Coterra Energy (CTRA) 10-Q 3 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-10447
Entity Registrant Name	COTERRA ENERGY INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3072771
Entity Address, Address Line One	Three Memorial City Plaza
Entity Address, Address Line Two	840 Gessner Road,
Entity Address, Address Line Three	Suite 1400,
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	281
Local Phone Number	589-4600
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	CTRA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		744,232,925
Entity Central Index Key	0000858470
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 1,289	$ 956
Restricted cash	9	9
Short-term investments	250	0
Accounts receivable, net	878	843
Income taxes receivable	0	51
Inventories	52	59
Derivative instruments	62	85
Other current assets	10	12
Total current assets	2,550	2,015
Properties and equipment, net (Successful efforts method)	17,959	17,933
Other assets	444	467
Total assets	20,953	20,415
Current liabilities
Accounts payable	788	803
Current portion of long-term debt	575	575
Accrued liabilities	280	261
Income taxes payable	49	0
Interest payable	17	21
Total current liabilities	1,709	1,660
Long-term debt	2,076	1,586
Deferred income taxes	3,391	3,413
Asset retirement obligations	283	280
Other liabilities	397	429
Total liabilities	7,856	7,368
Commitments and contingencies (Note 7)
Cimarex redeemable preferred stock	8	8
Stockholders’ equity
Authorized — 1,800 shares of $0.10 par value in 2024 and 2023 Issued — 753 shares and 751 shares in 2024 and 2023, respectively	75	75
Additional paid-in capital	7,445	7,587
Retained earnings	5,558	5,366
Accumulated other comprehensive income	11	11
Total stockholders' equity	13,089	13,039
Total liabilities and stockholders' equity	$ 20,953	$ 20,415

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	1,800,000,000	1,800,000,000
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, issued (in shares)	745,000,000	751,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
OPERATING REVENUES
Operating revenues	$ 1,433	$ 1,639
Gain on derivative instruments	0	138
Total operating revenues	1,433	1,777
OPERATING EXPENSES
Direct operations	156	134
Gathering, processing and transportation	250	236
Taxes other than income	74	86
Exploration	5	4
Depreciation, depletion and amortization	432	369
General and administrative	75	76
Total operating expenses	992	905
(Loss) gain on sale of assets	(1)	5
INCOME FROM OPERATIONS	440	877
Interest expense	19	17
Interest income	(16)	(12)
Income before income taxes	437	872
Income tax expense	85	195
NET INCOME	$ 352	$ 677
Earnings per share
Basic (in dollars per share)	$ 0.47	$ 0.88
Diluted (in dollars per share)	$ 0.47	$ 0.88
Weighted-average common shares outstanding
Basic (in shares)	750	764
Diluted (in shares)	755	768
Natural gas
OPERATING REVENUES
Operating revenues	$ 538	$ 822
Oil
OPERATING REVENUES
Operating revenues	701	615
NGL
OPERATING REVENUES
Operating revenues	173	177
Other
OPERATING REVENUES
Operating revenues	$ 21	$ 25

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 352	$ 677
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	432	369
Deferred income tax expense	(22)	23
Loss (gain) on sale of assets	1	(5)
Gain on derivative instruments	0	(138)
Net cash received in settlement of derivative instruments	26	100
Amortization of debt premium, discount and debt issuance costs	(4)	(4)
Stock-based compensation and other	12	17
Changes in assets and liabilities:
Accounts receivable, net	(35)	446
Income taxes	100	170
Inventories	7	7
Other current assets	2	1
Accounts payable and accrued liabilities	(4)	(198)
Interest payable	(4)	(6)
Other assets and liabilities	(7)	35
Net cash provided by operating activities	856	1,494
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for drilling, completion and other fixed asset additions	(457)	(483)
Capital expenditures for leasehold and property acquisitions	(1)	(1)
Purchases of short-term investments	(250)	0
Proceeds from sale of assets	0	5
Net cash used in investing activities	(708)	(479)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt	499	0
Repayments of finance leases	(1)	(2)
Common stock repurchases	(150)	(268)
Dividends paid	(158)	(436)
Cash paid for conversion of redeemable preferred stock	0	(1)
Tax withholding on vesting of stock awards	0	(1)
Capitalized debt issuance costs	(5)	(7)
Net cash provided by (used in) financing activities	185	(715)
Net increase in cash, cash equivalents and restricted cash	333	300
Cash, cash equivalents and restricted cash, beginning of period	965	683
Cash, cash equivalents and restricted cash, end of period	$ 1,298	$ 983

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Shares	Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2022		768
Beginning balance (in shares) at Dec. 31, 2022			0
Balance at beginning of period at Dec. 31, 2022	$ 12,659	$ 77	$ 0	$ 7,933	$ 13	$ 4,636
Increase (Decrease) in Stockholders' Equity
Net income	677					677
Stock amortization and vesting	13			13
Conversion of Cimarex redeemable preferred stock	3			3
Common stock repurchases (in shares)			11
Common stock repurchases	(271)		$ (271)
Common stock retirements (in shares)		(11)	(11)
Common stock retirements	0	$ (1)	$ (271)	(270)
Common stock cash dividends	(438)					(438)
Ending balance (in shares) at Mar. 31, 2023		757
Ending balance (in shares) at Mar. 31, 2023			0
Balance at end of period at Mar. 31, 2023	12,643	$ 76	$ 0	7,679	13	4,875
Beginning balance (in shares) at Dec. 31, 2023		751
Beginning balance (in shares) at Dec. 31, 2023			0
Balance at beginning of period at Dec. 31, 2023	13,039	$ 75	$ 0	7,587	11	5,366
Increase (Decrease) in Stockholders' Equity
Net income	352
Stock amortization and vesting	15			15
Common stock repurchases (in shares)			6
Common stock repurchases	(157)		$ (157)
Common stock retirements (in shares)		(6)	(6)
Common stock retirements	0	$ 0	$ (157)	(157)
Common stock cash dividends	(160)					(160)
Ending balance (in shares) at Mar. 31, 2024		745
Ending balance (in shares) at Mar. 31, 2024			0
Balance at end of period at Mar. 31, 2024	$ 13,089	$ 75	$ 0	$ 7,445	$ 11	$ 5,558

