Earlier this week, activist investor Kimmeridge, which owns just over 1% of Coterra Energy, moved to nominate former Pioneer Natural Resources CEO Scott Sheffield to Coterra’s board while urging the company to sell its natural gas assets and prioritize crude production in the Permian Basin.
This push introduces the prospect of a reshaped portfolio mix and governance structure at Coterra, with a high-profile shale executive potentially influencing capital allocation and asset strategy.
Next, we’ll explore how Kimmeridge’s campaign to pivot Coterra toward Permian-focused oil growth could influence the company’s broader investment narrative.
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For Coterra, the core investment story still hinges on a large-scale, diversified oil and gas portfolio generating solid earnings and a growing base dividend, now yielding just under 4% at recent prices. Investors effectively have to believe that management can keep converting that production base into steady cash flows, even as earnings growth is expected to trail the broader US market. In the near term, upcoming Q4 2025 results and any changes to capital returns remain key catalysts, alongside how the company balances oil versus gas spending. Kimmeridge’s push to add Scott Sheffield and tilt harder toward Permian oil introduces a new twist: it raises the prospect of portfolio reshaping or asset sales, but also adds governance and execution risk if strategy becomes a battleground. For now, the strong share price reaction suggests the market is treating this campaign as potentially material, not just background noise.
However, there is a less obvious risk around how any portfolio reshuffle could alter Coterra’s resilience. Coterra Energy’s shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.
CTRA 1-Year Stock Price Chart
Five fair value views from the Simply Wall St Community span roughly US$32 to a very large US$93 per share, showing just how far apart individual expectations can be. Set against that wide range, the new activist pressure around Coterra’s oil and gas mix, and the possibility of shifts in capital allocation, gives you a concrete example of why community members’ assumptions about future performance differ so much and why it can pay to weigh several perspectives side by side.
Explore 5 other fair value estimates on Coterra Energy – why the stock might be worth over 3x more than the current price!