Energy, Automobile, EV, Renewable News | Coterra Energy Reports Third-Quarter 2025 Results,

Coterra Energy Reports Third-Quarter 2025 Results,

November 4, 2025

Announces Quarterly Dividend, and Provides Fourth-Quarter and Full Year 2025 Guidance Update

HOUSTON–(BUSINESS WIRE)–Coterra Energy Inc. (NYSE: CTRA) (“Coterra” or the “Company”) today reported third-quarter 2025 financial and operating results and declared a quarterly dividend of $0.22 per share. Additionally, the Company provided fourth-quarter production and capital guidance and updated full-year 2025 guidance.

Tom Jorden, Chairman, CEO and President of Coterra, noted, “We are pleased with our strong operational execution during the quarter and are on track to meet or exceed our annual targets. Our nine rig and three completion crew program in the Permian program continues to be highly capital efficient, cost effective, and is generating strong returns at today’s prevailing prices. We are also pleased with the competitive returns currently being generated in both the Marcellus and Anadarko Basin. The durability of our high-quality asset portfolio shines throughout various price cycles.

The stellar returns across our diversified asset base are driven by the quality of the rock, our competitive drilling and completion costs, low cost structure and high margins. We remain focused on delivering a highly capital efficient program and maintaining a conservative reinvestment rate. Our balance sheet strength and limited long-term contracts provide maximum flexibility through commodity cycles. These attributes in the hands of a high performing organization differentiates Coterra.”

Key Takeaways & Updates

For the third quarter of 2025, total BOE (barrels of oil equivalent), natural gas production, and oil production all neared the high-end of our guidance ranges, with all streams beating their respective mid-points by approximately 2.5%. Incurred capital expenditures (non-GAAP) totaled $658 million, near the mid-point of our guidance range of $625 to $675 million.
Increasing full-year 2025 total equivalent and natural gas production guidance and tightening the range around oil production guidance. Continue to expect 2025 capital expenditures (non-GAAP) around $2.3 billion, which assumes we continue to run nine rigs in the Permian, one to two rigs in the Marcellus, and one rig in the Anadarko during the fourth quarter. This delivers a full year 2025 reinvestment rate, defined as incurred capital expenditures as a percentage of Discretionary Cash Flow (non-GAAP), of approximately 55%.
Expect 2025 Free Cash Flow (non-GAAP) of approximately $2.0 billion, at recent strip prices.
Third-quarter 2025 declared dividend of $0.22 per share, or approximately $168 million on a cash basis. Additionally, the Company continued to prioritize debt repayment, repaying $250 million of term loans during the quarter. Coterra remains committed to reducing its leverage and maintaining its top-tier balance sheet. In addition, the Company resumed repurchasing its shares opportunistically in the fourth quarter.
Coterra has accelerated its leasing ground game in 2025, acquiring $86 million of leasehold year-to-date, in addition to our customary acreage trade optimizations.
Looking ahead, based on current expectations, the Company anticipates 2026 capital expenditures modestly down from 2025, while maintaining 0-5% annual BOE growth, and approximately 5% annual oil growth. Based on recent strip prices, the Company expects its 2026 reinvestment to be at, or below, 50%.

