CTRAHIGH SIGNALFINANCIAL10-K

CTRA completed $4.0 billion in major acquisitions while experiencing dramatic cash depletion from $2.0B to $114M, accompanied by strong revenue and operating performance growth.

The massive 94% cash reduction signals CTRA funded substantial Delaware Basin acquisitions primarily through cash reserves rather than debt, as evidenced by declining interest expense. While the acquisitions appear immediately accretive given the strong revenue and operating income growth, the dramatic cash depletion raises questions about financial flexibility and future capital allocation strategy.

Comparing 2026-02-27 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

CTRA's financials reflect the impact of major acquisitions with revenue growing 40% to $7.6B and operating income surging 77% to $2.5B, indicating the deals were immediately accretive. However, the company's cash position collapsed 94% from $2.0B to just $114M while current liabilities increased 37%, suggesting the acquisitions were funded primarily through cash reserves rather than debt financing. Operating cash flow growth of 44% to $4.0B demonstrates strong underlying cash generation, but share buybacks declined 69% to $141M, likely reflecting the new capital constraints from the cash-heavy acquisition strategy.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-94.4%
$2.0B→$114.0M

Cash declined 94.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Income
P&L
+76.5%
$1.4B→$2.5B

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Share Buybacks
Cash Flow
-69%
$455.0M→$141.0M

Buyback activity reduced 69% — capital being redeployed elsewhere or cash conservation underway.

Net Income
P&L
+53.2%
$1.1B→$1.7B

Net income grew 53.2% — bottom-line growth signals improving overall business health.

Current Assets
Balance Sheet
-44.3%
$3.3B→$1.8B

Current assets declined 44.3% — monitor working capital adequacy and short-term liquidity.

Operating Cash Flow
Cash Flow
+43.9%
$2.8B→$4.0B

Operating cash flow surged 43.9% — exceptional cash generation, highest quality earnings signal.

Revenue
P&L
+40.1%
$5.5B→$7.6B

Strong top-line growth of 40.1% — accelerating demand or successful expansion into new markets.

Current Liabilities
Balance Sheet
+37.1%
$1.1B→$1.6B

Current liabilities surged 37.1% — significant near-term obligations; verify ability to meet short-term debt.

Interest Expense
P&L
-33.6%
$110.0M→$73.0M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Accounts Receivable
Balance Sheet
+27%
$951.0M→$1.2B

Receivables grew 27% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-25
ADDED
As of February 13, 2026, there were 759,272,715 shares of Common Stock outstanding.
Such Proxy Statement or an amendment to this Annual Report on Form 10-K will be filed no later than 120 days after December 31, 2025.
Waha West Texas Natural Gas Index price as quoted in Platt s Inside FERC.
On January 17, 2025, we completed the acquisition of certain interests in oil and gas properties located in the Delaware Basin in New Mexico from certain privately owned sellers for total cash consideration of $1.5 billion (the Avant assets ).
On January 27, 2025, we completed the acquisition of all of the issued and outstanding equity ownership interests of a group of privately owned oil and gas exploration and production companies with assets and operations in the Delaware Basin of New Mexico (the FME Interests ) for total consideration of $2.5 billion, which included $1.7 billion in cash and the issuance of 28,190,682 shares of our common stock valued at $785 million based on the closing price of our common stock on the closing date.
As a result of the acquisitions, we added substantial assets and operations in the Permian Basin in New Mexico.
Over the past three years, we have increased our annual dividend $0.08 per share, or 10 percent, on our common stock to $0.88 per share and have returned over $2.2 billion to stockholders through dividends.
During 2025, we also repurchased 6 million shares of our common stock for $140 million, at a weighted average share price of $24.92 per share.
During 2025 and 2024, we invested 59 percent and 63 percent, respectively, of our cash flow from operations in our capital programs, and in 2026 we expect to invest approximately 50 percent of our cash flow from operations, based on recent strip prices.
At year-end 2025, we had a $114 million cash balance and $2.0 billion of unused commitments under our revolving credit agreement, well positioned to maintain our balance sheet strength.
REMOVED
As of February 14, 2025, there were 764,151,477 shares of Common Stock outstanding.
Such forward-looking statements include, but are not limited to, statements regarding future financial and operating performance and results, strategic pursuits and goals, market prices, future hedging and risk management activities, timing and amount of capital expenditures and other statements that are not historical facts contained in this report.
Over the past three years, we have increased our annual base dividend $0.24 per share, or 40 percent, on our common stock to $0.84 per share and have returned over $3.5 billion to stockholders through dividends.
Demonstrating our continued confidence in our business model, in February 2025, our Board of Directors increased our annual base dividend to $0.88 per share.
During 2024, we also repurchased 17 million shares of our common stock for $464 million, at a weighted average share price of $26.35 per share under our current $2.0 billion share repurchase program, and have $1.1 billion available for future repurchases.
We remain committed to returning 50 percent or more of our annual free cash flow to our stockholders through dividends and our share repurchase program, while maintaining our top-tier balance sheet.
We anticipate our drilling inventory will be developed over the next 20 to 30 years.
During 2024 and 2023, we invested 63 percent and 57 percent, respectively, of our cash flow from operations in our capital programs, and in 2025 we expect to invest approximately 50 percent of our cash flow from operations, based on recent strip prices, including future expenses related to our recently completed acquisitions.
At year-end 2024, we had a $2.0 billion cash balance, $2.0 billion of unused commitments under our revolving credit agreement and a $1.0 billion undrawn term loan, successfully positioning us to fund the FME and Avant acquisitions that closed in January 2025 while maintaining our balance sheet strength.
In January 2025, we borrowed $1.0 billion under the term loan to partially fund the closing of the FME and Avant acquisitions.
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