Coterra Energy Inc. (CTRA) Stock Analysis

Coterra Energy Inc. (CTRA) Energy Operations & Outlook

Coterra Energy Inc. is an independent oil and gas company focused on the exploration and production of oil, natural gas, and natural gas liquids, primarily in the Marcellus Shale, Permian Basin, and Anadarko Basin. With a market capitalization of $24.7B, Coterra sells its products to diverse industrial and energy customers.

What Is the Investment Thesis for CTRA?

The company's focus on the Marcellus Shale, Permian Basin, and Anadarko Basin provides a diversified production base. With a P/E ratio of 14.94 and a profit margin of 22.9%, Coterra demonstrates solid profitability. The dividend yield of 2.70% offers an attractive income component for investors. Key catalysts include ongoing operational efficiencies and potential increases in natural gas prices. However, investors should be aware of potential risks such as fluctuations in commodity prices and regulatory changes affecting the energy sector. Coterra's beta of 0.27 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

CTRA Key Highlights

Market capitalization of $24.7B indicates a significant presence in the oil and gas sector.

• P/E ratio of 14.94 suggests a reasonable valuation relative to earnings.
• Profit margin of 22.9% demonstrates strong profitability and operational efficiency.
• Gross margin of 34.1% reflects effective cost management in production and sales.
• Dividend yield of 2.70% provides an attractive income stream for investors.

Who Are CTRA's Competitors?

CTRA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are CTRA's Key Strengths?

Significant acreage in the Marcellus Shale, Permian Basin, and Anadarko Basin.

• Strong profit margin of 22.9%.
• Experienced management team.
• Diversified customer base.

What Are CTRA's Weaknesses?

Exposure to commodity price volatility.

• Dependence on key shale regions.
• Limited international presence.
• Capital intensive operations.

What Could Drive CTRA Stock Higher?

Continued operational efficiencies in the Marcellus Shale, Permian Basin, and Anadarko Basin.

• Potential increases in natural gas and oil prices.
• Strategic acquisitions and partnerships to expand asset base (within the next 12-24 months).
• Investment in advanced drilling and production technologies.
• Development of infrastructure to support increased production capacity.

What Are the Key Risks for CTRA?

Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.

• Insider selling — insiders were net sellers of roughly $11.7M recently.
• Fluctuations in oil and gas prices impacting revenue and profitability.
• Changes in environmental regulations increasing compliance costs.
• Competition from other oil and gas producers.
• Geopolitical risks and instability affecting global energy markets.
• Infrastructure constraints limiting production and transportation capacity.

What Are the Growth Opportunities for CTRA?

• Expansion in the Marcellus Shale: Coterra Energy has a significant footprint in the Marcellus Shale, with approximately 177,000 net acres. Increasing production and optimizing operations in this region can drive substantial growth. The Marcellus Shale is one of the largest natural gas fields in the United States, and further development could significantly boost Coterra's natural gas output. This expansion could be realized over the next 3-5 years, contingent on infrastructure development and market demand.
• Development of Permian Basin Assets: Coterra holds approximately 306,000 net acres in the Permian Basin, offering significant potential for oil and gas production growth. The Permian Basin is known for its high-quality oil reserves, and strategic development in this area can enhance Coterra's oil production profile. Investment in enhanced oil recovery techniques and infrastructure can further unlock the value of these assets over the next 5-7 years.
• Optimization of Anadarko Basin Operations: With approximately 182,000 net acres in the Anadarko Basin, Coterra has the opportunity to optimize its operations and increase production efficiency. The Anadarko Basin offers a mix of oil and natural gas resources, providing diversification to Coterra's production portfolio. Implementing advanced drilling and completion techniques can improve well performance and reduce costs over the next 2-4 years.
• Strategic Acquisitions and Partnerships: Coterra Energy can pursue strategic acquisitions and partnerships to expand its asset base and operational capabilities. Identifying and acquiring complementary assets in core regions can enhance Coterra's production capacity and market position. Collaborating with other industry players can also provide access to new technologies and expertise, potentially unfolding within the next 3-5 years.
• Investment in Infrastructure and Technology: Investing in advanced infrastructure and technology can improve Coterra's operational efficiency and reduce costs. Upgrading gathering systems, pipelines, and processing facilities can enhance the reliability and capacity of Coterra's operations. Implementing data analytics and automation technologies can optimize drilling and production processes, with ongoing benefits realized over the next several years.

