Coterra Energy Inc. (Coterra), an independent oil and gas company, engages in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs).
The company’s assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable development programs. The company operates in one segment, oil and natural gas development, exploration, and production, in the continental U.S.
Strategy
Coterra is a premier U.S.-focused explorat...
Coterra Energy Inc. (Coterra), an independent oil and gas company, engages in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs).
The company’s assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable development programs. The company operates in one segment, oil and natural gas development, exploration, and production, in the continental U.S.
Strategy
Coterra is a premier U.S.-focused exploration and production company. The company embraces innovation, technology, and data, as it works to create value for its investors and the communities where it operates.
Acquisitions
Franklin Mountain Energy (FME) Acquisition
In January 2025, the company closed on its acquisition of all of the issued and outstanding equity ownership interests of a group of privately owned oil and gas exploration and production companies with assets and operations in the Delaware Basin of New Mexico (the ‘FME Interests’).
Avant Acquisition
In January 2025, the company closed on the acquisition of certain interests in oil and gas properties located in the Delaware Basin in New Mexico.
Properties
The company’s operations are primarily concentrated in three core operating areas—the Permian Basin in west Texas and southeast New Mexico, the Marcellus Shale in northeast Pennsylvania, and the Anadarko Basin in the Mid-Continent region in Oklahoma.
Permian Basin
The company’s properties are principally located in the western half of the Permian Basin where it holds approximately 297,000 net acres in its core operating area in the Delaware Basin. The company’s development activities are primarily focused on the Wolfcamp Shale and the Bone Spring formation in Culberson and Reeves Counties in Texas, and Lea and Eddy Counties in New Mexico. The company’s 2024 net production from the Permian Basin was 262 MBoe per day, representing 39 percent of its total equivalent production for the year. Net oil production in 2024 averaged 101 MBbl per day, representing 93 percent of the company's total oil production. As of December 31, 2024, the company had a total of 1,162.6 producing net wells in the Permian Basin, of which approximately 90 percent are operated by it.
In January 2025, the company completed the FME and Avant acquisitions. With the completion of these acquisitions, the company added approximately 49,000 net acres in the Delaware Basin in Lea County, New Mexico, and 290.7 producing net wells to its portfolio.
Marcellus Shale
The company’s properties are principally located in Susquehanna County, Pennsylvania, where it holds approximately 186,000 net acres in the dry gas window of the Marcellus Shale. The company’s 2024 net production in the Marcellus Shale was 350 MBoe (one thousand barrels of oil equivalent) per day, representing 52 percent of its total equivalent production for the year. Net natural gas production in 2024 averaged 2,099 MMcf (one million cubic feet of natural gas) per day, representing 75 percent of the company’s total natural gas production. As of December 31, 2024, the company had a total of 1,135.1 producing net wells in the Marcellus Shale, of which over 99 percent are operated by it.
Anadarko Basin
The company’s properties are located in the Mid-Continent region in Oklahoma, where it holds approximately 181,000 net acres. The company’s development activities are primarily focused on both the Woodford Shale and the Meramec formations. The company’s 2024 net production in the Anadarko Basin was 64 MBoe per day, representing nine percent of its total equivalent production for the year. As of December 31, 2024, the company had a total of 527.2 producing net wells in the Anadarko Basin, of which approximately 62 percent are operated by it.
Other Properties
Ancillary to the company’s exploration, development, and production operations, it operates a number of natural gas gathering and saltwater gathering and disposal systems. The majority of this infrastructure is located in Texas and directly supports the company’s Permian Basin operations. The company’s gathering systems enable it to connect new wells quickly, and to transport natural gas from the wellhead directly to interstate and intrastate pipelines and natural gas processing facilities, and to transport produced water to new wells for re-use in completions activities, and to disposal facilities.
Marketing
Substantially all of the company’s oil and natural gas production is sold under both long-term and short-term sales contracts at market-sensitive prices. The company sells oil, natural gas, and NGLs to a broad portfolio of domestic and international customers, including industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities.
The company also incurs gathering and transportation expenses when it moves its oil and natural gas production from wellhead markets to other downstream markets.
Major Customers
During the year ended December 31, 2024, two customers accounted for approximately 21 percent and 19 percent of the company’s total sales. The company regularly monitors the creditworthiness of its customers and may require parent company guarantees, letters of credit, or prepayments when necessary.
Regulation of Natural Gas Marketing, Gathering, and Transportation
The U.S. Federal Energy Regulatory Commission (the ‘FERC’) granted to all producers, such as the company, a ‘blanket certificate of public convenience and necessity’ authorizing the sale of natural gas for resale without further FERC approvals.
Federal Regulation of Swap Transactions
The Commodity Exchange Act provides the U.S. Commodity Futures Trading Commission (the ‘CFTC’) with jurisdiction to regulate the over-the-counter (‘OTC’) derivatives market (which includes the sorts of financial instruments the company uses) and participants in that market. The company endeavours to ensure that its OTC derivatives transactions comply with applicable CFTC regulations.
Environmental and Safety Regulations
The company generates some wastes that are hazardous wastes subject to the Resource Conservation and Recovery Act (the ‘RCRA’) and comparable state statutes, as well as wastes that are exempt from such regulation.
The company’s operations are subject to the federal Clean Air Act (the ‘Clean Air Act’) and comparable local and state laws and regulations to control emissions from sources of air pollution.
The company is subject to the requirements of the U.S. federal Occupational Safety and Health Act (the ‘Occupational Safety and Health Act’) and comparable state laws. The Occupational Safety and Health Act hazard communication standard, the EPA community right-to-know regulations under Title III of CERCLA, and similar state laws require that the company organizes and discloses information about hazardous materials used or produced in its operations. Also, pursuant to the Occupational Safety and Health Act, the Occupational Safety and Health Administration (the ‘OSHA’) has established a variety of standards related to workplace exposure to hazardous substances and employee health and safety.
History
Coterra Energy Inc. was incorporated in 1989.