# Coterra Energy Inc. (CTRA) Informational only - not investment advice. CIK: 0000858470 SIC: 1311 Crude Petroleum & Natural Gas SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1311 Crude Petroleum & Natural Gas](/industry/1311/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=858470 Filing source: https://www.sec.gov/Archives/edgar/data/858470/000085847026000073/cog-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0000858470-26-000073 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000858470.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 7,645,000,000 USD | 2025 | verified | | Net income | 1,717,000,000 USD | 2025 | verified | | Assets | 24,241,000,000 USD | 2025 | verified | | Net margin | 22.46% | 2025 | computed | | Operating margin | 32.07% | 2025 | computed | | Revenue YoY | +40.07% | 2025 | computed | | ROE | 11.57% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. Peer groups: [Oil and gas E&P](/compare/oil-gas-ep/) · SIC 1311 Crude Petroleum & Natural Gas No market price, no rating, no forecast on this site. Not investment advice. ## Peer comparisons including CTRA - Oil and gas E&P: [peer review](/compare/oil-gas-ep/) · [market-risk page](/compare/oil-gas-ep/risk/) ### Peer percentile fingerprint | Ratio | CTRA | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 22.5% | 11.9% | 85 | 42 | | Operating margin | 32.1% | 11.9% | 83 | 36 | | Revenue growth | 40.1% | 12.2% | 76 | 42 | | FCF margin | 50.9% | 15.0% | 100 | 18 | | ROE | 11.6% | 8.9% | 62 | 43 | | ROA | 7.1% | 4.9% | 77 | 44 | | Liabilities / equity | 0.63 | 0.90 | 24 | 43 | | Current ratio | 1.19 | 0.86 | 70 | 44 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1311 Crude Petroleum & Natural Gas, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 7645000000 | USD | 2025 | 2026-02-27 | | Net income | 1717000000 | USD | 2025 | 2026-02-27 | | Assets | 24241000000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000858470.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2008 | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | 1,155,677,000 | 1,764,219,000 | 2,188,148,000 | 2,066,000,000 | 1,466,000,000 | 3,449,000,000 | 9,051,000,000 | 5,914,000,000 | 5,458,000,000 | 7,645,000,000 | | Net income | 211,290,000 | 148,343,000 | 103,386,000 | | | | 681,000,000 | 201,000,000 | 1,158,000,000 | 4,065,000,000 | 1,625,000,000 | 1,121,000,000 | 1,717,000,000 | | Operating income | | | | -564,945,000 | -151,260,000 | 771,801,000 | 956,000,000 | 296,000,000 | 1,564,000,000 | 5,209,000,000 | 2,154,000,000 | 1,389,000,000 | 2,452,000,000 | | Diluted EPS | | | | -0.91 | 0.22 | 1.24 | 1.63 | 0.50 | 2.29 | 5.08 | 2.13 | 1.50 | 2.24 | | Operating cash flow | | | | 397,441,000 | 898,160,000 | 1,104,903,000 | 1,445,000,000 | 778,000,000 | 1,667,000,000 | 5,456,000,000 | 3,658,000,000 | 2,795,000,000 | 4,021,000,000 | | Capital expenditures | | | | | | | | 6,000,000 | 5,000,000 | 10,000,000 | 10,000,000 | 17,000,000 | | | Dividends paid | | | | | | | | | | 1,991,000,000 | 895,000,000 | 630,000,000 | 680,000,000 | | Share buybacks | | | | | | | | 0.00 | 0.00 | 1,250,000,000 | 405,000,000 | 455,000,000 | 141,000,000 | | Assets | | | | 5,122,569,000 | 4,727,344,000 | 4,198,829,000 | 4,487,245,000 | 4,524,000,000 | 19,900,000,000 | 20,154,000,000 | 20,415,000,000 | 21,625,000,000 | 24,241,000,000 | | Liabilities | | | | 2,554,902,000 | 2,203,439,000 | 2,110,670,000 | 2,335,758,000 | 2,308,000,000 | 8,112,000,000 | 7,484,000,000 | 7,368,000,000 | 8,495,000,000 | 9,395,000,000 | | Stockholders' equity | | | | 2,567,667,000 | 2,523,905,000 | 2,088,000,000 | 2,151,000,000 | 2,216,000,000 | 11,738,000,000 | 12,659,000,000 | 13,039,000,000 | 13,122,000,000 | 14,838,000,000 | | Cash and cash equivalents | | | | 498,542,000 | 480,047,000 | 2,287,000 | 200,227,000 | 140,000,000 | 1,036,000,000 | 673,000,000 | 956,000,000 | 2,038,000,000 | 114,000,000 | | Free cash flow | | | | | | | | 772,000,000 | 1,662,000,000 | 5,446,000,000 | 3,648,000,000 | 2,778,000,000 | | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2008 | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | 32.96% | 13.71% | 33.57% | 44.91% | 27.48% | 20.54% | 22.46% | | Operating margin | | | | -48.88% | -8.57% | 35.27% | 46.27% | 20.19% | 45.35% | 57.55% | 36.42% | 25.45% | 32.07% | | Return on equity | | | | | | | 31.66% | 9.07% | 9.87% | 32.11% | 12.46% | 8.54% | 11.57% | | Return on assets | | | | | | | 15.18% | 4.44% | 5.82% | 20.17% | 7.96% | 5.18% | 7.08% | | Liabilities / equity | | | | 1.00 | 0.87 | 1.01 | 1.09 | 1.04 | 0.69 | 0.59 | 0.57 | 0.65 | 0.63 | | Current ratio | | | | 2.78 | 1.21 | 1.90 | 1.73 | 1.07 | 1.75 | 1.85 | 1.21 | 2.92 | 1.19 | ## As-reported value updates 1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/CTRA/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000858470.