Coterra | 2021 Annual Report Coterra Energy is a premier exploration and production company, well positioned to deliver superior and sustainable returns. We are built to weather industry cycles with tremendous flexibility between the best oil assets and the best natural gas assets in the country. We embrace innovation, technology, and data as we work to create value for our investors, our team members, and the communities where we operate. Our approach to ESG and sustainable development is centered on a dedicated, consistent effort toward reducing our footprint, while providing a transparent view into our business with credible assessments that keep us on the path to success. Shareholder returns play a key role in Coterra’s financial strategy. Coterra is committed to returning 50% plus of free cash flow to shareholders, with the confidence to distribute 30% plus of cash flow from operations via a base plus variable dividend framework. Furthering our commitment to shareholder returns, we have initiated a $1.25 billion share repurchase program. This offers an additional avenue for returns in excess of our base plus variable dividend framework, while supporting long-term per share metrics. Discretionary Cash Flow* – Capital Expenditures = Free Cash Flow* Free Cash Flow x (Target Payout of 50%+) = Quarterly Dividend to Shareholders Quarterly Dividend to Shareholders – Quarterly Base Dividend = Quarterly Variable Dividend Variable Dividend Formula Calculated on a quarterly basis *Discretionary cash flow and free cash flow are non-GAAP measures. See non-GAAP definitions and reconciliations. Three Months Ended Twelve Months Ended December 31, December 31, 2021 2021 2020 2019 2018 Cash Flow from Operations $ 953 $ 1,667 $ 778 $ 1,445 $ 1,105 Changes in Assets and Liabilities 73 144 (93) (84) 163 Discretionary Cash Flow 1,026 1,811 685 1,361 1,268 Cash Paid for Capital Expenditures (268) (728) (576) (789) (894) Investment in Equity Method Investments – – – (9) (77) Free Cash Flow $ 758 $ 1,083 $ 109 $ 563 $ 297 Supplemental Non-GAAP Financial Measures (Unaudited) We report our financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, we believe certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results and results of prior periods. In addition, we believe these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations below that compare GAAP financial measures to non-GAAP financial measures for the periods indicated. Reconciliation of Discretionary Cash Flow and Free Cash Flow Discretionary Cash Flow is defined as cash flow from operations excluding changes in assets and liabilities. Discretionary Cash Flow is widely accepted as a financial indicator of an oil and gas company’s ability to generate available cash to internally fund exploration and development activities, return capital to shareholders through dividends and share repurchases, and service debt and is used by our management for that purpose. Discretionary Cash Flow is presented based on our management’s belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies that use the full cost method of accounting for oil and gas producing activities or have different financing and capital structures or tax rates. Discretionary Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities or net income, as defined by GAAP, or as a measure of liquidity. Free Cash Flow is defined as Discretionary Cash Flow less cash paid for capital expenditures and investment in equity method investments. Free Cash Flow is an indicator of a company’s ability to generate cash flow after spending the money required to maintain or expand its asset base, and is used by our management for that purpose. Free Cash Flow is presented based on our management’s belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Free Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flow from operations or net income, as defined by GAAP, or as a measure of liquidity. Non-GAAP Definitions and Reconciliations Financial Highlights $0 $50 $100 $150 $200 $250 12/17 12/18 12/19 12/20 12/21 12/16 Comparison of 5-Year Cumulative Total Return1 ($ IN MILLIONS, EXCEPT PER SHARE DATA) 2021 2020 2019 2018 Revenues $ 3,449 $ 1,466 $ 2,066 $ 2,188 Expenses 1,883 1,170 1,190 1,401 Operating Income 1,564 296 956 772 Net Income 1,158 201 681 557 Earnings per Share 2.30 0.50 1.64 1.25 Cash Flow from Operations $ 1,667 $ 778 $ 1,445 $ 1,105 Cash Flow from Investing 313 (584) (543) (293) Cash Flow from Financing (1,086) (256) (690) (1,289) Discretionary Cash Flow* 1,811 685 1,361 1,268 Free Cash Flow* 1,083 109 563 297 Total Assets $ 19,900 $ 4,524 $ 4,487 $ 4,199 Debt (principal) 2,949 946 1,133 1,226 Stockholders’ Equity 11,738 2,216 2,152 2,088 1$100 invested on 12/31/16 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright© 2022 Standard & Poor’s, a division of S&P Global. All rights reserved. Copyright© 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. S&P Oil & Gas Exploration & Production Dow Jones US Exploration & Production Coterra Energy Inc. S&P 500 Coterra, formed by the combination of Cabot Oil & Gas Corporation and Cimarex Energy Co., has core positions in the top onshore U.S. oil and natural gas basins, giving the Company some of the best assets. This geography coupled with a highly talented leadership team and a culture founded and focused on excellence, value creation and investment discipline, along with one of the strongest balance sheets in our sector, makes Coterra everything described on the front cover of this report and more. We have industry-leading margins, with a revenue diversity split roughly equally between natural gas and liquids (oil and natural gas liquids). We have the ability to adapt to inevitable swings in commodity pricing and consistently generate returns for our owners. All in all, a great platform for Coterra. You, our owners, have asked for real returns, primarily in the form of a growing dividend, which I am proud to say the Company has done three times in the last 12 months. Coterra, in addition to a commitment to grow our ordinary dividend over time, has committed to return in excess of 30% of our Cash Flow from Operations (CFFO) and 50%+ of our Free Cash Flow* (FCF) in the form of an ordinary and variable dividend. Why frame this as both a return of CFFO and FCF? Taken alone, a commitment to return a percentage of our FCF is an incomplete promise, for FCF can rise and fall with the magnitude of the capital investment program. Our pledge to return in excess of 30% of CFFO is a hard marker that must be fulfilled before we build our annual capital investment program. Like our ordinary dividend, the pledge of a percentage of our CFFO instills discipline and reminds us continually of our commitment to you. These are extraordinary times in our business. As we enter 2022, we find that we have stellar asset productivity, a reasonable cost structure, and favorable commodity prices. Moreover, there is an overwhelmingly positive outlook for these conditions to remain for some time. As we look ahead at our capital plans for 2022 and beyond, we see a future where we can maintain or modestly grow our production while investing significantly less than 40% of our cash flow – a true first in the history of our industry. More importantly, this allows us to aggressively return cash to our owners, enhance returns further by embarking on a share buyback program, and still preserve the ability to reduce net debt over time. Given what we experienced in 2020, it is encouraging to see optimism return to our sector. Experience, however, tells us that these good times will not last forever, and Coterra is built to withstand the inevitable cycles in our industry. Today as I write this letter, the general consensus for our industry is overwhelmingly positive. As the world navigates the energy transition, global policy makers are becoming increasingly aware that hydrocarbons will continue to play a crucial role in world energy affordability, reliability, and security for decades to come. Supply and demand fundamentals are shifting strongly towards a firm market for our products. This is driven by a post-pandemic energy demand recovery and the inevitable consequences of years of underinvestment in supply. Coterra, along with many of our U.S. producer peers, is well positioned to adapt to these changing supply/demand fundamentals. With our top-tier assets, oil and natural gas balance, and our culture of technical and financial discipline, Coterra is well positioned for success in an uncertain future. Based upon the values of both legacy companies, Coterra holds a strong commitment to responsible and transparent ESG practices. Our environmental commitment is demonstrated by our multi-year commitments to reduce flaring, reduce greenhouse gas emissions, and a multi-year electrification project. We maintain a deep commitment to the safety of our workforce, and are strengthening our educational and cultural programs. Finally, good governance has been a hallmark of both legacy companies and will also be a hallmark of Coterra. It starts in our Boardroom, where we have an amazing group of Directors that come from multiple industries, bringing a diversity of background