<div id="readability-page-1"><div><div><ul><li>ProPetro Holding Corp. recently announced that its PROPWR division signed a contract with a Coterra Energy subsidiary to develop and power distributed microgrids across Coterra’s New Mexico Permian operations, with deployment and operations scheduled to start in early 2026.</li><li>This microgrid deal underscores how Coterra is pairing its Permian growth with on-site, lower-emission power solutions that can improve operational reliability and cost control.</li><li>We’ll examine how this New Mexico Permian microgrid partnership could influence Coterra’s investment narrative around production growth and capital efficiency.</li></ul><p>We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</p><h2>Coterra Energy Investment Narrative Recap</h2><p>To own Coterra today, you need to believe in its ability to convert multi basin production growth into durable free cash flow while keeping costs and emissions in check. The new Permian microgrid partnership looks incrementally supportive of operational reliability and power costs, but it does not materially change the key near term catalyst of delivering on 2025 production and free cash flow guidance, or the main risk around gas price volatility and long term inventory quality.</p><p>The most relevant recent update here is Coterra’s Q3 2025 beat and raised full year production guidance, alongside reaffirmed US$2 billion of expected 2025 free cash flow. Against that backdrop, securing lower emission, on site power for New Mexico Permian operations fits with the company’s focus on capital efficiency and cash generation, giving investors another operational proof point to track as these catalysts play out.</p><p>Yet investors should also be aware that if natural gas prices remain weak for longer or Tier 1 inventory tightens faster than expected, then...</p><p>Read the full narrative on Coterra Energy (it's free!)</p><p>Coterra Energy's narrative projects $9.6 billion revenue and $1.9 billion earnings by 2028.</p><p>Uncover how Coterra Energy's forecasts yield a $32.32 fair value, a 23% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><div><div><p><img src="https://imageproxy.pbkrs.com/https://s.yimg.com/ny/api/res/1.2/XUVUG.h.lXsuNlFHr8b.Eg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY2NA--/https://media.zenfs.com/en/simply_wall_st__316/4386a5056ef6a4d0a704e8ad75f11b4c?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="960" height="664" original-src="https://imageproxy.pbkrs.com/https://s.yimg.com/ny/api/res/1.2/XUVUG.h.lXsuNlFHr8b.Eg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY2NA--/https://media.zenfs.com/en/simply_wall_st__316/4386a5056ef6a4d0a704e8ad75f11b4c"/></p></div></div><p></p><figcaption>CTRA 1-Year Stock Price Chart</figcaption><p></p></figure><p>Six members of the Simply Wall St Community currently value Coterra anywhere between about US$25 and US$102 per share, showing just how far apart individual views can be. As you weigh those opinions against Coterra’s focus on turning higher production into free cash flow, it becomes even more important to explore several alternative viewpoints on how risks like prolonged gas price weakness could influence future performance.</p><p>Explore 6 other fair value estimates on Coterra Energy - why the stock might be worth over 3x more than the current price!</p><h2>Build Your Own Coterra Energy Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your Coterra Energy research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.</li><li>Our free Coterra Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coterra Energy's overall financial health at a glance.</li></ul><h2>Interested In Other Possibilities?</h2><p>Our daily scans reveal stocks with breakout potential. Don't miss this chance:</p><ul><li>These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.</li><li>This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality.</li><li>AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.</li></ul><p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.</em></p><p><em>Companies discussed in this article include CTRA.</em></p><p><strong>Have feedback on this article? Concerned about the content? Get in touch with us directly.</strong><em> Alternatively, email editorial-team@simplywallst.com</em></p></div></div></div>

CTRA

<p>ProPetro Holding Corp.'s PROPWR division signed a contract with a Coterra Energy subsidiary to develop microgrids in New Mexico's Permian operations, starting in 2026. This partnership aims to enhance Coterra's operational reliability and cost control with lower-emission power solutions. While supportive of Coterra's capital efficiency narrative, it doesn't alter the main catalyst of achieving 2025 production and cash flow targets amid gas price volatility. Coterra projects $9.6 billion revenue and $1.9 billion earnings by 2028, with a fair value estimate of $32.32 per share.</p>

Will New Mexico Permian Microgrids Deal Shift Coterra Energy's (CTRA) Capital Efficiency Narrative?