Research · Sep 3, 2026
[CTRA] Coterra Energy Thesis 2026: Permian Acquisitions Complete the Oil Pivot
Coterra Energy (CTRA) FY25 (Dec 2025) EBITDA $4.838B (+47%); operating income $2.452B (+77%); net income $1.717B (+53%); EPS $2.25 (+49%); FCF $1.634B (+60%); operating cash flow $4.021B (+44%); total debt $4.006B (net leverage 0.83x EBITDA). Note: headline 'revenue' in financial databases shows distortion from derivative accounting — underlying cash economics measured by EBITDA/FCF. Franklin Mountain and Avant acquisitions (Permian Basin) closed January 2025, adding ~170 MBoe/day. Total production 777 MBoe/day FY25 (+15% from 677 FY24). Oil ~57% of revenue mix. NGL production all-time high 136 MBoe/day Q3 FY25. Cash operating costs $9.81/BOE (Q3). Deleveraged $1B term loans in FY25. Capital return: $682M dividends + $141M buybacks (50%+ FCF payout). LNG export agreements signed for Permian gas. 3-year guidance: 5%+ annual oil volume growth, $2.1-2.4B CapEx/yr. FY26 CapEx 'modestly below' FY25 $2.3B run rate.