and perspectives that enriches our analysis and strategic focus. Our organization and culture embrace high ethical standards. We all live by the same set of rules, from the C-suite to the field. We work hard, learn from our mistakes, and operate with a degree of transparency and humility that allows us to continuously improve. We will communicate with you, our owners, honestly and with complete integrity, especially when we stumble. ESG is more than a slogan to us. In closing, I want to thank you, our owners, for joining with us as we build Coterra into the finest E&P company in our industry. We are committed to excellence and we are unrelenting in achieving it. I want to thank our Board of Directors for giving their precious time to advise, to oversee, and to challenge us to be our best. Finally, I want to acknowledge and thank our amazing group of employees. Although Coterra has the best assets in our business, without the talent and drive of our organization, and their commitment to give it all they have, we would be just one of many companies. Coterra is building a culture of excellence that will drive our performance and distinguish Coterra for many years to come. Thank you for coming along with us. Thomas E. Jorden Chief Executive Officer & President Dear Fellow Shareholders, We are off to a great start at Coterra! Although we have not yet passed the six-month mark since our formation, we are well on our way to fulfilling our pledge to build one of the finest E&P companies in our business. Coterra | 2021 Annual Report “As we look ahead at our capital plans for 2022 and beyond, we see a future where we can maintain or modestly grow our production while investing significantly less than 40% of our cash flow – a true first in the history of our industry.“ – Thomas E. Jorden 4Q21 Highlights Production 686 MBoepd Total Dividends Paid $652MM We are disciplined. Net Income $939MM ($1.16 per share) Cash Flow from Operations $953MM Discretionary Cash Flow* $1,026MM Free Cash Flow* $758MM ($0.80 per share) *Non-GAAP measure. See non-GAAP definitions and reconciliations. 60% 4Q21 Production by Region 9% 31% 4Q21 Sales Revenue by Stream 60% 29% 11% Marcellus Permian Anadarko 4Q21 Production by Stream Natural Gas Oil NGL 76% 13% 11% Natural Gas Oil NGL Coterra has a deep inventory of high-quality development projects in the core of three top-tier regions, and an industry-leading cost of supply. We operate in the Permian Basin, Marcellus Shale, and Anadarko Basin. From Texas to Pennsylvania, our goal is to responsibly and efficiently develop our 600,000-net-acre footprint to generate reliable energy and consistent returns. Our regional and asset diversification provides us immense operational flexibility and the ability to allocate capital to its most productive use. As of December 31, 2021, total proved reserves for the company totaled 2,893 million barrels of oil equivalent, of which 74% is total proved developed reserves. Coterra’s total proved reserves commodity split was 86% natural gas, 8% NGL and 6% oil at year-end 2021. The Marcellus Shale, Permian Basin and Anadarko Basin contributed 75%, 18% and 7%, respectively, to the total proved reserves. Coterra, on a combined basis, produced 634 thousand barrels of oil equivalent per day (MBoepd) in 2021. The total production stream for the combined company was composed of 77% natural gas, 12% oil and 11% NGL. Production in the Marcellus remained flat year-over-year, while oil production for the combined company grew to 88.6 thousand barrels of oil per day, or up 31% in fourth-quarter 2021 compared to fourth-quarter 2020. The combined company put 165 net wells on production in the year, or 72, 88 and 5 net wells in the Permian Basin, Marcellus Shale and Anadarko Basin, respectively. Natural Gas Oil NGL Reserves (MMBoe) Daily Production (MBoepd) Legacy Cimarex Legacy Cabot Legacy Cimarex Legacy Cabot Legacy Cimarex Legacy Cabot 2018 2019 2020 Coterra 2021 222 279 336 634 2,150 2,279 2,893 1,934 100% 100% 591 30% 31% 30% 25% 27% 27% 45% 41% 43% Legacy Cimarex Legacy Cabot Legacy Cimarex Legacy Cabot Legacy Cimarex Legacy Cabot 2018 2019 2020 Coterra 2021 Combined 395 253 391 458 100% 620 531 We are flexible. Permian Basin The Permian Basin is one of the oldest oil and gas producing basins in the United States. Coterra’s acreage is located in the Delaware Basin region which spans west Texas and southeast New Mexico. Our core acreage position includes 234,000 net acres with multi- zone development opportunities. We are currently focused on developing the Wolfcamp and Bone Spring formations. Our key