NYSE · Energy

Coterra Energy Inc.

CTRA · Oil & Gas E&P

$32.56

▲ 0 (0%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 37.4%

Operating Margin 29.1%

Net Income Margin 18.8%

Fin. Health

D⤢

Years to Pay Off Debt 10.9 yrs

Working Capital vs Long-Term Debt -$3.3B

Working Capital $292M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.67x

Cash Flow

C⤢

Free Cash Flow $376M

CapEx % of Net Income 161.4%

Owner Earnings $1.6B

Profitability

Gross Profit Margin 37.4%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 29.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 18.8%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 10.9 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$3.3B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $292M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $376M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 161.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Coterra Energy Inc.

Coterra Energy Inc., an independent oil and gas company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company's properties include the Permian Basin, which covers approximately 345,000 net acres in the Delaware Basin in west Texas and southeast New Mexico, and an additional approximate of 49,000 net acres in the Delaware Basin in Lea County, New Mexico; Marcellus Shale properties, which covers approximately 186,000 net acres located in Susquehanna County, northeast Pennsylvania; and Anadarko Basin, which covers approximately 208,000 net acres located in the mid-continent region in Oklahoma. It also operates natural gas and saltwater gathering, and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, energy companies, pipeline companies, and power generation facilities. The company was formerly known as Cabot Oil & Gas Corporation and changed its name to Coterra Energy Inc. in October 2021. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.

Market Data

Market Cap $24.7B

Enterprise Value $27.9B

P/E (TTM) 15.00

Dividend Yield 2.47%

Exchange NYSE

Key Margins

Gross Profit 37.4%

Operating Margin 29.1%

Net Margin 18.8%

Company Info

Sector Energy

Industry Oil & Gas E&P

Employees 1075

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Coterra Energy Inc. at $32.56.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $32.56, the stock trades at a 118% premium to its Graham Number of $14.97. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q4 2025	Q4 2024
Gross Profit %	37.4%▲	35.6%
Operating Margin %	29.1%▲	23.4%
Net Income %	18.8%▼	21.3%
Diluted EPS	0.51▲	0.40

Balance Sheet Highlights

Metric	Q4 2025	Q4 2024
Total Assets	$24.2B	$21.6B
Total Debt	$4.0B▲	$3.8B
Working Capital	$292M▼	$2.2B
Years to Pay Debt	10.92	12.80

Cash Flow Highlights

Metric	Q4 2025	Q4 2024
Free Cash Flow	$376M▲	$190M
Owner Earnings	$1.6B	$1.2B
CapEx % of Net Income	161.4%	146.8%

Income Statement

	2025	2024
Tax Effect Of Unusual Items	0	0
Tax Rate For Calcs	0	0
Normalized EBITDA	1,256,000	835,000
Total Unusual Items	0	0
Total Unusual Items Excluding Goodwill	0	0
Net Income From Continuing Operation Net Minority Interest	368,000	297,000
Reconciled Depreciation	677,000	499,000
Reconciled Cost Of Revenue	1,226,000	899,000
EBITDA	1,256,000	835,000
EBIT	579,000	336,000
Net Interest Income	-47,000	-18,000
Interest Expense	54,000	28,000
Interest Income	7,000	16,000
Normalized Income	368,000	297,000
Net Income From Continuing And Discontinued Operation	368,000	297,000
Total Expenses	1,388,000	1,069,000
Total Operating Income As Reported	571,000	326,000
Diluted Average Shares	762,000	736,000
Basic Average Shares	762,000	736,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	368,000	298,000
Net Income Common Stockholders	368,000	298,000
Otherunder Preferred Stock Dividend	0	-1,000
Net Income	368,000	297,000
Net Income Including Noncontrolling Interests	368,000	297,000
Net Income Continuous Operations	368,000	297,000
Tax Provision	157,000	11,000
Pretax Income	525,000	308,000
Other Income Expense	1,000	0
Other Non Operating Income Expenses	1,000
Special Income Charges	0	0
Gain On Sale Of Ppe	0	0
Net Non Operating Interest Income Expense	-47,000	-18,000
Total Other Finance Cost	0	6,000
Interest Expense Non Operating	54,000	28,000
Interest Income Non Operating	7,000	16,000
Operating Income	571,000	326,000
Operating Expense	162,000	170,000
Other Operating Expenses	8,000	9,000
Other Taxes	90,000	77,000
Selling General And Administration	64,000	84,000
General And Administrative Expense	64,000	84,000
Other Gand A	44,000	65,000
Salaries And Wages	20,000	19,000
Gross Profit	733,000	496,000
Cost Of Revenue	1,226,000	899,000
Total Revenue	1,959,000	1,395,000
Operating Revenue	1,762,000	1,432,000

