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CTRA (Coterra Energy) Degree of Operating Leverage : -0.61 (As of Mar. 2025)


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What is Coterra Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Coterra Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Coterra Energy's Degree of Operating Leverage or its related term are showing as below:

CTRA's Degree of Operating Leverage is ranked better than
70.41% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs CTRA: -0.61

Coterra Energy Degree of Operating Leverage Historical Data

The historical data trend for Coterra Energy's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Coterra Energy Degree of Operating Leverage Chart

Coterra Energy Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.38 3.17 1.45 1.67 4.42

Coterra Energy Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.70 2.02 2.84 4.42 -0.61

Competitive Comparison of Coterra Energy's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Coterra Energy's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Coterra Energy's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Coterra Energy's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Coterra Energy's Degree of Operating Leverage falls into.


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Coterra Energy Degree of Operating Leverage Calculation

Coterra Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1716 (Mar. 2025) / 1786 (Mar. 2024) - 1 )/( 5929 (Mar. 2025) / 5570 (Mar. 2024) - 1 )
=-0.0392/0.0645
=-0.61***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Coterra Energy  (NYSE:CTRA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Coterra Energy Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Coterra Energy's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Coterra Energy Business Description

Industry
Address
840 Gessner Road, Suite 1400, Three Memorial City Plaza, Houston, TX, USA, 77024
Coterra Energy Inc is an independent oil and gas company engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids (NGLs). Its operations are mainly concentrated in areas with hydrocarbon resources, which are conducive to multi-well, repeatable development programs, and include the Permian Basin located in Texas and New Mexico, the Marcellus Shale in northeast Pennsylvania, and the Anadarko Basin located in the mid-continent region in Oklahoma. The company operates in one segment, oil and natural gas development, exploration, and production, in the continental U.S.
Executives
Stephen P Bell officer: Ex VP C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Kevin William Smith officer: VP & Chief Technology Officer 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Adam M Vela officer: VP & General Counsel 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Blake A Sirgo officer: SVP - Operations 1700 LINCOLN STREET, SUITE 3700, DENVER CO 80203
Todd M Roemer officer: Controller 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Michael D. Deshazer officer: VP - Business Units THREE MEMORIAL CITY PLAZA, 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Thomas E Jorden director, officer: CEO and President C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Dan O Dinges director PO BOX 4544, PO BOX 4544, HOUSTON TX 77210-4544
Andrea Alexander officer: SVP & Chief HR Officer C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Young, Iii Shannon E. officer: EVP & Chief Financial Officer COBALT CENTER, 920 MEMORIAL CITY WAY, SUITE 100, HOUSTON TX 77024
Scott C Schroeder officer: Executive Vice President & CFO CABOT OIL & GAS CORPORATION, PO BOX 4544, HOUSTON TX 77210-4544
Hans Helmerich director C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Steven W Lindeman officer: Sr. Vice Pres, South Reg & Eng 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Francis Brian Barron officer: Sr VP - General Counsel 1099 18TH STREET, SUITE 2300, DENVER CO 80202
Gary J. Hlavinka officer: Vice President, (MBU) 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024