Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Preliminary Allocation of the Total Purchase Price of Cimarex to the Identifiable Assets Acquired and the Liabilities

The following table represents the preliminary allocation of the total purchase price of Cimarex to the identifiable assets acquired and the liabilities assumed based on the fair values as of the effective date of the Merger.

(In millions, except share price and exchange ratio)	Preliminary Purchase Price Allocation
Consideration:
Cimarex common stock issued as of October 1, 2021	103
Less unvested common stock	(3)
Total Cimarex common stock to be converted	100
Exchange ratio	4.0146
Coterra common stock issued in exchange for Cimarex common stock	403
Coterra common stock issued for Cimarex share awards vested on October 1, 2021	5
Total shares of Coterra common stock issued	408
Coterra common stock closing price on October 1, 2021	$	22.25
Total value of Coterra common stock issued	$	9,083
Total value of Coterra stock options issued	15
Total value of Coterra restricted stock awards issued	22
Total consideration	$	9,120
Assets acquired:
Cash and cash equivalents	$	1,033
Accounts receivable	598
Other current assets	31
Properties and equipment	13,300
Other assets	324
Total assets acquired	$	15,286
Liabilities and Mezzanine Equity assumed:
Accounts payable	$	528
Accrued liabilities	258
Derivative instruments, current	382
Other current liabilities	83
Long-term debt	2,196
Deferred income taxes	2,201
Asset retirement obligation	162
Derivative instruments, noncurrent	7
Other liabilities	299
Cimarex redeemable preferred stock	50
Total liabilities and mezzanine equity assumed	$	6,166
Net assets acquired	$	9,120

Pro Forma Financial Information

Cimarex contributed the following to the Company’s consolidated operating results.

(in millions)	October 1, 2021 through December 31, 2021
Revenue	$	1,129
Net income	394

The pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2020 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities and other factors.

	Year Ended December 31,
(in millions, except per share information)	2021		2020
Pro forma revenue	$	5,236	$	2,990
Pro forma net income	1,205		(2,189)
Pro forma basic earnings per share	$	1.49	$	(2.71)
Pro forma diluted earnings per share	$	1.48	$	(2.71)