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 1.52 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.50 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.88 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | 677,000,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 1,185,000,000 | | 0.27 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 209,000,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 1,356,000,000 | | 0.42 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 1,596,000,000 | 416,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 1,433,000,000 | 352,000,000 | 0.47 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 352,000,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 1,271,000,000 | | 0.29 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 220,000,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 1,359,000,000 | | 0.34 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 1,395,000,000 | 297,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 1,904,000,000 | 516,000,000 | 0.68 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 516,000,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 1,965,000,000 | | 0.67 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | 511,000,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 1,817,000,000 | | 0.42 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 1,959,000,000 | 368,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 1,947,000,000 | 466,000,000 | 0.61 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Risk Factors Verbatim Item 1A Risk Factors from CTRA's latest 10-K: [/company/CTRA/risk-factors/](/company/CTRA/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/858470/000085847026000082/ctra-20260331.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-06 Report date: 2026-03-31 ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following review of operations of Coterra Energy Inc. (“Coterra,” the “Company,” “our,” “we” and “us”) for the three month periods ended March 31, 2026 and 2025 should be read in conjunction with our Condensed Consolidated Financial Statements and the Notes included in this Quarterly Report on Form 10-Q (this “Form 10-Q”) and with the Consolidated Financial Statements, Notes and Management’s Discussion and Analysis included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed on February 27, 2026 (our “Form 10-K”). For the abbreviations and definitions of certain terms commonly used in the oil and gas industry, please see the “Glossary of Certain Oil and Gas Terms” included within our Form 10-K. OVERVIEW Pending Merger On February 1, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Devon Energy Corporation (“Devon”) to combine via an all-stock merger transaction (“Merger”). Devon is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Under terms of the Merger Agreement, at closing our stockholders will receive a fixed exchange ratio of 0.70 shares of Devon common stock for each share of our common stock. Upon completion, Devon stockholders will own approximately 54 percent of the combined company and our stockholders will own approximately 46 percent on a fully diluted basis. The respective Board of Directors of Coterra and Devon unanimously approved the Merger. The Merger Agreement contains customary pre-closing covenants, including the obligation of each of Coterra and Devon to conduct their respective businesses in the ordinary course consistent with past practice and to refrain from taking certain specified actions without the consent of the other party. Until closing, we must continue to operate as a stand-alone company. On May 4, 2026, our stockholders and Devon stockholders approved the Merger, which is expected to close on May 7, 2026, subject to customary closing conditions. Financial and Operating Overview Financial and operating results for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 reflect the following: •Net income decreased $50 million from $516 million, or $0.68 per share, in 2025 to $466 million, or $0.61 per share, in 2026. •Net cash provided by operating activities increased $502 