Coterra Energy Inc. Earnings Per Share Disclosure
| Year Ended December 31, | ||||||||||||||||||||
| (In millions except per share amounts) | 2025 | 2024 | 2023 | |||||||||||||||||
Income (Numerator) | ||||||||||||||||||||
| Net income | $ | 1,717 | $ | 1,121 | $ | 1,625 | ||||||||||||||
| Less: dividends attributable to participating securities | (1) | (1) | (5) | |||||||||||||||||
| Net income available to common stockholders | $ | 1,716 | $ | 1,120 | $ | 1,620 | ||||||||||||||
Shares (Denominator) | ||||||||||||||||||||
| Weighted average shares - Basic | 761 | 742 | 756 | |||||||||||||||||
| Dilution effect of stock awards at end of period | 3 | 3 | 4 | |||||||||||||||||
| Weighted average shares - Diluted | 764 | 745 | 760 | |||||||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 2.25 | $ | 1.51 | $ | 2.14 | ||||||||||||||
| Diluted | $ | 2.24 | $ | 1.50 | $ | 2.13 | ||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method | 1 | 1 | 1 | |||||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.