Kimmeridge Urges Leadership Changes And Strategic Refocus At Coterra Energy

(RTTNews) - Kimmeridge, a private investment firm and major shareholder of Coterra Energy (CTRA), Tuesday issued an open letter to Coterra's Board of Directors urging immediate action to address governance failures and a lack of strategic focus following the 2021 merger of Cabot Oil & Gas and Cimarex Energy.

The board was chastised by Kimmeridge Managing Partner Mark Viviano for prioritizing "self-preservation over strategic merit," pointing out that Coterra is trading below its peers. The firm recommended selling off non-core Marcellus and Anadarko assets in order to refocus operations on the Delaware Basin and appoint an independent, non-executive chair.

Restoring shareholder confidence and raising valuation, according to Kimmeridge, requires a more efficient, Permian-focused approach as well as improved governance.

CTRA is currently trading at $24.83, up $0.44 or 1.78 percent on the New York Stock Exchange.