million, from $1.1 billion in 2025 to $1.6 billion in 2026. •Equivalent production increased 2.2 MMBoe from 67.2 MMBoe, or 746.8 MBoe per day, in 2025 to 69.4 MMBoe, or 771.0 MBoe per day, in 2026. ◦Oil production increased 2.0 MMBbl from 12.7 MMBbl, or 141.2 MBbl per day, in 2025 to 14.7 MMBbl, or 163.7 MBbl per day, in 2026. ◦Natural gas production decreased 16.0 Bcf from 273.9 Bcf, or 3,043.8 MMcf per day, in 2025 to 257.9 Bcf, or 2,866.0 MMcf per day, in 2026. ◦NGL volumes increased 2.9 MMBbl from 8.8 MMBbl, or 98.3 MBbl per day, in 2025 to 11.7 MMBbl, or 129.7 MBbl per day, in 2026. •Average realized prices (including impact of derivatives): ◦Oil was $67.28 per Bbl in 2026, 3 percent lower than the $69.30 per Bbl realized in 2025. ◦Natural gas was $4.10 per Mcf in 2026, 28 percent higher than the $3.21 per Mcf realized in 2025. ◦NGL price was $16.70 per Bbl in 2026, 28 percent lower than the $23.23 per Bbl realized in 2025. •Total capital expenditures for drilling, completion and other fixed assets were $655 million in 2026 compared to $552 million in the corresponding period of the prior year. 20 Table of Contents Other financial highlights for the three months ended March 31, 2026 include the following: •Announced our quarterly dividend of $0.22 per share in February 2026. •Repaid the remaining $300 million outstanding under the Term Loan. •Repurchased and retired 1 million shares of our common stock for $32 million. Market Conditions and Commodity Prices Our financial results depend on many factors, particularly commodity prices and our ability to find and develop oil and gas reserves and market our production on economically attractive terms. Commodity prices are affected by many factors outside of our control, including changes in market supply and demand, which can be impacted by pipeline capacity constraints, inventory storage levels, basis differentials, weather conditions, and geopolitical, economic and other factors. While oil prices declined overall in 2025, spot and future prices have surged in 2026 due to acute geopolitical disruption. Forecasts for growing global oil demand follow a modest trend based upon economic conditions and are subject to volatile market conditions, including ongoing shifts in U.S. and international trade policy, as well as geopolitical risk and uncertainty. These geopolitical risks and uncertainties include, among other items, the U.S.-Iran conflict that began in late February 2026 and the impacts thereof on traffic through the Strait of Hormuz and Persian Gulf producers. While spot and future prices have traded with increased volatility since the outbreak of the conflict, the longer-term impacts of these changes remain to be seen, including the effects on domestic U.S. oil production and capital expenditure for the same. Natural gas prices rose overall in 2025 and are forecasted to strengthen further into 2026, driven by shifting weather models and expected growing LNG exports. Additionally, increasing power generation opportunities for natural gas, both from demands for electric grids fueled by natural gas-power generation and off-grid demand related to datacenter growth, is anticipated to buoy natural gas prices. Basis differentials have continued to persist in the U.S., with prices at the Waha Hub in the Permian Basin reaching negative spot pricing throughout early 2026 due to oversupply and maintenance, however we expect that additional pipeline capacity coming online beginning in late 2026 will alleviate the spread on Waha basis differentials for natural gas. We continue to expect natural gas prices overall to be stronger in 2026 compared to 2025. Although the current outlook on oil and natural gas prices is generally favorable, and our operations have not been significantly impacted in the short-term, in the event further disruptions occur or the current market volatility and U.S. and international economic policy uncertainty continues for an extended period of time, our operations could be adversely impacted, commodity prices could decline and our costs may increase. We expect commodity price volatility to continue, including as a result of U.S. and international economic policy (such as tariffs or retaliatory tariffs), actions of OPEC+ (including the ability of OPEC+ to successfully coordinate production quotas and the exit of members from OPEC+) and potentially swift near- and medium-term fluctuations in supply and demand, such as potential changes to drilling and