In the evolving landscape of energy, Expand Energy Corporation (EXE) and Coterra Energy Inc. (CTRA) stand out as key players in oil and gas exploration and production. Both companies focus heavily on natural gas assets within the U.S., competing in overlapping markets like the Marcellus Shale. Their strategic approaches to resource development and innovation make this comparison vital. Join me as we analyze which company offers the most compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between Expand Energy Corporation and Coterra Energy Inc. by providing an overview of these two companies and their main differences.
Expand Energy Corporation Overview
Expand Energy Corporation operates as an independent exploration and production company in the U.S., focusing on acquiring, exploring, and developing properties to produce oil, natural gas, and natural gas liquids. It holds interests in natural gas resource plays, primarily in the Marcellus Shale and Haynesville/Bossier Shales. Founded in 1989 and headquartered in Oklahoma City, the company manages around 5,000 natural gas wells and changed its name from Chesapeake Energy Corporation in 2024.
Coterra Energy Inc. Overview
Coterra Energy Inc. is an independent oil and gas company engaged in the development, exploration, and production of oil, natural gas, and liquids across several U.S. basins, including Marcellus, Permian, and Anadarko. It also operates gas and saltwater disposal gathering systems in Texas. Incorporated in 1989 and based in Houston, Texas, Coterra serves a diverse customer base including industrial users and energy companies, with significant proved reserves reported as of 2021.
Key similarities and differences
Both companies operate independently within the oil and gas exploration and production sector in the U.S., focusing on natural gas and liquids extraction. Expand Energy has a larger workforce with 1,500 employees compared to Coterra’s 915, while Coterra holds a broader geographic footprint across multiple basins and operates additional infrastructure. Market capitalization reflects this difference, with Expand Energy valued at approximately 24B USD and Coterra at 19B USD as of 2026.
Income Statement Comparison
The following table provides a factual comparison of key income statement metrics for Expand Energy Corporation (EXE) and Coterra Energy Inc. (CTRA) based on their most recent fiscal year 2024 data.
| Metric | Expand Energy Corporation (EXE) | Coterra Energy Inc. (CTRA) |
|---|---|---|
| Market Cap | 24.2B | 18.9B |
| Revenue | 4.22B | 5.46B |
| EBITDA | 1.02B | 3.30B |
| EBIT | -711M | 1.45B |
| Net Income | -714M | 1.12B |
| EPS | -4.55 | 1.51 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Expand Energy Corporation
Expand Energy’s revenue declined significantly from 11.44B in 2022 to 4.22B in 2024, with net income swinging from 4.87B in 2022 to a loss of 714M in 2024. Gross margin remained somewhat stable at 27%, but EBIT and net margins turned negative in 2024, reflecting operational and profitability challenges. The recent year showed a steep drop in growth and margins, indicating financial stress.
Coterra Energy Inc.
Coterra’s revenue grew impressively over the period from 1.41B in 2020 to 5.46B in 2024, with net income rising from 200M to 1.12B. Gross margin improved to nearly 31%, supported by a positive EBIT margin of 26.57% and a net margin of 20.53% in 2024. Although 2024 saw slight declines in revenue and profits, the company maintains solid profitability and margin stability.
Which one has the stronger fundamentals?
Based on income statement evaluations, Coterra demonstrates stronger fundamentals with favorable margins, consistent net income growth, and a positive overall income statement opinion. Expand Energy, despite some past profitability, faces unfavorable recent declines in revenue, EBIT, and net income margins, resulting in a negative global income statement assessment.