What Are CTRA's Competitive Advantages?

• Strategic Asset Base: Coterra's significant acreage in key shale regions provides a competitive advantage.
• Operational Efficiency: The company's focus on cost management and operational improvements enhances profitability.
• Diversified Production Portfolio: A mix of oil, natural gas, and natural gas liquids reduces exposure to commodity price fluctuations.

What Does CTRA Do?

Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas. The company operates as an independent oil and gas company, focusing on the development, exploration, and production of oil, natural gas, and natural gas liquids within the United States. Coterra's operations are primarily concentrated in three key regions: the Marcellus Shale in Susquehanna County, Pennsylvania, the Permian Basin, and the Anadarko Basin in Oklahoma. As of December 31, 2021, Coterra Energy reported proved reserves of approximately 2,892,582 thousand barrels of oil equivalent. This includes 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's strategy involves optimizing production in these core areas while maintaining a strong financial position. Coterra sells its natural gas to a diverse customer base, including industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. The company also operates natural gas and saltwater disposal gathering systems in Texas, enhancing its operational capabilities.

What Products and Services Does CTRA Offer?

• Engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States.
• Focuses on the Marcellus Shale with approximately 177,000 net acres in Pennsylvania.
• Holds Permian Basin properties with approximately 306,000 net acres.
• Operates Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres.
• Operates natural gas and saltwater disposal gathering systems in Texas.
• Sells its natural gas to industrial customers, local distribution companies, and major energy companies.

How Does CTRA Make Money?

• Exploration and Production: Coterra Energy explores and develops oil and gas properties to extract resources.
• Sales and Distribution: The company sells natural gas, oil, and natural gas liquids to various customers.
• Infrastructure Operations: Coterra operates gathering systems and disposal facilities to support its production activities.

What Industry Does CTRA Operate In?

Coterra Energy operates within the dynamic oil and gas exploration and production industry. The industry is characterized by fluctuating commodity prices, technological advancements, and evolving regulatory landscapes. Demand for natural gas and oil continues to be driven by global energy needs, with increasing emphasis on cleaner energy sources. Coterra competes with major players like Devon Energy Corporation (DVN) and other independent producers. The company's focus on key shale regions positions it to capitalize on the ongoing development of unconventional resources. The industry is also subject to environmental regulations and geopolitical factors that can impact operations and profitability.

Who Are CTRA's Key Customers?

• Industrial Customers: Supplies natural gas to industrial facilities for various applications.
• Local Distribution Companies: Sells natural gas to local utilities for residential and commercial use.
• Energy Companies: Provides natural gas and oil to major energy companies for power generation and distribution.

Over the past six months, Coterra Energy Inc. insiders filed 55 SEC Form 4 transactions — 47 sales and 8 purchases. On net that is roughly 5.4M shares disposed (about $11.7M), a signal worth weighing alongside the fundamentals.

Wall Street analysts project Coterra Energy Inc. revenue of about $8.38B for fiscal 2026, with EPS near $2.89. The estimate reflects 5 contributing analysts.

Coterra Energy Inc. has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 5.9% below estimates on average.

Coterra Energy Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.61 places it in the grey zone, a middle ground that warrants monitoring.

Return on equity for Coterra Energy Inc. stands at 11.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.2%, showing how much profit it generates from its asset base. CTRA trades at a trailing price-to-earnings ratio of 14.94, roughly in line with the Energy sector average of ~15.80x. A current ratio of 1.00 indicates the company holds enough short-term assets to cover its near-term obligations.

Coterra Energy Inc. (CTRA) Valuation Context

Valued at $24.7B, CTRA is classified as a large-cap stock. Analyst price targets span from $42.00 to $42.00, with a consensus of $42.00. At the current price of $32.56, that implies approximately 29% upside potential.

CTRA Revenue & Earnings Trend

In Mar 2026, CTRA generated $1.95B in top-line revenue, marking a sequential decrease of 0.6%. The company recorded net income of $466.0M, with diluted EPS of $0.61. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Energy. Across the four most recent quarters, CTRA averaged $0.55 in diluted EPS.

Company Profile

Coterra Energy Inc. operates in the Oil & Gas Exploration & Production industry within the Energy sector. It is headquartered in Houston, US. The company is led by CEO Thomas E. Jorden. CTRA has traded publicly since 1990.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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