Common stock, shares authorized (in shares)

[Table of Contents](#i1852a2ea91e948d98ea7c44fc3e188ea_7)PART I. FINANCIAL INFORMATIONITEM 1. Financial Statements COTERRA ENERGY INC.CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions, except share and per share amounts) |  | June 30,2022 |  | December 31,2021 |
| ASSETS |  |   |  |   |
| Current assets |  |   |  |   |
| Cash and cash equivalents |  | $ | 1,059  |  |  | $ | 1,036  |  |
| Restricted cash |  | 10  |  |  | 10  |  |
| Accounts receivable, net |  | 1,525  |  |  | 1,037  |  |
| Income taxes receivable |  | 170  |  |  | —  |  |
| Inventories  |  | 46  |  |  | 39  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Other current assets |  | 22  |  |  | 14  |  |
| Total current assets  |  | 2,832  |  |  | 2,136  |  |
| Properties and equipment, net (Successful efforts method)  |  | 17,407  |  |  | 17,375  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Other assets  |  | 408  |  |  | 389  |  |
|  |  | $ | 20,647  |  |  | $ | 19,900  |  |
|  |  |  |  |  |
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY |  |   |  |   |
| Current liabilities |  |   |  |   |
| Accounts payable  |  | $ | 1,044  |  |  | $ | 747  |  |
| Current portion of long-term debt |  | 124  |  |  | —  |  |
| Accrued liabilities  |  | 206  |  |  | 260  |  |
| Income taxes payable |  | —  |  |  | 29  |  |
| Interest payable |  | 26  |  |  | 25  |  |
|  |  |  |  |  |
| Derivative instruments |  | 170  |  |  | 159  |  |
|  |  |  |  |  |
| Total current liabilities  |  | 1,570  |  |  | 1,220  |  |
| Long-term debt, net |  | 2,981  |  |  | 3,125  |  |
|  |  |  |  |  |
| Deferred income taxes  |  | 3,203  |  |  | 3,101  |  |
| Asset retirement obligations |  | 265  |  |  | 259  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Other liabilities  |  | 426  |  |  | 407  |  |
| Total liabilities |  | 8,445  |  |  | 8,112  |  |
|  |  |  |  |  |
| Commitments and contingencies |  |  |  |  |
|  |  |  |  |  |
| Cimarex redeemable preferred stock |  | 11 |  | 50 |
|  |  |  |  |  |
| Stockholders' equity |  |  |  |  |
| Common stock: |  |   |  |   |
| Authorized — 1,800,000,000 shares of $0.10 par value in 2022 and 2021, respectively |  |   |  |   |
| Issued — 894,493,926 shares and 892,612,010 shares in 2022 and 2021, respectively  |  | 89 |  | 89 |
| Additional paid-in capital  |  | 10,976  |  |  | 10,911  |  |
| Retained earnings  |  | 3,460  |  |  | 2,563  |  |
| Accumulated other comprehensive income |  | 5  |  |  | 1  |  |
| Less treasury stock, at cost: |  |   |  |   |
| 98,725,561 shares and 79,082,385 shares in 2022 and 2021, respectively |  | (2,339) |  |  | (1,826) |  |
| Total stockholders' equity  |  | 12,191  |  |  | 11,738  |  |
|   |  | $ | 20,647  |  |  | $ | 19,900  |  |

 The accompanying notes are an integral part of these condensed consolidated financial statements.3
