Coterra Energy (CTRA) investor relations material

Strategic portfolio and capital allocation

• Focus on consistent, profitable growth with an emphasis on growing free cash flow and maintaining durability through a balanced oil and gas portfolio.

• Portfolio demonstrates resilience to commodity price volatility, supporting stable cash flow and consistent activity levels.

• Capital allocation decisions are not swayed by short-term price movements; steady investment in Marcellus despite gas price fluctuations.

• Flexibility to manage production, including potential for volume shut-ins if netbacks fall below thresholds.

• Marcellus viewed primarily as a cash flow generator, with growth contingent on out-of-basin egress opportunities.

Technology, AI integration, and operational efficiency

• Longstanding internal machine learning initiative integrated across business units, focusing on both high-level and process optimization tasks.

• AI and technology are seen as key to enhancing inventory quality and operational efficiency, with geoscience applications considered major value drivers.

• Ongoing efforts to leverage machine learning for capital program design, asset evaluation, and production optimization.

• Significant potential remains for further efficiency gains and cost savings through technology adoption.

Financial discipline and shareholder returns

• Maintains a low reinvestment rate, at or below 50%, prioritizing return on capital over growth for its own sake.

• Plans to retire $1 billion in term loans from recent acquisitions before pivoting to share buybacks, with potential to start buybacks before full debt retirement.

• Sees strong value in shares and intends to use free cash flow for aggressive buybacks post-debt retirement.