Sector: Energy | Focus: Oil & Gas Exploration & Production
HQ: Houston, Texas
Financial Risks
Coterra faces market risk from fluctuating commodity prices (oil, natural gas, NGLs), potentially impacting production revenues and property values. Interest rate movements on debt could affect borrowing costs. Legal proceedings, including class action and derivative lawsuits, and potential EPA fines/penalties, pose significant financial risks. Geopolitical events and supply chain disruptions could further exacerbate these risks.
Financial Upside
Coterra's production volumes, particularly oil, have increased in recent periods. Higher cash flow from operations, combined with available borrowing capacity, supports capital expenditures. The company has issued new debt and amended its credit agreement, potentially increasing its financial flexibility. Share repurchases and dividend increases represent potential value creation for shareholders.
