Coterrra Energy Inc, bearing the ticker symbol (CTRA), was  discussed previously on January 3 in a broadcast as a candidate for my Viking portfolio.

Image: Coterra

Coterra is an independent exploration and production company with operations in Appalachia, the Permian Basin, and Oklahoma.

The company was formed after the 2021 merger with Cabot and Cimarex. At year-end 2022, Coterra's proved reserves were 2.4 billion barrels of oil equivalent, with net production that year of approximately 633 million barrels of oil equivalent per day (of which 74% was natural gas).

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.

Three key data points gauge Coterrra Energy Inc or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CTRA Price

Coterra’s price per share was $25.60 at Friday’s market close. In the past year, CTRA’s share price dropped $3.19 or about 11%.

If CTRA stock trades in the range of $20 to $30.00 this next year, its recent $25.60 share price might rise to $28.00 by next year. It could go down about the same amount.

My upside estimate of $2.40 is $2.08 below the median of  annual price targets from 26 analysts who track Coterra for brokers.

CTRA Dividend

Coterrra Energy Inc Q dividend is declared by YCharts to be $0.515 as of its most recent March 30, 2023 payout to shareholders of record March 15.

CTRA Returns

Adding the $2.06 expected annual dividend to my $2.40 estimated price upside, reveals a $4.46 potential gross gain per share for the coming year.

At Friday’s $25.60 closing price, a little under $1000 would buy 39 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $4.46 gross gain estimate makes a net amount of $4.20 X 39 shares = $163.80 or a 16.4% net gain.

In the next year a $1K investment in shares of CTRA could generate about $80.50 in dividends. Furthermore, a single share of CTRA at Friday’s $25.60 price is over 3 times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this a time to consider CTRA shares, based on their dividends for 2023. The dividend from $1k invested is 3.14 times greater than CTRA’s single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Coterra Energy Inc. Only time and money invested in this stock will determine its future market value.

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