Coterra

Policy is to return 50 percent or more of annual FCF. In 2024 Coterra returned about 1.09 billion dollars (dividends plus buybacks) or 89 percent of FCF, and increased the base dividend to 0.22 dollars per quarter.

The 2025 Permian acquisitions were framed at ~3.8x 4Q24 annualized EBITDAX with added infrastructure and 400–550 net locations; funding blended cash, stock (28.2 million shares) and modest term debt that is being paid down. SBC is low relative to cash flow.

We score above average for discipline, with a small deduction for share issuance in acquisitions and for inherent pro‑cyclicality risk in upstream M&A.