The Texas Commission on Environmental Quality (TCEQ) recently approved eight new air permits for Coterra Energy, covering projects in Martin, Midland, and Upton counties. These permits authorize emissions from engines, turbines, and oil and gas production facilities, underscoring Coterra’s ongoing investment in the Permian Basin. All permits were issued on August 18, 2025, and are now fully active—an important signal of preparation for additional field development.
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While air permits often fly under the radar, they are an essential precursor to drilling and production. The issuance of multiple permits across three key counties suggests that Coterra is laying the groundwork for future activity.
Well Permits Show Untapped Potential
Looking at recent well permit data for Coterra Energy in Texas, particularly in Upton, Midland, and Martin counties, another trend emerges:
- Martin County: 33 wells permitted but not yet drilled vs. 7 drilled.
- Midland County: 18 wells permitted but not yet drilled vs. just 1 drilled.
- Upton County: 15 wells permitted but not yet drilled vs. 1 drilled.
The imbalance between permits issued and wells actually drilled is striking. Across these counties, Coterra holds a significant inventory of unspudded permits. This backlog, combined with the newly granted air permits, positions the operator for a potential acceleration of drilling activity.
Reading Between the Lines
The combination of regulatory approvals and a large pool of permitted but unspudded wells paints a picture of strategic flexibility. Coterra may be waiting for optimal price signals, rig availability, or midstream capacity before turning more of its permits into producing wells.
However, with air permit coverage already in place and dozens of locations permitted for drilling, the company is clearly setting the stage for growth in the Permian’s core. For service companies and contractors, this dual signal—regulatory momentum and an untapped permit backlog—indicates a wave of activity could be on the horizon.
✅ Takeaway:
Coterra Energy’s latest air permit approvals, coupled with its stockpile of undrilled well permits in Upton, Midland, and Martin counties, highlight the potential for increased drilling and development activity in the coming months.