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	1 Months Ended			3 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Oct. 31, 2021	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share (in dollars per share)	$ 0.21	$ 0.20	$ 0.15	$ 0.21	$ 0.57

Financial Statement Presentatio

Financial Statement Presentation	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Presentation	Financial Statement Presentation During interim periods, Coterra Energy Inc. (the “Company”) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”) filed with the SEC, except for any new accounting pronouncements adopted during the period. The interim condensed consolidated financial statements are unaudited and should be read in conjunction with the Notes to the Consolidated Financial Statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the results that may be expected for the entire year. From time to time, we make certain reclassifications to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders’ equity, net income or cash flows. Significant Accounting Policies Short-term Investments

Properties and Equipment, Net

Properties and Equipment, Net	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Properties and Equipment, Net	Properties and Equipment, Net Properties and equipment, net are comprised of the following: (In millions) March 31, December 31, Proved oil and gas properties $ 20,136 $ 19,582 Unproved oil and gas properties 4,486 4,617 Gathering and pipeline systems 552 527 Land, buildings and other equipment 223 216 Finance lease right-of-use asset 26 25 25,423 24,967 Accumulated DD&A (7,464) (7,034) $ 17,959 $ 17,933 Capitalized Exploratory Well Costs As of and for the three months ended March 31, 2024, the Company did not have any projects with exploratory well costs capitalized for a period of greater than one year after drilling.

Debt and Credit Agreements

Debt and Credit Agreements	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt and Credit Agreements	Debt and Credit Agreements The following table includes a summary of the Company’s long-term debt. (In millions) March 31, December 31, 3.65% weighted-average private placement senior notes (1) $ 825 $ 825 3.90% senior notes due May 15, 2027 750 750 4.375% senior notes due March 15, 2029 500 500 5.60% senior notes due March 15, 2034 500 — Revolving credit agreement — — Total 2,575 2,075 Unamortized debt premium 85 90 Unamortized debt discount (1) — Unamortized debt issuance costs (8) (4) Total debt 2,651 2,161 Less: current portion of long-term debt 575 575 Long-term debt $ 2,076 $ 1,586 _______________________________________________________________________________ (1) The 3.65% weighted-average senior notes have bullet maturities of $575 million and $250 million due in September 2024 and 2026, respectively. As of March 31, 2024, the Company was in compliance with all financial covenants for its revolving credit agreement and its 3.65% weighted-average private placement senior notes (the “private placement senior notes”). As of March 31, 2024, the Company had no borrowings outstanding under its revolving credit agreement and unused commitments of $1.5 billion. 5.60% Senior Notes due March 15, 2034 On March 13, 2024, the Company issued $500 million aggregate principal amount of 5.60% senior notes due 2034 (the “2034 senior notes”). The 2034 senior notes will mature on March 15, 2034, and interest on such notes is payable semi-annually. The 2034 senior notes are general, unsecured obligations of the Company. Under the terms of the indenture governing the 2034 senior notes, the Company may redeem all or any portion of the 2034 senior notes on any date at a price equal to the principal amount thereof, plus applicable redemption prices described in the governing indenture. The Company is also subject to various covenants and events of default customarily found in such debt instruments. The 2034 senior notes were issued at a discount of $1 million, and the Company incurred approximately $5 million of debt issuance costs that were capitalized and will be amortized over the term of such notes.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments As of March 31, 2024, the Company had the following outstanding financial commodity derivatives: 2024 2025 Natural Gas Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter NYMEX collars Volume (MMBtu) 44,590,000 45,080,000 16,690,000 9,000,000 9,100,000 9,200,000 9,200,000 Weighted average floor ($/MMBtu) $ 2.70 $ 2.75 $ 2.75 $ 3.25 $ 3.25 $ 3.25 $ 3.25 Weighted average ceiling ($/MMBtu) $ 3.87 $ 3.94 $ 4.23 $ 4.79 $ 4.79 $ 4.79 $ 4.79 2024 Oil Second Quarter Third Quarter Fourth Quarter WTI oil collars Volume (MBbl) 3,185 2,760 2,760 Weighted average floor ($/Bbl) $ 67.57 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 90.47 $ 87.17 $ 87.17 WTI Midland oil basis swaps Volume (MBbl) 3,185 2,760 2,760 Weighted average differential ($/Bbl) $ 1.15 $ 1.14 $ 1.14 In April 2024, the Company entered into the following financial commodity derivatives: 2024 2025 Oil Third Quarter Fourth Quarter First Quarter Second Quarter WTI oil collars Volume (MBbl) 460 460 900 910 Weighted average floor ($/Bbl) $ 65.00 $ 65.00 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 86.02 $ 86.02 $ 84.21 $ 84.21 Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In millions) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Derivative instruments (current) $ 62 $ 85 $ — $ — Commodity contracts Accrued liabilities (current) — — 2 — Commodity contracts Other assets (non-current) 6 7 — — $ 68 $ 92 $ 2 $ — Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 74 $ 93 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of assets presented in the condensed consolidated balance sheet 68 92 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — 1 Net amount $ 68 $ 93 Derivative liabilities Gross amounts of recognized liabilities $ 8 $ 1 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of liabilities presented in the condensed consolidated balance sheet 2 — Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 2 $ — Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In millions) 2024 2023 Cash received (paid) on settlement of derivative instruments Gas contracts $ 27 $ 99 Oil contracts (1) 1 Non-cash gain (loss) on derivative instruments Gas contracts 7 42 Oil contracts (33) (4) $ — $ 138

