Coterra (CTRA) FY2024 10-K Annual Report

Filed: Feb 25, 2025
Energy
Crude Petroleum & Natural GasSEC EDGAR

Coterra (CTRA) 10-K annual report for fiscal year 2024, filed with SEC EDGAR on Feb 25, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Coterra FY2024 10-K Analysis

Business Overview

  • Core business model: Exploration, development, and production of oil and natural gas resources
  • New acquisitions: Membership Interest Purchase Agreement with Franklin Mountain Energy Holdings effective November 12, 2024
  • Strategic financing: Issued multiple senior notes including 5.60% due 2034 and 5.40%-5.90% due 2035 and 2055
  • Equity incentives: Introduced 2023 Equity Incentive Plan for executives and non-employee directors
  • Noteworthy filing fact: Extensive incorporation by reference to Proxy Statement and prior reports; no standalone Business section details provided

Management Discussion & Analysis

  • Derivative usage includes collars, swaps, basis swaps to manage commodity price risk
  • Derivatives limit upside benefits of commodity price increases, introduce financial loss risks
  • Risks include adverse price differential changes, lower production, counterparty default
  • Regulatory changes and reduced derivatives market liquidity may increase derivative costs and exposure
  • Potential for greater earnings volatility and less predictable cash flow if swap use declines

Risk Factors

  • Regulatory risk: potential delays/restrictions from renewable energy and emissions laws amid climate change focus impacting permitting and project development
  • Geopolitical risk: LNG export demand threatened by China’s recently announced retaliatory LNG tariffs in 2025
  • Operational vulnerability: natural gas production curtailed by 232 MMcf per day Aug-Nov 2024 due to low prices and pipeline constraints
  • Competitive risk: increased Permian Basin capital spending post $4.0B FME and Avant acquisitions closed Jan 2025 to maintain market position
  • Financial risk: total debt rose to $3.54B (21% of capitalization) at Dec 31, 2024 after issuance of $2.0B senior notes and $1.0B term loan for acquisitions

Coterra FY2024 Key Financial Metrics
XBRL

Revenue

$5.5B

-3.9% YoY

Net Income

$1.1B

-31.0% YoY

Operating Margin

25.4%

-1246bp YoY

Net Margin

20.5%

-806bp YoY

ROE

8.5%

-392bp YoY

Total Assets

$21.6B

+5.9% YoY

EPS (Diluted)

$1.50

-29.6% YoY

Operating Cash Flow

$2.8B

-23.6% YoY

Source: XBRL data from Coterra FY2024 10-K filing on SEC EDGAR. All figures in USD.

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