Coterra Energy Reports $1.1 Billion Net Income for Fiscal Year 2024

Coterra Energy Inc. reported a net income of $1.1 billion, or $1.51 per share, for the fiscal year ending December 31, 2024, a decrease from $1.6 billion, or $2.14 per share, in 2023. The company's total revenue fell by 8% to $5.46 billion, down from $5.91 billion in the previous year. This decline was primarily attributed to a significant drop in natural gas revenues, which decreased by 26% to $1.69 billion due to lower prices and production levels. In contrast, oil revenues increased by 11% to $2.95 billion, driven by higher production in the Permian Basin, while NGL revenues rose by 15% to $738 million.

Coterra's operational metrics showed a slight increase in equivalent production, which rose to 247.6 million barrels of oil equivalent (MMBoe) from 243.5 MMBoe in 2023. Oil production increased to 39.8 million barrels, while natural gas production decreased to 1,024.7 billion cubic feet (Bcf). The average realized price for oil was $74.22 per barrel, a 2% decline from the previous year, while natural gas prices fell by 28% to $1.75 per thousand cubic feet (Mcf). The company’s total capital expenditures for 2024 were approximately $1.76 billion, a reduction from $2.1 billion in 2023.

Strategically, Coterra completed two significant acquisitions in January 2025, acquiring Franklin Mountain Energy for $2.5 billion and Avant for $1.5 billion, which are expected to enhance its operations in the Delaware Basin. The company also repurchased 17 million shares of its common stock for $464 million during 2024, reflecting its commitment to returning capital to shareholders. The Board of Directors approved an increase in the quarterly dividend from $0.21 to $0.22 per share, demonstrating confidence in the company’s financial position.

As of December 31, 2024, Coterra maintained a strong balance sheet with $2.0 billion in cash and cash equivalents and $2.0 billion in unused commitments under its revolving credit agreement. The company’s total debt stood at $3.5 billion, with a debt-to-capitalization ratio of 21%. Coterra's proved reserves increased to 269.995 million barrels of oil equivalent (MMBoe), with significant contributions from the Permian Basin and Marcellus Shale. The company anticipates a capital program of $2.1 billion to $2.4 billion for 2025, focusing primarily on the Permian Basin.

Looking ahead, Coterra expects to navigate the volatile commodity price environment while continuing to assess its capital allocation strategy. The company remains committed to maintaining a disciplined approach to capital investment and operational efficiency, aiming to sustain shareholder returns through dividends and share repurchases.