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Coterra Q4 Earnings Miss Estimates, Revenues Beat, Expenses Rise Y/Y
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Key Takeaways
Coterra Q4 EPS missed estimates as costs rose, but revenues climbed 40% year over year.
CTRA production jumped 19%, with oil up 56% and gas volumes topping estimates.
Coterra to merge with Devon in all-stock deal targeting $1B annual synergies by 2027.
Coterra Energy Inc. (CTRA - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 39 cents, which missed the Zacks Consensus Estimate of 45 cents. The bottom line also decreased from the year-ago quarter’s 49 cents. The underperformance was due to weaker oil and NGL realizations and a 29.8% increase in operating expenses.
The oil and gas exploration and production firm’s operating revenues of $1.9 billion beat the Zacks Consensus Estimate by $82 million. The figure also increased 40.4% from the year-ago quarter’s level of $1.4 billion. The outperformance was driven by stronger year-over-year oil, natural gas and NGL revenues.
Coterra Energy Inc. Price, Consensus and EPS Surprise
In a positive move for investors, Coterra's board of directors declared a quarterly cash dividend of 22 cents per share to its common shareholders of record on March 11. The payout, which is unchanged from the previous quarter, will be made on March 25, 2026.
During the fourth quarter, CTRA delivered $170 million in cash dividends, driving total shareholder returns to nearly $263 million. During the quarter, the Houston, TX-based independent oil and gas company repurchased 4 million shares for $93 million at a weighted-average price of $24.37 per share.
CTRA’s Transformative Merger With DVN
On Feb. 2, 2026, Coterra announced an all-stock merger with Devon Energy Corporation (DVN - Free Report) to create a leading shale operator anchored by a premier Delaware Basin position. The combined company is expected to drive stronger free cash flow through a balanced commodity mix, diversified assets, AI-enabled operational enhancements and significant cost synergies. Integration is being led by senior executives from both firms, targeting $1 billion in annual pre-tax synergies by year-end 2027. Under the agreement, Coterra shareholders will receive 0.70 Devon Energy shares for each Coterra share held, resulting in approximately 54% ownership for Devon shareholders and 46% for Coterra shareholders. The deal is expected to close in the second quarter of 2026, subject to customary approvals.
CTRA’s Production & Price Realizations
The average fourth-quarter daily production increased 19.3% from the year-ago level to 813.1 thousand barrels of oil equivalent (Mboe). Additionally, the figure surpassed the Zacks Consensus Estimate of 794 Mboe.
Turning to specific production types, oil production rose 55.6% to 175.8 thousand barrels (MBbl) per day. The figure was in line with the Zacks Consensus Estimate. The daily production of natural gas increased 6.6% year over year to 2,963.5 million cubic feet (Mmcf) and beat the Zacks Consensus Estimate of 2,871 Mmcf per day. On the other end, natural gas liquids (“NGL”) production increased 36% to 143.4 MBbl per day in the quarter under review. The figure also beat the Zacks Consensus Estimate of 139 MBbl per day.
Regarding pricing, the average sales price for crude oil was $58.16 per barrel, indicating a 15.2% decrease from the prior-year level of $68.57. The figure was in line with the Zacks Consensus Estimate.
The average realized natural gas price was $2.26 per thousand cubic feet compared with $2.02 in the year-earlier period. However, the figure missed the consensus estimate of $2.38 per thousand cubic feet.
The average realized NGL was $15.63 per barrel compared with $20.94 in the year-earlier period. The figure missed the Zacks Consensus Estimate of $16.05 per barrel.
CTRA’s Q4 Costs & Expenses
In the quarter under discussion, the average unit cost rose to $19.17 per barrel of oil equivalent from the previous year's $17.31. This increase was caused by higher per-barrel costs, including a 14.8% rise in depreciation, depletion and amortization expenses, a 40% jump in direct operations expenses and a 113.8% increase in interest expense.
Additionally, total operating expenses of $1,388 million increased from the year-ago quarter’s $1,069 million.
CTRA’s Financial Position
Cash flow from operations went up 55% to $970 million, while CTRA’s cash capital expenditure for drilling, completion and other fixed asset additions totaled $581 million. The company’s free cash flow for the quarter amounted to $507 million.
