An upstream-focused energy producer delivering strong operational cash flows from its core Permian Basin assets while executing disciplined capital allocation through dividends and buybacks.
Investors should consider Coterra for its high-quality Permian Basin asset base which offers low-cost production characteristics and strong cash flow conversion rates. The company's commitment to shareholder returns is evidenced by a dividend payout of $682M combined with $141M in share repurchases, signaling confidence in future earnings stability. Recent revenue recovery to $7.64B suggests the business can capitalize on renewed commodity price strength and operational leverage.
The stock carries valuation risk given the massive cash outflows from investing activities of -5.63B which may strain liquidity if commodity prices soften again. Significant retained earnings deficits of $6.89B indicate that past growth strategies or acquisitions have consumed substantial internal capital reserves, increasing reliance on external financing. The sharp revenue contraction from $9.05B in 2022 to $5.46B in 2024 highlights the company's extreme sensitivity to cyclical market downturns.
Coterra Energy Inc. is a leading independent oil and natural gas exploration and production company focused on upstream operations in the Permian Basin, Eagle Ford Shale, Anadarko Basin, and San Juan Basin. The company generates revenue primarily through the sale of crude oil and natural gas to major refiners and utilities across North America. Coterra maintains a balanced portfolio with significant reserves in high-quality shale plays, positioning it for long-term cash flow generation.
Coterra demonstrated strong operational resilience in the most recent period, generating $4.02B in operating cash flow against a net profit of $1.72B despite a significant decline in revenue from 2022 levels. The company executed major acquisitions totaling $3.24B while managing a substantial reduction in total cash balances to fund these growth initiatives and debt obligations. Operating profit of $2.45B highlights the efficiency of its core production assets even when top-line revenue faces headwinds.
The North American oil and gas sector is currently navigating a transition toward lower-cost drilling technologies while facing pressure from energy transition policies and geopolitical instability. Companies with concentrated Permian Basin exposure like Coterra are well-positioned to benefit from sustained demand for domestic energy despite global green energy shifts. Industry consolidation continues as operators seek scale to offset rising input costs and regulatory compliance expenses.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $9.05B | $5.91B | $5.46B | $7.64B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $9.05B | $5.91B | $5.46B | $7.64B |
| Operating Expenses | $3.84B | $3.76B | $4.07B | $5.19B |
| Operating Income | $5.21B | $2.15B | $1.39B | $2.45B |
| G&A | $396.0M | $291.0M | $302.0M | $323.0M |
| Stock-Based Comp | $86.0M | $59.0M | $62.0M | $63.0M |
| D&A | $1.64B | $1.64B | $1.84B | $2.37B |
| Other OpEx | $3.45B | $3.47B | $3.77B | $4.87B |
| Non-Operating Income | $-40.0M | $-26.0M | $-44.0M | $-189.0M |
| Interest Expense | $110.0M | $73.0M | — | — |
| Interest Income | — | $47.0M | $62.0M | $14.0M |
| Pre-Tax Income | $5.17B | $2.13B | $1.34B | $2.26B |
| Income Tax | $1.10B | $503.0M | $224.0M | $546.0M |
| Continuing Ops | $4.07B | $1.62B | $1.12B | $1.72B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $4.07B | $1.62B | $1.12B | $1.72B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $4.07B | $1.62B | $1.12B | $1.72B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.21B | $2.02B | $3.32B | $1.85B |
| Cash & Equivalents | $673.0M | $956.0M | $2.04B | $114.0M |
| Accounts Receivable | $1.22B | $843.0M | $951.0M | $1.21B |
| Inventory | $63.0M | $59.0M | $46.0M | $48.0M |
| Other Current Assets | $254.0M | $157.0M | $286.0M | $479.0M |
| Long-Term Assets | $17.94B | $18.40B | $18.30B | $22.39B |
| Operating Leases | $382.0M | $337.0M | $251.0M | $182.0M |
| Other LT Assets | $17.56B | $18.06B | $18.05B | $22.21B |
| Total Assets | $20.15B | $20.41B | $21.62B | $24.24B |
| Current Liabilities | $1.19B | $1.66B | $1.14B | $1.56B |
| Accounts Payable | $844.0M | $803.0M | $833.0M | $1.06B |
| Current Debt | — | $575.0M | $0 | $250.0M |
| Current Leases | $114.0M | $116.0M | $115.0M | $68.0M |
| Taxes Payable | $0 | — | — | — |
| Other Current Liab | $-93.0M | $-95.0M | $-88.0M | $-14.0M |
| Long-Term Liabilities | $6.29B | $5.71B | $7.36B | $7.84B |
| Long-Term Debt | $2.18B | $1.59B | $3.54B | $3.57B |
| LT Operating Leases | $287.0M | $237.0M | $145.0M | $120.0M |
| Other LT Liab | $3.82B | $3.88B | $3.68B | $4.15B |
| Total Liabilities | $7.48B | $7.37B | $8.49B | $9.39B |
| Shareholders' Equity | $12.67B | $13.05B | $13.13B | $14.85B |
| Retained Earnings | $4.64B | $5.37B | $5.86B | $6.89B |
| AOCI | $13.0M | $11.0M | $12.0M | $14.0M |
| Treasury Stock | $0 | — | — | — |
| Total L&E | $20.15B | $20.41B | $21.62B | $24.24B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $4.07B | $1.62B | $1.12B | $1.72B |
| Non-Cash Adjustments | $1.26B | $2.55B | $1.40B | $2.47B |
| Working Capital Changes | $132.0M | $-521.0M | $277.0M | $-164.0M |
| Cash from Operations | $5.46B | $3.66B | $2.79B | $4.02B |
| Cash from Investing | $-1.67B | $-2.06B | $-1.76B | $-5.63B |
| Debt Issuances | $0 | $0 | $1.99B | $1.75B |
| Debt Repayments | $874.0M | $0 | $575.0M | $1.45B |
| Share Buybacks | $1.25B | $405.0M | $455.0M | $141.0M |
| Dividends Paid | $1.99B | $890.0M | $625.0M | $682.0M |
| Cash from Financing | $-4.14B | $-1.32B | $279.0M | $-551.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-363.0M | $282.0M | $1.31B | $-2.16B |
| Beginning Cash | $1.05B | $683.0M | $965.0M | $2.28B |
| Ending Cash | $683.0M | $965.0M | $2.28B | $119.0M |
The company's revenue is driven by its integrated Upstream segment, which includes crude oil production (the primary revenue source), natural gas sales, and associated NGLs. Operations are geographically diversified across four key basins: Permian Basin, Eagle Ford Shale, Anadarko Basin, and San Juan Basin, with the Permian contributing the majority of total volumes.
Oil and natural gas prices are highly volatile and directly impact revenue, as evidenced by the significant year-over-year fluctuations in earnings between 2022 and 2024. The company faces substantial capital expenditure requirements for field development and acquisitions, with investing cash flows reaching -5.63B recently. Regulatory changes regarding drilling permits or environmental standards could materially affect operations in its primary basins.
Coterra benefits from its strategic focus on the ultra-low-cost Permian Basin where it holds extensive acreage and production capacity. The company employs a disciplined capital allocation framework that prioritizes maintaining high cash flow per barrel while returning excess capital to shareholders via dividends and buybacks. Its balanced asset mix across multiple basins provides operational resilience against regional commodity price volatility.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.