Coterra Energy Reports 47% Increase in Net Income to $516 Million in Latest Quarter

Coterra Energy Inc. reported significant financial growth in its latest quarterly results, with net income rising to $516 million, or $0.68 per share, for the three months ended March 31, 2025, compared to $352 million, or $0.47 per share, in the same period last year. This represents a 47% increase in net income year-over-year. The company’s operating revenues also saw a substantial increase, reaching $1.9 billion, up 33% from $1.4 billion in the prior year, driven by higher production volumes and improved pricing for natural gas and natural gas liquids (NGL).

The company’s operational metrics reflected a notable increase in production, with total equivalent production rising to 67.2 million barrels of oil equivalent (MMBoe), an 8% increase from 62.4 MMBoe in the previous year. Oil production specifically surged by 37% to 12.7 million barrels, while natural gas production increased by 2% to 273.9 billion cubic feet (Bcf). The increase in production was largely attributed to the recent acquisitions of Franklin Mountain Energy and Avant assets, which were completed in January 2025 for a total consideration of approximately $3.2 billion.

Coterra's strategic developments included the aforementioned acquisitions, which contributed $165 million in revenue and $67 million in net income from January 28 to March 31, 2025. The company also increased its quarterly dividend from $0.21 to $0.22 per share, reflecting its commitment to returning value to shareholders. Additionally, Coterra repurchased 1 million shares for $24 million during the quarter, compared to 6 million shares for $157 million in the same period last year.

Despite the positive financial performance, Coterra faced challenges, including a working capital deficit of $162 million as of March 31, 2025, primarily due to cash outflows related to the acquisitions. The company’s total liabilities increased to $9.7 billion, up from $8.5 billion at the end of 2024, largely due to the new debt incurred to finance the acquisitions. The company’s long-term debt stood at $4.3 billion, with no borrowings outstanding under its revolving credit agreement, providing a liquidity cushion.

Looking ahead, Coterra expects to maintain a capital expenditure program of approximately $2.0 billion to $2.3 billion for 2025, focusing on its operations in the Permian Basin, Marcellus Shale, and Anadarko Basin. The company plans to turn in line 175 to 205 net wells this year, while continuing to monitor market conditions and adjust its capital allocation as necessary. Coterra remains optimistic about its operational outlook, despite the potential for commodity price volatility and external economic factors that could impact its performance.