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what it is
Coterra drills for oil, natural gas, and NGLs, then sells whatever the market will pay that day.
how it gets paid
Last year Coterra Energy made $7.3B in revenue. Marcellus Shale was the main engine at $3.80B, or 52% of sales.
why it's growing
Revenue grew 33.6% last year. Quarterly revenue reached $1.8 billion in Q4 2025.
what just happened
Coterra posted Q4 adjusted EPS of $0.39, missing the $0.51 consensus by 23.53% even as revenue beat.
At a glance
A balance sheet — strong enough to weather a downturn
13.9x trailing p/e — the market's not buying it — or you found a deal
3.2% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
$2.55 fy2027 eps est
xvary composite: 70/100 — average
What they do
Coterra drills for oil, natural gas, and NGLs, then sells whatever the market will pay that day.
This is scale plus restraint. Coterra controls 664,000 acres across three major U.S. basins and ended 2024 with 2,270,721 mboe of reserves, which is stored energy in the ground, so what: you are not betting on one well. The balance sheet also matters. Long-term debt is $3.7 billion, or 14% of capital, which is borrowed money versus total funding, so what: commodity swings hurt less when your lender is not running the company.
How they make money
$7.3B
annual revenue · their business grew +33.6% last year
Marcellus Shale
$3.80B
Permian Basin
$2.85B
Anadarko Basin
$0.58B
Other and rounding
$0.07B
The products that matter
crude oil production
Permian Basin Operations
linked to $7.75B revenue
this is the oil-heavy side of the portfolio. the page is thin on exact segment splits, but it sits inside a business that generated $7.75B in annual revenue at a 30.1% net margin.
oil exposure
natural gas production
Marcellus Shale Assets
68.0% operating margin
the 68.0% operating margin says the gas assets can still throw off cash when pricing cooperates. that's useful, because this page makes clear you are buying commodity sensitivity, not insulation from it.
gas leverage
Key numbers
33.6%
operating margin
Operating margin → how much sales money stays after core costs → so what: Coterra keeps about $0.34 of every revenue dollar before interest and taxes.
3.2%
dividend yield
Dividend yield → your annual cash payout on today's price → so what: you are getting paid while you wait for energy prices or the merger to work.
14%
long-term debt
Debt as a share of capital → how much of the company is funded by borrowing → so what: the balance sheet is carrying weight, not dead weight.
2,270,721 mboe
proved reserves
Reserves → energy inventory still in the ground → so what: you are buying years of future production, not just next quarter's wells.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $3.7B (14% of capital)
- net profit margin 30.1% — keeps 30 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in CTRA 3 years ago → it's now worth $14,040.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Coterra posted Q4 adjusted EPS of $0.39, missing the $0.51 consensus by 23.53% even as revenue beat.
Quarterly revenue reached $1.8 billion in Q4 2025, according to the company, but profit did not keep up with the sales line. Last reported annual revenue was $7.3 billion, up 33.6% vs. prior year, which is the classic energy setup: big top-line swing, thinner visibility on the bottom line.
$1.8B
revenue
$0.39
eps
33.6%
operating margin
the number that mattered
The number that mattered was the 23.53% EPS miss, because commodity stocks get punished faster for earnings misses than they get rewarded for revenue beats.
-
coterra energy has agreed to an allstock buyout offer from devon energy.under the terms of the pending deal, coterra investors will receive 0.70 of a devon share for each ctra share, implying a combined enterprise value of $58 billion. both companies hold significant positions in the permian basin, with devon owning around 400,000 acres and coterra another 345,000 acres. management expects the transaction (scheduled to close in the 2026 second quarter) to generate $1.0 billion in.
-
efficiency targets have become even more important amid volatile energy markets.
-
investor approval would be needed for any potential tie-up.
-
kimmeridge energy management has expressed support for the transaction.kimmeridge was previously seeking to nominate scott sheffield (the former ceo of pioneer natural resources) to the company’s board, with the goal to force coterra to sell its natural gas assets and focus on crude production in the permian.
-
this comes at a time management has sharpened its strategy.coterra intends to enhance operational flexibility through the deepening reliance of a multi-basin production framework. moreover, it continues to operate under the assumption that strong liquified natural gas (lng) demand and growing electricity usage will remain key catalysts in the short and long terms.
source: company earnings report, 2026
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What could go wrong
the top risk is the devon share-exchange closing on acceptable terms.
high
devon merger approval and timing
the deal is framed at $58B, with CTRA holders set to receive 0.70 devon shares for each CTRA share. the page also shows conflicting timing language, which is its own warning sign.
if the exchange fails or drags, the merger premium disappears and the stock goes back to trading as a standalone commodity producer.
med
commodity price volatility
Q4 revenue rose 40.3% while full-year revenue rose just 1.0%. that contrast is what oil and gas price exposure looks like in the real world.
a company with $7.75B of annual revenue and no moat has little protection if realized prices move against it.
med
earnings quality slipping behind revenue growth
Q4 EPS came in at $0.39 versus a $0.45 estimate. if revenue can jump and earnings still miss, investors will start questioning how much of the top line actually converts into shareholder value.
that pressure matters more at 13.9x earnings than the multiple suggests, because the stock already needs a recovery story to justify the forward estimates.
this is a three-part risk stack: a $58B deal has to close, $7.75B of revenue remains exposed to commodity swings, and the recent 13% EPS miss shows headline growth is not enough on its own.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
may 4, 2026 after market close. consensus EPS sits at $0.43, so the next print will test whether the Q4 miss was a one-off.
deal risk
devon merger timeline
the page points to both a 2026 second-quarter close target and review running to feb 1, 2027. you want that contradiction resolved fast.
profitability
EPS conversion versus revenue
Q4 gave you 40.3% revenue growth and a 13% EPS miss. if that spread repeats, the stock stops looking cheap.
trend
full-year growth versus quarter spikes
full-year revenue was up just 1.0%. that is the slower number you should trust more than any single quarter burst.
Analyst rankings
street stance
13 buy ratings
that's the support level referenced on this page. in human-speak: analysts still like the setup more than the latest quarter.
next earnings bar
$0.43 EPS
this is the consensus for the next report. beat it and the Q4 miss looks temporary. miss again and patience gets thinner.
target midpoint
$36
that is about 18% above the current price. useful upside, but not the kind that forgives a broken deal or weaker commodity pricing.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 410 buyers vs. 409 sellers in 3q2025. total institutional holdings: 0.7B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$25
$47
$31
current price
$36
target midpoint · +18% from current · 3-5yr high: $45 (+45% · 12% ann'l return)
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