Coterra Energy Inc
Q4 2025 Earnings
Market Reaction
Did CTRA Beat Earnings? Q4 2025 Results
Coterra Energy closed out Q4 2025 with a notable earnings miss, reporting adjusted EPS of $0.39 against a consensus estimate of $0.52, a shortfall of 24.39%, while revenue of $1.96 billion came in 2.04% below the $2.00 billion expected, even as the top line climbed 35.5% year-over-year. The primary culprit was a sharp decline in realized oil prices, which fell to $58.16 per barrel from $68.57 a year earlier, offsetting the production momentum that saw total equivalent output reach 813.1 MBoepd, ahead of guidance. The quarter's results arrive against a transformative backdrop, with Coterra's pending all-stock merger with Devon Energy, announced February 2, 2026, set to reshape the Delaware Basin competitive landscape and target $1.00 billion in annual pre-tax synergies by year-end 2027. Analysts have raised price targets on Devon in anticipation of the deal, reflecting cautious optimism around the combined entity. Looking ahead, standalone Coterra guided 2026 production of 750 to 810 MBoepd and free cash flow of approximately $2.35 billion, with the merger expected to close in Q2 2026.
- Efficient capital allocation and strong operational execution
- Production volumes exceeding high-end of guidance for total BOE and natural gas
- Successful integration of Delaware Basin acquisitions closed in January 2025
- Strong well results in Q4 drove production beat
- Natural gas price improvement to $2.26/Mcf from $2.02/Mcf year-over-year
- Annual reinvestment rate of 54%
“Coterra's strong fourth-quarter and full-year 2025 results were driven by efficient capital allocation and strong execution, and are a testament to the quality of our assets and the dedication and professionalism of our employees. Prioritizing safety, financial strength, and shareholder value creation, Coterra is well positioned for a highly capital efficient 2026.”
Coterra Energy CEO, on the earnings call
Forward Guidance & Outlook
For 2026 (standalone Coterra, pre-merger), the company expects total production of 750 to 810 MBoepd, natural gas production of 2,775 to 2,975 MMcfpd, and oil production of 162 to 172 MBopd. Full-year capital expenditures are expected at $2.25 billion (range $2.175 to $2.325 billion), with capital modestly weighted toward the first half. Based on recent strip prices and mid-point capex, the company expects a reinvestment rate of approximately 50% and free cash flow of $2.35 billion. Q1 production is anticipated below the annual average due to winter storm Fern impact. The Devon-Coterra merger is expected to close in Q2 2026, at which point combined-entity guidance will be provided. The combined company targets $1 billion per year in pre-tax run-rate synergies by year-end 2027.
CTRA YoY Financials
CTRA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.