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K. Financial Assets and Liabilities The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 35 $ — $ — $ 35 Derivative instruments — — 74 74 $ 35 $ — $ 74 $ 109 Liabilities Deferred compensation plan $ 35 $ — $ — $ 35 Derivative instruments — — 8 8 $ 35 $ — $ 8 $ 43 (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 93 93 $ 33 $ — $ 93 $ 126 Liabilities Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 1 1 $ 33 $ — $ 1 $ 34 The Company’s investments associated with its deferred compensation plans consist of mutual funds that are publicly traded and for which market prices are readily available. The derivative instruments were measured based on quotes from the Company’s counterparties or internal models. Such quotes and models have been derived using an income approach that considers various inputs, including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates for a similar length of time as the derivative contract term as applicable. Estimates are derived from, or verified using, relevant NYMEX futures contracts, are compared to multiple quotes obtained from counterparties, or a combination of the foregoing. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative contracts while non-performance risk of the Company is evaluated using credit default swap spreads for various similarly rated companies in the same sector as the Company. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties. The most significant unobservable inputs relative to the Company’s Level 3 derivative contracts are basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 92 $ 146 Total gain (loss) included in earnings — 138 Settlement (gain) loss (26) (100) Transfers in and/or out of Level 3 — — Balance at end of period $ 66 $ 184 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (1) $ 95 Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments of oil and gas properties or acquisitions, at fair value on a nonrecurring basis. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of March 31, 2024, additional disclosures were not required. The estimated fair value of the Company’s asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which considers the Company’s credit risk, the time value of money, and the current economic state to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy. Fair Value of Other Financial Instruments The estimated fair value of other financial instruments is the amount at which the instruments could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents and restricted cash approximate fair value due to the short-term maturities of these instruments. The carrying amounts reported in the Condensed Consolidated Balance Sheet for short-term investments approximate fair value, due to market yields being unchanged from stated yields. Cash and cash equivalents and restricted cash are classified as Level 1 in the fair value hierarchy, and the remaining financial instruments are classified as Level 2. The fair value of the Company’s 3.90% senior notes due May 15, 2027, 4.375% senior notes due March 15, 2029 and 2034 senior notes is based on quoted market prices, which is classified as Level 1 in the fair value hierarchy. The fair value of the Company’s private placement senior notes is based on third-party quotes, which are derived from credit spreads for the difference between the issue rate and the period end market rate and other unobservable inputs. The Company’s private placement senior notes are valued using a market approach and are classified as Level 3 in the fair value hierarchy. The carrying amount and estimated fair value of debt are as follows: March 31, 2024 December 31, 2023 (In millions) Carrying Estimated Fair Carrying Estimated Fair Total debt $ 2,651 $ 2,508 $ 2,161 $ 2,015 Current maturities (575) (568) (575) (565) Long-term debt, excluding current maturities $ 2,076 $ 1,940 $ 1,586 $ 1,450

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2024
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations Activity related to the Company’s asset retirement obligations is as follows: (In millions) Three Months Ended Balance at beginning of period $ 289 Liabilities incurred 2 Accretion expense 3 Balance at end of period 294 Less: current asset retirement obligations (11) Noncurrent asset retirement obligations $ 283

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Gathering, Processing and Transportation Agreements” and “Lease Commitments” as disclosed in Note 8 of the Notes to Consolidated Financial Statements in the Form 10-K. Legal Matters Securities Litigation In October 2020, a class action lawsuit styled Delaware County Emp. Ret. Sys. v. Cabot Oil and Gas Corp., et. al. (U.S. District Court, Middle District of Pennsylvania), was filed against the Company, Dan O. Dinges, its then-Chief Executive Officer, and Scott C. Schroeder, its then-Chief Financial Officer, alleging that the Company made misleading statements in its periodic filings with the SEC in violation of Section 10(b) and Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The suit was later transferred to the United States District Court for the Southern District of Texas. The plaintiffs later amended the complaint to add claims against Phillip L. Stalnaker, the Company’s then-Senior Vice President of Operations, but the claims against Mr. Stalnaker were later dismissed. The current amended complaint was filed on January 9, 2024, and alleges that the Company and the individual defendants made material misstatements and omissions regarding the Company’s 2019 production growth guidance and the status of certain environmental matters in Pennsylvania, including alleged violations of the Pennsylvania Clean Streams Law and the remediation status of certain gas wells. The plaintiffs allege claims under Section 10(b) and Section 20 of the Exchange Act and seek monetary damages, interest, and attorney’s fees. The court has certified a class consisting of persons and entities who purchased the Company’s common stock between February 22, 2016, and June 12, 2020, inclusive. On April 29, 2024, the Company and plaintiffs reached a settlement in principle, with nearly all of the settlement amount to be paid by the Company’s insurance carriers. This settlement is subject to finalization and court approval. Also in October 2020, a stockholder derivative action styled Ezell v. Dinges, et. al. (U.S. District Court, Middle District of Pennsylvania) was filed against Messrs. Dinges and Schroeder and the Board of Directors of the Company serving at that time. Several additional derivative complaints were also filed and have been consolidated with the Ezell suit, which was later transferred to the U.S. District Court for the Southern District of Texas. The most recent consolidated amended derivative complaint asserted claims for alleged securities violations under Section 10(b) and Section 21D of the Exchange Act arising from some of the same alleged misleading statements that form the basis of the class action lawsuit described above, as well as claims based on alleged breaches of fiduciary duty and statutory contribution theories. On January 2, 2024, the Court issued an order and final judgment granting the Company’s and defendants’ motion to dismiss and dismissing the consolidated derivative case in its entirety with prejudice. The derivative plaintiffs filed a notice of appeal regarding the final judgment on February 1, 2024. The Company intends to vigorously defend any further proceedings in the derivative lawsuit. Additionally, on March 21, 2024, one of the plaintiffs in the consolidated derivative action served a demand letter on the Company’s Board of Directors. The letter requested that the Board of Directors pursue legal claims against various current and former officers and directors of the Company based on similar factual allegations as contained in the securities class action and consolidated shareholder derivative action described above. The Board of Directors has taken the demand under advisement and reserves all rights available under applicable law. Other Legal Matters The Company is a defendant in various other legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable and the potential loss is estimable. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company’s financial position, results of operations or cash flows. Contingency Reserves When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters for which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently known or foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended (In millions) 2024 2023 Natural gas $ 538 $ 822 Oil 701 615 NGL 173 177 Other 21 25 $ 1,433 $ 1,639 All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and generated in the U.S. Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2024, the Company had $6.5 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over the next 15 years. Contract Balances Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $656 million and $723 million as of March 31, 2024 and December 31, 2023, respectively, and are reported in accounts receivable, net in the Condensed Consolidated Balance Sheet. As of March 31, 2024,

