Coterra Energy Reports Mixed Q4 Results Amid Strong Market Presence

Houston-based Coterra Energy Inc. (CTRA) is involved in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company boasts a market capitalization of $22 billion and has a strong foothold in prominent regions such as the Permian Basin, Marcellus Shale, and Anadarko Basin.

As a large-cap stock, Coterra Energy aligns perfectly with the criteria for companies valued at $10 billion or more.

Recent Trading Performance

CTRA reached its two-year high of $29.95 on January 17 and is currently trading 4.1% below that peak. Over the past three months, CTRA’s stock has climbed 21.3%, significantly outperforming the Nasdaq Composite’s ($NASX) decline of 9.1% during the same period.

Looking at a longer timeline, CTRA has recorded a 21.4% gain over the last six months and a 4.8% increase in the past year. This is in contrast to the NASX, which saw a dip of 92 basis points over the six months and an 8.4% gain over the past 52 weeks.

Market Trends

To affirm its recent performance, CTRA has predominantly traded above its 50-day moving average since late December 2024 and above its 200-day moving average since early January, albeit with some volatility.

Q4 Financial Results

Coterra Energy’s stock dipped by 2.1% following its mixed Q4 results announced on February 24. The company reported a 12.6% year-over-year decline in overall operating revenues, totaling $1.4 billion, which fell slightly short of analysts’ expectations. However, it’s worth noting that Coterra surpassed the high end of production guidance, with total barrels of oil equivalent (BOE), oil production, and natural gas production exceeding forecasts by 3% or more. Adjusted net income for the quarter was $358 million, a 7.5% decline from the previous year, yet it reported an adjusted EPS of $0.49, which beat consensus estimates.

Future Outlook

Looking ahead, Coterra anticipates a roughly 9% surge in total BOE production for FY 2025. The company plans to direct between $2.1 billion and $2.4 billion towards capital expenditures, focusing significantly on the Permian Basin. This strategic focus on oil-rich assets aims to foster growth while maintaining a reinvestment rate below 50%. Additionally, Coterra has announced a 5% increase in its quarterly dividend to $0.22 per share, reflecting its commitment to shareholder returns.

In comparison, Coterra has outperformed peer Devon Energy Corporation (DVN), which has seen an 11.4% decline over the last six months and a 25.5% plunge over the past year.

Analyst Opinions

Among the 24 analysts covering CTRA stock, the consensus rating is a “Strong Buy.” The average price target stands at $34.92, indicating a promising upside potential of 21.6% from current price levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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