capital programs in the short term by U.S. producers. While we are unable to predict future commodity prices, at current oil, natural gas and NGL price levels, we do not believe that an impairment of our oil and gas properties is reasonably likely to occur in the near future. However, in the event that commodity prices significantly decline or costs significantly increase from current levels, our management would evaluate the recoverability of the carrying value of our oil and gas properties. For information about the impact of realized commodity prices on our revenues, refer to “Results of Operations” below. Outlook Our first quarter 2026 total production volumes exceeded our internal expectations. During the quarter, Winter Storm Fern adversely impacted operations, resulting in curtailed oil production of approximately 3.0 MBbl per day and 6.5 MBoe per day. Consistent with our internal expectations, 2026 capital expenditures are expected to be weighted to the first half of 2026. We are reiterating the full-year 2026 guidance ranges previously announced in February. These guidance ranges reflect Coterra on a standalone basis, including with respect to capital expenditures, production and operating expense, and do not give effect to the planned merger with Devon. FINANCIAL CONDITION Liquidity and Capital Resources We strive to maintain an adequate liquidity level to address commodity price volatility and risk. Our liquidity requirements consist primarily of our planned capital expenditures, payment of contractual obligations (including debt maturities and interest payments), working capital requirements, dividend payments and share repurchases. Although we have 21 Table of Contents no obligation to do so, we may also from time-to-time refinance or retire our outstanding debt through privately negotiated transactions, open market repurchases, redemptions, exchanges, tender offers or otherwise. Our primary sources of liquidity are cash on hand, net cash provided by operating activities and available borrowing capacity under our revolving credit agreement. Our liquidity requirements are generally funded with cash flows provided by operating activities, together with cash on hand and draws under our revolving credit agreement. However, from time-to-time, our investments may be funded by sales of assets and private or public financing based on our monitoring of capital markets and our balance sheet. While there are no “rating triggers” in any of our debt agreements that would accelerate the scheduled maturities should our credit rating fall below a certain level, a change in our credit rating could adversely impact our interest rate on any borrowings under our revolving credit agreement and our ability to economically access debt markets and could trigger the requirement to post credit support under various agreements, which could reduce the borrowing capacity under our revolving credit agreement. As of the date hereof, our debt is currently rated as investment grade by the three leading ratings agencies. For more on the impact of credit ratings on our interest rates and fees for unused commitments under our revolving credit agreement, see Note 4 of the Notes to the Consolidated Financial Statements in our Form 10-K. We believe that, with operating cash flow, cash on hand and availability under our revolving credit agreement, we have the ability to finance our spending plans over the next 12 months and, based on current expectations, for the longer term. Our working capital is substantially influenced by the variables discussed above and fluctuates based on the timing and amount of borrowings and repayments under our revolving credit agreement, borrowings and repayments of debt, the timing of cash collections and payments on our trade accounts receivable and payable, respectively, payment of dividends, repurchases of our securities and changes in the fair value of our commodity derivative activity. From time-to-time, our working capital will reflect a deficit, while at other times it will reflect a surplus. This fluctuation is not unusual. As of March 31, 2026, our working capital surplus of $10 million was lower than at December 31, 2025, primarily due to higher accounts payable and accrued liabilities, partially offset by higher cash and cash equivalents. As of December 31, 2025, we had a working capital surplus of $292 million. We believe we have adequate liquidity and availability under our revolving credit