Capital Stock

Capital Stock	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Capital Stock	Capital Stock Dividends Common Stock In February 2023, the Company’s Board of Directors approved an increase in the base quarterly dividend from $0.15 per share to $0.20 per share. In February 2024, the Company’s Board of Directors approved an increase in the base quarterly dividend from $0.20 per share to $0.21 per share. The following table summarizes the Company’s dividends on its common stock: Rate per share Fixed Variable Total Total Dividends 2024 First quarter $ 0.21 $ — $ 0.21 $ 160 2023 First quarter $ 0.20 $ 0.37 $ 0.57 $ 438 Treasury Stock

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation General Stock-based compensation expense of awards issued under the Company’s incentive plans, and the income tax benefit of awards vested and exercised, are as follows: Three Months Ended (In millions) 2024 2023 Restricted stock units - employees and non-employee directors $ 9 $ 7 Restricted stock awards 1 4 Performance share awards 3 5 Total stock-based compensation expense $ 13 $ 16 Income tax benefit $ — $ 1 Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms. Restricted Stock Units - Employees During the three months ended March 31, 2024, the Company granted 574,697 restricted stock units to employees of the Company with a weighted average grant date value of $26.16 per unit. The fair value of restricted stock unit grants is based on the closing stock price on the grant date. Restricted stock units generally vest at the end of a three-year service period. The Company assumed a zero percent annual forfeiture rate for purposes of recognizing stock-based compensation expense for awards granted in the first quarter of 2024, based on the Company’s actual forfeiture history and expectations for this type of award. Performance Share Awards Total Shareholder Return (“TSR”) Performance Share Awards . During the three months ended March 31, 2024, the Company granted 541,865 TSR Performance Share Awards, which are earned or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group and certain industry-related indices over a three-year performance period, which commenced on February 1, 2024 and ends on January 31, 2027. These awards have both an equity and liability component, with the right to receive up to the first 100 percent of the award in shares of common stock and the right to receive up to an additional 100 percent of the value of the award in excess of the equity component in cash. These awards also include a feature that will reduce the potential cash component of the award if the actual performance is negative over the three-year period and the base calculation indicates an above-target payout. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. The Company assumed a zero percent annual forfeiture rate for purposes of recognizing stock-based compensation expense for these awards, based on the Company’s actual forfeiture history and expectations for this type of award. The following assumptions were used to determine the grant date fair value of the equity component and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date February 21, 2024 March 31, 2024 Fair value per performance share award $ 19.38 $5.24 - $10.61 Assumptions: Stock price volatility 38.0 % 23.7% - 37.9% Risk-free rate of return 4.39 % 4.38% - 5.08%

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is similarly calculated, except that the shares of common stock outstanding for the period is increased using the treasury stock and as-if converted methods to reflect the potential dilution that could occur if outstanding stock awards were vested or exercised at the end of the applicable period. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. The following is a calculation of basic and diluted net earnings per share under the two-class method: Three Months Ended (In millions, except per share amounts) 2024 2023 Income (Numerator) Net income $ 352 $ 677 Less: dividends attributable to participating securities — (2) Net income available to common stockholders $ 352 $ 675 Shares (Denominator) Weighted average shares - Basic 750 764 Dilution effect of stock awards at end of period 5 4 Weighted average shares - Diluted 755 768 Earnings per share Basic $ 0.47 $ 0.88 Diluted $ 0.47 $ 0.88 The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Three Months Ended (In millions) 2024 2023 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method — —

Restructuring Costs

Restructuring Costs	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs Restructuring costs are primarily related to workforce reductions and associated severance benefits that were triggered by the merger with Cimarex Energy Co. that closed on October 1, 2021. The following table summarizes the Company’s restructuring liabilities: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 47 $ 77 Additions related to merger integration — 7 Reductions related to severance payments (11) (7) Balance at end of period $ 36 $ 77

Additional Balance Sheet Inform

Additional Balance Sheet Information	3 Months Ended
	Mar. 31, 2024
Balance Sheet Related Disclosures [Abstract]
Additional Balance Sheet Information	Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: (In millions) March 31, December 31, Accounts receivable, net Trade accounts $ 656 $ 723 Joint interest accounts 181 118 Other accounts 44 4 881 845 Allowance for credit losses (3) (2) $ 878 $ 843 Other assets Deferred compensation plan $ 35 $ 33 Debt issuance costs 7 8 Operating lease right-of-use assets 312 337 Derivative instruments 6 7 Other accounts 84 82 $ 444 $ 467 Accounts payable Trade accounts $ 64 $ 60 Royalty and other owners 378 386 Accrued gathering, processing and transportation 69 80 Accrued capital costs 158 165 Taxes other than income 39 33 Accrued lease operating costs 41 39 Other accounts 39 40 $ 788 $ 803 Accrued liabilities Employee benefits $ 39 $ 70 Taxes other than income 23 14 Restructuring liability 30 35 Derivative instruments 2 — Operating lease liabilities 116 116 Financing lease liabilities 7 6 Other accounts 63 20 $ 280 $ 261 Other liabilities Deferred compensation plan $ 35 $ 33 Postretirement benefits 17 17 Operating lease liabilities 209 237 Financing lease liabilities 5 6 Restructuring liability 6 12 Other accounts 125 124 $ 397 $ 429

Interest Expense

Interest Expense	3 Months Ended
	Mar. 31, 2024
Interest Income (Expense), Net [Abstract]
Interest Expense	Interest Expense Interest expense is comprised of the following: Three Months Ended (In millions) 2024 2023 Interest Expense Interest expense $ 22 $ 20 Debt premium and discount amortization, net (5) (5) Debt issuance cost amortization 1 1 Other 1 1 $ 19 $ 17

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 352	$ 677

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Financial Statement Presentat_2

Financial Statement Presentation (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	During interim periods, Coterra Energy Inc. (the “Company”) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”) filed with the SEC, except for any new accounting pronouncements adopted during the period. The interim condensed consolidated financial statements are unaudited and should be read in conjunction with the Notes to the Consolidated Financial Statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the results that may be expected for the entire year.
Reclassifications	From time to time, we make certain reclassifications to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders’ equity, net income or cash flows.
Short-term Investments	Short-term Investments

