Coterra Energy Posts Q3 2025 Results, Declares Dividend,

Coterra Energy Reports Strong Q3 2025 Results, Declares Dividend, and Updates Guidance

Coterra Energy Inc. (NYSE: CTRA) (“Coterra” or the “Company”) announced its third-quarter 2025 financial and operational results, declared a quarterly dividend of $0.22 per share, and provided updated guidance for the fourth quarter and full year of 2025.

Operational and Financial Performance

Chairman, CEO, and President Tom Jorden highlighted the company’s solid execution and efficiency across its diverse asset base. “We are pleased with our strong operational execution during the quarter and are on track to meet or exceed our annual targets,” said Jorden. “Our nine-rig and three-completion crew program in the Permian continues to be capital efficient and cost-effective, while our Marcellus and Anadarko assets are also delivering competitive returns. The durability of our high-quality asset portfolio continues to shine across various price cycles.”

Jorden emphasized that Coterra’s success stems from the quality of its assets, low costs, and high margins, supported by a conservative reinvestment rate and strong balance sheet. “These attributes, in the hands of a high-performing organization, differentiate Coterra,” he added.

Key Highlights and Updates

Production Performance:
Total barrels of oil equivalent (BOE), natural gas, and oil production were all near the high end of guidance, exceeding midpoints by about 2.5%.
Capital Expenditures:
Incurred capital expenditures (non-GAAP) totaled $658 million, near the midpoint of the guidance range of $625–$675 million.
Full-Year 2025 Guidance:
Coterra raised its full-year total equivalent and natural gas production guidance while narrowing the oil production range. Full-year capital expenditures are expected to remain around $2.3 billion, assuming nine rigs in the Permian, one to two rigs in the Marcellus, and one in the Anadarko. The reinvestment rate is expected to be about 55% of discretionary cash flow (non-GAAP).
Free Cash Flow:
Coterra projects $2.0 billion in 2025 free cash flow at recent commodity strip prices.
Debt Reduction and Dividends:
The company declared a $0.22 per share quarterly dividend (approximately $168 million) and repaid $250 million in term loans during the quarter.
Leasing Activity:
Coterra accelerated its leasing efforts, acquiring $86 million in new leasehold year-to-date, in addition to its regular acreage trade optimizations.

Looking to 2026, Coterra expects slightly lower capital spending than 2025 while maintaining 0–5% annual BOE growth and around 5% annual oil growth. The company anticipates a reinvestment rate at or below 50% based on current strip pricing.

Third-Quarter 2025 Financial Results

Net Income (GAAP): $322 million, or $0.42 per share
Adjusted Net Income (non-GAAP): $312 million, or $0.41 per share
Cash Flow from Operations (GAAP): $971 million
Discretionary Cash Flow (non-GAAP): $1.15 billion
Free Cash Flow (non-GAAP): $533 million
Capital Expenditures: $615 million (cash basis); $658 million incurred (non-GAAP)
Operating Costs: $9.81 per BOE, slightly above the midpoint of the annual range

Coterra turned 48 net wells in-line during the quarter—38 in the Permian, 6 in the Anadarko Basin, and 4 in the Marcellus—generally in line with prior guidance.

Production and Pricing

Total Equivalent Production: 785 MBoepd (near high end of 740–790 guidance)
Oil Production: 166.8 MBopd (near high end of 158–168 guidance)
Natural Gas Production: 2,894.6 MMcfpd (near high end of 2,750–2,900 guidance)
NGL Production: 135.8 MBopd

Realized Prices (excluding hedges):

Oil: $64.10 per barrel ($64.79 including hedges)
Natural Gas: $1.95 per Mcf ($2.05 including hedges)
NGLs: $17.02 per barrel

Shareholder Returns

Quarterly Dividend:
On November 3, 2025, Coterra’s Board declared a $0.22 per share dividend, representing a 3.8% annualized yield based on the October 30 share price of $23.40. The dividend will be paid November 26, 2025, to shareholders of record on November 13, 2025. Total dividends for the year will reach $504 million, with total shareholder returns of nearly $551 million through September 2025.
Share Repurchases:
As of September 30, 2025, Coterra had $1.1 billion remaining on its $2.0 billion repurchase authorization. No shares were repurchased during Q3 as the company prioritized debt repayment, but buybacks resumed in October.
Capital Allocation Strategy:
Coterra remains committed to returning at least 50% of free cash flow to shareholders while maintaining balance sheet strength. In 2025, after paying dividends, the company retired $600 million of its $1 billion term loans tied to its Delaware Basin acquisition.