11.16 | 11.42% | 3.74% | 16.56% | 20.21% | |
70 Outperform | 10.60B | 18.25 | 5.73% | 2.91% | -12.92% | -68.16% | |
67 Neutral | 9.79B | 22.08 | 0.00% | ― | 11.65% | 415.90% | |
47 Neutral | 4.95B | -66.07 | -3.23% | ― | 17.60% | -385.47% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
CTRA
Coterra Energy
23.28
0.11
0.47%
CRK
Comstock Resources
16.90
5.62
49.82%
DVN
Devon Energy
33.96
-6.04
-15.10%
OVV
Ovintiv
41.25
1.24
3.10%
EQT
EQT
49.19
13.70
38.60%
AR
Antero Resources
31.70
2.82
9.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.