Properties and Equipment, Net (

Properties and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Properties and Equipment, Net	Properties and equipment, net are comprised of the following: (In millions) March 31, December 31, Proved oil and gas properties $ 20,136 $ 19,582 Unproved oil and gas properties 4,486 4,617 Gathering and pipeline systems 552 527 Land, buildings and other equipment 223 216 Finance lease right-of-use asset 26 25 25,423 24,967 Accumulated DD&A (7,464) (7,034) $ 17,959 $ 17,933

Debt and Credit Agreements (Tab

Debt and Credit Agreements (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Senior Notes and Credit Agreement Components	The following table includes a summary of the Company’s long-term debt. (In millions) March 31, December 31, 3.65% weighted-average private placement senior notes (1) $ 825 $ 825 3.90% senior notes due May 15, 2027 750 750 4.375% senior notes due March 15, 2029 500 500 5.60% senior notes due March 15, 2034 500 — Revolving credit agreement — — Total 2,575 2,075 Unamortized debt premium 85 90 Unamortized debt discount (1) — Unamortized debt issuance costs (8) (4) Total debt 2,651 2,161 Less: current portion of long-term debt 575 575 Long-term debt $ 2,076 $ 1,586 _______________________________________________________________________________ (1) The 3.65% weighted-average senior notes have bullet maturities of $575 million and $250 million due in September 2024 and 2026, respectively.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Outstanding Commodity Derivatives	As of March 31, 2024, the Company had the following outstanding financial commodity derivatives: 2024 2025 Natural Gas Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter NYMEX collars Volume (MMBtu) 44,590,000 45,080,000 16,690,000 9,000,000 9,100,000 9,200,000 9,200,000 Weighted average floor ($/MMBtu) $ 2.70 $ 2.75 $ 2.75 $ 3.25 $ 3.25 $ 3.25 $ 3.25 Weighted average ceiling ($/MMBtu) $ 3.87 $ 3.94 $ 4.23 $ 4.79 $ 4.79 $ 4.79 $ 4.79 2024 Oil Second Quarter Third Quarter Fourth Quarter WTI oil collars Volume (MBbl) 3,185 2,760 2,760 Weighted average floor ($/Bbl) $ 67.57 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 90.47 $ 87.17 $ 87.17 WTI Midland oil basis swaps Volume (MBbl) 3,185 2,760 2,760 Weighted average differential ($/Bbl) $ 1.15 $ 1.14 $ 1.14 In April 2024, the Company entered into the following financial commodity derivatives: 2024 2025 Oil Third Quarter Fourth Quarter First Quarter Second Quarter WTI oil collars Volume (MBbl) 460 460 900 910 Weighted average floor ($/Bbl) $ 65.00 $ 65.00 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 86.02 $ 86.02 $ 84.21 $ 84.21
Schedule of Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet	Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In millions) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Derivative instruments (current) $ 62 $ 85 $ — $ — Commodity contracts Accrued liabilities (current) — — 2 — Commodity contracts Other assets (non-current) 6 7 — — $ 68 $ 92 $ 2 $ —
Schedule of Offsetting of Derivative Assets in the Condensed Consolidated Balance Sheet	Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 74 $ 93 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of assets presented in the condensed consolidated balance sheet 68 92 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — 1 Net amount $ 68 $ 93 Derivative liabilities Gross amounts of recognized liabilities $ 8 $ 1 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of liabilities presented in the condensed consolidated balance sheet 2 — Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 2 $ —
Schedule of Offsetting of Derivative Liabilities in the Condensed Consolidated Balance Sheet	Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 74 $ 93 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of assets presented in the condensed consolidated balance sheet 68 92 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — 1 Net amount $ 68 $ 93 Derivative liabilities Gross amounts of recognized liabilities $ 8 $ 1 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of liabilities presented in the condensed consolidated balance sheet 2 — Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 2 $ —
Schedule of Effect of Derivatives on the Condensed Consolidated Statement of Operations	Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In millions) 2024 2023 Cash received (paid) on settlement of derivative instruments Gas contracts $ 27 $ 99 Oil contracts (1) 1 Non-cash gain (loss) on derivative instruments Gas contracts 7 42 Oil contracts (33) (4) $ — $ 138

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 35 $ — $ — $ 35 Derivative instruments — — 74 74 $ 35 $ — $ 74 $ 109 Liabilities Deferred compensation plan $ 35 $ — $ — $ 35 Derivative instruments — — 8 8 $ 35 $ — $ 8 $ 43 (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 93 93 $ 33 $ — $ 93 $ 126 Liabilities Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 1 1 $ 33 $ — $ 1 $ 34
Reconciliation of Changes in the Fair Value of Financial Assets and Liabilities Classified as Level 3	The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 92 $ 146 Total gain (loss) included in earnings — 138 Settlement (gain) loss (26) (100) Transfers in and/or out of Level 3 — — Balance at end of period $ 66 $ 184 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (1) $ 95
Carrying Amounts and Fair Values of Debt	The carrying amount and estimated fair value of debt are as follows: March 31, 2024 December 31, 2023 (In millions) Carrying Estimated Fair Carrying Estimated Fair Total debt $ 2,651 $ 2,508 $ 2,161 $ 2,015 Current maturities (575) (568) (575) (565) Long-term debt, excluding current maturities $ 2,076 $ 1,940 $ 1,586 $ 1,450

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2024
Asset Retirement Obligation Disclosure [Abstract]
Activity Related to Asset Retirement Obligations	Activity related to the Company’s asset retirement obligations is as follows: (In millions) Three Months Ended Balance at beginning of period $ 289 Liabilities incurred 2 Accretion expense 3 Balance at end of period 294 Less: current asset retirement obligations (11) Noncurrent asset retirement obligations $ 283

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended (In millions) 2024 2023 Natural gas $ 538 $ 822 Oil 701 615 NGL 173 177 Other 21 25 $ 1,433 $ 1,639

Capital Stock (Tables)

Capital Stock (Tables)	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Schedule of Stock by Class	The following table summarizes the Company’s dividends on its common stock: Rate per share Fixed Variable Total Total Dividends 2024 First quarter $ 0.21 $ — $ 0.21 $ 160 2023 First quarter $ 0.20 $ 0.37 $ 0.57 $ 438