Financial Ratios Comparison
The table below presents the most recent key financial ratios for Expand Energy Corporation and Coterra Energy Inc. as of fiscal year 2024, allowing a straightforward comparison of their financial health and performance.
| Ratios | Expand Energy Corporation (EXE) | Coterra Energy Inc. (CTRA) |
|---|---|---|
| ROE | -4.06% | 8.54% |
| ROIC | -2.70% | 5.62% |
| P/E | -21.89 | 16.91 |
| P/B | 0.89 | 1.44 |
| Current Ratio | 0.64 | 2.92 |
| Quick Ratio | 0.64 | 2.88 |
| D/E (Debt-to-Equity) | 0.33 | 0.29 |
| Debt-to-Assets | 20.88% | 17.58% |
| Interest Coverage | -6.53 | 13.10 |
| Asset Turnover | 0.15 | 0.25 |
| Fixed Asset Turnover | 0.17 | 0.30 |
| Payout Ratio | -54.34% | 55.75% |
| Dividend Yield | 2.48% | 3.30% |
Interpretation of the Ratios
Expand Energy Corporation
Expand Energy shows several weak financial ratios in 2024, including negative net margin (-16.92%) and return on equity (-4.06%), signaling operational challenges. The current and quick ratios are below 1, indicating liquidity concerns. Nevertheless, favorable debt metrics and a dividend yield of 2.48% suggest some financial stability. The company pays dividends, but coverage by free cash flow appears limited, posing potential risks to dividend sustainability.
Coterra Energy Inc.
Coterra Energy presents mostly strong ratios in 2024, with a positive net margin of 20.53% and a favorable current ratio of 2.92, reflecting good profitability and liquidity. Some ratios, like return on equity (8.54%), are marked as unfavorable, while asset turnover ratios remain weak. The company pays a dividend yield of 3.3%, supported by healthy cash flow coverage, indicating a sustainable shareholder return policy.
Which one has the best ratios?
Coterra Energy has a more favorable overall ratio profile with 64.29% favorable indicators compared to 42.86% for Expand Energy. Coterra’s stronger profitability, liquidity, and dividend coverage outweigh its few weaknesses, while Expand Energy faces more unfavorable ratios and operational challenges, leading to a less positive financial outlook.
Strategic Positioning
This section compares the strategic positioning of Expand Energy Corporation and Coterra Energy Inc., including market position, key segments, and exposure to technological disruption:
Expand Energy Corporation
- Larger market cap of 24B USD; faces moderate competitive pressure in US oil & gas exploration.
- Key segments include natural gas sales, gathering, transportation, and marketing; diversified product mix.
- Exposure to traditional oil and gas exploration with no explicit mention of technological disruption.
Coterra Energy Inc.
- Market cap of 19B USD; operates in competitive US oil & gas markets with focused assets.
- Focuses on oil and condensate with significant acreage in Marcellus, Permian, and Anadarko Basins.
- Similar traditional oil and gas exposure; operates gathering systems but no stated tech disruption focus.
Expand Energy Corporation vs Coterra Energy Inc. Positioning
Expand Energy shows a diversified product mix with significant natural gas operations, while Coterra concentrates on oil and condensate production with focused geographic assets. Expand’s larger market cap contrasts with Coterra’s operational concentration, reflecting differing strategic breadth and scale.
Which has the best competitive advantage?
Coterra holds a slightly favorable moat with growing profitability but no clear competitive advantage yet. Expand’s moat is slightly unfavorable despite ROIC growth, indicating value destruction but improving profitability.
Stock Comparison
The stock price chart highlights significant movements and trading dynamics over the past 12 months, with Expand Energy Corporation showing a strong bullish trend despite recent deceleration, while Coterra Energy Inc. exhibits a near-neutral overall trend with recent acceleration.
Trend Analysis
Expand Energy Corporation (EXE) displayed a 29.09% price increase over the past year, indicating a bullish trend with deceleration. The stock ranged from 70.84 to 122.86, showing notable volatility with a standard deviation of 12.95.
Coterra Energy Inc. (CTRA) saw a 0.57% price rise over the same period, reflecting a neutral trend with acceleration. Price fluctuations were narrower, between 22.71 and 29.47, with low volatility at 1.71 standard deviation.
Comparing both, EXE outperformed CTRA in market performance with a higher overall price gain, despite recent minor declines versus CTRA’s recent positive momentum.
