Coterra Energy (CTRA) AI Stock Analysis

• Market Cap: $23.13B
• Dividend Yield: 3.39%
• Average Volume (3M): 10.12M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.49
• Revenue Growth: 26.13%
• EPS Growth: 31.42%
• Country: US
• Employees: 915
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.41
• Shares Outstanding: 758,644,040
• 10 Day Avg. Volume: 12,646,029
• 30 Day Avg. Volume: 10,123,376
• PEG Ratio: -0.57
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 3.47
• P/FCF Ratio: 18.51
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 10.55
• Enterprise Value/Ebitda: 6.13
• 1Y Price Target: $33.90
• Price Target Upside: 11.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $32.00 ▲(4.95% Upside)

CTRA’s score is driven primarily by strong profitability, low leverage, and solid cash generation, supported by reasonable valuation (13.31 P/E) and a 3.05% dividend yield. Momentum is positive but appears overextended (RSI 75.31; Stoch 84.74), and recent revenue decline plus cost/gas-price pressures temper the outlook. The earnings call raised production guidance and the Devon merger announcement adds a further positive catalyst.

Positive Factors

High profitability (net margin)

A 24.3% net margin indicates durable operating efficiency and pricing power across cycles; high margins support consistent free cash flow, dividend capacity and capital allocation flexibility, helping the company fund growth and returns through the next several quarters.

Conservative balance sheet / low leverage

A 0.30 debt-to-equity ratio signals prudent leverage, providing financial flexibility to withstand commodity swings, pursue bolt-on moves or fund capital programs without stressing liquidity. This strengthens resilience and supports multi-quarter cash-return programs and M&A execution.

Merger scale & $1B synergy opportunity

The definitive merger with Devon is a structural change that creates scale, lower unit costs and optimized capital programs. $1B of targeted synergies and a larger buyback/dividend policy materially improve long-term free cash flow per share and competitive positioning across basins.

Negative Factors

Declining revenue trend

An 11% TTM revenue decline is a material headwind that can compress absolute cash generation and limit reinvestment. Persistent top-line weakness reduces scale benefits, increases sensitivity to commodity swings, and may constrain multi-quarter growth and shareholder return ambitions.

Rising cash operating costs

Higher cash operating costs raise company breakevens and erode unit margins even if volumes rise. Sustained cost increases reduce free cash flow per BOE, limit the ability to expand returns or reinvest, and make performance more dependent on favorable commodity realizations over coming quarters.

Public activist dispute / governance risk

A public dispute with a sizable investor introduces strategic uncertainty and potential governance shifts. Activist pressure can force asset sales, management changes, or strategic pivots that distract execution, complicate integration plans and create multi-quarter uncertainty for capital allocation and operations.

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 (NGLs). The company operates on a revenue model that includes the extraction and production of hydrocarbons, which are then sold to various markets. Key revenue streams include the direct sale of produced crude oil and natural gas, as well as sales of NGLs, which are often extracted during the natural gas processing phase. Coterra also benefits from long-term contracts and partnerships with refineries and utilities, providing stability to its cash flows. Additionally, the company may engage in hedging strategies to protect against price volatility in the energy markets, further contributing to its financial performance.

Coterra Energy Financial Statement Overview

Summary

Financials are solid overall: strong profitability (24.28% net margin TTM) and a conservative balance sheet (0.30 debt-to-equity). Cash generation is good (FCF to net income 0.73 TTM), but the score is held back by an 11.36% TTM revenue decline and only modest FCF growth (3.18% TTM).

Income Statement

Coterra Energy demonstrates strong profitability with a solid net profit margin of 24.28% TTM, although revenue has declined by 11.36% TTM. The company maintains healthy EBIT and EBITDA margins, indicating efficient operations despite the revenue drop. Historical revenue growth has been volatile, reflecting industry challenges.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.30 TTM, suggesting prudent financial leverage. Return on equity is moderate at 11.48% TTM, indicating decent profitability relative to shareholder investment. The equity ratio is strong, highlighting financial stability.

Cash Flow

Coterra Energy's cash flow is solid, with a free cash flow to net income ratio of 0.73 TTM, indicating good cash generation relative to profits. Operating cash flow coverage is strong, but free cash flow growth has been modest at 3.18% TTM, suggesting room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.01B	5.46B	5.68B	9.51B	3.67B	1.41B
Gross Profit	2.57B	1.69B	2.20B	6.07B	2.06B	340.01M
EBITDA	4.42B	3.30B	3.84B	6.87B	2.26B	689.78M
Net Income	1.65B	1.12B	1.63B	4.07B	1.16B	200.53M
Balance Sheet
Total Assets	24.01B	21.63B	20.41B	20.15B	19.90B	4.52B
Cash, Cash Equivalents and Short-Term Investments	98.00M	2.04B	956.00M	673.00M	1.04B	140.00M
Total Debt	4.12B	3.80B	2.53B	2.60B	3.46B	1.17B
Total Liabilities	9.29B	8.50B	7.38B	7.50B	8.16B	2.31B
Stockholders Equity	14.72B	13.12B	13.04B	12.66B	11.74B	2.22B
Cash Flow
Free Cash Flow	1.45B	1.02B	1.56B	3.75B	939.00M	202.00M
Operating Cash Flow	3.68B	2.79B	3.66B	5.46B	1.67B	778.00M
Investing Cash Flow	-5.47B	-1.76B	-2.06B	-1.67B	313.00M	-584.00M
Financing Cash Flow	1.05B	279.00M	-1.32B	-4.14B	-1.09B	-256.00M

Coterra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 30.49 is above the 20-day moving average (MA) of 26.85, above the 50-day MA of 26.49, and above the 200-day MA of 24.77, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 74.85 is Negative, neither overbought nor oversold. The STOCH value of 79.39 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
DVN	76 Outperform	$26.72B	9.67	18.35%	2.64%	11.14%	-21.32%
EQT	76 Outperform	$34.57B	18.97	8.19%	1.17%	64.84%	219.47%
CTRA	74 Outperform	$23.13B	13.35	11.86%	3.39%	26.13%	31.42%
OVV	69 Neutral	$11.68B	48.33	2.26%	3.16%	-8.07%	-87.88%
AR	68 Neutral	$10.56B	19.60	7.65%	―	17.05%	1028.81%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CRK	59 Neutral	$6.31B	96.68	2.86%	―	35.41%	―

Coterra Energy Corporate Events

Coterra Energy to Merge with Devon Energy

On February 1, 2026, Coterra Energy agreed to merge with Devon Energy in an all-stock transaction that will combine the two U.S. shale producers into a single large-cap operator named Devon Energy, with Coterra shareholders receiving 0.70 Devon share for each Coterra share and owning about 46% of the combined company, while Devon shareholders will hold roughly 54%. The deal, unanimously approved by both boards and expected to close in the second quarter of 2026 subject to shareholder and regulatory approvals, will create one of the world’s largest shale producers, heavily weighted to the Delaware Basin with more than a decade of top-tier drilling inventory, and is projected to deliver about $1 billion in annual pre-tax synergies by 2027, strengthen the balance sheet, and be accretive to key per-share financial metrics and free cash flow, supporting an enhanced capital-return framework including a higher base dividend and a multibillion-dollar share buyback authorization. Governance of the combined company will be shared, with an 11-member board comprising six Devon and five Coterra directors, Devon’s CEO Clay Gaspar serving as chief executive and Coterra’s Tom Jorden as non-executive chair, while Coterra simultaneously updated severance and change-in-control protections for senior executives to provide extended coverage and accelerated vesting of equity awards in connection with the transaction.

The most recent analyst rating on (CTRA) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Coterra Energy stock, see the CTRA Stock Forecast page.