Coterra Energy has completed its previously announced acquisitions consisting of certain assets of Franklin Mountain Energy and Avant Natural Resources and its affiliates for aggregate consideration of approximately $3.9 billion, subject to certain post-closing purchase price adjustments.

Tom Jorden, Chairman, CEO, and President of Coterra, noted, 
“Through the hard work of Franklin Mountain Energy, Avant Natural Resources, and the Coterra team, we are pleased to have closed the two previously announced acquisitions on schedule. We expect to immediately hit the ground running and, in coordination with our year-end 2024 earnings release in February, we are excited to share our 2025 formal guidance as well as an updated three-year outlook.”

These assets strengthen the Company’s portfolio in Lea County, New Mexico adding approximately 49,000 highly contiguous net acres and 400 to 550 net locations, primarily targeting Bone Spring formations, with additional upside potential.

Acquisition Details: Adding scale in New Mexico, creating additional premier core footprint

• Acquisition valued at 3.8x estimated 4Q24 annualized EBITDAX and approximately 13% estimated 2025 Free Cash Flow yield at $70/bbl WTI and $3.00/MMBtu Henry Hub price assumptions
• Coring up position in the northern Delaware Basin with approximately 49,000 net highly contiguous acres concentrated in Lea County, New Mexico, creating a new approximately 83,000 net acre focus area within the Coterra portfolio
• Assets to be acquired include 400-550 net Permian locations, primarily targeting Bone Spring, Harkey, Avalon and the emerging oily Lower Wolfcamp/Penn Shale. Assets to be acquired are expected to generate 1.8x PVI 10 on average, at $70/bbl WTI and $3.00/MMBtu NYMEX price assumptions.
  • Increases Coterra’s New Mexico net locations by approximately 75%, and Coterra’s Permian net locations by approximately 25%
  • Average lateral length of 9,500 feet
  • Acquiring approximately 125 miles of pipeline and other infrastructure, which is expected to enhance netbacks and economics across existing acreage and the new focus area
  • Multiple horizons and contiguous drilling spacing units help maximize wells per pad, reduce facilities and infrastructure costs
• Estimate 2025 capital expenditures of $400-to-$500 million, 2025 oil production of 40-to-50 mbopd, and total equivalent production of 60-to-70 mboed for the acquired assets

2025 Pro Forma Coterra Outlook

• Expect to reinvest approximately 50% of Discretionary Cash Flow in 2025 assuming $70/bbl WTI and $3.00/MMBtu Henry Hub
• Estimate 2025 oil production of 150-to-170 mbod, an increase of approximately 49% compared to estimated 2024 mid-point of oil guidance. Standalone Coterra assets are expected to generate 5-10% growth in 2025.
• Total equivalent production of 720-760 mboed, an increase of approximately 11% compared to estimated 2024 mid-point of total equivalent production guidance.
• Expect oil revenue mix of approximately 55-to-60% based on estimated 2025 production and assuming $70/bbl WTI and $3.00/MMBtu Henry Hub
• Estimate $2,100-to-$2,400 million of capital expenditures in 2025, approximately 75% weighted to the Permian Basin

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