Capital Stock

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Capital Stock

Capital Stock

Dividends

Common Stock

In February 2022, the Company’s Board of Directors approved an increase in the quarterly base dividend on the Company’s common stock from $0.125 to $0.15 per share.

The following table summarizes the dividends the Company has paid on its common stock during the nine months ended September 30, 2022 and 2021:

	Rate per share
	Fixed		Variable		Total		Total Dividends Paid (In millions)
2022:
First quarter	$	0.15	$	0.41	$	0.56	$	455
Second quarter	0.15		0.45		0.60		484
Third quarter	0.15		0.50		0.65		519
Total year-to-date	$	0.45	$	1.36	$	1.81	$	1,458
2021:
First quarter	$	0.10	$	—	$	0.10	$	40
Second quarter	0.11		—		0.11		44
Third quarter	0.11		—		0.11		44
Total year-to-date	$	0.32	$	—	$	0.32	$	128

Subsequent Event. In November 2022, the Company’s Board of Directors approved the quarterly base dividend of $0.15 per share and a variable dividend of $0.53 per share, resulting in a base-plus-variable dividend of $0.68 per share on the Company’s common stock.

Treasury Stock

In February 2022, the Company’s Board of Directors terminated the previously authorized share repurchase program and authorized a new share repurchase program. This new share repurchase program authorizes the Company to purchase up to $1.25 billion of the Company’s common stock in the open market or in negotiated transactions.

During the nine months ended September 30, 2022, the Company repurchased 28 million shares for $740 million under the new share repurchase program. As of September 30, 2022, 107 million shares were held as treasury stock, with $510 million remaining under the Company’s current share repurchase program.

Cimarex Redeemable Preferred Stock

In May 2022, the holders of 21,900 shares of Cimarex redeemable preferred stock elected to convert their Cimarex redeemable preferred stock into Coterra common stock and cash. As a result of the conversion, the holders received 809,846 shares of Coterra common stock and $10 million in cash according to the terms of the Certificate of Designations for the Cimarex redeemable preferred stock. The book value of the converted shares was $39 million, and upon conversion the excess of carrying value over cash paid was credited to additional paid-in capital. There was no gain or loss recognized on the transaction because it was completed in accordance with the original terms of the Certificate of Designations for the Cimarex redeemable preferred stock. At September 30, 2022, there were 6,125 shares of Cimarex redeemable preferred stock outstanding with a carrying value of $11 million.