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Share-Based Compensation Expense Income Tax Benefit Awards Issued Under Incentive Plans	Stock-based compensation expense of awards issued under the Company’s incentive plans, and the income tax benefit of awards vested and exercised, are as follows: Three Months Ended (In millions) 2024 2023 Restricted stock units - employees and non-employee directors $ 9 $ 7 Restricted stock awards 1 4 Performance share awards 3 5 Total stock-based compensation expense $ 13 $ 16 Income tax benefit $ — $ 1
Assumptions to Determine the Grant Date Fair Value of the Equity Component and the Period-end Fair Value of the Liability	The following assumptions were used to determine the grant date fair value of the equity component and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date February 21, 2024 March 31, 2024 Fair value per performance share award $ 19.38 $5.24 - $10.61 Assumptions: Stock price volatility 38.0 % 23.7% - 37.9% Risk-free rate of return 4.39 % 4.38% - 5.08%

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Weighted-Average Shares Outstanding	The following is a calculation of basic and diluted net earnings per share under the two-class method: Three Months Ended (In millions, except per share amounts) 2024 2023 Income (Numerator) Net income $ 352 $ 677 Less: dividends attributable to participating securities — (2) Net income available to common stockholders $ 352 $ 675 Shares (Denominator) Weighted average shares - Basic 750 764 Dilution effect of stock awards at end of period 5 4 Weighted average shares - Diluted 755 768 Earnings per share Basic $ 0.47 $ 0.88 Diluted $ 0.47 $ 0.88
Calculation of Weighted-average Shares Excluded from Diluted EPS Due to the Anti-Dilutive Effect	The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Three Months Ended (In millions) 2024 2023 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method — —

Restructuring Costs (Tables)

Restructuring Costs (Tables)	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Restructuring Costs	The following table summarizes the Company’s restructuring liabilities: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 47 $ 77 Additions related to merger integration — 7 Reductions related to severance payments (11) (7) Balance at end of period $ 36 $ 77

Additional Balance Sheet Info_2

Additional Balance Sheet Information (Tables)	3 Months Ended
	Mar. 31, 2024
Balance Sheet Related Disclosures [Abstract]
Additional Balance Sheet Information	Certain balance sheet amounts are comprised of the following: (In millions) March 31, December 31, Accounts receivable, net Trade accounts $ 656 $ 723 Joint interest accounts 181 118 Other accounts 44 4 881 845 Allowance for credit losses (3) (2) $ 878 $ 843 Other assets Deferred compensation plan $ 35 $ 33 Debt issuance costs 7 8 Operating lease right-of-use assets 312 337 Derivative instruments 6 7 Other accounts 84 82 $ 444 $ 467 Accounts payable Trade accounts $ 64 $ 60 Royalty and other owners 378 386 Accrued gathering, processing and transportation 69 80 Accrued capital costs 158 165 Taxes other than income 39 33 Accrued lease operating costs 41 39 Other accounts 39 40 $ 788 $ 803 Accrued liabilities Employee benefits $ 39 $ 70 Taxes other than income 23 14 Restructuring liability 30 35 Derivative instruments 2 — Operating lease liabilities 116 116 Financing lease liabilities 7 6 Other accounts 63 20 $ 280 $ 261 Other liabilities Deferred compensation plan $ 35 $ 33 Postretirement benefits 17 17 Operating lease liabilities 209 237 Financing lease liabilities 5 6 Restructuring liability 6 12 Other accounts 125 124 $ 397 $ 429

Interest Expense (Tables)

Interest Expense (Tables)	3 Months Ended
	Mar. 31, 2024
Interest Income (Expense), Net [Abstract]
Interest Expense, Net	Interest expense is comprised of the following: Three Months Ended (In millions) 2024 2023 Interest Expense Interest expense $ 22 $ 20 Debt premium and discount amortization, net (5) (5) Debt issuance cost amortization 1 1 Other 1 1 $ 19 $ 17

Properties and Equipment, Net_2

Properties and Equipment, Net (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Finance lease right-of-use asset	$ 26	$ 25
Property, plant and equipment	25,423	24,967
Accumulated DD&A	(7,464)	(7,034)
Properties and equipment, net	$ 17,959	17,933
Costs capitalized period	1 year
Proved oil and gas properties
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	$ 20,136	19,582
Unproved oil and gas properties
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	4,486	4,617
Gathering and pipeline systems
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	552	527
Land, buildings and other equipment
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	$ 223	$ 216

Debt and Credit Agreements - Sc

Debt and Credit Agreements - Schedule of Debt (Details) - USD ($)	1 Months Ended
	Sep. 30, 2026	Sep. 30, 2024	Mar. 31, 2024	Mar. 13, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total debt			$ 2,575,000,000		$ 2,075,000,000
Unamortized debt premium			85,000,000		90,000,000
Unamortized debt discount			(1,000,000)		0
Unamortized debt issuance costs			(8,000,000)		(4,000,000)
Total debt			2,651,000,000		2,161,000,000
Less: current portion of long-term debt			575,000,000		575,000,000
Long-term debt			$ 2,076,000,000		1,586,000,000
Senior Notes | 3.65% weighted-average private placement senior notes
Debt Instrument [Line Items]
Weighted average interest rate			3.65%
Total debt			$ 825,000,000		825,000,000
Senior Notes | 3.65% weighted-average private placement senior notes | Forecast
Debt Instrument [Line Items]
Amount of principal repurchased	$ 250,000,000	$ 575,000,000
Senior Notes | 3.90% senior notes due May 15, 2027
Debt Instrument [Line Items]
Stated percentage			3.90%
Total debt			$ 750,000,000		750,000,000
Senior Notes | 4.375% senior notes due March 15, 2029
Debt Instrument [Line Items]
Stated percentage			4.375%
Total debt			$ 500,000,000		500,000,000
Senior Notes | 5.60% Senior Notes Due March 15, 2034
Debt Instrument [Line Items]
Stated percentage			5.60%
Total debt			$ 500,000,000	$ 500,000,000	0
Unamortized debt discount				(1,000,000)
Unamortized debt issuance costs				$ (5,000,000)
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt			$ 0		$ 0