agreement as outlined above to meet our working capital requirements and debt repayments over the next 12 months. As of March 31, 2026, we had unrestricted cash on hand of $485 million and unused commitments of $2.0 billion under our revolving credit agreement. Our revolving credit agreement includes a covenant potentially limiting our borrowing capacity as determined by our leverage ratio. As of March 31, 2026, we were in c [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/858470/000085847026000073/cog-20251231.htm Complete FY 2025 MD&A: /company/CTRA/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis are based on management’s perspective and are intended to assist you in understanding our results of operations and our present financial condition and outlook. Our Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K contain additional information that should be referenced when reviewing this material. This discussion and analysis also include forward-looking statements. Readers are cautioned that such forward-looking statements are based on current expectations and assumptions that involve a number of risks and uncertainties, including those described under “Forward-Looking Statements” in Part I of this report and “Risk Factors” in Part I, Item 1A of this report, which could cause actual results to differ materially from those included in this report. 38 Table of Contents OVERVIEW Financial and Operating Overview Financial and operating results for the year ended December 31, 2025 compared to the year ended December 31, 2024 reflect the following: •Net income increased $596 million from $1.1 billion, or $1.51 per share, in 2024 to $1.7 billion, or $2.25 per share, in 2025. •Net cash provided by operating activities increased $1.2 billion, from $2.8 billion, in 2024 to $4.0 billion in 2025. •Oil equivalent production increased 38.0 MMBoe from 247.6 MMBoe, or 676.5 MBoe per day, in 2024 to 285.6 MMBoe, or 782.4 MBoe per day, in 2025. ◦Oil production increased 18.6 MMBbl from 39.8 MMBbl, or 109 MBbl per day, in 2024 to 58.4 MMBbl, or 160 MBbl per day, in 2025. ◦Natural gas production increased 61.1 Bcf from 1,024.7 Bcf, or 2,800 MMcf per day, in 2024 to 1,085.8 Bcf, or 2,975 MMcf per day, in 2025. ◦NGL volumes increased 9.2 MMBbl from 37.0 MMBbl, or 101 MBbl per day, in 2024 to 46.2 MMBbl, or 127 MBbl per day, in 2025. •Average realized prices (including impact of derivatives): ◦Oil was $64.35 per Bbl in 2025, 13 percent lower than the $74.22 per Bbl price realized in 2024. ◦Natural gas was $2.47 per Mcf in 2025, 41 percent higher than the $1.75 per Mcf price realized in 2024. ◦NGL price for 2025 was $18.24 per Bbl, 9 percent lower than the $19.95 per Bbl price realized in 2024. •Total capital expenditures for drilling, completion and other fixed assets were $2.3 billion in 2025 compared to $1.8 billion in 2024. Other financial highlights for the year ended December 31, 2025 include the following: •Closed two acquisitions in January 2025 in the Delaware Basin for total consideration of $3.3 billion in cash and the issuance of 28,190,682 shares of our common stock valued at $785 million based on the closing price of our common stock on the closing date of the transactions. •Increased our quarterly dividend from $0.21 per share to $0.22 per share in February 2025. •Repaid the full $500 million of the Tranche A Term Loan and repaid $200 million of the Tranche B Term Loan. In February 2026, we repaid the remaining $300 million of the Tranche B Term Loan. •Repurchased 6 million shares of our common stock during 2025 for $140 million. Market Conditions and Commodity Prices Our financial results depend on many factors, particularly commodity prices and our ability to find and develop oil and gas reserves and market our production on economically attractive terms. Commodity prices are affected by many factors outside of our control, including changes in market supply and demand, which can be impacted by pipeline capacity constraints, inventory storage levels, basis differentials, weather conditions, and geopolitical, economic and other factors. While oil prices were relatively steady throughout 2024, prices declined in 2025 overall compared to 2024. Various commentators and agencies (including the International Energy Agency) forecast larger global supply inventories compared to 2025 and growing global production, particularly from non-OPEC producers. Forecasts for growing global oil demand are subject to volatile market conditions, including ongoing shifts in U.S. and international trade policy, as well as geopolitical risk and uncertainty related to the ongoing Russia-Ukraine war, conflict in the Middle East and U.S. intervention in Venezuela. The impacts of these changes remain to be seen. Natural gas prices rose in early 2025, trended downward through early fourth quarter, and recovered somewhat heading into 2026, driven in part by lower natural gas power burns in the first and second quarter and record high domestic production. 