Coterra Energy 2025 Q3 Earnings Revenue Surges 33.2% as Net Income Grows 27.8%

Coterra Energy (CTRA) delivered robust Q3 2025 results, surpassing revenue expectations and raising production guidance. The company reported $1.82 billion in revenue, a 33.2% year-over-year increase, driven by strong performance across all segments. It also updated 2025 full-year production forecasts and reaffirmed its capital efficiency strategy.

Revenue

Coterra Energy’s total revenue surged to $1.82 billion in Q3 2025, a 33.2% increase from $1.33 billion in the same period last year. Oil production led the growth, contributing $984 million, while natural gas and NGLs added $519 million and $213 million, respectively. Derivative gains and other revenue streams further bolstered the top line, with derivative instruments adding $62 million and miscellaneous income reaching $39 million. The company’s diversified portfolio across core U.S. basins, including the Permian, Marcellus, and Anadarko, underpinned the strong performance.

Earnings/Net Income

Earnings per share (EPS) rose 23.5% to $0.42 in Q3 2025, outpacing the $0.34 reported in Q3 2024. Net income also expanded, reaching $322 million—a 27.8% increase from $252 million in the prior-year quarter. The company’s profitability reflects disciplined cost management and operational efficiency, with the CEO emphasizing a conservative reinvestment rate and robust balance sheet strength.

Price Action

Coterra Energy’s stock price gained 2.74% on the latest trading day, 3.04% over the week, and 5.36% month-to-date.

Post-Earnings Price Action Review

The stock’s post-earnings performance aligns with its recent momentum, driven by strong operational execution and updated guidance. Investors responded positively to the company’s production updates and debt-reduction progress, with the stock outperforming broader energy sector benchmarks. Analysts highlighted Coterra’s capital efficiency and low-cost operations as key differentiators, though some tempered expectations with revised price targets. The company’s share repurchase program, resuming in October, further supports near-term confidence.

CEO Commentary

Tom Jorden, Coterra’s CEO, underscored the company’s operational excellence in Q3 2025, with production nearing guidance highs. He attributed the success to the Permian Basin’s nine-rig, three-completion-crew program, which delivered competitive drilling costs and returns. Jorden emphasized Coterra’s conservative reinvestment rate (~55%) and strong balance sheet, which provide flexibility across commodity cycles. The CEO also reiterated confidence in the asset base and capital efficiency, reiterating the company’s commitment to debt reduction and shareholder returns.

Guidance

Coterra Energy raised its 2025 full-year production guidance, now targeting 772–782 MBoepd of total equivalent output, up from 740–770 MBoepd. Oil production guidance was narrowed to 159–161 MBopd, while natural gas increased to 2,925–2,965 MMcfpd. Capital expenditures are expected to remain near $2.3 billion, with a reinvestment rate of ~55% and free cash flow of ~$2.0 billion. For Q4 2025, production is projected at 770–810 MBoepd, with $530 million in capex. The company also outlined 2026 plans, including modest capex declines and oil growth of ~5%.

Additional News

Coterra Energy announced a $0.22/share quarterly dividend, maintaining its annualized yield of 3.8%, and resumed share buybacks in October under its $2 billion repurchase program. The company has returned $551 million to shareholders by September 2025 and plans to continue strategic buybacks in Q4. Meanwhile, Elm Partners Management LLC acquired 27,540 shares, reflecting growing institutional interest. The company’s financial health remains robust, with a debt-to-equity ratio of 0.29 and $2.1 billion in liquidity, including $98 million in cash and no debt under its revolving credit facility.

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