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Coterra Energy Inc. (0HRZ.L)

Company Dividend Discount ModelIndustry: Oil & Gas EnergySector: Energy

Valuation Snapshot

Stable Growth$51.41 - $137.25$78.77
Multi-Stage$35.80 - $39.07$37.41
Blended Fair Value$58.09
Current Price$23.65
Upside145.62%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS33.75%34.08%0.831.182.641.030.210.190.150.100.050.04
YoY Growth---29.78%-55.32%155.38%390.57%8.90%31.10%41.26%117.86%9.36%-0.56%
Dividend Yield--2.87%4.21%10.76%3.83%1.12%1.13%0.57%0.44%0.20%0.19%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,646.00
(-) Cash Dividends Paid (M)669.00
(=) Cash Retained (M)977.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)329.20205.75123.45
Cash Retained (M)977.00977.00977.00
(-) Cash Required (M)-329.20-205.75-123.45
(=) Excess Retained (M)647.80771.25853.55
(/) Shares Outstanding (M)754.75754.75754.75
(=) Excess Retained per Share0.861.021.13
LTM Dividend per Share0.890.890.89
(+) Excess Retained per Share0.861.021.13
(=) Adjusted Dividend1.741.912.02
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$51.41$78.77$137.25
Upside / Downside117.40%233.07%480.35%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,646.001,752.991,866.931,988.292,117.522,255.162,322.82
Payout Ratio40.64%50.52%60.39%70.26%80.13%90.00%92.50%
Projected Dividends (M)669.00885.531,127.371,396.921,696.752,029.652,148.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)804.19811.81819.44
Year 2 PV (M)929.79947.50965.37
Year 3 PV (M)1,046.271,076.311,106.91
Year 4 PV (M)1,154.111,198.501,244.15
Year 5 PV (M)1,253.741,314.301,377.17
PV of Terminal Value (M)21,829.4022,883.7723,978.49
Equity Value (M)27,017.5128,232.1929,491.54
Shares Outstanding (M)754.75754.75754.75
Fair Value$35.80$37.41$39.07
Upside / Downside51.36%58.16%65.22%

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