Coterra Energy (CTRA) AI Stock Analysis

• Market Cap: $20.22B
• Dividend Yield: 3.3%
• Average Volume (3M): 7.79M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.67
• Revenue Growth: 10.33%
• EPS Growth: -0.13%
• Country: US
• Employees: 915
• Sector: Energy
• Sector Strength: 75
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.80
• Shares Outstanding: 763,260,740
• 10 Day Avg. Volume: 6,590,091
• 30 Day Avg. Volume: 7,786,996
• PEG Ratio: 0.04
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.22
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 10.39
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $33.24
• Price Target Upside: 24.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 77 Outperform
• Price Target: $29.00 ▲(8.41%Upside)

Coterra Energy's strong financial performance and strategic adaptability, as demonstrated in the latest earnings call, are significant strengths. Valuation is attractive, though technical indicators suggest caution. The company's ability to exceed production guidance and manage acquisitions effectively enhances its resilience despite potential challenges in oil price fluctuations.

Positive Factors

Capital Efficiency

CTRA showed solid capital efficiency in the first quarter as it worked to integrate recent acquisitions.

Earnings Performance

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

Shareholder Returns

The company returned ~61% of 4Q24 FCF to shareholders (~89% F2024) as they focus on balance sheet deleveraging after recent acquisitions.

Negative Factors

Cost Management

EBITDAX was 2% below expectations due to higher than expected costs.

Earnings Expectations

Coterra Energy's reported EBITDA and cash flow per share were both slightly below consensus expectations.

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 overall financial performance with impressive cash flow management, solid profit margins, and a healthy balance sheet. Despite a revenue setback in 2023, the company's financial fundamentals remain robust.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.95B	5.46B	5.68B	9.51B	3.45B	1.47B
	Gross Profit
2.04B	2.00B	2.51B	8.10B	1.94B	431.22M
	EBIT
1.65B	1.39B	2.15B	5.21B	1.56B	296.00M
	EBITDA
3.63B	3.30B	3.84B	6.88B	2.26B	691.00M
	Net Income Common Stockholders
1.28B	1.12B	1.63B	4.07B	1.16B	201.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.00M	2.04B	956.00M	673.00M	1.04B	140.00M
	Total Assets
22.27B	21.63B	20.41B	20.15B	19.90B	4.52B
	Total Debt
0.00	3.80B	2.53B	2.60B	3.46B	1.17B
	Net Debt
4.34B	1.76B	1.57B	1.93B	2.43B	1.03B
	Total Liabilities
4.89B	8.50B	7.37B	7.48B	8.11B	2.31B
	Stockholders Equity
17.37B	13.12B	13.05B	12.66B	11.74B	2.22B
Cash Flow		Free Cash Flow
1.26B	1.02B	1.56B	3.75B	939.00M	202.39M
	Operating Cash Flow
3.08B	2.79B	3.66B	5.46B	1.67B	778.24M
	Investing Cash Flow
-4.78B	-1.76B	-2.06B	-1.67B	313.00M	-584.00M
	Financing Cash Flow
622.00M	279.00M	-1.32B	-4.14B	-1.09B	-255.85M

Coterra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 26.75 is above the 20-day moving average (MA) of 25.40, above the 50-day MA of 24.94, and above the 200-day MA of 25.33, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, 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
CTRA	77 Outperform	$20.22B	15.46	9.40%	3.30%	10.33%	-0.13%
EQT	76 Outperform	$34.82B	100.31	2.06%	1.07%	39.56%	-59.84%
OVV	76 Outperform	$10.83B	17.75	6.17%	2.88%	-14.46%	-67.20%
WDS	75 Outperform	$31.60B	8.75	10.23%	6.42%	-0.93%	115.30%
DVN	73 Outperform	$22.23B	7.88	20.88%	2.77%	12.06%	-16.37%
AR	67 Neutral	$13.20B	59.42	3.21%	―	6.67%	240.70%
Sector *	58 Neutral	$7.59B	3.32	-4.46%	9.96%	0.83%	-49.64%

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.