Coterra Energy has reported fourth-quarter and full-year 2025 results, provided full-year 2026 guidance, and declared a quarterly dividend of $0.22 per share.

Tom Jorden, Chairman, CEO and President of Coterra, noted,
“Coterra's strong fourth-quarter and full-year 2025 results were driven by efficient capital allocation and strong execution, and are a testament to the quality of our assets and the dedication and professionalism of our employees. Prioritizing safety, financial strength, and shareholder value creation, Coterra is well positioned for a highly capital efficient 2026.

We are excited about the announced merger with Devon Energy and the opportunities created by the combined company. We remain focused on operational excellence and are preparing to integrate the two companies to unlock the value potential of the combined portfolio. This powerful combination builds directly on the foundation we have established, bringing together complementary assets and shared values, including rigorous economic evaluation, disciplined execution, and a common commitment to shareholder value creation. The combined company will have an advantaged platform as a Delaware Basin leader and will hold significant capital allocation optionality. Underpinned by an industry-leading balance sheet, the combined company is expected to deliver meaningfully enhanced free cash flow allowing for a more robust shareholder return program, consisting of a leading base dividend and strong share buyback program, through the commodity cycles."

Key Takeaways & Updates

Fourth quarter 2025

• Total barrels of oil equivalent (BOE) and natural gas production beat the high-end of guidance, while oil production beat the midpoint of guidance.
• Generated $970 million of Cash Flow from Operating Activities (GAAP) and $507 million of Free Cash Flow (non-GAAP).
• Returned $263 million to shareholders through $170 million of declared dividends and $93 million of share repurchases, which retired 4 million shares at an average price of $24.37 per share.
• Repaid $100 million of our remaining term loans (issued in connection with the 2025 Delaware Basin acquisitions), leaving $300 million outstanding at year-end, which will be fully repaid in February 2026.
• Total shareholder returns, including declared dividends, share repurchases, and debt redemption, represented 72% of Free Cash Flow (non-GAAP).

Full-year 2025: Highly Capital Efficient Program, Strong Sequential Oil Volume Growth, and Successful Integration of Delaware Basin Acquisitions

• Total BOE and natural gas production exceeded the high-end of our original February 2025 guidance and exceeded the mid-point by 6% and 7%, respectively, while oil production came in at the mid-point of guidance.
• Completed the integration of Delaware Basin acquisitions (closed in January 2025). Continue to see strong operational execution and upside from the development of new landing zones, lower operating costs, and optimization of midstream commitments.
• Generated $4.0 billion of Cash Flow from Operating Activities (GAAP) and $2.0 billion of Free Cash Flow (non-GAAP), an increase of 44% and 67%, respectively, from 2024 levels.
• Annual reinvestment rate was 54%.

2026 Guidance: Disciplined Capital Investment; Consistent with Outlook Provided in November 2025

• 2026 guidance presented reflects Coterra standalone operations. Following the closing of the Devon and Coterra merger, expected in the second quarter of 2026, full-year guidance for the combined entity will be provided. For more details on annual 2026 guidance, see 2026 Guidance Section in the tables below.
• Expect annual total production of 750 to 810 MBoepd (thousand barrels of oil equivalent per day), natural gas production of 2,775 to 2,975 MMcfpd (million cubic feet per day), and oil production of 162 to 172 MBopd (thousand barrels of oil per day), in-line with our 2026 outlook provided in November 2025. Our full-year guidance includes the first-quarter impact of winter storm Fern, which is estimated to have had a negative 1.6 MBoepd and 0.7 MBopd annual impact. We anticipate that, including the impact of winter storm Fern, the first quarter will be below the annual average daily production.
• Full-year 2026 capital expenditures of $2.25 billion, with a range of $2.175 to $2.325 billion. We anticipate that capital will be modestly weighted towards the first half of 2026.
• Based on recent strip prices and mid-point of capital expenditures, expect reinvestment rate of approximately 50% and Free Cash Flow (non-GAAP) of $2.35 billion.