Third-Quarter 2025 Highlights

Net Income (GAAP) totaled $322 million, or $0.42 per share. Adjusted Net Income (non-GAAP) was $312 million, or $0.41 per share.
Cash Flow From Operating Activities (GAAP) totaled $971 million. Discretionary Cash Flow (non-GAAP) totaled $1,148 million. Free Cash Flow (non-GAAP) totaled $533 million.
Cash paid for capital expenditures for drilling, completion, and other fixed asset additions (GAAP) totaled $615 million. Incurred capital expenditures from drilling, completion, and other fixed asset additions (non-GAAP) totaled $658 million, within our guidance range of $625 to $675 million.
Unit operating cost (reflecting costs from direct operations, transportation, production taxes and G&A) totaled $9.81 per BOE, slightly above the mid-point of our annual guidance range. The Company expects fourth quarter per unit costs to trend closer to the mid-point of our annual guidance range.
The Company turned in-line 48 net wells during the quarter. In the Permian, 38 net wells were turned in-line, slightly below our guidance of 40 to 50 net wells. Anadarko and Marcellus turned in-line six and four net wells, respectively, in line with guidance.
Total equivalent production averaged 785.0 MBoepd (thousand barrels of oil equivalent per day), near the high end of guidance (740 to 790 MBoepd).
- Oil production averaged 166.8 MBopd (thousand barrels of oil per day), near the high end of our guidance range (158 to 168 MBopd).
- Natural gas production averaged 2,894.6 MMcfpd (million cubic feet of gas per day), near the high end of guidance (2,750 to 2,900 MMcfpd).
- NGLs production averaged 135.8 MBopd.
Realized average prices:
- Oil was $64.10 per Bbl (barrel), excluding the effect of commodity derivatives, and $64.79 per Bbl, including the effect of commodity derivatives.
- Natural Gas was $1.95 per Mcf (thousand cubic feet), excluding the effect of commodity derivatives, and $2.05 per Mcf, including the effect of commodity derivatives.
- NGLs were $17.02 per Bbl.

Shareholder Return Highlights

Common Dividend: On November 3, 2025, Coterra’s Board of Directors approved a quarterly dividend of $0.22 per share, equating to a 3.8% annualized yield, based on the Company’s $23.40 closing share price on October 30, 2025. The dividend will be paid on November 26, 2025 to holders of record on November 13, 2025. This will bring total dividends for the year to $504 million (cash basis) and total shareholder returns to nearly $551 million, through September 2025.
Share Repurchases: As of September 30, 2025, $1.1 billion remains on the Company’s $2.0 billion share repurchase authorization. No shares were repurchased during the third quarter as the Company focused on the repayment of its term loans. The Company resumed share repurchases in October and expects to continue to opportunistically repurchase its shares in the fourth quarter.
Reiterate Shareholder Return Strategy: Coterra remains committed to robust shareholder returns and expects to return 50% or greater of Free Cash Flow (non-GAAP) to shareholders through the cycles. Year-to-date, after payment of its base dividend, the Company prioritized debt reduction, retiring $600 million of the $1.0 billion term loans issued earlier in the year, associated with the Company’s Delaware Basin acquisition. During the fourth quarter, the Company restarted its share repurchase program. The Company will remain committed to debt reduction and opportunistic share repurchases.

Guidance Updates

Continue to expect 2025 incurred capital expenditures (non-GAAP) around $2.3 billion.
Increasing 2025 full-year guidance, including increasing total equivalent production range up to 772 to 782 MBoepd and natural gas production range up to 2,925 to 2,965 MMcfpd. Tightening the range around 2025 oil production to 159 to 161 MBopd.
Announcing fourth-quarter 2025 guidance, including total equivalent production of 770 to 810 MBoepd, oil production of 172 to 178 MBopd, natural gas production of 2,775 to 2,925 MMcfpd, and capital expenditures (non-GAAP) of approximately $530 million.
Estimate full-year 2025 effective tax rate of 22% and no cash taxes during fourth-quarter 2025.
For more details on annual and fourth-quarter 2025 guidance, see 2025 Guidance Section in the tables below.

Strong Financial Position

In conjunction with the closing of the Franklin Mountain Energy and Avant Natural Resources acquisitions in late January, Coterra issued $1.0 billion of new debt through its term loan agreements. Subsequently, Coterra has paid down $600 million of the term loans through September 2025, including $250 million in the third quarter, leaving $400 million of term loan debt outstanding. As of September 30, 2025, Coterra had total debt outstanding of $3.9 billion (principal balance), down from $4.5 billion in January 2025. The Company exited the quarter with cash and cash equivalents of $98 million, and no debt outstanding under its $2.0 billion revolving credit facility, resulting in total liquidity of approximately $2.1 billion. Net Debt to trailing twelve-month Adjusted Pro Forma EBITDAX ratio (non-GAAP) at September 30, 2025 was 0.8x, pro forma for the Franklin and Avant acquisitions. The Company remains committed to further near-term debt reduction.

See “Supplemental non-GAAP Financial Measures” below for descriptions of the above non-GAAP measures as well as reconciliations of these measures to the associated GAAP measures.

Committed to Sustainability and ESG Leadership

Coterra is committed to environmental stewardship, sustainable practices, and strong corporate governance. The Company’s sustainability report can be found under “Sustainability” on www.coterra.com. Coterra published its 2025 Sustainability report on August 4, 2025.

Third-Quarter 2025 Conference Call

Coterra will host a conference call tomorrow, Tuesday, November 4, 2025, at 9:00 AM CT (10:00 AM ET), to discuss third-quarter 2025 financial and operating results.

Conference Call Information

Date: November 4, 2025

Time: 9:00 AM CT / 10:00 AM ET

Dial-in (for callers in the U.S. and Canada): (800) 715-9871

International dial-in: +1 (646) 307-1963

Conference ID: 4309719

The live audio webcast and related earnings presentation can be accessed on the “Events & Presentations” page under the “Investors” section of the Company’s website at www.coterra.com. The webcast will be archived and available at the same location after the conclusion of the live event.

About Coterra Energy

Coterra is a premier exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale, and Anadarko Basin. We strive to be a leading energy producer, delivering sustainable returns through the efficient and responsible development of our diversified asset base. Learn more about us at www.coterra.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not statements of historical fact and reflect Coterra’s current views about future events. Such forward-looking statements include, but are not limited to, statements about returns to shareholders, enhanced shareholder value, reserves estimates, future financial and operating performance, and goals and commitment to sustainability and ESG leadership, strategic pursuits and goals, and other statements that are not historical facts contained in this press release. The words “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “predict,” “potential,” “possible,” “may,” “should,” “could,” “would,” “will,” “strategy,” “outlook”, “guide” and similar expressions are also intended to identify forward-looking statements. We can provide no assurance that the forward-looking statements contained in this press release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the volatility in commodity prices for crude oil and natural gas; changes in U.S. and international economic policy (including tariffs and retaliatory tariffs and the impacts thereof); cost increases; the effect of future regulatory or legislative actions; actions by, or disputes among or between, the Organization of Petroleum Exporting Countries and other producer countries; market factors; market prices (including geographic basis differentials) of oil and natural gas; impacts of inflation; labor shortages and economic disruption, (geopolitical disruptions such as the war in Ukraine or conflict in the Middle East or further escalation thereof); determination of reserves estimates, adjustments or revisions, including factors impacting such determination such as commodity prices, well performance, results of future drilling and marketing activities (including seismicity and similar data), operating expenses and completion of Coterra’s annual PUD reserves process, as well as the impact on our financial statements resulting therefrom; the presence or recoverability of estimated reserves; the ability to replace reserves; environmental risks; drilling and operating risks; exploration and development risks; competition; the ability of management to execute its plans to meet its goals; the impact of public health crises, including pandemics and epidemics and any related company or governmental policies or actions, financial condition and results of operations; and other risks inherent in Coterra’s businesses. In addition, the declaration and payment of any future dividends, whether regular base quarterly dividends, variable dividends or special dividends, will depend on Coterra’s financial results, cash requirements, future prospects and other factors deemed relevant by Coterra’s Board. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to Coterra’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other filings with the SEC, which are available on Coterra’s website at www.coterra.com.

Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Except to the extent required by applicable law, Coterra does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Operational Data

The tables below provide a summary of production volumes, price realizations and operational activity by region and units costs for the Company for the periods indicated:

	Quarter Ended September 30,					Nine Months Ended September 30,
	2025		2024			2025		2024
PRODUCTION VOLUMES
Marcellus Shale
Natural gas (Mmcf/day)		1,977.6		1,928.5			2,089.5		2,117.2
Daily equivalent production (MBoepd)		329.6		321.4			348.3		352.9

Permian Basin
Natural gas (Mmcf/day)		620.4		531.2			624.8		500.9
Oil (MBbl/day)		160.1		102.7			147.2		99.8
NGL (MBbl/day)		103.8		82.7			92.0		77.0
Daily equivalent production (MBoepd)		367.3		273.9			343.3		260.2

Anadarko Basin
Natural gas (Mmcf/day)		295.7		218.8			262.8		186.6
Oil (MBbl/day)		6.5		9.5			7.2		7.5
NGL (MBbl/day)		31.9		26.9			29.0		22.6
Daily equivalent production (MBoepd)		87.7		72.9			80.0		61.1

Total Company
Natural gas (Mmcf/day)		2,894.6		2,682.0			2,978.5		2,806.8
Oil (MBbl/day)		166.8		112.3			154.6		107.4
NGL (MBbl/day)		135.8		109.7			121.1		99.6
Daily equivalent production (MBoepd)		785.0		669.1			772.0		674.8

AVERAGE SALES PRICE (excluding hedges)
Marcellus Shale
Natural gas ($/Mcf)	$	2.27	$	1.78		$	2.86	$	1.89

Permian Basin
Natural gas ($/Mcf)	$	0.55	$	(0.63	)	$	1.04	$	(0.06	)
Oil ($/Bbl)	$	64.09	$	73.96		$	65.31	$	76.14
NGL ($/Bbl)	$	16.27	$	17.30		$	18.37	$	18.83

Anadarko Basin
Natural gas ($/Mcf)	$	2.70	$	1.66		$	2.91	$	1.68
Oil ($/Bbl)	$	64.31	$	74.83		$	66.26	$	76.34
NGL ($/Bbl)	$	19.52	$	21.90		$	22.22	$	22.20

Total Company
Natural gas ($/Mcf)	$	1.95	$	1.30		$	2.48	$	1.53
Oil ($/Bbl)	$	64.10	$	74.04		$	65.36	$	76.16
NGL ($/Bbl)	$	17.02	$	18.42		$	19.29	$	19.59

	Quarter Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
AVERAGE SALES PRICE (including hedges)
Total Company
Natural gas ($/Mcf)	$	2.05	$	1.41	$	2.52	$	1.65
Oil ($/Bbl)	$	64.79	$	74.18	$	65.89	$	76.17
NGL ($/Bbl)	$	17.02	$	18.42	$	19.29	$	19.59

	Quarter Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
WELLS DRILLED⁽¹⁾⁽²⁾
Gross wells
Marcellus Shale	15	4	28	26
Permian Basin	68	63	245	174
Anadarko Basin	11	20	25	39
	94	87	298	239

Net wells
Marcellus Shale	13.1	4.0	19.4	25.0
Permian Basin	38.5	25.9	121.2	75.9
Anadarko Basin	4.0	6.3	14.0	20.0
	55.6	36.2	154.6	120.9

TURN IN LINES⁽²⁾
Gross wells
Marcellus Shale	4	7	12	30
Permian Basin	64	61	245	159
Anadarko Basin	8	10	36	41
	76	78	293	230

Net wells
Marcellus Shale	4.0	7.0	7.0	30.0
Permian Basin	38.0	23.9	124.5	68.4
Anadarko Basin	5.6	4.6	14.9	19.9
	47.6	35.5	146.4	118.3

AVERAGE OPERATED RIG COUNTS
Marcellus Shale	2.0	0.6	1.3	1.3
Permian Basin	9.0	8.0	9.9	8.0
Anadarko Basin	2.0	1.0	1.9	1.4

____________________
(1)	Wells drilled represents wells drilled to total depth during the period.
(2)	Wells drilled and turn in lines include both operated and non-operated wells.