sustainability practices for this asset include the use of electric horsepower for completions and other operations, an on-demand pipeline system for recycling water, and lowering emissions through reducing flaring activity. Coterra | 2021 Annual Report Acreage 234,000 Target Zones Wolfcamp, Bone Spring Marcellus Shale The Appalachian Basin is home to the Marcellus Shale. Coterra’s operations in the region are primarily concentrated in northeast Pennsylvania. Our properties are principally located in Susquehanna County, Pennsylvania, where Coterra currently holds approximately 177,000 net acres in the dry gas window of the play. Our key sustainability practices for this asset include field site reclamation, recycling nearly 100% of produced water, and the restriction of flaring to safety concerns only. Acreage 177,000 Target Zones Lower Marcellus, Upper Marcellus Anadarko Basin The Mid-Continent oil and gas region has produced more oil than any other area in the United States since the first oil discovery in 1892. Coterra’s assets are primarily located in the Anadarko Basin, where it holds an acreage position of 182,000 net acres. Coterra’s activity is currently focused on the Woodford Shale in Western Oklahoma. Our key sustainability practices for this asset include the use of electric horsepower for compression and continuous emission monitoring. Acreage 182,000 Target Zones Woodford Shale 8% 6% 86% TX NM NY PA OH WV MD VA OK TX Coterra | 2021 Annual Report Having three operating regions, in the Permian Basin, Marcellus Shale and Anadarko Basin, provides diversity of geography as well as commodity and revenue streams, which support strong and stable cash flow generation through the commodity price cycles. In addition to operational flexibility, we believe that maintaining an industry-leading balance sheet with significant financial flexibility is imperative in a cyclical industry that is exposed to commodity price volatility. With no significant debt maturities until 2024, a year-end 2021 cash balance of $1.0 billion and $1.5 billion of unused commitments on our revolving credit facility, we believe the company is well positioned to maintain its top-tier balance sheet strength. We are efficient. Coterra holds the ability to generate sustainable returns across our top-tier asset portfolio, which offers scale, capital optionality, and low break-evens. We anticipate our deep, high-quality inventory to be developed over multiple decades, at the current run-rate. We are committed to disciplined capital investment and using technology and innovation to maximize capital efficiency and operational execution. Coterra | 2021 Annual Report Our operational focus is based on making our operations more environmentally and socially sustainable. We actively implement technology and best practices across our operations, from design phase to equipment improvements to limit and reduce our methane emissions, greenhouse gas emissions and flaring activity. Our safety programs are built on a foundation that emphasizes personal responsibility and safety leadership. In addition, we focus on practical and sustainable environmental initiatives that promote efficient use of water, protection of water quality, and minimizing land surface impact. We are committed to being responsible stewards of our resources and implementing sustainable practices under the guidance of management and our diverse and experienced Board of Directors. Environment We are committed to being a good steward of all natural resources. Our operations are centered on environmental stewardship and sustainable practices – with a focus on protecting and preserving air quality, water resources, and the land on which we operate. Safety and Health Safety is a core value of Coterra. The well-being of our workforce and the communities in which we operate are key considerations when making business decisions. We believe safe and environmentally conscious operations not only protect the individuals on our locations, but ultimately lead to more efficient operations. Community At Coterra, we think of community primarily in two ways – it is both our company culture and the communities in which we live and operate. Within our company, we recognize that diversity can lead to richer discussions, better productivity, and increased long-term value creation. We focus on attracting high-quality personnel who have strong technical competence, are not afraid to contribute new ideas, and work well in a team environment. Further, as our employees and their families live in the towns and cities where we operate, we have made