November 27, 2025 a 03:31 pm
CTRA: Dividend Analysis - Coterra Energy Inc.
Coterra Energy Inc. presents a compelling investment opportunity with a substantial dividend history spanning 36 years. The company's recent market cap stands at approximately $20 billion, positioning it as a key player in the energy sector. With a current dividend yield of 3.41%, investors can anticipate moderate but reliable income. Notably, the dividend history reveals a cut in 2024, warranting attention to future dividend policies.
📊 Overview
Coterra Energy Inc. is operating in a dynamic sector, offering investors significant potential for dividend-based income. Below is a comprehensive overview:
| Metric | Value |
|---|---|
| Sector | Energy |
| Dividend Yield | 3.41% |
| Current Dividend per Share | $0.84 |
| Dividend History | 36 years |
| Last Cut or Suspension | 2024 |
📈 Dividend History
The dividend history of Coterra Energy is indicative of its commitment to shareholders, reflecting both growth and stability. Analyzing historical dividend payments can provide insights into the company's financial health and future dividend viability.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.88 |
| 2024 | 0.84 |
| 2023 | 1.17 |
| 2022 | 2.49 |
| 2021 | 1.12 |
📈 Dividend Growth
Examining the dividend growth over recent years highlights the company's fiscal trajectory and potential for enhancing shareholder value. Despite notable fluctuations, Coterra Energy has shown resilience in dividend growth.
| Time | Growth |
|---|---|
| 3 years | -9.14% |
| 5 years | 19.14% |
The average dividend growth is 19.14% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial for assessing dividend sustainability. They provide insight into how much of the company’s earnings are being distributed as dividends, which indicates financial prudence and the capacity to maintain dividend payments.
| Type | Ratio |
|---|---|
| EPS-based | 39.05% |
| Free Cash Flow-based | 27.01% |
With an EPS payout ratio of 39.05% and a FCF payout ratio of 27.01%, Coterra Energy maintains a conservative payout strategy, indicative of ample retained earnings to support future expansions or unforeseen fiscal downturns.
💰 Cashflow & Capital Efficiency
Cashflow metrics and capital efficiency ratios are essential to evaluate the financial robustness and operational effectiveness of Coterra Energy. Key figures provide a snapshot of the company’s ability to generate cash and maximize asset utilization.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 19.15% | 8.08% | 5.40% |
| Earnings Yield | 20.78% | 8.42% | 5.91% |
| CAPEX to Operating Cash Flow | 31.34% | 57.38% | 63.36% |
| Stock-based Compensation to Revenue | 0.77% | 1.03% | 1.12% |
| Free Cash Flow / Operating Cash Flow Ratio | 68.66% | 42.62% | 36.64% |
Coterra Energy exhibits solid cash generation, but rising CAPEX suggests strategic reinvestments. Such dynamics underscore a balanced focus on growth and revenue retention.
🔍 Balance Sheet & Leverage Analysis
An in-depth look at the balance sheet ratios and leverage metrics indicates Coterra Energy's financial solidity and risk profile, helping gauge liquidity management and debt burden.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 20.53% | 19.37% | 28.97% |
| Debt-to-Assets | 12.90% | 12.37% | 17.58% |
| Debt-to-Capital | 17.03% | 16.23% | 22.47% |
| Net Debt to EBITDA | 0.28 | 0.41 | 0.54 |
| Current Ratio | 1.85 | 1.21 | 2.92 |
| Quick Ratio | 1.80 | 1.18 | 2.88 |
| Financial Leverage | 1.59 | 1.57 | 1.65 |
While leverage ratios are stable, indicating manageable debt levels, the company's robust current ratio highlights its strong short-term liquidity profile; a favorable aspect for investors assessing credit risk.
📈 Fundamental Strength & Profitability
Fundamental strength and profitability metrics reflect Coterra Energy's operational efficiency and capability to generate returns, crucial to sustaining long-term dividends.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 32.11% | 12.46% | 8.54% |
| Return on Assets | 20.17% | 7.96% | 5.18% |
| Margins: Net | 42.73% | 28.59% | 20.53% |
| EBIT Margin | 55.07% | 38.72% | 26.57% |
| EBITDA Margin | 72.25% | 67.59% | 60.36% |
| Gross Margin | 63.79% | 38.76% | 30.97% |
| R&D to Revenue | 0% | 0% | 0% |
Coterra Energy's profitable margins and return metrics are indicative of strong management performance and operational efficiency, although moderating returns from prior highs could indicate emerging competitive pressures.
📉 Price Development
🗣️ Dividend Scoring System
This scoring framework evaluates key dividend attributes of Coterra Energy, offering a holistic view of its dividend potential.
| Criteria | Score | Progress |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 3 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 32/40
🏆 Rating
Based on a comprehensive analysis of Coterra Energy Inc., the company demonstrates strong financial health, a robust balance sheet, and effective cash flow management. Despite recent dividend cuts, the firm maintains an average dividend growth with a substantial yield, positioning it as an attractive choice for income-focused investors seeking exposure in the energy sector. Retaining a moderately competitive position, Coterra Energy is recommended for those prioritizing dividend income alongside capital preservation.