Coterra Energy (CTRA) AI Stock Analysis

• Market Cap: $18.09B
• Dividend Yield: 3.63%
• Average Volume (3M): 7.10M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.55
• Revenue Growth: 10.33%
• EPS Growth: -0.13%
• Country: US
• Employees: 915
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.80
• Shares Outstanding: 763,260,740
• 10 Day Avg. Volume: 7,237,273
• 30 Day Avg. Volume: 7,104,023
• PEG Ratio: 1.00
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.34
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 38.25
• Enterprise Value/Ebitda: 12.37
• 1Y Price Target: $33.47
• Price Target Upside: 41.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $29.00 ▲(22.36%Upside)

Coterra Energy's strong financial performance and effective operational management in the earnings call are major positives, supporting the company's resilience. Technical analysis and valuation provide a balanced view, while potential operational challenges and oil price concerns slightly weigh on the outlook.

Positive Factors

Oil Production

Coterra Energy Inc. reported oil production of 113 kb/d, exceeding both consensus and prior estimates.

Oil Production Growth

The updated 3-year plan is headlined by 5%+ annual oil production growth.

Valuation and Capital Returns

Share performance could improve as investors focus on the attractive valuation and potential for strong capital returns going forward.

Negative Factors

1Q25 Results

CTRA reported disappointing 1Q25 results on lower than expected oil/NGL production volumes.

EBITDAX Performance

EBITDAX declines 2% to $1.023bn, 4% below current consensus.

Oil Production Guidance

1Q25 oil production guidance was set 4.3% below the estimate and 3.9% below Consensus.

Coterra Energy Business Overview & Revenue Model

Company Description

Coterra 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 Money

Coterra Energy generates revenue primarily through the sale of oil, natural gas, and natural gas liquids produced from its exploration and production activities. The company monetizes its hydrocarbon reserves by extracting, processing, and selling these resources to refineries, utilities, and other market participants. Key revenue streams include the sale of crude oil, natural gas, and natural gas liquids at market prices, which can fluctuate based on supply and demand dynamics. Additionally, Coterra may enter into hedging contracts to manage price volatility and secure predictable cash flows. Strategic partnerships and joint ventures can also play a role in expanding its operational capabilities and enhancing its production efficiency.

Coterra Energy Financial Statement Overview

Summary

Coterra Energy displays strong financial performance with robust cash flow management, solid profit margins, and a healthy balance sheet. Despite a revenue decline in 2023, the company's financial fundamentals remain strong and support its long-term sustainability.

Income Statement

Coterra Energy has demonstrated strong revenue growth, particularly notable from 2020 to 2022, although there was a decline in 2023. The company maintains healthy profit margins, with a robust net profit margin. However, the significant drop in total revenue in 2023 suggests potential market or operational challenges.

Balance Sheet

The company maintains a solid balance sheet with a strong equity base and a manageable level of debt, reflected in a favorable debt-to-equity ratio. The equity ratio indicates a stable financial position, supporting long-term sustainability. The decreasing trend in total debt from 2022 to 2023 further strengthens the financial stability.

Cash Flow

Coterra Energy shows impressive cash flow management, with consistent free cash flow generation and a strong operating cash flow to net income ratio. The positive free cash flow growth rate from 2020 to 2023 indicates efficient capital management and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.46B	5.68B	9.51B	3.45B	1.47B
Gross Profit	2.00B	2.51B	8.10B	1.94B	431.22M
EBITDA	3.30B	3.84B	6.88B	2.26B	691.00M
Net Income	1.12B	1.63B	4.07B	1.16B	201.00M
Balance Sheet
Total Assets	21.63B	20.41B	20.15B	19.90B	4.52B
Cash, Cash Equivalents and Short-Term Investments	2.04B	956.00M	673.00M	1.04B	140.00M
Total Debt	3.80B	2.53B	2.60B	3.46B	1.17B
Total Liabilities	8.50B	7.37B	7.48B	8.11B	2.31B
Stockholders Equity	13.12B	13.05B	12.66B	11.74B	2.22B
Cash Flow
Free Cash Flow	1.02B	1.56B	3.75B	939.00M	202.39M
Operating Cash Flow	2.79B	3.66B	5.46B	1.67B	778.24M
Investing Cash Flow	-1.76B	-2.06B	-1.67B	313.00M	-584.00M
Financing Cash Flow	279.00M	-1.32B	-4.14B	-1.09B	-255.85M

Coterra Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 23.7 is below the 20-day moving average (MA) of 24.33, below the 50-day MA of 25.07, and below the 200-day MA of 25.59, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.88 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDS	80 Outperform	$32.53B	8.94	10.23%	7.24%	-0.93%	115.30%
CTRA	76 Outperform	$18.09B	13.83	9.40%	3.63%	10.33%	-0.13%
OVV	73 Outperform	$10.58B	18.22	5.75%	2.91%	-12.92%	-68.16%
DVN	72 Outperform	$20.64B	7.31	20.88%	3.55%	12.06%	-16.37%
EQT	70 Outperform	$32.66B	28.15	6.26%	1.20%	59.12%	12.12%
AR	67 Neutral	$10.40B	23.46	6.31%	―	6.67%	240.70%
Sector *	67 Neutral	$15.01B	9.77	5.97%	5.63%	4.51%	-61.80%

Coterra Energy Corporate Events

Coterra Energy Announces Board Member Retirements

On February 19, 2025, Coterra Energy announced that Dan O. Dinges and Robert S. Boswell will retire from the Board of Directors at the end of their current terms and will not stand for re-election at the 2025 annual meeting of stockholders. Dinges, who has a long history with the company and its predecessor, Cabot Oil & Gas, and Boswell, with extensive experience in the oil and gas industry, have both contributed significantly to Coterra’s development. Their retirements are not due to any disagreements with the company, and their leadership has been acknowledged as having strengthened and made Coterra more resilient.