Coterra Energy Inc (CTRA)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	1,586,000	1,592,000	2,171,000	2,176,000	2,181,000	2,188,000	2,981,000	3,090,000	3,125,000	946,509	946,316	946,123	946,000	973,712	1,045,500	1,045,260	1,133,020	1,132,790	1,219,560	1,219,340
Total stockholders’ equity	US$ in thousands	13,039,000	12,789,000	12,659,000	12,643,000	12,659,000	12,659,000	12,191,000	11,718,000	11,738,000	2,327,000	2,300,000	2,306,000	2,216,000	2,118,490	2,165,980	2,168,400	2,151,000	2,213,580	2,344,800	2,320,940
Debt-to-equity ratio		0.12	0.12	0.17	0.17	0.17	0.17	0.24	0.26	0.27	0.41	0.41	0.41	0.43	0.46	0.48	0.48	0.53	0.51	0.52	0.53

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,586,000K ÷ $13,039,000K
= 0.12

Based on the data provided, Coterra Energy Inc's debt-to-equity ratio has been relatively stable at around 0.17 throughout the past four quarters in 2023. This indicates that the company has been maintaining a conservative financial structure with a low level of debt compared to equity.

However, a closer look at the historical trend reveals a significant decrease in the debt-to-equity ratio from Q2 2022 to Q1 2023, when it dropped from 0.27 to 0.17. This substantial reduction suggests that Coterra Energy Inc has been actively managing its debt levels and possibly paying off debt or increasing equity during that time period.

Overall, the consistent low debt-to-equity ratio in 2023 coupled with the significant improvement seen in the previous quarters indicates a financially sound position for Coterra Energy Inc, showcasing a prudent approach towards managing its capital structure.