Balance Sheet

	2025	2024
Ordinary Shares Number	760,000	735,000
Share Issued	760,000	735,000
Net Debt	3,704,000	1,497,000
Total Debt	4,017,000	3,802,000
Tangible Book Value	14,838,000	13,122,000
Invested Capital	18,656,000	16,657,000
Working Capital	292,000	2,185,000
Net Tangible Assets	14,838,000	13,122,000
Capital Lease Obligations	199,000	267,000
Common Stock Equity	14,838,000	13,122,000
Total Capitalization	18,406,000	16,657,000
Total Equity Gross Minority Interest	14,838,000	13,122,000
Stockholders Equity	14,838,000	13,122,000
Gains Losses Not Affecting Retained Earnings	14,000	12,000
Other Equity Adjustments	14,000	12,000
Retained Earnings	6,894,000	5,857,000
Additional Paid In Capital	7,854,000	7,179,000
Capital Stock	76,000	74,000
Common Stock	76,000	74,000
Total Liabilities Net Minority Interest	9,403,000	8,503,000
Total Non Current Liabilities Net Minority Interest	7,846,000	7,367,000
Other Non Current Liabilities	87,000	77,000
Preferred Securities Outside Stock Equity	8,000	8,000
Derivative Product Liabilities	0	4,000
Employee Benefits	10,000	16,000
Non Current Pension And Other Postretirement Benefit Plans	10,000	16,000
Non Current Deferred Liabilities	3,724,000	3,291,000
Non Current Deferred Taxes Liabilities	3,703,000	3,274,000
Long Term Debt And Capital Lease Obligation	3,688,000	3,680,000
Long Term Capital Lease Obligation	120,000	145,000
Long Term Debt	3,568,000	3,535,000
Long Term Provisions	329,000	291,000
Current Liabilities	1,557,000	1,136,000
Other Current Liabilities	2,000	17,000
Current Debt And Capital Lease Obligation	329,000	122,000
Current Capital Lease Obligation	79,000	122,000
Current Debt	250,000
Other Current Borrowings	250,000
Pensionand Other Post Retirement Benefit Plans Current	82,000	76,000
Payables And Accrued Expenses	1,144,000	921,000
Current Accrued Expenses	448,000	352,000
Interest Payable	54,000	27,000
Payables	696,000	569,000
Other Payable	502,000	427,000
Total Tax Payable	104,000	83,000
Income Tax Payable
Accounts Payable	90,000	59,000
Total Assets	24,241,000	21,625,000
Total Non Current Assets	22,392,000	18,304,000
Other Non Current Assets	120,000	136,000
Non Current Deferred Assets	29,000	27,000
Financial Assets	3,000	0
Net PPE	22,240,000	18,141,000
Accumulated Depreciation	-11,169,000	-8,839,000
Gross PPE	33,409,000	26,980,000
Other Properties	452,000	490,000
Current Assets	1,849,000	3,321,000
Other Current Assets	28,000	1,000
Hedging Assets Current	235,000	12,000
Restricted Cash	5,000	239,000
Prepaid Assets	10,000	14,000
Inventory	48,000	46,000
Other Inventories	5,000	13,000
Finished Goods	43,000	33,000
Raw Materials
Receivables	1,409,000	971,000
Receivables Adjustments Allowances	-3,000	-2,000
Other Receivables	29,000
Duefrom Related Parties Current	214,000	133,000
Taxes Receivable	201,000	20,000
Accounts Receivable	968,000	820,000
Cash Cash Equivalents And Short Term Investments	114,000	2,038,000
Cash And Cash Equivalents	114,000	2,038,000
Cash Financial