the commitment to focus our efforts on building prosperity and safeguarding the neighbors and environment around us. We are sustainable. We believe responsible development of oil and natural gas provides opportunity for a bright future, one built through technology and innovation that offers prosperity for both today and tomorrow. Methane Intensity Greenhouse Gas Emission Intensity Permian High-Pressure Flare Intensity Methane Emissions (metric tons CH4) / Gross Annual Production (MBoe) ’19 ’20 ’21 GHG Emissions (metric tons CO2e) / Gross Annual Production (MBoe) -48% 0.130 0.066 0.034 9.59 6.47 5.48 ’19 ’20 ’21 ’19 ’20 ’21 1.97% 0.90% 0.45% -15% -50% % of Gross Permian Basin Natural Gas Production Combined emissions profile. Preliminary 2021 results. “Our environmental commitment is demonstrated by our multi-year commitments to reduce flaring, reduce greenhouse gas emissions, and a multi- year electrification project. We maintain a deep commitment to the safety of our workforce, and are strengthening our educational and cultural programs.” – Thomas E. Jorden Corporate Information Todd M. Roemer Vice President and Chief Accounting Officer Kevin W. Smith Vice President and Chief Technology Officer CORPORATE OFFICERS Jeffrey W. Hutton Senior Vice President – Marketing Todd L. Liebl Senior Vice President – Land Charles E. Dyson II Vice President – Information Technology Stephen A. Flaherty Vice President – Government Affairs Daniel D. Guffey Vice President – Finance, Planning & Analysis and Investor Relations Philip G. Johnson Vice President – Production Matthew P. Kerin Vice President – Finance and Treasurer Deidre L. Shearer Vice President and Corporate Secretary Blake S. Sirgo Vice President – Operations Adam M. Vela Vice President and Assistant General Counsel CORPORATE HEADQUARTERS Coterra Energy Inc. Three Memorial City Plaza 840 Gessner Road, Suite 1400 Houston, Texas 77210 281.589.4600 www.coterra.com ANNUAL MEETING The Annual Meeting for Coterra Energy Inc. shareholders is currently planned for Friday, April 29, 2022. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, Texas 77002 INDEPENDENT RESERVE ENGINEERS Miller & Lents, Ltd. Global Oil & Gas Consultants 909 Fannin Street, Suite 1300 Houston, Texas 77010 DeGoyler and MacNaughton Worldwide Petroleum Consulting 5001 Spring Valley Road, Suite 800 East Dallas, Texas 75244 INVESTOR RELATIONS Additional copies of the Form 10-K are available without charge, please contact: Coterra Energy Inc. Attn: Investor Relations 281.589.4600 IR@coterra.com www.coterra.com TRANSFER AGENT Equiniti Trust Company Q Shareowner Services 1110 Centre Pointe Curve, Suite 101 Mendota Heights, Minnesota 55120 800.468.9716 www.shareowneronline.com General Inquiries: EQ Shareowner Services P.O. Box 64874 St. Paul, Minnesota 55164 800.468.9716 Certified/Overnight Mail: EQ Shareowner Services 1110 Centre Pointe Curve, Suite 101 Mendota Heights, Minnesota 55120 Telephone Number for Foreign Shareholders: 651.450.4064 STOCK EXCHANGE Coterra Energy Inc. common stock trades on the New York Stock Exchange under the symbol CTRA. BOARD OF DIRECTORS Dan O. Dinges Executive Chairman Thomas E. Jorden Chief Executive Officer and President Lisa A. Stewart 1, 4* Lead Director Dorothy M. Ables 1*, 3 Robert S. Boswell 1, 4 Amanda M. Brock 2, 4 Paul N. Eckley 2*, 3 Hans Helmerich 2, 4 Frances M. Vallejo 1, 3* Marcus A. Watts 2, 3* Board Committee Membership: 1Audit Committee 2Compensation Committee 3Governance and Social Responsibility Committee 4Environment, Health & Safety Committee *Committee Chair EXECUTIVE OFFICERS Thomas E. Jorden Chief Executive Officer and President Scott C. Schroeder Executive Vice President and Chief Financial Officer Stephen P. Bell Executive Vice President - Business Development Francis B. Barron Senior Vice President and General Counsel Christopher H. Clason Senior Vice President and Chief Human Resources Officer Steven W. Lindeman Senior Vice President – Production and Operations Phillip L. Stalnaker Senior Vice President – Marcellus Business Unit Michael D. DeShazer Vice President of Business Units We are innovative. Coterra is an idea-driven organization where open dialogue is encouraged, and fairness and integrity are expected at all times. We embrace progress over comfort, with a heavy reliance on innovation, technology and data analysis to drive progress and value creation. This is an organization that will continue to challenge the status quo through the ingenuity of our employees, the leadership of our management team and the guidance of our Board of Directors. We are Coterra. coterra.com