	Quarter Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
AVERAGE UNIT COSTS ($/Boe) ⁽¹⁾
Direct operations	$	3.80	$	2.69	$	3.45	$	2.60
Gathering, processing and transportation		3.75		3.97		3.91		3.98
Taxes other than income		1.29		1.08		1.31		1.05
General and administrative (excluding stock-based compensation)		0.97		0.99		1.03		0.91
Unit Operating Cost	$	9.81	$	8.73	$	9.69	$	8.54
Depreciation, depletion and amortization		8.58		7.73		8.09		7.32
Exploration		0.09		0.15		0.10		0.10
Stock-based compensation		0.18		0.23		0.20		0.23
Severance expense		—		—		—		0.03
Interest expense, net		0.68		0.12		0.69		0.14
	$	19.33	$	16.96	$	18.76	$	16.36

____________________
(1)	Total unit costs may differ from the sum of the individual costs due to rounding.

Derivatives Information

As of September 30, 2025, the Company had the following outstanding financial commodity derivatives:

	2025
Oil	Fourth Quarter
WTI oil collars
Volume (MBbl)		5,152
Weighted average floor ($/Bbl)	$	61.34
Weighted average ceiling ($/Bbl)	$	79.00

WTI NYMEX oil swaps
Volume (MBbl)		1,748
Weighted average price ($/Bbl)	$	69.18

WTI Midland oil basis swaps
Volume (MBbl)		5,520
Weighted average differential ($/Bbl)	$	1.02

	2026
Oil	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
WTI oil collars
Volume (MBbl)		3,600		3,640		3,680		3,680
Weighted average floor ($/Bbl)	$	56.25	$	56.25	$	56.25	$	56.25
Weighted average ceiling ($/Bbl)	$	70.81	$	70.81	$	70.81	$	70.81

WTI NYMEX oil swaps
Volume (MBbl)		900		910		920		920
Weighted average price ($/Bbl)	$	66.14	$	66.14	$	66.14	$	66.14

WTI Midland oil basis swaps
Volume (MBbl)		4,500		4,550		4,600		4,600
Weighted average differential ($/Bbl)	$	0.97	$	0.97	$	0.97	$	0.97

	2025
Natural Gas	Fourth Quarter
NYMEX gas collars
Volume (MMBtu)		87,400,000
Weighted average floor ($/MMBtu)	$	3.08
Weighted average ceiling ($/MMBtu)	$	5.66

Transco Leidy gas basis swaps
Volume (MMBtu)		18,400,000
Weighted average differential ($/MMBtu)	$	(0.70	)

Transco Zone 6 Non-NY gas basis swaps
Volume (MMBtu)		18,400,000
Weighted average differential ($/MMBtu)	$	(0.49	)

Waha gas basis swaps
Volume (MMBtu)		13,800,000
Weighted average differential ($/MMBtu)	$	(2.05	)

	2026
Natural Gas	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
NYMEX gas collars
Volume (MMBtu)		81,000,000			54,600,000			55,200,000			55,200,000
Weighted average floor ($/MMBtu)	$	3.06		$	3.21		$	3.21		$	3.21
Weighted average ceiling ($/MMBtu)	$	6.39		$	5.76		$	5.76		$	5.76

Transco Zone 6 Non-NY gas basis swaps
Volume (MMBtu)		13,500,000			13,650,000			13,800,000			13,800,000
Weighted average differential ($/MMBtu)	$	(0.26	)	$	(0.26	)	$	(0.26	)	$	(0.26	)

Waha gas basis swaps
Volume (MMBtu)		13,500,000			13,650,000			13,800,000			13,800,000
Weighted average differential ($/MMBtu)	$	(1.86	)	$	(1.86	)	$	(1.86	)	$	(1.86	)

