Houston, Texas-based Coterra Energy Inc. (CTRA) is an independent oil and gas company that develops, explores, and produces oil, natural gas, and natural gas liquids. Valued at $18.7 billion by market cap, the company develops oil and natural gas with a focus on protecting and preserving air quality, water resources, and the land on which it operates.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CTRA perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the oil & gas E&P industry. Coterra Energy demonstrates strong operational efficiency and strategic asset management. Its diversified asset base in the Permian Basin, Marcellus Shale, and Anadarko Basin provides a competitive edge, enabling optimized operations and value maximization.
Despite its notable strength, CTRA slipped 18.6% from its 52-week high of $29.95, achieved on Jan. 17. Over the past three months, CTRA stock declined 8.7%, underperforming the Energy Select Sector SPDR Fund’s (XLE) 1.5% gains during the same time frame.
In the longer term, shares of CTRA dipped 4.5% on a YTD basis, underperforming XLE’s YTD gains of 5.1%. However, the stock climbed 6% over the past 52 weeks, outperforming XLE’s 2.6% returns over the last year.
To confirm the recent bullish trend, CTRA has been trading above its 50-day moving average recently. However, the stock has been trading below its 200-day moving average since early April, with some fluctuations.
CTRA's strong performance is driven by impressive operational results, including higher oil and natural gas production volumes, as well as better-than-expected natural gas price realizations. Additionally, the company has announced a new power netback gas sale agreement in the Permian, set to start in 2028, which will further diversify its natural gas marketing portfolio.
On Aug. 4, CTRA shares closed up by 1% after reporting its Q2 results. Its adjusted EPS of $0.48 surpassed Wall Street expectations of $0.43. The company’s revenue was $2 billion, topping Wall Street forecasts of $1.7 billion.
In the competitive arena of oil & gas E&P, EQT Corporation (EQT) has taken the lead over CTRA, showing resilience with an 8.4% uptick on a YTD basis and 50.3% returns over the past 52 weeks.
Wall Street analysts are bullish on CTRA’s prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $33.09 suggests an ambitious potential upside of 35.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
