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    Gas-Fueled Microgrid Deal in New Mexico Permian Could Be A Game Changer For Coterra Energy (CTRA)

    Simply Wall St·12/19/2025 04:44:21
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    • ProPetro Holding Corp. recently announced that its PROPWR division signed a contract with a Coterra Energy subsidiary to supply turnkey power and distributed microgrids across the New Mexico portion of the Permian Basin, with deployment expected to begin in early 2026 and equipment deliveries running through 2027.
    • This collaboration highlights Coterra’s involvement in lower-emission, gas-powered microgrid infrastructure that could support more reliable operations and potentially enhance the value of its Permian development plans.
    • We’ll now examine how Coterra’s role in gas-fueled microgrids across the New Mexico Permian could reshape its investment narrative and outlook.

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    Coterra Energy Investment Narrative Recap

    To own Coterra, you have to believe in the durability of its gas weighted portfolio, its ability to convert that into steady cash returns, and its capacity to manage commodity price volatility. The ProPetro microgrid contract reinforces Coterra’s push into lower emission, gas powered infrastructure in the New Mexico Permian, but it does not materially change the near term focus on natural gas price risk and execution in key basins.

    The most relevant recent update here is Coterra’s Q3 2025 guidance raise, which calls for higher full year natural gas and total production. The New Mexico microgrid partnership fits alongside that growth tilt, potentially supporting more reliable Permian output, but it also sharpens the existing risk that expanded gas volumes meet a market that is already sensitive to oversupply and price swings.

    Yet investors should not ignore how sustained weakness or volatility in U.S. natural gas prices could...

    Read the full narrative on Coterra Energy (it's free!)

    Coterra Energy's narrative projects $9.6 billion revenue and $1.9 billion earnings by 2028.

    Uncover how Coterra Energy's forecasts yield a $32.36 fair value, a 27% upside to its current price.

    Exploring Other Perspectives

    CTRA 1-Year Stock Price Chart
    CTRA 1-Year Stock Price Chart

    Seven members of the Simply Wall St Community currently estimate Coterra’s fair value between about US$26 and US$102 per share, highlighting just how far opinions can stretch. Against that wide range, the core tension between rising gas production and potential oversupply in the U.S. market is a risk you will want to weigh carefully as you explore different viewpoints on the stock.

    Explore 7 other fair value estimates on Coterra Energy - why the stock might be worth over 4x more than the current price!

    Build Your Own Coterra Energy Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. 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. 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.