Pioneer Natural Resources (PXD) is an oil stock worth owning on its own merits. But a fresh report that Exxon Mobil (XOM) could acquire the Club holding would likely unlock even more value. Exxon has held “informal” talks about buying Pioneer, The Wall Street Journal reported Friday, citing people familiar with the matter. Any potential deal would not transpire until later this year or in 2024, the Journal reported. Exxon — which generated $62 billion in free cash flow in 2022 and ended the year with nearly $30 billion in cash — has held acquisition discussions with at least one other oil-and-gas firm, according to the Journal. Pioneer shares jumped more than 6% Monday, to around $221 each — making it by far the best-performing energy stock in the S & P 500 . Shares of Exxon fell by by 0.25%, to just under $115 apiece. Pioneer and Exxon did not immediately respond to CNBC’s request for comment Monday. Exxon’s reported interest in Pioneer is hardly a surprise because the Texas shale driller is a “marquee” independent exploration-and-production company in the lower 48 states, Stifel analyst Derrick Whitfield told the CNBC Monday. If Exxon wants to meaningfully bolster its rig count in the Permian Basin, it’s “going to need quality depth of inventory,” which Pioneer has, Whitfield said. The analyst, who has a buy rating and $286 per share price target on PXD, said the likelihood of a Pioneer-Exxon deal comes down to how much Exxon is willing to pay. “I think management would want to … improve performance of their asset base and arguably have a higher stock price before coming to the table with Exxon Mobil,” Whitfield said. “That’s not to say if Exxon Mobil offered a 25% premium, it wouldn’t be done. Personally, that was the number I had pegged in my mind. If you saw a 25% premium, I think that would bring them to the table because, let’s be realistic, every independent wants to be acquired by Exxon Mobil.” The Club believes it may take a bit more for Pioneer to seriously consider selling. A 25% premium from where Pioneer closed Thursday, at roughly $208 per share, would value shares at around $260 each. However, Jim Cramer said Monday he thinks Pioneer CEO Scott Sheffield — an industry veteran in his second stint leading the company — would hesitate to sell at a per-share price below $285. That’s Pioneer stock’s all-time closing high, reached in June 2022. “I am not saying he wouldn’t sell. I am saying that he’s not going to sell below where this stock was, given the fact oil could be going back to $90 [a barrel], given the fact that he’s got the best Permian assets,” he added. West Texas Intermediate crude — the U.S. oil benchmark — was trading down more than 1% Monday afternoon, at $79.70 a barrel. We were content with our Pioneer investment prior to Exxon’s reported interest in the company, adding to our PXD stake twice last month at lower levels than Monday’s market price. Our most recent purchase of 25 shares on March 20 came at roughly $185 each. Pioneer’s attractiveness stems in large part from its quality acreage and low oil price breakevens, at roughly $39 per barrel. That enables the firm to generate hefty amounts of free cash flow and return most of it to shareholders through stock buybacks and quarterly dividends. Knowing that Exxon is reportedly on the prowl for an acquisition, investors may look at Pioneer and other Permian operators even more favorably. Stifel’s Whitfield believes the Journal story could put a near-term floor underneath Pioneer’s stock price — a view we share. At the very least, Pioneer’s shareholders may be more likely to remain invested in the company, Whitfield said. And that’s certainly our intention at this time. “What I suspect is it’s going to further firm the shareholder base because you now have an article that directly links Exxon Mobil to Pioneer, and the way it was set up, there is clearly an interest there,” Whitfield said. “I think if you’ve seen Pioneer at [a] much higher share price in the past, that gives you that much more conviction to hold onto it now.” (Jim Cramer’s Charitable Trust is long PXD. 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.
Permian Basin rigs in 2020, when U.S. crude oil production dropped by 3 million a day as Wall Street pressure forced cuts.
Paul Ratje | Afp | Getty Images
Pioneer Natural Resources (PXD) is an oil stock worth owning on its own merits. But a fresh report that Exxon Mobil (XOM) could acquire the Club holding would likely unlock even more value.
This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a merger between Electric Bike Company and Integral Electrics, California looking to clamp down further on Sur Ron hooligans, a Super73 recall, Cowboy’s production move, a tour inside Bafang’s factory in China, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
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NIU, best known as a leader in the electric moped market, has expanded considerably over the last few years. In addition to offering a hot-selling new electric dirt bike and showing off concepts for electric ATVs, the company is now unveiling an electric microcar known as the NIUMM 500.
Still in its prototype stage, the two-seater NIUMM 500 electric microcar is designed to fit into L6e category of light quadricycles in Europe. As a quadricycle, these vehicles are technically not “cars” in the traditional sense (or in the legal sense), and thus have their own set of regulations that help streamline their path to production. Other popular microcars, such as the Citroen Ami, have taken a similar path and reached success with over 30,000 units sold.
