Coterra Energy (NYSE: CTRA) reported Q4 EPS of $0.49, $0.06 better than the analyst estimate of $0.43. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.4 billion.

2025 Outlook (including the impact of acquisitions from their closing dates in January)

Estimate Discretionary Cash Flow (non-GAAP) of approximately $5.0 billion and Free Cash Flow (non-GAAP) of approximately $2.7 billion, at recent strip prices.

Expect 2025 capital expenditures of $2.1 to $2.4 billion, up 28% year-over-year at the mid-point, driven by incremental spend associated with our recently completed Delaware Basin acquisitions. The 2025 reinvestment rate (non-GAAP) is slightly below 50%, at the recent strip. In 2025, the Company expects to average approximately 11 drilling rigs and 3 completion crews in the Permian Basin, 1 rig and 0.5 completion crews in the Marcellus, and 1.5 drilling rigs and 0.5 completion crews in the Anadarko Basin.

Expect 2025 total equivalent production of 710 to 770 MBoepd, up approximately 9% year-over-year at the mid-point; oil production of 152 to 168 MBopd, up approximately 47% year-over-year at the mid-point; and natural gas production of 2,675 to 2,875 MMcfpd, relatively flat year-over-year at the mid-point.

Expect 1Q25 total equivalent production of 710 to 750 MBoepd, oil production of 134 to 144 MBopd, natural gas production of 2,850 to 3,000 MMcfpd, and capital expenditures of $525 to $625 million.

Three Year Outlook: 2025 to 2027

Reflecting legacy Coterra growth in 2025 and pro forma growth in 2026 and 2027, our new three-year outlook (2025 through 2027), includes annual average oil growth of 5% or greater, annual average BOE growth of 0 to 5%, which includes legacy organic Coterra growth in 2025 and pro forma combined growth in 2026 and 2027, and an average annual capital range of $2.1 to $2.4 billion. At the recent strip, this would imply an average reinvestment rate (non-GAAP) below 50% over the three-year period.

The Company maintains significant flexibility to adjust its total capital investment level and allocation of capital across its three basins, supported by limited long-term service contracts and minimal lease obligations. The Company maintains flexibility and optionality in each of its three operating regions, allowing a flexible allocation of capital to its highest return projects.

We expect this three year outlook to deliver significant Free Cash Flow (non-GAAP) to support our healthy base dividend, rapid debt reduction, and an impactful share repurchase program.

For earnings history and earnings-related data on Coterra Energy (CTRA) click here.