Preservation of Atmosphere
Sustainability Thickness Score
Natural gas storage in Permean Basin. Image © Coterra Energy, Inc.
Coterra Energy, Inc
Natural gas is a critical because it is a “bridge” fuel that allows the energy system to maintain reliability while transitioning to greater reliance on renewable sources. Coterra Energy, Inc. (CTRA) is an independent natural gas company formed by the merger of Cabot Corporation and Cimarex Energy. It produces lower carbon natural gas as an alternative to coal and petroleum. Ninety-three percent of its revenue is derived from the sale of dry natural gas and natural gas liquids.
Entity:
Coterra Energy, Inc. (CTRA)
Attributes:
Distributes natural gas as an alternative fuel that emits 40% less CO2 than coal and 20% less than petroleum.
Sustainability goals:
- Convert energy sources from combustion to electric in operations.
- Reduce leaks and flares of unused methane.
- Reduce use of potable water in extraction operations.
Sustainability actions:
- Will convert 75% of compressor combustion to electric power by 2027.
- Use optical gas imaging cameras to detect and address leaks from flanges, valves and connectors.
- Installed water management systems to treat and recycle water.
Benefit/cost:
Strongly positive
Scaleable:
Yes
Thickness Score
Natural Capital Benefits
Sustainability Thickness Score
Natural gas is a bridge fuel that can be integrated with low carbon energy products. CTRA has lower energy intensity than competitors and is converting to electricity in its extraction and compression, which accounts for over 80% of its energy usage.
8
CTRA extracts natural gas using hydraulic fracking, which requires a significant quantity of water. The company reduces its use of potable water by recycling wastewater from its operation. CTRA demonstrated responsibility by settling a dispute involving a predecessor company that contaminated a community’s source of water.
-3
CTRA reduced Scope 1 emissions by -47% and Scope 2 emissions by -29%. The percentage of emissions attributable to methane declined from 33% to 15%, and CTRA reduced flared hydrocarbons by -75%.
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We continue to evaluate arguments that fracking adversely impacts habitat. At present, we do not assign a Thickness Score for Habitat.
Investment Attributes
Dividend Yield:
3.05%
Price/Earnings:
16.09
Market Capitalization:
$20 billion
Sector:
Energy, Water, and Atmosphere
Additional Info
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