With a target price of €8,000 (approximately US $8,300), the NIUMM 500 is intended to fill that niche role of a comfortable, weather-protected urban commuter, going beyond a typical moped or motorcycle with the advantages of locking storage and the ultimate achievement of staying dry in the rain.
In order to qualify as an L6e vehicle though, there are certain restrictions such as speed and power that prevent the NIUMM 500 from laying down the fastest lap times. A top speed of 45 km/h (28 mph) keeps the microcar city-oriented, though you could probably tell by looking that this isn’t a highway vehicle.
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In some countries, light quadricycles don’t even require a full car driver’s license, instead allowing the operator to hold a more easily-obtainable moped permit.
Despite the speed limitation, the little electric microcar has a lot going for it. The traditional steering wheel control and two-pedal drive setup will feel familiar to seasoned car drivers, yet the vehicle offers a more moped-like parking experience by taking up a mere fraction of a parking spot. The narrow size helps squeeze through tight city streets, though you likely won’t be lane splitting quite like a moped.
Back on the car-like side of things, electric locks and power windows come standard (including a power rear windshield), as does electric heating. Optional add-ons include a sun roof and air conditioning. There’s a decently large storage area behind the two seats, and another small storage area in front of the passenger seat.
And in another nod to its hybrid design, halfway between a moped and a car, the NIUMM 500 can even be outfitted with removable batteries (straight from NIU’s NQiX electric mopeds). The removable battery version allows apartment dwellers or others without access to street-level parking to still own and charge their own microcar. Just like how I charge my own NIU batteries at home, owners can simply carry the batteries up the elevator and charge them in their apartment.
For those with charging access though, there’s a fixed battery version with a larger 7 kWh capacity. It gets an impressive 118 km (73 miles) of range, compared to the removable battery version’s 60 km (37 miles) of range.
Both appear to feature the same 5 kW motor with a peak output of 10 kW – also the same drivetrain from the NIU NQiX electric moped.
NIU is currently showing off the new vehicle at the Motorrad show in Dortmund, Germany.
There’s no word yet on if or when the NIUMM 500 will see production, but based on conversations with company insiders, it sounds like NIU is fairly serious about the microcar’s future.
Here’s to hoping it sees the road soon, and that they can keep that target price in check on the way there.
Electrek’s Take
Yes, I’m all in on this!
I LOVE electric microcars. Give me a tiny car, a golf cart, whatever you want to call it, and I’ll take it. For city commuters, 25 mph is often sufficient, and since many people don’t feel safe on a scooter, these types of vehicles fit the bill as lighter and more efficient alternatives to a car that still carry some benefits of a scooter or moped.
I tested out Wink Motors’ vehicles in NYC a couple of years ago and got around the city just fine with a top speed of 25 mph, so I think these could even work in the US. But of course Europe is the primary target here thanks to their more conducive quadricycle laws.
If anyone at NIU is reading this, I will travel to review!
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Renewables increased their output by almost 10% and provided nearly a quarter of US electrical generation in 2024, according to newly released US Energy Information Administration (EIA) data.
Solar was still No 1
Solar remained the US’s fastest-growing source of electricity in 2024. Utility-scale and “estimated” small-scale (e.g., rooftop) solar combined increased by 26.9% in 2024 compared to the same period in 2023, according to the SUN DAY Campaign, which reviewed EIA’s “Electric Power Monthly” report data.
Utility-scale solar thermal and photovoltaic expanded by 32%, while small-scale solar increased by 15.3%. Together, solar was nearly 7% (6.91%) of total US electrical generation for the year.
In December alone, electrical generation by utility-scale solar expanded by 42% compared to December 2023.
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Small-scale solar (systems <1 MW) accounted for 27.9% of all solar generation and provided 1.9% of the US electricity supply in 2024. In fact, small-scale solar PV generates over five times more electricity than utility-scale geothermal.
2024 renewables milestones
The electrical output of US wind farms in 2024 grew by 7.7% year-over-year. Wind remains the largest source of electrical generation among renewable energy sources, accounting for 10.3% of the US total.
Wind and solar combined provided more than 17.2% of US electrical generation during 2024. The mix of all renewables – wind, solar, hydropower, biomass, geothermal – provided 24.2% of total US electricity production in 2024 compared to 23.2% of electrical output a year earlier.
Between January and December, electrical generation by renewables grew by 9.6% compared to the same period the year before – nearly three times the growth rate of natural gas (3.3%) and over 10 times that of nuclear power (0.9%).
In December alone, electrical generation by renewables grew by 10.1% compared to December 2023.
Wind and solar together produced 15.9% more electricity than coal and came close to matching nuclear power’s share of total generation (17.2% vs. 17.8%).
The mix of renewables reinforced their position as the second largest source of electrical generation, behind only natural gas.
“Renewable energy sources now provide a quarter of the nation’s electricity,” said the SUN DAY Campaign’s executive director, Ken Bossong. “Consequently, the rash efforts of the Trump Administration to undermine wind, solar, and other renewables will have serious negative consequences for the nation’s electricity supply and the economy.”
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