As of Dec. 31, 2025, CTRA had $114 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.1 billion. Coterra had a long-term debt (net) of $3.6 billion as of the same date, indicating a debt-to-capitalization of 19.4%.
CTRA’s 2026 Guidance
Before the completion of the merger with Devon Energy, Coterra’s standalone operations expect 2026 incurred capital expenditures (non-GAAP) of roughly $2.25 billion, with a range of $2.175 to $2.325 billion, and alongside this disciplined investment approach, it has lifted the full-year outlook, now projecting total equivalent production volumes of 750-810 thousand barrels of oil equivalent per day (Mboepd), natural gas output of 2,775-2,975 million cubic feet per day (MMcfpd) and an oil range of 162-172 thousand barrels of oil per day (Mbopd). At current strip pricing and using the midpoint of planned capital spending, the company projects a reinvestment rate of around 50% and non-GAAP free cash flow of approximately $2.35 billion.
CTRA currently carries a Zacks Rank #5 (Strong Sell).
While we have discussed CTRA’s fourth-quarter results in detail, let us take a look at some other key reports in this space.
TechnipFMC plc (FTI - Free Report) reported fourth-quarter 2025 adjusted earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 51 cents. The bottom line also increased from the year-ago quarter’s reported profit of 54 cents. The outperformance is primarily driven by strong results in both the Subsea and the Surface Technologies segments.
Newcastle & Houston-based oil and gas equipment and services provider’s revenues of $2.5 billion missed the Zacks Consensus Estimate by $25 million. However, the top line increased from the year-ago quarter’s reported figure of $2.4 billion.
As of Dec. 31, 2025, FTI had cash and cash equivalents worth $1 billion and long-term debt of $395.7 million, with a debt-to-capitalization of 10.5%.
Ovintiv Inc. (OVV - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.39, which beat the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago level of $1.35. The outperformance was driven by higher plant condensate, natural gas liquids and natural gas production volumes and higher average realized natural gas prices.
The Denver, CO-based oil and gas exploration and production company’s total revenues of $2.1 billion decreased 1.9% from the year-ago quarter’s figure due to lower oil production volumes and lower average realized oil and plant condensate prices. However, the top line beat the Zacks Consensus Estimate by 10.2%.
As of Dec. 31, OVV had cash and cash equivalents worth $35 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 28.2%.
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Coterra Q4 Earnings Miss Estimates, Revenues Beat, Expenses Rise Y/Y
Key Takeaways
Coterra Energy Inc. (CTRA - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 39 cents, which missed the Zacks Consensus Estimate of 45 cents. The bottom line also decreased from the year-ago quarter’s 49 cents. The underperformance was due to weaker oil and NGL realizations and a 29.8% increase in operating expenses.
The oil and gas exploration and production firm’s operating revenues of $1.9 billion beat the Zacks Consensus Estimate by $82 million. The figure also increased 40.4% from the year-ago quarter’s level of $1.4 billion. The outperformance was driven by stronger year-over-year oil, natural gas and NGL revenues.
Coterra Energy Inc. Price, Consensus and EPS Surprise
Coterra Energy Inc. price-consensus-eps-surprise-chart | Coterra Energy Inc. Quote
In a positive move for investors, Coterra's board of directors declared a quarterly cash dividend of 22 cents per share to its common shareholders of record on March 11. The payout, which is unchanged from the previous quarter, will be made on March 25, 2026.
During the fourth quarter, CTRA delivered $170 million in cash dividends, driving total shareholder returns to nearly $263 million. During the quarter, the Houston, TX-based independent oil and gas company repurchased 4 million shares for $93 million at a weighted-average price of $24.37 per share.
CTRA’s Transformative Merger With DVN
On Feb. 2, 2026, Coterra announced an all-stock merger with Devon Energy Corporation (DVN - Free Report) to create a leading shale operator anchored by a premier Delaware Basin position. The combined company is expected to drive stronger free cash flow through a balanced commodity mix, diversified assets, AI-enabled operational enhancements and significant cost synergies. Integration is being led by senior executives from both firms, targeting $1 billion in annual pre-tax synergies by year-end 2027. Under the agreement, Coterra shareholders will receive 0.70 Devon Energy shares for each Coterra share held, resulting in approximately 54% ownership for Devon shareholders and 46% for Coterra shareholders. The deal is expected to close in the second quarter of 2026, subject to customary approvals.
