Coterra Energy (CTRA) Update - Dec 16

[dan_s]

From my friends at Stifel
My current valuation of CTRA is $32.00

Coterra Energy Inc. (CTRA, $20.37, Buy; Target $26.00)
Room for Buyback to Complement 2022 Peer-Leading Dividend - Michael S. Scialla
With a top-tier 2022 dividend yield of 9% (nearly 2x our peer group average of 5.3%) and solid balance sheet (YE21 net debt/EBITDA of 0.6x vs peer average of 1.1x) CTRA is well-positioned to lead our bellwether peer group in returning capital to shareholders next year. In our view, a meaningful share buyback program could complement this plan. After accelerating its first variable dividend to 4Q21 from 1Q22, the company is set to return 49% of its 2021 FCF to investors, the highest in our group.

I may move CTRA to our High Yield Income Portfolio