A contentious dispute is brewing between US President Donald Trump and New York Governor Kathy Hochul over a cancelled natural gas pipeline project, Constitution Pipeline. The issue has pitted Trump against Hochul, with Coterra Energy caught in the middle.
Constitution Pipeline was first proposed five years ago but was shelved due to opposition from environmental groups and regulatory hurdles. However, last week, Trump lifted a stop-work order on the Empire Wind 1 project as part of a potential compromise with New York. This move has reignited discussions about reviving the Constitution Pipeline, which would transport natural gas from Pennsylvania to New England.
Coterra Energy, now a subsidiary of Cimarex Energy, was one of the original sponsors of the pipeline. The company’s CEO, Tom Jorden, expressed enthusiasm for the project, stating that it would support Coterra’s bet on natural gas and the Marcellus shale region. If built, the pipeline could provide a boost to Coterra’s earnings.
The financial implications of the pipeline’s revival are significant, with analysts predicting a robust 2025 and 2026 for natural gas prices. This would translate into higher profits for Coterra, which has already begun drilling new Marcellus rigs in April.
However, the politics surrounding the pipeline project are complex. Hochul’s office denied that any deal was reached between Trump and New York over the pipeline, contradicting Interior Secretary Doug Burgum’s comments on Twitter. The dispute also highlights the ongoing tensions between Trump and Hochul, who are engaged in a toll battle over congestion pricing for motorists entering New York City.
As the debate over the Constitution Pipeline continues to simmer, Coterra Energy’s stock price remains under pressure. Despite this, analysts remain optimistic about the company’s prospects, citing positive macro conditions and commodity prices as reasons for their bullish outlook.
Source: https://www.cnbc.com/2025/05/28/coterra-energy-stands-to-win-big-if-the-constitution-pipeline-is-revived.html