Target Prices
Here is the target price consensus from reliable analysts for the selected energy companies:
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Expand Energy Corporation | 150 | 125 | 140.63 |
| Coterra Energy Inc. | 38 | 27 | 32.5 |
Analysts expect Expand Energy Corporation’s stock to appreciate significantly from its current price of 101.63 USD, while Coterra Energy Inc.’s consensus target price of 32.5 USD suggests moderate upside potential from its current 24.82 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Expand Energy Corporation and Coterra Energy Inc.:
Rating Comparison
Expand Energy Corporation Rating
- Rating: B, categorized as Very Favorable by analysts.
- Discounted Cash Flow Score: 4, indicating a Favorable valuation.
- ROE Score: 3, considered Moderate in generating shareholder profit.
- ROA Score: 4, Favorable asset utilization efficiency.
- Debt To Equity Score: 2, Moderate financial risk.
- Overall Score: 3, reflecting Moderate overall financial standing.
Coterra Energy Inc. Rating
- Rating: A-, also Very Favorable according to evaluations.
- Discounted Cash Flow Score: 5, marked as Very Favorable.
- ROE Score: 4, Favorable efficiency in generating equity returns.
- ROA Score: 5, Very Favorable asset usage effectiveness.
- Debt To Equity Score: 2, also Moderate financial risk.
- Overall Score: 4, Favorable overall financial health.
Which one is the best rated?
Based solely on the provided data, Coterra Energy Inc. has a superior rating overall with an A- rating and higher scores in discounted cash flow, ROE, ROA, and overall financial standing compared to Expand Energy Corporation’s B rating and moderate scores.
Scores Comparison
The following table compares the Altman Z-Score and Piotroski Score of Expand Energy Corporation and Coterra Energy Inc.:
EXE Scores
- Altman Z-Score: 2.43, indicating a moderate bankruptcy risk in the grey zone.
- Piotroski Score: 6, reflecting average financial strength and investment quality.
CTRA Scores
- Altman Z-Score: 2.30, indicating a moderate bankruptcy risk in the grey zone.
- Piotroski Score: 6, reflecting average financial strength and investment quality.
Which company has the best scores?
Both Expand Energy Corporation and Coterra Energy Inc. have similar scores, with Altman Z-Scores in the grey zone and identical Piotroski Scores of 6, indicating comparable moderate financial stability and average investment quality based on the provided data.
Grades Comparison
The following presents a detailed comparison of the latest available grades from reputable grading companies for both Expand Energy Corporation and Coterra Energy Inc.:
Expand Energy Corporation Grades
This table summarizes recent grades assigned by well-known financial institutions to Expand Energy Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Buy | 2026-01-08 |
| Jefferies | Maintain | Buy | 2026-01-08 |
| Bernstein | Maintain | Outperform | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-12-19 |
| Mizuho | Maintain | Outperform | 2025-12-12 |
| UBS | Maintain | Buy | 2025-12-12 |
| Piper Sandler | Maintain | Overweight | 2025-11-18 |
| Morgan Stanley | Maintain | Overweight | 2025-10-30 |
| UBS | Maintain | Buy | 2025-10-30 |
| Morgan Stanley | Maintain | Overweight | 2025-10-14 |
Overall, Expand Energy Corporation’s grades consistently reflect a positive outlook, with several Buy and Outperform ratings maintained by major financial institutions.
Coterra Energy Inc. Grades
This table details recent grades assigned by established grading companies to Coterra Energy Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Buy | 2025-12-12 |
| Piper Sandler | Maintain | Overweight | 2025-11-18 |
| Piper Sandler | Maintain | Overweight | 2025-10-21 |
| Susquehanna | Maintain | Positive | 2025-10-20 |
| UBS | Maintain | Buy | 2025-10-14 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-14 |
| Scotiabank | Maintain | Sector Outperform | 2025-10-09 |
| Mizuho | Maintain | Outperform | 2025-09-15 |
| Raymond James | Maintain | Outperform | 2025-09-11 |
| Piper Sandler | Maintain | Overweight | 2025-08-14 |
Coterra Energy Inc. shows a broad range of positive grades, including Buy, Overweight, and Outperform, although some Equal Weight ratings suggest a more mixed consensus.
