Coterra Energy Q1 2025 Drilling Activity Review: Strategic Shifts and Regional Insights

Coterra Energy (NYSE: CTRA) released its Q1 2025 results with clear signals of capital discipline, operational focus, and strategic realignment amidst a volatile commodity environment. Below is a deep dive into the company’s drilling activity, capex decisions, rig utilization, and state-by-state footprint for the quarter.


📊 Quarterly Drilling Activity: 2024 vs 2025

Coterra drilled:

  • 88 wells in Q1 2024
  • 43 wells in Q1 2025

This marks a 51% year-over-year decline in Q1 drilling activity. The reduced pace reflects Coterra’s strategic choice to scale back Permian activity in response to softer oil prices.

“As our industry faces macroeconomic uncertainty and oil price headwinds, we believe it is prudent to reduce oil-directed activity at this time.” — Tom Jorden, CEO


🚧 Drilling, Rigs & Completions

  • Permian activity will be lowered from 10 rigs to 7 in the second half of 2025 (30% drop).
  • Capital investment in the Permian will be cut by $150 million.
  • Two Marcellus rigs were added in April, focused on natural gas. These may run through year-end depending on market conditions.

Coterra’s flexible contracting structure gives them the ability to ramp down quickly if required. This nimbleness is a key operational strength in a volatile market.


📈 2025 Capex Update

Coterra revised its full-year capital guidance:

  • New range: $2.0B to $2.3B (down from $2.1B to $2.4B)
  • Reinvestment rate expected to remain conservative at ~50% of Discretionary Cash Flow
  • 2025 Free Cash Flow guidance: $2.1B

“These decisions… bolster free cash flow in 2025, allow for a conservative investment ratio at lower commodity prices, and maintain our oil production guidance.” — Tom Jorden, CEO


🔹 Top 10 Drilling Contractors by Q1 Activity (2024 + 2025)

Contractor_and_RigQ1 2024Q1 2025Total Q1 Activity
H&P 4608412
Unit 4117411
Unit 4094610
Unit 4053710
Cactus 1483710

This table highlights consistent performance across H&P and Unit rigs, with Cactus 148 also increasing its presence in 2025.


🌎 State-Level Drilling Comparison

StateQ1 2024 WellsQ1 2025 Wells
Texas5335
New Mexico2632
Pennsylvania110
Oklahoma67

Coterra shifted activity away from Pennsylvania (zero wells in Q1 2025) and concentrated more on New Mexico and Oklahoma, while Texas still led in volume.


📊 Final Thoughts

Coterra Energy’s Q1 2025 activity reflects a disciplined response to commodity headwinds, highlighting a pivot toward natural gas and lower reinvestment in oil-heavy plays. With a strong balance sheet and strategic optionality, the company is well-positioned to capitalize on upside scenarios while protecting downside risk.


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