Crude Petroleum & Natural Gas
Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States. The company primarily focuses on the Marcellus Shale with approximately 183,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania. It also holds Permian Basin properties with approximately 307,000 net acres; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. In addition, the company operates natural gas and saltwater disposal gathering systems in Texas. It sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. The company was incorporated in 1989 and is headquartered in Houston, Texas.
Discounted Cash Flow Valuation of Coterra Energy Inc.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +26.02%.
The trend of Net Margin over the past 5 years is +5.73%.
The average ROA over the past 5 years is +12.79%.
The trend of ROA over the past 5 years is +2.83%.
The average ROE over the past 5 years is +18.87%.
The trend of ROE over the past 5 years is +1.92%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 1.21.
The trend of Debt/FCF over the past 5 years is -1.95.
Graham’s Stability measure stands at -4.63.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +38.68%.
The trend of Revenue growth rate over the past 5 years is +16.39%.
The Earnings CAGR over the past 5 years is +109.56%.
The trend of Earnings growth rate over the past 5 years is +37.34%.
The Equity CAGR over the past 5 years is +38.06%.
The trend of Equity growth rate over the past 5 years is +21.76%.
The FCF CAGR over the past 5 years is +94.89%.
The trend of FCF growth rate over the past 5 years is -35.45%.