Coterra Energy Announces $3.95 Billion Asset Acquisition

Coterra Energy is set to acquire assets from Franklin Mountain Energy and Avant Natural Resources for $3.95 billion, which is projected to significantly enhance its cash flow per share and net asset value by 2027, according to a recent report.

Date: 13-11-2024

AI Rating: 7

The report indicates that Coterra Energy (CTRA) has entered into agreements to acquire assets amounting to $3.95 billion, including cash and stock components. This acquisition is expected to be above 15% accretive to per share Discretionary Cash Flow and Free Cash Flow, suggesting a strong positive outlook on cash generation capabilities following this transaction.

Additionally, the acquisition is also anticipated to enhance the Net Asset Value per share, indicating a favorable impact on the company’s total assets and value. The mentioned Permian locations being targeted for development point towards strategic growth in a competitive market segment.

Stocks: CTRA