39 Heading into 2026, forward pricing for natural gas prices has increased, in part as a result of anticipated colder temperatures, shifting weather models, and expected growing LNG demand. Additionally, increasing power generation opportunities for natural gas, both from demands from electric grids fueled by natural gas-power generation and off-grid demand related to datacenter growth, is anticipated to buoy natural gas prices. While basis differentials have persisted in the U.S., with prices at the Waha Hub in the Permian Basin reaching negative spot pricing at various times throughout 2025 and early 2026 due to oversupply and maintenance, we expect that additional pipeline capacity coming online beginning in late 2026 will alleviate the spread on basis differentials for natural gas. We continue to expect natural gas prices overall to be stronger in 2026 compared to 2025. Although the current outlook on oil and natural gas prices is generally favorable, and our operations have not been significantly impacted in the short-term, in the event further disruptions occur or the current market volatility and U.S. and international economic policy uncertainty continues for an extended period of time, our operations could be adversely impacted, commodity prices could decline and our costs may increase. We expect commodity price volatility to continue, including as a result of U.S. and international economic policy (such as tariffs or retaliatory tariffs), actions of OPEC+ (including the ability of OPEC+ to successfully coordinate production quotas) and potentially swift near- and medium-term fluctuations in supply and demand, such as potential changes to drilling and capital programs in the short-term by U.S. producers. While we are unable to predict future commodity prices, at current oil, natural gas and NGL price levels, we do not believe that an impairment of our oil and gas properties is reasonably likely to occur in the near future. However, in the event that commodity prices significantly decline or costs significantly increase from current levels, our management would evaluate the recoverability of the carrying value of our oil and gas properties. For information about the impact of realized commodity prices on our revenues, refer to “Results of Operations” below. FINANCIAL CONDITION Liquidity and Capital Resources We strive to maintain an adequate liquidity level to address commodity price volatility and risk. Our liquidity requirements consist primarily of our planned capital expenditures, payment of contractual obligations (including debt maturities and interest payments), working capital requirements, dividend payments and share repurchases. Although we have no obligation to do so, we may also from time-to-time refinance or retire our outstanding debt through privately negotiated transactions, open market repurchases, redemptions, exchanges, tender offers or otherwise. Our primary sources of liquidity are cash on hand, net cash provided by operating activities and available borrowing capacity under our revolving credit agreement. Our liquidity requirements are generally funded with cash flows provided by operating activities, together with cash on hand and draws under our revolving credit agreement. However, from time-to-time, our investments may be funded by sales of assets and private or public financing based on our monitoring of capital markets and our balance sheet. While there are no “rating triggers” in any of our debt agreements that would accelerate the scheduled maturities should our debt rating fall below a certain level, a change in our debt rating could adversely impact our interest rate on any borrowings under our revolving credit agreement and our ability to economically access debt markets and could trigger the requirement to post credit support under various agreements, which could reduce the borrowing capacity under our revolving credit agreement. As of the date hereof, our