Texas Capital Lowers Coterra Energy (CTRA) Target to $31 after Devon Transaction

Coterra Energy Inc. (NYSE:CTRA) is included among the 15 Best Dividend Leaders to Buy Right Now.

Texas Capital Lowers Coterra Energy (CTRA) Target to $31 after Devon Transaction

On March 9, Texas Capital downgraded Coterra Energy Inc. (NYSE:CTRA) to Hold from Buy. It also reduced its price target on the stock to $31 from $34. The firm cited its agreement to merge with Devon Energy (DVN) in an all-stock transaction, which is expected to close in the second quarter.

The company reported its earnings on February 26. Reuters said Coterra missed Wall Street expectations for fourth-quarter profit, as weaker crude prices weighed on results. The company also warned that its first-quarter output would be affected by a winter storm in the United States. Global crude prices have faced pressure amid concerns about oversupply, with Venezuela expected to add more barrels to the market. Coterra said the average price of oil during the quarter was $58.16 per barrel, down from $68.57 per barrel a year earlier.

Production during the quarter reached 813,100 barrels of oil equivalent per day, compared with 681,500 boepd in the same period last year. The company also forecast total production for 2026 in the range of 750,000 to 810,000 boepd, including the impact of the winter storm in the first quarter. Earlier this month, Coterra Energy and rival Devon announced a $58 billion merger. The companies said the deal is intended to increase scale and improve cost efficiency amid weakening oil prices. The merger is expected to close in the second quarter, and the companies are targeting $1 billion in annual pre-tax savings by 2027.

Coterra Energy Inc. (NYSE:CTRA) is an exploration and production company based in Houston, Texas. Its operations are concentrated in the Permian Basin, Marcellus Shale, and Anadarko Basin, and the company focuses on the development and production of oil, natural gas, and natural gas liquids in the continental United States.

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