Transformative Merger with Devon Energy

On February 2, 2026, we announced that we had entered into an agreement with Devon Energy (NYSE: DVN) ("Devon") to combine via an all-stock merger, creating an industry-leading shale operator with a flagship Delaware Basin asset.

The combined entity is expected to unlock substantial value for shareholders, including enhanced Free Cash Flow supported by a balanced commodity mix and diversified assets, unleashing complementary AI capabilities across the enterprise, exceptional synergy potential, and maintaining a strong balance sheet.

Transition planning efforts are underway, led by a team comprised of senior leaders from both companies. In addition to their integration responsibilities, the integration team will also be heavily focused on organization structure and fit, targeting pre-tax synergy capture of $1 billion per year on a run-rate basis by year-end 2027.

The combined company proposes a compelling investment opportunity, offering scale, quality, and an industry-leading balance sheet.

Under the terms of the agreement, Coterra shareholders will receive a fixed exchange ratio of 0.70 share of Devon common stock for each share of Coterra common stock. Upon completion, Devon shareholders will own approximately 54% of the go-forward company and Coterra shareholders will own approximately 46% on a fully diluted basis.

The transaction is expected to close in the second quarter of 2026 and has been unanimously approved by the boards of directors of both companies. The closing of the transaction is subject to customary closing conditions, including approvals from Devon and Coterra shareholders.

Shareholder Return Highlights

• Common Dividend: On February 26, 2026, Coterra's Board of Directors approved a quarterly dividend of $0.22 per share, equating to a 2.9% annualized yield, based on the Company's $29.90 closing share price on February 25, 2026. The dividend will be paid on March 25, 2026 to holders of record on March 11, 2026.
• Share Repurchases: During the quarter, the Company repurchased 4 million shares for $93 million at a weighted-average price of $24.37 per share. During 2025, the Company repurchased 6 million shares for $140 million at a weighted-average price of $24.92 per share.
• Debt Retirement: During the quarter, the Company paid off $100 million of its $1.0 billion Term Loan related to its 2025 Delaware Basin acquisitions. In 2025, the Company paid off $700 million of its $1.0 billion Term Loan, and will pay off the remaining $300 million in February 2026.
• Total Shareholder Return: During the quarter, shareholder returns amounted to $263 million, composed of $170 million of declared dividends and $93 million of share repurchases. In 2025, shareholder returns amounted to $820 million, composed of $680 million of declared dividends and $140 million of share repurchases. In 2025, total shareholder returns, including declared dividends, share repurchases, and debt redemption, represented 75% of Free Cash Flow (non-GAAP).

Strong Financial Position

The Company ended the year with a cash balance of $114 million and no debt outstanding under its $2.0 billion revolving credit facility, resulting in total liquidity of approximately $2.1 billion. Coterra's Net Debt to Adjusted EBITDAX ratio (non-GAAP) at December 31, 2025 was 0.8x. The Company expects to maintain a Net Debt to Adjusted EBITDAX ratio (non-GAAP) below 1.0x, through commodity price cycles.

2025 Proved Reserves

At December 31, 2025, Coterra's proved reserves totaled 2,565 million barrels of oil equivalent (MMBoe), up approximately 13% year-over-year.

The Company had positive net revisions of prior estimates of 162 MMBoe. This positive revision included a positive 96 MMBoe performance revision and 66 MMBoe due to positive price revisions. The Company also added 167 MMBoe related to acquisitions.

Proved developed producing reserves were up 14% year over year. At year-end 2025, proved undeveloped reserves were 17% of total proved reserves, versus 18% at year-end 2024.

SEC realized commodity prices used to calculate our proved reserves in 2025 for oil, natural gas liquids and natural gas, adjusted for basis and quality differentials, are $64.37 per Bbl, $16.88 per Bbl and $2.37 per Mcf, respectively, compared to 2024 prices of $72.84 per Bbl, $18.16 per Bbl and $1.23 per Mcf.

KeyFacts Energy: Coterra Energy US country profile