Which company has the best grades?
Both Expand Energy Corporation and Coterra Energy Inc. have received predominantly positive grades with a consensus of “Buy.” However, Expand Energy shows slightly stronger uniformity in Buy and Outperform ratings, while Coterra exhibits more variation including some Equal Weight assessments. This difference may influence investor confidence and perceived stability of future performance.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Expand Energy Corporation (EXE) and Coterra Energy Inc. (CTRA) based on the latest available data.
| Criterion | Expand Energy Corporation (EXE) | Coterra Energy Inc. (CTRA) |
|---|---|---|
| Diversification | Moderate diversification with significant revenues from Natural Gas, Oil, and Gathering segments | Less diversified, mainly focused on Oil and Condensate sales |
| Profitability | Negative net margin (-16.92%) and negative ROIC (-2.7%), value shedding | Positive net margin (20.53%), moderate ROIC (5.62%), slightly favorable |
| Innovation | Limited recent innovation data, struggling with efficiency | Improving profitability suggests operational enhancements |
| Global presence | Primarily US-focused with large natural gas operations | US-focused with strong oil and condensate production |
| Market Share | Large in natural gas gathering and marketing, but declining revenues | Growing oil sales, increasing market presence in condensate |
Key takeaways: EXE shows signs of value destruction with negative profitability ratios despite a growing ROIC trend, indicating operational improvements are needed. CTRA demonstrates more stable profitability and a favorable financial outlook, making it a comparatively stronger investment candidate with better diversification in its oil segment.
Risk Analysis
Below is a comparison table of key risks for Expand Energy Corporation (EXE) and Coterra Energy Inc. (CTRA) based on the most recent 2024 data:
| Metric | Expand Energy Corporation (EXE) | Coterra Energy Inc. (CTRA) |
|---|---|---|
| Market Risk | Moderate (Beta 0.45, oil & gas volatility) | Moderate (Beta 0.33, commodity price sensitivity) |
| Debt Level | Moderate (Debt/Equity 0.33, Interest coverage negative at -5.78) | Moderate (Debt/Equity 0.29, strong interest coverage at 13.69) |
| Regulatory Risk | Elevated (US energy regulations, shale operations) | Elevated (US shale and Permian Basin regulation) |
| Operational Risk | Moderate (5,000 gas wells, low asset turnover) | Moderate (diverse assets, low asset turnover) |
| Environmental Risk | High (natural gas production, methane emissions) | High (oil and gas exploration, environmental compliance) |
| Geopolitical Risk | Low (US-focused operations) | Low (US-focused operations) |
The most impactful risks for both companies stem from environmental regulations and operational challenges inherent in the oil and gas sector. Expand Energy faces higher financial stress reflected in negative interest coverage, signaling caution. Coterra shows stronger financial resilience but remains exposed to commodity price fluctuations and regulatory shifts. Both companies’ US-centric focus reduces geopolitical risks but does not eliminate regulatory uncertainties.
Which Stock to Choose?
Expand Energy Corporation (EXE) shows a declining income trend with unfavorable profitability and financial ratios, including negative returns on equity and assets, and weak liquidity. Its debt level is manageable, and it holds a very favorable B rating despite an overall unfavorable ratio evaluation.
Coterra Energy Inc. (CTRA) exhibits a generally favorable income profile with positive margins and improving profitability. Its financial ratios are mostly favorable, supported by strong liquidity and moderate debt. The company holds a very favorable A- rating with a more positive overall ratio assessment.
For investors, Coterra Energy’s stronger financial health and favorable income statement might appeal to those seeking stable and quality investments. Meanwhile, Expand Energy’s growing ROIC and moderate rating could be of interest to investors willing to tolerate higher risk and focus on potential turnaround growth.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Expand Energy Corporation and Coterra Energy Inc. to enhance your investment decisions:
