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In this photo illustration, a Coterra Energy Inc. logo is seen on a smartphone screen.

Pavlo Gonchar | SOPA Images | LightRocket | Getty Images

Coterra Energy‘s (CTRA) solid third-quarter earnings beat on Thursday, along with hefty free cash flow and a raised dividend, solidified the Club’s investment case in the oil-and-gas producer.

  • Total revenue soared by nearly 500% year-on-year, to $2.52 billion, exceeding analysts’ estimates of $2.37 billion, according to Refinitiv.
  • Adjusted earnings per share more than doubled on an annual basis, to $1.42 a share, beating analysts’ forecasts of $1.37 a share.

Note: Coterra management is set to hold its post-earnings conference call at 10 a.m. ET Friday, which we’ll monitor for any updates.

Bottom line

Coterra continued to return an outsized amount of free cash flow to shareholders: 74% in the third quarter, to be exact.

While we’ve worked to moderate our energy exposure in recent months, our two-pronged investment rationale has not changed: 1) Hedge our portfolio against inflation as oil-and-gas prices stay higher for longer and 2) get rewarded for our patience through robust dividend payouts and stock buybacks, which are made possible by those same elevated commodity prices.

Coterra hiked its fixed-plus-variable dividend payout on a sequential basis, supporting the second part of our investment thesis. The company was the only one of our three exploration-and-production holdings to do so this earnings season. Pioneer Natural Resources (PXD) and Devon Energy (DVN), by contrast, announced quarter-over-quarter declines to their payouts, due to falling oil prices in the third quarter.

But Coterra’s larger natural gas exposure — a key reason we initiated our position in April — proved advantageous in the three months ended Sept. 30. U.S. natural gas prices bottomed out in early summer, before increasing for nearly two months in a row and then falling again more recently.

U.S. natural gas futures closed at $6.33 per million British thermal units on Thursday, while West Texas Intermediate crude — the U.S. oil benchmark — settled at $88.17 a barrel. Coterra’s stock was trading down nearly 2% in afterhours trading Thursday, at roughly $30 a share, as the market digested its third-quarter report.

Cash flow

Cash flow is king for companies like Coterra. Here’s how the Houston-based company did in the third quarter.

  • Cash flow from operations expanded by more than 600% year-over-year, to $1.77 billion, roughly in line with analysts forecasts of 1.76 billion, according to FactSet.
  • Adjusted discretionary cash flow (cash flow from operations excluding changes in assets and liabilities) was $1.52 billion, below estimates of $1.62 billion.
  • Free cash flow, or money the business generates subtracting capital expenditures, was $1.06 billion, short of analysts’ forecasts of $1.16 billion.
  • Capital expenditures of $460 million came in above the $450 million predicted by analysts.

Based on recent commodity strip prices, Coterra management expects free cash flow for the full year to be $3.9 billion, compared with the FactSet estimate of $3.83 billion.

Coterra also said its full-year capital budget is projected to be $1.7 billion, matching the high end of its prior guidance range of $1.6 billion to $1.7 billion.

Dividends and buybacks

Coterra said it would pay out a fixed-plus-variable dividend of 68 cents a share, up from its prior 60 cents a share quarter-on-quarter. Based on Coterra’s Thursday closing price of $30.61, that equates to a roughly 8.9% annualized dividend yield. Half of the company’s third-quarter free cash flow is going toward the dividend, as was the case with second-quarter free cash flow.

The company spent $253 million in the third quarter to repurchase 9.3 million shares at an average price of $27.03 a share. That’s equal to about 24% of free cash flow. In the second quarter, 30% of Coterra’s free cash flow went toward stock buybacks, totaling $303 million. As of Sept. 30, the company has $510 million remaining on its $1.25 billion buyback authorization.

Production and Q4 outlook

Total production in the quarter was 641,000 barrels of oil equivalent per day, above the 610,000 to 630,000 barrel-a-day guidance the company issued in August and above analysts’ forecasts for production of 624,100 barrels a day. Coterra attributed its total production levels to “strong well performance and improving cycle times.”

Here’s the breakdown of Coterra’s production in the third quarter:

  • Oil: 87,900 barrels a day, ahead of a consensus forecast of 86,700 barrels a day.
  • Natural gas: 2.8 billion cubic feet a day, slightly exceeding analysts’ forecasts of 2.77 billion cubic feet a day.

For the fourth quarter, Coterra expects total production to be between 615,000 and 635,000 barrels of oil equivalent a day, which at the midpoint is lower than the 632,900 barrels a day forecasted by analysts. The company also forecasts oil volumes to average between 86,000- to 89,000 barrels a day, roughly in line with estimates for 87,200 barrels a day. Natural gas volumes should average between 2.72 billion- and 2.78 billion cubic feet a day, below the 2.8 billion cubic feet a day predicted by analysts.

For the full year, Coterra raised its total production guidance by 1% at the midpoint, saying it now should be between 625,000- to 640,000 barrels of oil equivalent a day. At the midpoint that exceeds estimates for 630,000 barrels a day. At the same time, the company raised its forecast for natural gas production for the full year to between 2.76 billion- to 2.85 billion cubic feet a day, also up 1% at the midpoint. That compares with analysts’ forecasts of 2.8 billion cubic feet a day.

Coterra’s realized prices, excluding commodity derivatives, in the third quarter were $93.35 per barrel of oil, better than the $92.7 per barrel analysts expected, and $6.37 per thousand cubic feet of natural gas, below the $6.50 analysts predicted.

(Jim Cramer’s Charitable Trust is long CTRA. See here for a full list of the stocks.)

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER.  NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.  NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Toyota funded climate deniers and Fred says Elon fudged the FSD numbers

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Toyota funded climate deniers and Fred says Elon fudged the FSD numbers

On today’s episode of Quick Charge, we look into a new study revealing that Toyota outspends all other automakers when it comes to funding climate change denying politicians and Fred accuses Elon of misrepresenting the data behind Full Self Driving (again).

We’ve also got word that the recently redesigned Tesla Model Y is being built in Giga Berlin, Hyundai’s electrified lineup is leading a record export year for the brand, and a new study says cleantech investments will beat out conventional energy production for the first time in 2025.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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Amazon places its largest-ever order for electric semi trucks

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Amazon places its largest-ever order for electric semi trucks

Amazon is adding over 200 Mercedes-Benz eActros 600 electric semi trucks to its fleet later this year – its largest-ever order of electric heavy goods vehicles (eHGVs).

Amazon’s new electric semi trucks

These electric trucks will handle high-mileage routes across the UK and Germany, moving trailers between Amazon’s fulfillment centers, sorting centers, and delivery stations. 

The new eHGVs are expected to transport more than 350 million packages annually once fully operational.

Amazon is installing 360kW charging stations at key sites capable of powering the 40-tonne trucks from 20-80% in just over an hour. The company is also working with stakeholders to establish external charging locations to support longer routes.

The eActros 600 is Mercedes-Benz Trucks’ flagship electric long-hauler, with a battery capacity of more than 600 kWh and a range of 310 miles (500 km). Production of the eActros 600s recently began at Mercedes-Benz’s factory in Wörth, Germany.

Sustainable delivery across Europe

In the UK, Amazon has begun using the electric rail network for package transport at scale. It’s also rolling out on-foot delivery options in London, with associates using carts that can be restocked from nearby vans. In Germany, Amazon doubled its fleet of Rivian electric delivery vans to over 600, and electric cargo bikes delivered more than 1.5 million packages in Berlin alone last year.

By the end of 2024, Amazon plans to expand its micromobility hubs – locations supporting deliveries by foot and cargo bike – to Germany’s five largest cities and beyond. Across Europe, the company is investing more than €1 billion to further electrify and decarbonize its transportation network.

Amazon’s European network already includes 38 eHGVs, with 50 electric semis recently deployed in California. The company’s fleet of electric delivery vans in Europe has grown to over 3,000 and is expected to surpass 10,000 by the end of 2025. Micromobility hubs have also expanded from 20 cities in 2022 to more than 45 by the end of 2024, including new additions in Belfast, Madrid, Rome, and Vienna.