debt is currently rated as investment grade by the three leading rating agencies. For more on the impact of credit ratings on our interest rates and fees for unused commitments under our revolving credit agreement, see Note 4 of the Notes to the Consolidated Financial Statements, “Long-Term Debt and Credit Agreements.” We believe that, with operating cash flow, cash on hand and availability under our revolving credit agreement, we have the ability to finance our spending plans over the next twelve months and, based on current expectations, for the longer term. Our working capital is substantially influenced by the variables discussed above and fluctuates based on the timing and amount of borrowings and repayments under our revolving credit agreement, borrowings and repayments of debt, the timing of cash collections and payments on our trade accounts receivable and payable, respectively, payment of dividends, repurchases of our securities and changes in the fair value of our commodity derivative activity. From time-to-time, our working capital will reflect a deficit, while at other times it will reflect a surplus. This fluctuation is not unusual. As of December 31, 2025, our working capital surplus of $292 million was lower than prior year, primarily due to a lower cash position as a result of funding the purchase price of the FME and Avant acquisitions that closed in January 2025, the full repayment of the Tranche A Term Loan of $500 million in 2025 and the partial repayment of the Tranche B Term Loan of $200 million in 2025. Additionally, we reclassified our 3.77% private placement senior notes due in September 2026 to current debt during the third quarter of 2025. As of December 31, 2024, we had a working capital surplus of $2.2 billion. We believe we have adequate liquidity and availability under our revolving credit agreement as outlined above to meet our working capital requirements and debt repayments over the next 12 months. 40 Table of Contents As of December 31, 2025, we had unrestricted cash on hand of $114 million and unused commitments of $2.0 billion under our revolving credit agreement. Our revolving credit agreement and term loan include a covenant potentially limiting our borrowing capacity as determined by our leverage ratio. As of December 31, 2025, we were in compliance with all financial covenants applicable to our revolving credit agreement, term loan and private placement senior notes. Refer to Note 4 of the Notes to the Consolidated Financial Statements, “Long-Term Debt and Credit Agreements,” for further details (including our restrictive covenants and required financial ratio). Cash Flows Our cash flows from operating activities, investing activities and financing activities are as follows: [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["(In millions)","2025","","2024","","2023"],["Cash flows provided by operating activities","$","4,021","","","$","2,795","","","$","3,658"],["Cash flows used in investing activities","(5,628)","","","(1,762)","","","(2,059)"],["Cash flows (used in) provided by financing activities","(551)","","","279","","","(1,317)"]] [[/GREPCENT_TABLE]] 2025 and 2024 Compared Operating Activities. Operating cash flow fluctuations are substantially driven by changes in commodity prices, production volumes and operating expenses. As dis [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/CTRA/mda/fy2025/ All MD&A years: /company/CTRA/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/CTRA/mda/fy2024/): filed 2025-02-25; accession 0000858470-25-000075 (https://www.sec.gov/Archives/edgar/data/858470/000085847025000075/cog-20241231.htm) - [FY 2023 MD&A](/company/CTRA/mda/fy2023/): filed 2024-02-23; accession 0000858470-24-000019 (https://www.sec.gov/Archives/edgar/data/858470/000085847024000019/cog-20231231.htm) - [FY 2022 MD&A](/company/CTRA/mda/fy2022/): filed 2023-02-27; accession 0000858470-23-000011 (https://www.sec.gov/Archives/edgar/data/858470/000085847023000011/cog-20221231.htm) - [FY 2021 MD&A](/company/CTRA/mda/fy2021/): filed 2022-03-01; accession 0000858470-22-000009 (https://www.sec.gov/Archives/edgar/data/858470/000085847022000009/cog-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1311 Crude Petroleum & Natural Gas) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/CTRA.md · JSON record: /company/CTRA.json · verified financials: /company/CTRA/financials.json / /company/CTRA/financials.csv · machine TOC for the whole site: /llms.txt