About Coterra Energy

Coterra Energy Inc. (Coterra) operates as an independent oil and gas company. The company engages in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs). The company’s assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable development programs. The company operates in one segment, oil and natural gas development, exploration and production, in the continental U.S. Strategy Coterra is a premier U.S.-focused exploration and production company. The company embraces innovation, technology and data, as it works to create value for its investors and the communities where it operates. Properties The company’s operations are primarily concentrated in three core operating areas—the Permian Basin in west Texas and southeast New Mexico, the Marcellus Shale in northeast Pennsylvania and the Anadarko Basin in the Mid-Continent region in Oklahoma. Permian Basin The company’s properties are principally located in the western half of the Permian Basin where it holds approximately 296,000 net acres in its core operating area in the Delaware Basin. The company’s development activities are primarily focused on the Wolfcamp Shale and the Bone Spring formation in Culberson and Reeves Counties in Texas and Lea and Eddy Counties in New Mexico. The company’s 2023 net production from the Permian Basin was 233 MBoe per day, representing 35 percent of its total equivalent production for the year. Net oil production in 2023 averaged 90 MBbl per day, representing 93 percent of its total company oil production. As of December 31, 2023, the company had a total of 1,083.0 producing net wells in the Permian Basin, of which approximately 89 percent are operated by it. Marcellus Shale The company’s properties are principally located in Susquehanna County, Pennsylvania, where it holds approximately 186,000 net acres in the dry gas window of the Marcellus Shale. The company’s 2023 net production in the Marcellus Shale was 377 MBoe per day, representing 57 percent of its total equivalent production for the year. Net natural gas production in 2023 averaged 2,263 MMcf per day, representing 78 percent of the company’s total natural gas production. As of December 31, 2023, the company had a total of 1,108.2 producing net wells in the Marcellus Shale, of which approximately 99 percent are operated by it. Anadarko Basin The company’s properties are located in the Mid-Continent region in Oklahoma where it holds approximately 182,000 net acres. The company’s development activities are primarily focused on both the Woodford Shale and the Meramec formations. The company’s 2023 net production in the Anadarko Basin was 56 MBoe per day, representing eight percent of its total equivalent production for the year. As of December 31, 2023, the company had a total of 509.9 producing net wells in the Anadarko Basin, of which approximately 61 percent are operated by it. Other Properties Ancillary to its exploration, development and production operations, the company operates a number of natural gas gathering and saltwater gathering and disposal systems. The majority of this infrastructure is located in Texas and directly supports the company’s Permian Basin operations. The company’s gathering systems enable it to connect new wells quickly and to transport natural gas from the wellhead directly to interstate and intrastate pipelines and natural gas processing facilities and to transport produced water to new wells for re-use in completions activities and to disposal facilities. Marketing Substantially all of the company’s oil and natural gas production is sold under both long-term and short-term sales contracts at market-sensitive prices. The company sells oil, natural gas and NGLs to a broad portfolio of customers, including industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies and power generation facilities. The company also incurs gathering and transportation expenses when it moves its oil and natural gas production from wellhead markets to other downstream markets. Major Customers During the year ended December 31, 2023, two customers accounted for approximately 19 percent and 17 percent of the company’s total sales. The company regularly monitors the creditworthiness of its customers and may require parent company guarantees, letters of credit or prepayments when necessary. Historically, losses associated with uncollectible receivables have not been significant. Regulation of Oil and Natural Gas Exploration and Production The Federal Energy Regulatory Commission (FERC) granted to all producers such as the company a blanket certificate of public convenience and necessity authorizing the sale of natural gas for resale without further FERC approvals. Effective beginning in January 1993, the Natural Gas Wellhead Decontrol Act deregulated natural gas prices for all first sales of natural gas, which definition covers all sales of the company’s own production. Environmental and Safety Regulations The company generates some wastes that are hazardous wastes subject to the Resource Conservation and Recovery Act (the RCRA) and comparable state statutes, as well as wastes that are exempt from such regulation. The company’s operations are subject to the federal Clean Air Act (the Clean Air Act) and comparable local and state laws and regulations to control emissions from sources of air pollution. The company is subject to the requirements of the U.S. federal Occupational Safety and Health Act (the Occupational Safety and Health Act) and comparable state laws. The Occupational Safety and Health Act hazard communication standard, the EPA community right-to-know regulations under the Title III of CERCLA and similar state laws require that the company organizes and/or discloses information about hazardous materials used or produced in its operations. The company complies with the applicable provisions of the Clean Water Act and related federal and state regulations. Also, pursuant to the Occupational Safety and Health Act, the Occupational Safety and Health Administration (the OSHA) has established a variety of standards related to workplace exposure to hazardous substances and employee health and safety. History Coterra Energy Inc. was incorporated in 1989.