Debt and Credit Agreements - Na

Debt and Credit Agreements - Narrative (Details) - USD ($)	Mar. 31, 2024	Mar. 13, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Long-term debt	$ 2,575,000,000		$ 2,075,000,000
Unamortized discount	1,000,000		0
Debt issuance costs	$ 8,000,000		4,000,000
Senior Notes | 3.65% weighted-average private placement senior notes
Debt Instrument [Line Items]
Weighted average interest rate	3.65%
Long-term debt	$ 825,000,000		825,000,000
Senior Notes | 5.60% Senior Notes Due March 15, 2034
Debt Instrument [Line Items]
Stated percentage	5.60%
Long-term debt	$ 500,000,000	$ 500,000,000	0
Unamortized discount		1,000,000
Debt issuance costs		$ 5,000,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	0		$ 0
Remaining borrowing capacity	$ 1,500,000,000

Derivative Instruments - Outsta

Derivative Instruments - Outstanding Commodity Derivatives (Details) - Forecast	3 Months Ended
	Dec. 31, 2025 MMBTU $ / MMBTU	Sep. 30, 2025 MMBTU $ / MMBTU	Jun. 30, 2025 MMBTU MBoe $ / MMBTU $ / MBbls	Mar. 31, 2025 MMBTU MBoe $ / MBbls $ / MMBTU	Dec. 31, 2024 MBoe MMBTU $ / MMBTU $ / MBbls	Sep. 30, 2024 MBoe MMBTU $ / MBbls $ / MMBTU	Jun. 30, 2024 MBoe MMBTU $ / MBbls $ / MMBTU
NYMEX collars
Derivative [Line Items]
Notional amount, energy | MMBTU	9,200,000	9,200,000	9,100,000	9,000,000	16,690,000	45,080,000	44,590,000
Floor, weighted-average (in dollars per Mmbtu/Bbl) | $ / MMBTU	3.25	3.25	3.25	3.25	2.75	2.75	2.70
Ceiling, weighted-average (in dollars per Mmbtu/Bbl) | $ / MMBTU	4.79	4.79	4.79	4.79	4.23	3.94	3.87
WTI oil collars
Derivative [Line Items]
Notional amount, energy | MBoe					2,760	2,760	3,185
Floor, weighted-average (in dollars per Mmbtu/Bbl)					65	65	67.57
Ceiling, weighted-average (in dollars per Mmbtu/Bbl)					87.17	87.17	90.47
WTI Midland oil basis swaps
Derivative [Line Items]
Notional amount, energy | MBoe					2,760	2,760	3,185
Differential price weighted average (in dollars per Mmbtu/Bbl)					1.14	1.14	1.15
WTI oil collars
Derivative [Line Items]
Notional amount, energy | MBoe			910	900	460	460
Floor, weighted-average (in dollars per Mmbtu/Bbl)			65	65	65	65
Ceiling, weighted-average (in dollars per Mmbtu/Bbl)			84.21	84.21	86.02	86.02

Derivative Instruments - Effect

Derivative Instruments - Effect of Derivative Instruments on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative instruments	$ 62,000	$ 85,000
Derivative instruments, noncurrent	6,000	7,000
Net amounts of assets presented in the condensed consolidated balance sheet	68,000	92,000
Derivative instruments, current	2,000	0
Derivatives Not Designated as Hedges | Commodity Contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative instruments	62,000	85,000
Derivative instruments, noncurrent	6,000	7,000
Net amounts of assets presented in the condensed consolidated balance sheet	68,000	92,000
Derivative instruments, current	2,000	0
Net amounts of liabilities presented in the consolidated balance sheet	$ 2,000	$ 0

Derivative Instruments - Offset

Derivative Instruments - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivative assets
Gross amounts of recognized assets	$ 74	$ 93
Gross amounts offset in the condensed consolidated balance sheet	(6)	(1)
Net amounts of assets presented in the condensed consolidated balance sheet	68	92
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	0	1
Net amount	68	93
Derivative liabilities
Gross amounts of recognized liabilities	8	1
Gross amounts offset in the condensed consolidated balance sheet	(6)	(1)
Net amounts of liabilities presented in the condensed consolidated balance sheet	2	0
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	0	0
Net amount	$ 2	$ 0

Derivative Instruments - Effe_2

Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Effect of derivative instruments on the Consolidated Balance Sheet
Total	$ 0	$ 138
Gas contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Cash received (paid) on settlement of derivative instruments	27	99
Non-cash gain (loss) on derivative instruments	7	42
Oil contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Cash received (paid) on settlement of derivative instruments	(1)	1
Non-cash gain (loss) on derivative instruments	$ (33)	$ (4)

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Assets
Deferred compensation plan	$ 35	$ 33
Derivative instruments	68	92
Liabilities
Deferred compensation plan	35	33
Recurring basis
Assets
Deferred compensation plan	35	33
Derivative instruments	74	93
Total assets	109	126
Liabilities
Deferred compensation plan	35	33
Derivative instruments	8	1
Total liabilities	43	34
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis
Assets
Deferred compensation plan	35	33
Derivative instruments	0	0
Total assets	35	33
Liabilities
Deferred compensation plan		33
Derivative instruments	0	0
Total liabilities	35	33
Significant Other Observable Inputs (Level 2) | Recurring basis
Assets
Deferred compensation plan	0	0
Derivative instruments	0	0
Total assets	0	0
Liabilities
Deferred compensation plan	0	0
Derivative instruments	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Recurring basis
Assets
Deferred compensation plan	0	0
Derivative instruments	74	93
Total assets	74	93
Liabilities
Deferred compensation plan	0	0
Derivative instruments	8	1
Total liabilities	$ 8	$ 1

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy
Balance at beginning of period	$ 92	$ 146
Total gain (loss) included in earnings	0	138
Settlement (gain) loss	(26)	(100)
Transfers in and/or out of Level 3	0	0
Balance at end of period	66	184
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period	$ (1)	$ 95
Fair value recurring basis unobservable input reconciliation net derivative asset liability gain loss statement of income extensible list not disclosed flag	Total gain (loss) included in earnings	Total gain (loss) included in earnings