CTRA’s Production & Price Realizations
The average fourth-quarter daily production increased 19.3% from the year-ago level to 813.1 thousand barrels of oil equivalent (Mboe). Additionally, the figure surpassed the Zacks Consensus Estimate of 794 Mboe.
Turning to specific production types, oil production rose 55.6% to 175.8 thousand barrels (MBbl) per day. The figure was in line with the Zacks Consensus Estimate. The daily production of natural gas increased 6.6% year over year to 2,963.5 million cubic feet (Mmcf) and beat the Zacks Consensus Estimate of 2,871 Mmcf per day. On the other end, natural gas liquids (“NGL”) production increased 36% to 143.4 MBbl per day in the quarter under review. The figure also beat the Zacks Consensus Estimate of 139 MBbl per day.
Regarding pricing, the average sales price for crude oil was $58.16 per barrel, indicating a 15.2% decrease from the prior-year level of $68.57. The figure was in line with the Zacks Consensus Estimate.
The average realized natural gas price was $2.26 per thousand cubic feet compared with $2.02 in the year-earlier period. However, the figure missed the consensus estimate of $2.38 per thousand cubic feet.
The average realized NGL was $15.63 per barrel compared with $20.94 in the year-earlier period. The figure missed the Zacks Consensus Estimate of $16.05 per barrel.
CTRA’s Q4 Costs & Expenses
In the quarter under discussion, the average unit cost rose to $19.17 per barrel of oil equivalent from the previous year's $17.31. This increase was caused by higher per-barrel costs, including a 14.8% rise in depreciation, depletion and amortization expenses, a 40% jump in direct operations expenses and a 113.8% increase in interest expense.
Additionally, total operating expenses of $1,388 million increased from the year-ago quarter’s $1,069 million.
CTRA’s Financial Position
Cash flow from operations went up 55% to $970 million, while CTRA’s cash capital expenditure for drilling, completion and other fixed asset additions totaled $581 million. The company’s free cash flow for the quarter amounted to $507 million.
As of Dec. 31, 2025, CTRA had $114 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.1 billion. Coterra had a long-term debt (net) of $3.6 billion as of the same date, indicating a debt-to-capitalization of 19.4%.
CTRA’s 2026 Guidance
Before the completion of the merger with Devon Energy, Coterra’s standalone operations expect 2026 incurred capital expenditures (non-GAAP) of roughly $2.25 billion, with a range of $2.175 to $2.325 billion, and alongside this disciplined investment approach, it has lifted the full-year outlook, now projecting total equivalent production volumes of 750-810 thousand barrels of oil equivalent per day (Mboepd), natural gas output of 2,775-2,975 million cubic feet per day (MMcfpd) and an oil range of 162-172 thousand barrels of oil per day (Mbopd). At current strip pricing and using the midpoint of planned capital spending, the company projects a reinvestment rate of around 50% and non-GAAP free cash flow of approximately $2.35 billion.
CTRA currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings at a Glance
While we have discussed CTRA’s fourth-quarter results in detail, let us take a look at some other key reports in this space.
TechnipFMC plc (FTI - Free Report) reported fourth-quarter 2025 adjusted earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 51 cents. The bottom line also increased from the year-ago quarter’s reported profit of 54 cents. The outperformance is primarily driven by strong results in both the Subsea and the Surface Technologies segments.
Newcastle & Houston-based oil and gas equipment and services provider’s revenues of $2.5 billion missed the Zacks Consensus Estimate by $25 million. However, the top line increased from the year-ago quarter’s reported figure of $2.4 billion.
As of Dec. 31, 2025, FTI had cash and cash equivalents worth $1 billion and long-term debt of $395.7 million, with a debt-to-capitalization of 10.5%.
Ovintiv Inc. (OVV - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.39, which beat the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago level of $1.35. The outperformance was driven by higher plant condensate, natural gas liquids and natural gas production volumes and higher average realized natural gas prices.
The Denver, CO-based oil and gas exploration and production company’s total revenues of $2.1 billion decreased 1.9% from the year-ago quarter’s figure due to lower oil production volumes and lower average realized oil and plant condensate prices. However, the top line beat the Zacks Consensus Estimate by 10.2%.
As of Dec. 31, OVV had cash and cash equivalents worth $35 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 28.2%.