Cash Flow

	2025	2024
Free Cash Flow	376,000	190,000
Repurchase Of Capital Stock	-90,000	-54,000
Repayment Of Debt	-400,000	0
Issuance Of Debt	300,000	1,491,000
Capital Expenditure	-594,000	-436,000
End Cash Position	119,000	2,277,000
Beginning Cash Position	103,000	848,000
Changes In Cash	16,000	1,429,000
Financing Cash Flow	-359,000	1,238,000
Cash Flow From Continuing Financing Activities	-359,000	1,238,000
Net Other Financing Charges	-1,000	-44,000
Cash Dividends Paid	-168,000	-155,000
Common Stock Dividend Paid	-168,000	-155,000
Net Common Stock Issuance	-90,000	-54,000
Common Stock Payments	-90,000	-54,000
Net Issuance Payments Of Debt	-100,000	1,491,000
Net Long Term Debt Issuance	-100,000	1,491,000
Long Term Debt Payments	-400,000	0
Long Term Debt Issuance	300,000	1,491,000
Investing Cash Flow	-595,000	-435,000
Cash Flow From Continuing Investing Activities	-595,000	-435,000
Net Other Investing Changes	-1,000	1,000
Net Business Purchase And Sale	0
Purchase Of Business	0
Capital Expenditure Reported	-594,000	-436,000
Operating Cash Flow	970,000	626,000
Cash Flow From Continuing Operating Activities	970,000	626,000
Change In Working Capital	-118,000	-150,000
Change In Other Working Capital	-28,000	-32,000
Change In Other Current Assets	-21,000	14,000
Change In Payables And Accrued Expense	115,000	55,000
Change In Accrued Expense	29,000	11,000
Change In Interest Payable	29,000	11,000
Change In Payable	86,000	44,000
Change In Account Payable	86,000	44,000
Change In Inventory	13,000	0
Change In Receivables	-197,000	-187,000
Changes In Account Receivables	-197,000	-187,000
Other Non Cash Items	43,000	-4,000
Stock Based Compensation	19,000	18,000
Deferred Tax	150,000	-85,000
Deferred Income Tax	150,000	-85,000
Depreciation Amortization Depletion	677,000	499,000
Depletion	-1,579,000	-1,251,000
Depreciation And Amortization	2,256,000	1,750,000
Depreciation	2,256,000	1,750,000
Operating Gains Losses	-169,000
Gain Loss On Investment Securities	-169,000	51,000
Net Income From Continuing Operations	368,000	297,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.4B ▲ $2.0B +40.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 35.6% ▲ 37.4% +1.9pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 40.9% ▲ 29.1% -11.8pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 21.3% ▲ 18.8% -2.5pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$2.0B/qtr (≈$7.8B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.19x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$376M

vs Positive

Operating Cash Flow

$970M

Latest quarter · Buffett's cash reality check

ROIC

2.0%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.7x

Net Assets: $14.8B

Asset Context — Oil & Gas E&P

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Oil & Gas E&P. You can manually compare CTRA against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.93%

Low — management has little skin in the game

Return on Equity (ROE)

2.5%

Weak — poor returns on equity

Return on Assets (ROA)

1.5%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$141M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-2.4% YoY

Debt is declining — management is deleveraging

Leadership Team

Thomas Jorden

CEO, President & Chairman

Age 68

Pay: $4,241,850

1.153% of net income

Shannon Young III

Executive VP & CFO

Age 53

Pay: $2,121,411

0.576% of net income

Michael Deshazer

Executive Vice President of Operations

Age 39

Pay: $1,618,540

0.440% of net income

Blake Sirgo

Executive Vice President of Business Units

Age 42

Pay: $1,578,147

0.429% of net income

Todd Liebl

Senior Vice President of Land

Age 67

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.67%	96,202,408
Wellington Management Group, LLP	10.10%	76,696,789
Blackrock Inc.	8.04%	61,064,369
State Street Corporation	5.87%	44,564,720
Davis Selected Advisers	4.28%	32,537,508
Aristotle Capital Management, LLC	3.84%	29,122,162
Charles Schwab Investment Management, Inc.	3.65%	27,716,896
Victory Capital Management Inc.	2.90%	21,986,795

Risk Analysis

Beta (Market Risk)

0.30

Low volatility — more stable than the market

Short Interest

2.8% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.24x

Conservative balance sheet — low financial risk

Current Ratio

1.00x

Adequate liquidity

52-Week Price Range

Low: $22.33 Current: $32.56 High: $36.88

Currently at 70% of 52-week range

Coterra Energy Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis