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Coterra Energy (CTRA)
NYSE:CTRA
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Coterra Energy
(NYSE:CTRA)
79Outperform
Positive Factors
Earnings
CTRA delivered another solid EPS/CFPS beat vs. expectations driven by a 3% beat on oil and a ~6% beat on total volumes.
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
Guidance
The midpoint of guidance is ~4.7% below Street.
Coterra Energy (CTRA) vs. S&P 500 (SPY)
Market Cap
$21.11B
Dividend Yield3.14%
Average Volume (3M)6.18M
Price to Earnings (P/E)17.8
Beta (1Y)0.60
Revenue Growth-3.92%
EPS Growth-29.44%
CountryUS
Employees915
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.50
Shares Outstanding764,151,500
10 Day Avg. Volume6,944,929
30 Day Avg. Volume6,181,593
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.89
Price to Cash Flow (P/CF)8.20
P/FCF Ratio7.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.10Price Target Upside27.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Coterra Energy Business Overview & Revenue Model
Company DescriptionCoterra Energy Inc. (CTRA) is a premier, diversified energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. With operations primarily in the United States, Coterra Energy focuses on the prolific basins of the Permian Basin, Marcellus Shale, and Anadarko Basin. The company's integrated approach to energy production allows it to leverage operational efficiencies and technological advancements to maximize resource recovery while minimizing environmental impact.
How the Company Makes MoneyCoterra Energy generates revenue primarily through the sale of oil, natural gas, and natural gas liquids produced from its exploration and production activities. The company's key revenue streams include selling these commodities to various customers, including refiners, marketers, and industrial users, at prevailing market prices. Coterra's earnings are significantly influenced by factors such as commodity prices, production volumes, and operational costs. The company also benefits from strategic partnerships and joint ventures that enhance its ability to access and develop resources efficiently, contributing to its overall financial performance.
Coterra Energy Financial Statement Overview
Summary
Coterra Energy displays a strong overall financial performance with robust cash flow generation, solid profit margins, and a healthy balance sheet. While revenue growth faced a setback in 2023, the company's financial fundamentals remain strong, positioning it well for future opportunities and challenges in the fossil fuels industry.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.78
Positive
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.82
Very Positive
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.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.77B | 5.68B | 9.05B | 3.45B | 1.47B | Gross Profit |
| 794.00M | 2.51B | 6.00B | 1.94B | 431.22M | EBIT |
| 1.39B | 2.15B | 5.21B | 1.56B | 295.48M | EBITDA |
| 3.29B | 3.84B | 6.87B | 2.26B | 686.15M | Net Income Common Stockholders |
| 1.12B | 1.63B | 4.07B | 1.16B | 201.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.04B | 956.00M | 673.00M | 1.04B | 140.11M | Total Assets |
| 21.63B | 20.41B | 20.15B | 19.90B | 4.52B | Total Debt |
| 3.80B | 2.53B | 2.30B | 3.13B | 1.13B | Net Debt |
| 1.76B | 1.57B | 1.63B | 2.09B | 993.81M | Total Liabilities |
| 8.49B | 7.37B | 7.50B | 8.16B | 2.31B | Stockholders Equity |
| 13.12B | 13.05B | 12.66B | 11.74B | 2.22B |
| Cash Flow | Free Cash Flow | |||
| 2.79B | 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 | -584.48M | Financing Cash Flow |
| 279.00M | -1.32B | -4.14B | -1.09B | -255.85M |
Coterra Energy Technical Analysis
Positive
27.63
Price Trends
27.41
Positive
26.05
Positive
25.39
Positive
Market Momentum
-0.17
Negative
55.98
Neutral
78.36
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 27.63 is above the 20-day moving average (MA) of 26.92, above the 50-day MA of 27.41, and above the 200-day MA of 25.39, indicating a bullish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 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
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $21.11B | 17.77 | 8.56% | 3.14% | -3.92% | -29.44% | |
77 Outperform | $22.42B | 7.41 | 21.77% | 4.29% | 3.00% | -21.63% | |
76 Outperform | $68.64B | 10.76 | 22.29% | 3.06% | 0.88% | -13.66% | |
72 Outperform | $43.70B | 18.59 | 8.88% | 1.94% | -4.35% | -37.69% | |
68 Neutral | $7.14B | 8.36 | 20.26% | 5.25% | 17.61% | -75.78% | |
64 Neutral | $43.47B | 9.39 | 12.20% | 5.68% | 31.55% | -9.00% | |
57 Neutral | $8.53B | 5.52 | -5.01% | 7.44% | -0.10% | -68.53% |
* Energy Sector Average
Performance Comparison
CTRA
Coterra Energy
27.63
1.93
7.51%
APA
APA
19.61
-11.58
-37.13%
DVN
Devon Energy
34.55
-11.41
-24.83%
EOG
EOG Resources
123.92
3.76
3.13%
OXY
Occidental Petroleum
46.53
-15.57
-25.07%
FANG
Diamondback
150.20
-33.54
-18.25%
Coterra Energy Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -0.43% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Coterra Energy's strong production levels, efficient capital management, and successful integration of recent acquisitions. While there were challenges with natural gas prices and increased operating costs due to new acquisitions, the positive aspects of strong financial performance, shareholder returns, and cost efficiencies significantly outweighed the negatives.Highlights
Record Production Levels
Coterra Energy achieved production levels above the high end of their guidance range for oil and natural gas in Q4 2024.
Shareholder Returns
Coterra returned 61% of free cash flow in Q4 through dividends and buybacks, and 89% for the full year 2024.
Strong Financial Performance
Coterra reported net income of $297 million ($0.40 per share) and adjusted net income of $358 million ($0.49 per share) for Q4 2024.
Cost Efficiency
Capital costs were just above the low end of the guidance range, with a 16% decrease in capital spending year over year.
Acquisitions Integration
Successful integration of Franklin Mountain and Avant acquisitions, with expected run-rate synergies of $50 million.
Continued Lower Costs
The Marcellus program is operating with a record low-cost structure of $800 per foot, improving capital efficiency.
Deleveraging Focus
Coterra plans to repay $1 billion of term loans in 2025, targeting net debt to EBITDA of around 0.5 times.
Lowlights
Soft Natural Gas Prices
Impact on cash flow despite 89% free cash flow returned through repurchases and dividends in 2024.
Operational Noise and Volatility
Sequential production fluctuations due to acquisition closing times and other operational factors.
Increased Unit Operating Costs
Higher unit operating costs due to the integration of new oil-heavy assets with higher per-unit costs.
Limited Marcellus Activity
Despite improvements, Marcellus activity remains below maintenance levels with only 10-15 wells planned.
Company Guidance
In the fourth quarter of 2024, Coterra Energy Inc. exceeded expectations by achieving oil and natural gas production levels above the high end of its guidance range, while capital expenditures were near the low end. The company returned 61% of its free cash flow in the fourth quarter through dividends and share buybacks, totaling 89% for the full year 2024. For 2025, Coterra plans to run a consistent, capital-efficient program across its three operating regions, with the potential to add $50 million to its capital program if favorable gas market conditions persist. The company anticipates production to average between 710 and 770 MBOE per day, with oil production expected to increase by 47% year-over-year at the midpoint of guidance. Coterra aims to maintain a strong balance sheet and return 50% or more of annual free cash flow to shareholders through dividends and share repurchases.Coterra Energy Corporate Events
Executive/Board Changes
Coterra Energy Announces Board Member Retirements
Neutral
Feb 24, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.