Coterra Energy Reports Q1 2026 Financial Results, Announces Merger with Devon Energy

Coterra Energy Inc. reported its financial results for the first quarter of 2026, revealing a net income of $466 million, or $0.61 per share, a decrease from $516 million, or $0.68 per share, in the same period last year. The company's operating revenues increased slightly to $1.947 billion, up from $1.904 billion in the previous year, driven by higher oil and natural gas prices. Oil revenues rose by 18% to $1.043 billion, while natural gas revenues increased by 24% to $1.110 billion. However, the company experienced a significant loss on derivative instruments, which totaled $434 million, compared to a loss of $112 million in the prior year.

Coterra's total production for the quarter was 69.4 million barrels of oil equivalent (MMBoe), an increase of 2.2 MMBoe from the previous year. Oil production rose by 16% to 14.7 million barrels, while natural gas production decreased by 6% to 257.9 billion cubic feet (Bcf). The company reported an increase in natural gas liquids (NGL) volumes, which rose by 32% to 11.7 million barrels. Average realized prices for oil decreased slightly to $67.28 per barrel, while natural gas prices increased significantly to $4.10 per thousand cubic feet (Mcf).

In terms of strategic developments, Coterra is set to merge with Devon Energy Corporation, with the merger expected to close on May 7, 2026. Under the terms of the agreement, Coterra stockholders will receive 0.70 shares of Devon common stock for each share of Coterra common stock. This merger follows Coterra's acquisition of Franklin Mountain Energy and Avant Acquisitions in early 2025, which significantly expanded its operations in the Delaware Basin.

Operationally, Coterra's capital expenditures for the first quarter of 2026 totaled $655 million, an increase from $552 million in the same period last year. The company repurchased and retired 1 million shares of its common stock for $32 million during the quarter. As of March 31, 2026, Coterra had $485 million in cash and cash equivalents and $2 billion in unused commitments under its revolving credit agreement, indicating a strong liquidity position.

Looking ahead, Coterra anticipates continued volatility in commodity prices due to geopolitical factors and market conditions. The company expects its capital expenditures to be weighted towards the first half of 2026 and is reiterating its full-year guidance, which reflects its operations on a standalone basis, excluding the anticipated merger with Devon. The company remains focused on maintaining adequate liquidity to navigate potential market fluctuations and fulfill its operational and financial commitments.