William Blair Highlights Coterra’s (CTRA) Multi-Basin Strength in New Coverage

Core Viewpoint - Coterra Energy Inc. (NYSE:CTRA) is recognized as a strong investment opportunity due to its multi-basin exposure and robust financial position, with analysts highlighting its potential for significant shareholder returns and free cash flow generation [2][3]. Group 1: Analyst Coverage and Ratings - William Blair initiated coverage on Coterra Energy with an Outperform rating and a price target of $37, emphasizing the company's multi-basin strength in the Permian and Marcellus regions [2]. - The firm noted Coterra's "pristine" balance sheet and ability to produce free cash flow, positioning it well for material shareholder returns [2]. Group 2: Operational Performance - In its Q3 earnings report, Coterra highlighted strong operational execution, achieving production targets with total BOE, natural gas, and oil production reaching the higher end of guidance [3]. - The company’s capital-efficient program in the Permian, utilizing nine rigs and three completion crews, is generating solid returns [3]. Group 3: Financial Guidance - Coterra expects capital expenditures to be approximately $2.3 billion, maintaining nine rigs in the Permian and additional rigs in Marcellus and Anadarko [4]. - The company anticipates generating $2 billion in free cash flow at recent strip prices, having already returned $168 million to shareholders through dividends in the last quarter [4].