Coterra Energy (CTRA) Company Report

Generated $970 million of GAAP cash flow and $507 million of non-GAAP free cash flow in Q4 2025; full-year 2025 cash flow from operations was $4.0 billion with $2.0 billion of free cash flow, returning $263 million to shareholders in the quarter (dividends of $170 million and share repurchases of $93 million) and $820 million for the year.
Declared a quarterly dividend of $0.22 per share, representing a 2.9% annualized yield based on the $29.90 closing price on February 25, 2026; payable March 25, 2026.
Provided standalone 2026 guidance of 750–810 MBoepd total production, $2.175–2.325 billion in capital expenditures, and $2.35 billion of free cash flow (non-GAAP).
Announced an all-stock merger with Devon Energy at an exchange ratio of 0.70 Devon shares for each Coterra share; upon closing in Q2 2026, Devon shareholders will own ~54% and Coterra shareholders ~46% of the combined company.
Ended 2025 with $2.1 billion of total liquidity and a net debt to Adjusted EBITDAX ratio of 0.8x, maintaining a strong balance sheet ahead of the merger.

1 day ago

8-K

Coterra Energy reports Q4 2025 results and Devon merger

CTRA

M&A

Guidance Update

Dividends

Announced a transformative merger with Devon Energy to create a large-cap shale operator with $61 billion combined enterprise value and expected $1 billion of pre-tax synergies, closing in Q2 2026.
Exceeded Q4 2025 guidance with 813 mboed production, generated $507 million free cash flow, retired $100 million of term loans, and returned $263 million to shareholders via dividends and repurchases.
Delivered full-year 2025 with a 54% reinvestment rate, 47% YoY oil volume growth, $2.0 billion free cash flow, $700 million of term-loan retirements, and $820 million in total shareholder returns.
2026 standalone outlook: $2.25 billion capex (-3% YoY) with ~50% reinvestment, $2.35 billion free cash flow (+16% YoY), flat BOE production with 4-5% oil growth, and a year-end net debt/EBITDAX of 0.8x.

1 day ago

Presentation

Coterra Energy reports 2025 results and provides 2026 guidance

CTRA

Earnings

Guidance Update

M&A

Coterra generated $970 million of cash flow from operating activities and $507 million of free cash flow in Q4 2025, returning $263 million to shareholders via dividends and share repurchases.
For full-year 2025, Coterra delivered $4.0 billion of operating cash flow and $2.0 billion of free cash flow with a 54 % reinvestment rate, following successful integration of Delaware Basin acquisitions.
The company’s standalone 2026 guidance targets 750–810 MBoepd total production, 2,775–2,975 MMcfpd natural gas, 162–172 MBopd oil, $2.25 billion in capital expenditures, ~50 % reinvestment rate, and $2.35 billion of free cash flow.
Coterra declared a $0.22 per-share quarterly dividend (2.9 % annualized yield), payable March 25, 2026, to holders of record March 11, 2026.
On February 2, 2026, Coterra announced an all-stock merger with Devon Energy—0.70 Devon shares per Coterra share—with the deal expected to close in Q2 2026.

1 day ago

Press Release

Devon and Coterra announce merger

CTRA

M&A

Dividends

Share Buyback

The companies will combine in an at-market all-stock merger, creating a premier shale E&P operator with over 1.6 million barrels of oil equivalent per day of production and approximately 750,000 net acres in the Delaware Basin.
The merger is expected to generate $1 billion in annual pre-tax synergies by year-end 2027, anchored in capital optimization, operating-margin improvement, and corporate cost reductions.
Pro forma, the combined balance sheet features $4.4 billion in liquidity and 0.9× net debt to EBITDAX, with a $0.315 per share quarterly dividend and > $5 billion share repurchase authorization planned.
Leadership will see Tom Jorden as Chairman of the combined board and Clay Gaspar as President and CEO, with the executive headquarters relocating to Houston (while maintaining a significant Oklahoma City presence).

