UBS reiterates Buy rating on Coterra Energy stock, maintains $30 price target

Published 22/07/2025, 15:52
UBS reiterates Buy rating on Coterra Energy stock, maintains $30 price target

Investing.com - UBS maintained its Buy rating and $30.00 price target on Coterra Energy (NYSE:CTRA), a $17.8 billion market cap energy company, following the company’s 8-K update on realized prices and cash hedge gains. According to InvestingPro analysis, the stock appears undervalued while trading near its 52-week low of $22.30.

Coterra Energy reported a post-hedge realized oil price of $64.01 per barrel during the quarter, exceeding UBS’s estimate of $62.25 per barrel. The company’s post-hedge realized gas price came in at $2.27 per million British thermal units (mmbtu), below UBS’s projection of $2.41 per mmbtu.

The energy company received $35 million in hedge cash settlements on a net basis, with gains of $1.21 per barrel on oil contracts and $0.07 per mmbtu on gas hedges.

UBS slightly lowered its cash flow per share (CFPS) estimate for Coterra to $1.24 per share from $1.25 per share, primarily due to lower realized gas prices. This revised estimate aligns with the Street consensus of $1.24 per share.

The firm’s analysis indicates that while oil prices performed better than expected, the underperformance in natural gas prices led to the minor downward adjustment in cash flow projections.

In other recent news, Coterra Energy reported its Q2 realized prices, revealing an average oil sales price of $62.80 per barrel excluding hedges and $64.01 per barrel including hedges. The company also announced an average realized price for natural gas at $2.20 per thousand cubic feet (Mcf) without hedges and $2.27 per Mcf with hedges, along with natural gas liquids averaging $18.72 per barrel. Mizuho (NYSE:MFG) maintained its Outperform rating on Coterra Energy, highlighting the company’s strategic focus on the Permian Basin, which includes maintaining two rigs and increasing its second-half rig count. JPMorgan reiterated an Overweight rating despite operational challenges related to the Harkey Shale interval. UBS also reaffirmed its Buy rating, commending Coterra’s flexible capital allocation strategy across multi-basin operations. Conversely, Goldman Sachs downgraded Coterra Energy from Buy to Neutral, pointing to the company’s increased oil exposure and changes in production shares. These developments reflect Coterra’s ongoing adjustments in response to market conditions and operational dynamics.

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