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
(In millions, except per share amounts)	2025			2024			2025			2024
OPERATING REVENUES
Oil	$	984		$	765		$	2,758		$	2,240
Natural gas		519			320			2,018			1,177
NGL		213			186			638			535
Gain (loss) on derivative instruments, net		62			64			182			48
Other		39			24			90			63
		1,817			1,359			5,686			4,063
OPERATING EXPENSES
Direct operations		275			165			727			481
Gathering, processing and transportation		270			245			823			737
Taxes other than income		93			66			276			194
Exploration		7			9			21			19
Depreciation, depletion and amortization		619			475			1,704			1,354
General and administrative (excluding stock-based compensation)		70			61			216			175
Stock-based compensation		13			14			43			43
		1,347			1,035			3,810			3,003
Gain on sale of assets		1			3			5			3
INCOME FROM OPERATIONS		471			327			1,881			1,063
Interest expense		50			24			156			77
Interest income		(2	)		(16	)		(12	)		(51	)
Other income		—			—			(1	)		—
Income before income taxes		423			319			1,738			1,037
Income tax provision (benefit)
Current		(123	)		104			104			273
Deferred		224			(37	)		285			(60	)
Total income tax provision		101			67			389			213
NET INCOME	$	322		$	252		$	1,349		$	824
Earnings per share – Basic	$	0.42		$	0.34		$	1.77		$	1.11
Weighted-average common shares outstanding		763			738			761			743

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In millions)	September 30, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	98	$	2,038
Other current assets		1,428		1,283
Properties and equipment, net (successful efforts method)		22,167		17,890
Other assets		314		414
	$	24,007	$	21,625

LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
Current liabilities	$	1,239	$	1,136
Current portion of long-term debt		250		—
Long-term debt, net		3,672		3,535
Deferred income taxes		3,555		3,274
Other long term liabilities		565		550
Redeemable preferred stock		8		8
Stockholders’ equity		14,718		13,122
	$	24,007	$	21,625

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
(In millions)	2025			2024			2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	322		$	252		$	1,349		$	824
Depreciation, depletion and amortization		619			475			1,704			1,354
Deferred income tax expense (benefit)		224			(37	)		285			(60	)
Gain on sale of assets		(1	)		(3	)		(5	)		(3	)
Exploratory dry hole cost		—			5			—			5
Gain on derivative instruments		(62	)		(64	)		(182	)		(48	)
Net cash received in settlement of derivative instruments		36			28			49			90
Stock-based compensation and other		13			18			43			43
Income charges not requiring cash		(3	)		(4	)		(12	)		(13	)
Changes in assets and liabilities		(177	)		85			(180	)		(23	)
Net cash provided by operating activities		971			755			3,051			2,169

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for drilling, completion and other fixed asset additions		(615	)		(393	)		(1,707	)		(1,329	)
Capital expenditures for leasehold and property acquisitions		(29	)		(3	)		(86	)		(6	)
Cash consideration paid for business combinations, net of cash received		(16	)		—			(3,238	)		—
Purchases of short-term investments		—			—			—			(250	)
Proceeds from sale of short-term investments		—			250			—			250
Other		(3	)		7			(2	)		8
Net cash used in investing activities		(663	)		(139	)		(5,033	)		(1,327	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt		96			—			1,446			499
Repayments of debt		(346	)		(575	)		(1,046	)		(575	)
Common stock repurchases		(4	)		(111	)		(51	)		(401	)
Dividends paid		(168	)		(156	)		(514	)		(470	)
Tax withholding on vesting of stock awards		(5	)		—			(29	)		—
Other		6			(5	)		2			(12	)
Net cash used in financing activities		(421	)		(847	)		(192	)		(959	)
Net decrease in cash, cash equivalents and restricted cash	$	(113	)	$	(231	)	$	(2,174	)	$	(117	)