Feb 2, 2026, 1:30 PM

Transcript

Devon Energy and Coterra Energy announce transformative merger

CTRA

M&A

The all-stock merger of Devon Energy and Coterra Energy creates a combined E&P company with over 1.6 million barrels of oil equivalent per day of production, leveraging a leading Delaware Basin portfolio of ~750,000 net acres.
The transaction is expected to deliver $1 billion in annual pre-tax synergies by year-end 2027, representing ~20% of pro forma market cap, driven by capital optimization ($350 M), operating margin gains ($350 M), and corporate cost savings ($300 M).
The pro forma company will have $4.4 billion in liquidity, 0.9× net debt/EBITDAX, and target a $0.315 quarterly dividend, with a planned > $5 billion share repurchase authorization.
Clay Gaspar will serve as President & CEO and Tom Jorden as Chairman; headquarters will relocate to Houston with a continued significant presence in Oklahoma City.

Feb 2, 2026, 1:30 PM

Transcript

Devon and Coterra announce transformative merger

CTRA

M&A

Devon and Coterra will combine in an all-stock transaction to create a $58 billion pro forma enterprise value shale operator¹
Exchange ratio set at 0.70 Devon shares for each Coterra share, resulting in 54% Devon and 46% Coterra pro forma equity ownership²
The merger is expected to deliver $1.0 billion of pre-tax synergies run-rate by the end of 2027¹
Transaction, approved by both boards, is slated to close in Q2 2026, with Clay Gaspar named President & CEO²

Feb 2, 2026, 1:30 PM

Presentation

Devon Energy and Coterra Energy announce merger

CTRA

M&A

The companies will merge in an at-market all-stock transaction to create a premier E&P firm with combined production of 1.6 million Boe/d, anchored by the Delaware Basin (≈750,000 net acres; >860,000 Boe/d; >5,000 drilling locations; >10-year inventory).
They target $1 billion in annual pre-tax synergies by year-end 2027 (~20% of pro forma market cap), including $350 million in capital optimization, $350 million in operating margins, and $300 million in corporate cost cuts.
The pro forma balance sheet is strong (0.9× net debt/EBITDAX; $4.4 billion liquidity) supporting a $0.315/share quarterly dividend and a $5 billion+ share repurchase authorization.
Tom Jorden will serve as Chairman, Clay Gaspar as President & CEO, and corporate HQ will move to Houston with a maintained presence in Oklahoma City.

Feb 2, 2026, 1:30 PM

Transcript

Coterra Energy and Devon Energy announce transformative merger

CTRA

M&A

Dividends

Share Buyback

Coterra will merge with Devon in an all-stock transaction creating a combined enterprise value of $58 billion; Coterra shareholders will receive 0.70 Devon shares per Coterra share, resulting in pro forma ownership of 54% Devon and 46% Coterra.
The combined company, to be named Devon Energy and headquartered in Houston (with a significant presence in Oklahoma City), will have pro forma 2026e production exceeding 1.6 million boe/d (34% oil, 44% gas, 22% NGL), with over 50% of volumes from the Delaware Basin; pro forma net debt/EBITDAX is 0.9× and liquidity is $4.4 billion as of 9/30/25.
The deal is expected to generate $1 billion in annual pre-tax synergies by year-end 2027, be accretive to free cash flow and net asset value, and support a planned quarterly dividend of $0.315 per share plus a new share repurchase authorization exceeding $5 billion, both subject to board approval.
Closing is anticipated in Q2 2026, pending regulatory and shareholder approvals; the combined board will include 11 directors (six Devon, five Coterra), with Clay Gaspar as President & CEO and Tom Jorden as Non-Executive Chair.

Feb 2, 2026, 1:12 PM

8-K

Coterra Energy and Devon Energy near $60B merger talks

CTRA

M&A

Coterra Energy and Devon Energy are in advanced merger talks, with an agreement possible as soon as next week to create a roughly $57 billion oil and gas company.
The transaction could be structured as a merger of equals, consolidating major assets in the Delaware Permian Basin and Anadarko Basin.
Supporters say the deal would deliver economies of scale for cost control amid volatile oil markets and depressed crude prices.
If completed, it would be the largest U.S. shale industry merger in nearly two years.

Jan 29, 2026, 8:31 PM

Bloomberg

Coterra Energy announces Q4 2025 realized prices and hedge settlements

CTRA

Earnings

Guidance Update

In Q4 2025, average realized sales prices excluding hedges were $58.16/Bbl for oil, $2.37/Mcf for natural gas and $15.63/Bbl for NGLs; including hedges, prices were $60.34/Bbl for oil, $2.44/Mcf for natural gas and $15.63/Bbl for NGLs.
Coterra anticipates net cash received of $57 million from derivative instrument settlements in Q4 2025.