Coterra Energy (CTRA) AI Stock Analysis

• Market Cap: $17.63B
• Dividend Yield: 3.65%
• Average Volume (3M): 6.74M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.57
• Revenue Growth: 16.56%
• EPS Growth: 20.21%
• Country: US
• Employees: 915
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.48
• Shares Outstanding: 763,139,950
• 10 Day Avg. Volume: 5,897,158
• 30 Day Avg. Volume: 6,742,341
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 4.82
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: 4.52
• 1Y Price Target: $33.00
• Price Target Upside: 38.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 69 Neutral
• Price Target: $27.00 ▲(13.40% Upside)

Coterra Energy's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting profitability and strategic production increases. The valuation is attractive, though technical analysis lacks sufficient data for a more definitive assessment. Challenges in market pricing and specific operational issues slightly temper the overall positive outlook.

Positive Factors

Financial Performance

CTRA delivered strong 2Q25 results across all key financial/operating metrics.

Guidance Improvement

Management raised natural gas and total production guidance by 4% and 3% respectively.

Shareholder Returns

CTRA returned $191m to shareholders including $168m in dividends and $23m in share repurchases.

Negative Factors

Earnings Miss

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

Market Expectations

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

Oil Production

3Q25 oil production guidance falls short of expectations on higher capex.

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 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.90B	5.46B	5.68B	9.51B	3.45B	1.47B
Gross Profit	2.53B	2.00B	2.51B	8.10B	1.94B	431.22M
EBITDA	5.23B	3.30B	3.84B	6.88B	2.26B	691.00M
Net Income	2.06B	1.12B	1.63B	4.07B	1.16B	201.00M
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	-8.52B	-1.76B	-2.06B	-1.67B	313.00M	-584.00M
Financing Cash Flow	1.19B	279.00M	-1.32B	-4.14B	-1.09B	-255.85M

Coterra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.81
• 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 Positive. The current price of 23.81 is above the 20-day moving average (MA) of 23.75, below the 50-day MA of 24.52, and below the 200-day MA of 25.41, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 38.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRA.

Coterra Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDS	82 Outperform	$31.88B	10.68	8.33%	6.98%	15.31%	58.83%
DVN	77 Outperform	$21.32B	7.52	20.60%	3.24%	10.98%	-19.25%
OVV	70 Outperform	$9.90B	17.05	5.75%	2.93%	-12.92%	-68.16%
EQT	70 Outperform	$31.54B	27.19	6.26%	1.23%	59.12%	12.12%
CTRA	69 Neutral	$17.63B	11.07	11.42%	3.65%	16.56%	20.21%
AR	67 Neutral	$9.23B	21.30	6.31%	―	11.65%	415.90%
Sector *	45 Neutral	AU$1.31B	-12.08	-2.02%	8.58%	3.09%	-31.49%

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.