Coterra Energy Inc.

Coterra Energy Inc. is an independent oil and gas company engaged in the development, exploration, and production of oil, natural gas, and NGLs in the United States. The company's business strategy includes generating sustainable returns, disciplined capital allocation, and maintaining financial strength. Coterra's operations are primarily concentrated in three core operating areas: the Permian Basin, Marcellus Shale, and Anadarko Basin. The company's website is www.coterra.com, and its ticker symbol is not provided in the text. Coterra's business strategy focuses on generating sustainable returns through its premier assets across multiple basins, which provide commodity diversification and strong cash flow generation. The company is committed to maintaining a disciplined capital investment strategy and using technology and innovation to maximize capital efficiency. Coterra's asset portfolio is both commodity and geographically diversified, allowing for capital allocation flexibility. The company's 2024 capital program is expected to be approximately $1.75 billion to $1.95 billion, and it plans to turn-in-line 132 to 158 total net wells in 2024. Approximately 60 percent of its drilling and completion capital will be invested in the Permian Basin, 23 percent in the Marcellus Shale, and 17 percent in the Anadarko Basin. Coterra's operations in the Permian Basin are primarily located in the western half of the Permian Basin, where it holds approximately 296,000 net acres. Its development activities are focused on the Wolfcamp Shale and the Bone Spring formation. In the Marcellus Shale, the company's properties are primarily located in Susquehanna County, Pennsylvania, where it holds approximately 186,000 net acres. In the Anadarko Basin, its properties are located in the Mid-Continent region in Oklahoma, where it holds approximately 182,000 net acres. Substantially all of Coterra's oil and natural gas production is sold under both long-term and short-term sales contracts at market-sensitive prices. The company also uses derivative financial instruments to manage price risk associated with its production. Coterra's proved reserves as of December 31, 2023, were approximately 2,320,757 MBoe. The company's interest in the Dimock field in Susquehanna County, Pennsylvania, accounted for approximately 60 percent of its total proved reserves. There are no other fields which represent 15 percent or more of its total proved reserves. The company's production volumes, sales prices, and production costs are presented in the text. Its interest in productive oil and gas wells at December 31, 2023, is also summarized. Coterra drilled and completed or participated in the drilling and completion of 288 gross and 183.3 net development wells in 2023. It also had 32 gross and 20.4 net drilling in progress or drilled but uncompleted wells. Coterra believes it has satisfactory title to all of its producing properties and leases in accordance with industry standards. The company competes with integrated, independent, and other energy companies for the sale and transportation of its oil and natural gas production. It regularly monitors the creditworthiness of its customers and requires parent company guarantees, letters of credit, or prepayments when necessary. Exploration and production operations are subject to various types of regulation at the federal, state, and local levels. These regulations include permits to drill wells, maintaining bonding requirements, regulating well location, method of drilling and casing, surface use and restoration, and plugging and abandoning of wells. Federal legislation and regulatory controls have historically affected the price of the natural gas Coterra produces and the manner in which it is transported and marketed. Natural gas gathering facilities are exempt from FERC jurisdiction.