Coterra Energy Bolsters Permian Basin Presence with Strategic Acquisitions

Coterra Energy Inc. (NYSE: CTRA) has successfully closed its previously announced acquisitions of key assets from Franklin Mountain Energy and Avant Natural Resources, further strengthening its position in the Permian Basin. The dual acquisitions, valued at approximately $3.9 billion, have added approximately 49,000 highly contiguous net acres and 400 to 550 net locations to Coterra's portfolio, primarily targeting Bone Spring formations with additional upside potential.

Tom Jorden, Chairman, CEO, and President of Coterra, expressed his enthusiasm about the closed transactions, stating, "Through the hard work of Franklin Mountain Energy, Avant Natural Resources, and the Coterra team, we are pleased to have closed the two previously announced acquisitions on schedule. We expect to immediately hit the ground running and, in coordination with our year-end 2024 earnings release in February, we are excited to share our 2025 formal guidance as well as an updated three-year outlook."

The acquired assets are expected to generate significant oil volumes in 2025, providing inventory upside to established and emerging oil-weighted formations. The newly scaled platform offers a long runway for capital-efficient development and substantial free cash flow generation. Coterra remains committed to maintaining an industry-leading balance sheet and liquidity, with an estimated year-end 2025 Net Leverage Ratio of 0.6x, which is expected to remain below 1.0x, even in a low commodity price environment ($55/bbl and $2.50/MMBtu).



The acquisitions are highly accretive, with an estimated 15% increase in 2025-2027 per share Discretionary Cash Flow and Free Cash Flow, and accretive to Net Asset Value per share. Coterra expects to reinvest approximately 50% of Discretionary Cash Flow in 2025, assuming $70/bbl WTI and $3.00/MMBtu Henry Hub. The company anticipates 2025 oil production of 150-to-170 mbod, an increase of approximately 49% compared to the estimated 2024 mid-point of oil guidance, and total equivalent production of 720-760 mboed, an increase of approximately 11% compared to the estimated 2024 mid-point of total equivalent production guidance.



Coterra's strategic acquisitions in the Permian Basin have not only expanded its core area in New Mexico but also provided a deep pro forma inventory with over 15 years of runway in the Permian Basin. The company's commitment to disciplined growth, robust cash flow generation, and long-term shareholder value has been reinforced by these acquisitions. As Coterra continues to execute its strategic pursuits and goals, investors can expect the company to maintain its position as a premier Permian Basin operator.