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 impaired_asset_and_liability
Fair value disclosures
Number of non-financial assets and liabilities impaired	0
3.90% senior notes due May 15, 2027 | Senior Notes
Fair value disclosures
Stated percentage	3.90%
4.375% senior notes due March 15, 2029 | Senior Notes
Fair value disclosures
Stated percentage	4.375%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Fair value disclosures
Total debt	$ 2,651	$ 2,161
Current maturities	575	575
Long-term debt	2,076	1,586
Carrying Amount
Fair value disclosures
Total debt	2,651	2,161
Current maturities	575	575
Long-term debt	2,076	1,586
Estimated Fair Value
Fair value disclosures
Total debt	2,508	2,015
Current maturities	568	565
Long-term debt	$ 1,940	$ 1,450

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Asset Retirement Obligation
Balance at beginning of period	$ 289
Liabilities incurred	2
Accretion expense	3
Balance at end of period	294
Less: current asset retirement obligations	(11)
Noncurrent asset retirement obligations	$ 283	$ 280

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 1,433	$ 1,639
Natural gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	538	822
Oil
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	701	615
NGL
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	173	177
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 21	$ 25

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracts with customers	$ 656	$ 723
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 6,500
Unsatisfied performance obligations, expected period of satisfaction	15 years

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended			3 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Oct. 31, 2021	Mar. 31, 2024	Mar. 31, 2023
Equity, Class of Treasury Stock [Line Items]
Cash dividends, per share (in dollars per share)	$ 0.21	$ 0.20	$ 0.15	$ 0.21	$ 0.57
Share repurchases and retirements (in shares)				6
Share repurchases and retirements				$ 157
Stock repurchase program				1,400
Share repurchases				$ 157	$ 271
Previous Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchased during period (in shares)					11
Share repurchases					$ 271

Capital Stock - Dividends Commo

Capital Stock - Dividends Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Equity [Abstract]
Fixed (in dollars per share)	$ 0.21	$ 0.20
Variable (in dollars per share)	0	0.37
Total (in dollars per share)	$ 0.21	$ 0.57
Total dividends	$ 160	$ 438

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Share-Based Compensation Expense Income Tax Benefit Awards Issued Under Incentive Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 13	$ 16
Income tax benefit	0	1
Restricted stock units - employees and non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	9	7
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	1	4
Performance share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 3	$ 5

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - $ / shares		3 Months Ended
	Feb. 21, 2024	Mar. 31, 2024
Restricted Stock Units | Employee
Stock-based Compensation arrangements
Granted (in shares)		574,697
Granted (in dollars per share)		$ 26.16
Service period		3 years
Annual forfeiture rate		0%
TSR Performance Share Awards
Stock-based Compensation arrangements
Granted (in shares)		541,865
Granted (in dollars per share)	$ 19.38
Performance period		3 years
Right to receive shares		100%
Right to receive an additional award in cash		100%
Annual forfeiture rate		0%

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions for TSR Shares (Details) - TSR Performance Share Awards - $ / shares		3 Months Ended
	Feb. 21, 2024	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per performance share award (in dollars per share)	$ 19.38
Stock price volatility	38%
Risk-free rate of return	4.39%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per performance share award (in dollars per share)		$ 5.24
Stock price volatility		23.70%
Risk-free rate of return		4.38%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per performance share award (in dollars per share)		$ 10.61
Stock price volatility		37.90%
Risk-free rate of return		5.08%

Earnings per Share - Schedule o

Earnings per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income (Numerator)
Net income	$ 352	$ 677
Less: dividends attributable to participating securities	0	(2)
Net income available to common stockholders	$ 352	$ 675
Shares (Denominator)
Weighted-average shares - basic (in shares)	750	764
Dilution effect of stock awards at end of period (in shares)	5	4
Weighted-average shares - diluted (in shares)	755	768
Earnings per share
Basic (in dollars per share)	$ 0.47	$ 0.88
Diluted (in dollars per share)	$ 0.47	$ 0.88

Earnings per Share - Calculatio

Earnings per Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Treasury Stock Method
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	0	0

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 47	$ 77
Additions related to merger integration	0	7
Reductions related to severance payments	(11)	(7)
Balance at end of period	$ 36	$ 77

Additional Balance Sheet Info_3

Additional Balance Sheet Information (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Accounts receivable, net
Trade accounts	$ 656	$ 723
Joint interest accounts	181	118
Other accounts	44	4
Accounts receivable, gross	881	845
Allowance for credit losses	(3)	(2)
Accounts receivable, net	878	843
Other assets
Deferred compensation plan	35	33
Debt issuance costs	7	8
Operating lease right-of-use assets	312	337
Other accounts	84	82
Other assets	444	467
Accounts payable
Trade accounts	64	60
Royalty and other owners	378	386
Accrued gathering, processing and transportation	69	80
Accrued capital costs	158	165
Taxes other than income	39	33
Accrued lease operating costs	41	39
Other accounts	39	40
Accounts payable	788	803
Accrued liabilities
Employee benefits	39	70
Taxes other than income	23	14
Restructuring liability	30	35
Derivative instruments	2	0
Operating lease liabilities	116	116
Derivative instruments	6	7
Financing lease liabilities	7	6
Other accounts	63	20
Accrued liabilities	280	261
Other liabilities
Deferred compensation plan	35	33
Postretirement benefits	17	17
Operating lease liabilities	209	237
Financing lease liabilities	5	6
Restructuring liability	6	12
Other accounts	125	124
Other liabilities	$ 397	$ 429
Operating lease, right-of-use asset, statement of financial position [Extensible List]	Other assets	Other assets
Operating lease, liability, current, statement of financial position [Extensible List]	Accrued liabilities	Accrued liabilities
Finance lease, liability, current, statement of financial position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Operating lease, liability, noncurrent, statement of financial position [Extensible List]	Other liabilities	Other liabilities
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration]	Other liabilities	Other liabilities

Interest Expense (Details)

Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest Income (Expense), Net [Abstract]
Interest expense	$ 22	$ 20
Debt premium and discount amortization, net	(5)	(5)
Debt issuance cost amortization	1	1
Other	1	1
Total	$ 19	$ 17

Uncategorized Items - ctra-2024

Label	Element	Value
Retained Earnings [Member]
Net Income (Loss)	us-gaap_NetIncomeLoss	$ 352,000,000