Electrek’s Take

Amazon says its latest electric semi truck order aligns with The Climate Pledge it announced in 2019, in which the company committed to achieving net zero across its operations by 2040. While The Climate Pledge initiative has garnered praise, it has also faced criticism and skepticism regarding its effectiveness and transparency.

In 2020, Amazon faced allegations of retaliating against employees who spoke out about the company’s environmental policies. The National Labor Relations Board found that Amazon had illegally fired workers who advocated for climate action and better safety measures.

Amazon is also donating $1 million to President-elect Donald Trump’s inaugural fund. Trump is a climate change denier who actively opposes renewables, and not just in the US. Earlier this month Trump demanded that the British government open up the North Sea to fossil fuel drilling and get rid of “windmills.”

Read more: It begins: Mercedes eActros 600 electric semi truck enters production


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Check out the new Genesis GV60 interior, it looks even more luxurious in blue [Video]

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Check out the new Genesis GV60 interior, it looks even more luxurious in blue [Video]

If you thought the current GV60 looked pretty inside, wait until you see the updated model. Genesis unveiled the new GV60 earlier this month, its first major redesign since launching in 2021. Here’s our first look at the interior of the new Genesis GV60.

Genesis GV60 interior gets an upgrade in the new model

Genesis launched the GV60 in October 2021 as its first dedicated EV. Less than four years later, the luxury electric SUV is already getting a new look.

The luxury brand unveiled the new GV60 last week for the first time. One of the biggest updates is to the front end.

Although the GV60 is already a sporty-looking EV, the redesigned front bumper with a new 3-D shape takes it up another level. Then, add the signature Genesis Two Line headlamps with Micro Lens Array (MLA) tech, and the refreshed GV60 is a head turner.

The revamped model now features 21″ wheels with a new five-spoke design, complementing its wide, low stance.

Inside, the upgraded GV60 features its new 27″ connected car Integrated Cockpit (ccIC) infotainment system. The design “eliminates the bezel” between the driver display and infotainment screens.

New-Genesis-GV60-EV
The updated Genesis GV60 (Source: Genesis)

The new Genesis GV60 interior also gains a redesigned three-spoke steering wheel for an even more sporty feel while you’re in the cockpit. Other popular features from the outgoing model, like the Crystal Sphere shift-by-wire system, are still included.

After revealing the updated model for the first time last week, we are already getting a look at the redesigned interior.

The updated interior of the Genesis GV60 in blue (Source: HealerTV)

A new video from Korea’s HealerTV gives us our first look at the Genesis GV60 interior in a new blue color. Although the reporter initially thought it was a performance model, he noted it was just a new color option. Other added design elements, like the large quilting pattern on the side panels, give it that Bentley or Rolls-Royce feel.

Last week, HealerTV posted a video revealing the first look at the updated Genesis GV60 exterior design. You can see the redesigned front and rear bumpers add to the GV60’s already impressive look.

Genesis GV60 update first look (Source: HealerTV)

In the US, the 2025 Genesis GV60 starts at $52,350. A new AWD trim was introduced this year, starting at $55,850.

The current mode gets up to 294 miles driving range, but a bigger battery is expected to push that number closer to 300 miles in the 2025MY. It’s expected to feature the same 84 kWh battery as the updated 2025 IONIQ 5, which provides up to 318 miles range. That’s up from 303 miles in the previous model with a 77.4 kWh battery.

2025 Genesis GV60 trim Range
(EPA-est)
Starting Price*
Standard RWD 294 miles $52,350
Standard AWD 264 miles $55,850
Advanced AWD 248 miles $60,900
Performance AWD 235 miles $69,900
2025 Genesis GV60 prices and range by trim (*excluding $1,350 destination fee)

Genesis will launch the updated GV60 in Korea in the first quarter of the year, with overseas markets following shortly after. Check back for more info, including prices and specs, closer to launch.

What do you think about the new GV60 design? Do you like the changes? What would you change? Let us know in the comments below.

Ready to check out the electric luxury SUV for yourself? With the 2025 models here, Genesis is offering clearance prices on the 2024 lineup while they are still in stock. You can use our link to find offers on 2024 and 2025 Genesis GV60 models at a dealer near you today.

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