Q4 2025 Earnings Press Release

Coterra Energy Reports 2025 Results, Provides 2026 Guidance, and Announces Quarterly Dividend

HOUSTON, February 26, 2026 - Coterra Energy Inc. (NYSE: CTRA) today reported fourth-quarter and full-year 2025 results, provided full-year 2026 guidance, and declared a quarterly dividend of $0.22 per share.

Due to the pending merger with Devon Energy, Coterra will not host a conference call or webcast to discuss its 2025 results.

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."

Transformative Merger with Devon Energy

On February 2, 2026, Coterra announced an agreement with Devon Energy (NYSE: DVN) to combine via an all-stock merger, creating an industry-leading shale operator with a flagship Delaware Basin asset. Under the terms, Coterra shareholders will receive 0.70 share of Devon common stock per share of Coterra. Devon shareholders will own approximately 54% and Coterra shareholders approximately 46% on a fully diluted basis. Pre-tax synergy capture of $1 billion per year on a run-rate basis expected by year-end 2027. The transaction is expected to close in the second quarter of 2026 and has been unanimously approved by both boards.

Fourth Quarter 2025 Financial Highlights

Total barrels of oil equivalent and natural gas production beat the high-end of guidance, while oil production beat the midpoint of guidance.

Revenue of $1,959 million increased 40% compared to $1,395 million in the fourth quarter of 2024, driven by higher production volumes from Delaware Basin acquisitions and natural gas price recovery.

Income from operations was $571 million compared to $326 million in the fourth quarter of 2024, an increase of 75%.

Net income was $368 million, or $0.51 per basic share, compared to $297 million, or $0.40 per basic share, in the fourth quarter of 2024. The increase was primarily driven by higher production volumes and favorable gas pricing, partially offset by lower oil and NGL prices ($58.16/Bbl versus $68.57/Bbl for oil; $15.63/Bbl versus $20.94/Bbl for NGL), higher depreciation ($666 million versus $486 million), and higher interest expense ($49 million versus $29 million).

Adjusted earnings per share were $0.39, compared to $0.49 in the fourth quarter of 2024, a decline of 20%, reflecting lower oil prices and higher per-unit costs from expanded operations.

Generated $970 million of Cash Flow from Operating Activities and $507 million of Free Cash Flow.

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 remaining term loans, leaving $300 million outstanding at year-end.

Full Year 2025 Financial Highlights

Total revenue was $7,645 million compared to $5,458 million in 2024, an increase of 40%.

Net income was $1,717 million, or $2.25 per basic share, compared to $1,121 million, or $1.51 per basic share, in 2024.

Generated $4.0 billion of Cash Flow from Operating Activities and $2.0 billion of Free Cash Flow, an increase of 44% and 67%, respectively, from 2024 levels. Annual reinvestment rate was 54%.

Total shareholder returns in 2025 amounted to $820 million, composed of $680 million of declared dividends and $140 million of share repurchases. Total shareholder returns, including declared dividends, share repurchases, and $700 million in debt redemption, represented 75% of Free Cash Flow.

Proved reserves totaled 2,565 million barrels of oil equivalent at December 31, 2025, up approximately 13% year-over-year.

Quarterly Production and Pricing

Total Company Q4 2025: Daily equivalent production 813.1 MBoepd versus 681.5 MBoepd in Q4 2024, an increase of 19%. Oil production 175.8 MBbl/day versus 113.0 in Q4 2024. Natural gas 2,963.5 Mmcf/day versus 2,778.9. NGL 143.4 MBbl/day versus 105.4.

Average realized prices (excluding hedges) in Q4 2025: Oil $58.16/Bbl (vs $68.57 in Q4 2024), Natural gas $2.26/Mcf (vs $2.02), NGL $15.63/Bbl (vs $20.94). Permian Basin natural gas price averaged negative $0.52/Mcf due to basin takeaway constraints.

Permian Basin production reached 399.0 MBoepd in Q4 2025, up from 268.3 in Q4 2024, reflecting a full year of contribution from Delaware Basin acquisitions closed in January 2025. Oil production in the Permian at 165.1 MBbl/day versus 103.8. Integration of Franklin Mountain and Avant acquisitions complete with 10% reduction in total well costs measured in dollars per foot and 10% more inventory identified than acquisition underwriting.

Marcellus Shale production was 1,946.1 Mmcf/day at $3.18/Mcf versus 2,042.8 Mmcf/day at $2.27/Mcf. Higher gas prices offset lower volumes, with 9 wells drilled and 15 turned in line during the quarter.

Anadarko Basin production was 89.5 MBoepd versus 72.4 MBoepd, with natural gas at 277.3 Mmcf/day at $3.14/Mcf versus 217.2 at $2.51/Mcf.

Capital Allocation and Balance Sheet

Total shareholder returns in 2025 amounted to $820 million: $680 million of declared dividends and $140 million of share repurchases. Total shareholder returns, including dividends, buybacks, and debt redemption, represented 75% of Free Cash Flow.

Company ended the year with cash of $114 million, no debt drawn on $2.0 billion revolving credit facility, and total liquidity of approximately $2.1 billion. Net Debt to Adjusted EBITDAX ratio was 0.8x.

Term loan repayments totaled $700 million during 2025 (from $1.0 billion at acquisition close), with remaining $300 million repaid in February 2026.

2026 Guidance (Coterra Standalone)

750-810 MBoepd (midpoint 780). Oil: 162-172 MBopd (midpoint 167). Natural gas: 2,775-2,975 Mmcfpd (midpoint 2,875).

Capital expenditures of $2.25 billion, with a range of $2.175 to $2.325 billion, versus $2,318 million actual in 2025.

Based on strip pricing, expect reinvestment rate of approximately 50% and Free Cash Flow of $2.35 billion.

Following closing of the Devon merger, full-year guidance for the combined entity will be provided.

Operational Highlights

85 gross (46.7 net) in Q4 2025 versus 74 (38.5 net) in Q4 2024. Full year 383 gross (201.3 net) versus 313 (159.4 net).

111 gross (53.3 net) in Q4 versus 64 (34.7 net) in Q4 2024. Full year 404 gross (199.7 net) versus 294 (153.0 net).

Permian 9.0, Marcellus 1.3, Anadarko 1.0.

Direct operations $3.96/Boe (vs $2.83), gathering $3.55/Boe (vs $3.82), DD&A $8.90/Boe (vs $7.75). Higher direct operations and DD&A from expanded Permian asset base; lower gathering costs reflecting Permian infrastructure optimization.

Coterra Energy Inc. 8-K filed with the SEC on February 26, 2026 (Exhibit 99.1).