Pioneer Natural Resources (PXD) posted solid first-quarter results after the bell Wednesday, thanks to higher-than-expected energy production. Free cash flow, however, was a slight miss. It was also a bittersweet evening as CEO Scott Sheffield said he will retire at the end of the year after more than two decades collectively at the helm. Pioneer’s oil and gas revenue fell 19% year-over-year, to $3.17 billion, missing analysts’ forecasts of $3.7 billion, according to Refinitiv. But this may not be an accurate comparison as we think the analyst estimates include oil and gas plus other income items. Pioneer’s adjusted diluted earnings per share (EPS) declined 32.7% on an annual basis to $5.21, topping expectations of $4.91. Unlike most companies that hold their earnings conference calls with analysts and investors the day they report, Pioneer hosts its quarterly calls the next day — so Thursday at 10 a.m. ET. Bottom line Overall the quarter looks fine to us with production coming in at the high end of guidance. But, the big news was Sheffield’s retirement announcement and that Rich Dealy, the company’s President and COO, will become the new CEO on Jan. 1, 2024. After his exit, Sheffield is expected to remain on Pioneer’s board. This change in leadership is significant because it comes at a time when buyout rumors are swirling around the company. Is the company more likely to sell to Exxon Mobil (XOM) with Sheffield no longer running the show? Or does the appointment of Dealy, who brings more than 30 years of experience at Pioneer and its predecessor, mean the company is not for sale? The quick appointment of a new leader suggests no deal is coming soon. As a result, it’s not surprising to see Pioneer trading down roughly 2.5% at around $217.50 per share in after-hours trading. PXD YTD mountain Pioneer Natural Resources YTD Capital allocation Another reason for the selling pressure on the stock could be from income-oriented investors. Pioneer set its second-quarter base plus variable dividend at $3.34 a share – factoring in a base dividend of $1.25, which was raised 14% from $1.10, and a variable dividend of $2.09. On an annualized basis, the new yield moves down to 6% based on Wednesday’s closing price. A far cry from the 10% dividend yield we’ve come to know and love from Pioneer, but there’s a reason behind it. Management wants more flexibility to repurchase shares instead of paying a huge variable dividend. Buybacks are actually more valuable nowadays if you think oil prices are going higher in the future. Pioneer announced it’s refining its peer-leading capital return framework. The company continues to expect to return at least 75% of quarterly free cash flow to shareholders, but after paying the (now raised) base dividend, management will allocate what remains within the 75% to variable dividends and opportunistic share repurchases. This means that Pioneer will likely shift what previously went to the variable dividend into share buybacks. This isn’t the same explicit prioritization of buybacks over variable dividends that we saw from fellow exploration and production (E & P) company Coterra Energy (CTRA), which tilts more natural gas . But, it’s a notable change at Pioneer. Some investors may not like to lose out on the yield, but buying back stock when times are leaner instead of paying an unsustainable dividend is a more shareholder-friendly way to run the company in this tougher commodity environment. Under this new framework, Pioneer management can more easily opportunistically purchase stock when it believes there is a valuation disconnect in the market. And, it looks like Pioneer jumped on the opportunity to buy back its stock on the cheap in the first quarter. repurchasing $500 million of stock, up from $400 million in the fourth quarter, at an average price of $206 per share. That’s a nice trade with the stock closing at $222.48 on Wednesday. Pioneer also said the board authorized a new $4 billion share repurchase program. Given the $1.9 billion on its existing authorization, the news suggests Pioneer wants to more actively utilize buybacks as a tool to return capital. Management will surely be asked about the revised framework on Pioneer’s conference call and discuss what other trends they are seeing. Check your email inboxes for any significant updates. Pioneer’s total Q1 production of 680,000 barrels of oil equivalent per day (MBoe/d) and oil production of 361,000 barrels per day beat estimates, topped the year-ago period and came in at the high end of management’s original guidance. That’s a positive outcome given the company’s is oil-weighted and crude offers a much higher profit margin than natural gas. Notably, Pioneer doesn’t hedge its oil production, making its realized pricing closer to that of the underlying commodity. Second-quarter guidance provided by Pioneer looked solid from our vantage point and relative to analyst estimates of FactSet. Total Q2 production is estimated between 674,000 and 702,000 barrels of oil equivalent per day, which at the midpoint exceeds forecasts of nearly 681,000. Oil production is forecast between 357,000 to 372,000 barrels per day, which at the midpoint tops estimates of 364,000. Pioneer made no changes to its full-year 2023 production or capital budget outlook. (Jim Cramer’s Charitable Trust is long PXD, 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.
Scott Sheffield, CEO of Pioneer Natural Resources.
Adam Jeffery | CNBC
Pioneer Natural Resources (PXD) posted solid first-quarter results after the bell Wednesday, thanks to higher-than-expected energy production. Free cash flow, however, was a slight miss. It was also a bittersweet evening as CEO Scott Sheffield said he will retire at the end of the year after more than two decades collectively at the helm.
After years of waiting and many falsestarts, Formula E is finally going to debut its mid-race charging system, which will give cars a quick boost of energy charging at a rate much faster than current road cars can.
For years now, we’ve been hearing about FIA plans to introduce charging stops to electric racing.
In gas car racing, some series allow mid-race fueling and some don’t. The World Endurance Championship, which runs the 24 Hours of Le Mans, obviously needs to fill up several times during the race. But Formula 1, which hosts shorter races, eliminated mid-race fueling in 2010.
But the FIA already had one electric racing series, Formula E, which had debuted in 2014. At the time, each driver had two cars, and would swap mid-race to a fresh car with new batteries.
Battery-swapping had been considered, but it would be too complicated to set up at temporary race facilities in city downtown areas, as many Formula E tracks are.
Then, in 2018, Formula E debuted a new “Gen 2” car which had a big enough battery not to need a charge mid-race, and later a “Gen 3” car in 2022, which had much stronger regenerative braking, capable of 600kW of braking power. Gen 3 also has an “Attack Mode” feature that lets cars unlock additional power for a short period each race, adding to strategy and mixing up the race order.
The issues involved building the charging system in temporary facilities and ensuring safety of the system (and of pit stops in general, which is always a concern when cars are driving rapidly near people). But after winter testing prior to this season, Formula E now says the system is ready to go.
So, once again, Formula E is ready to announce that mid-race charging is definitely, totally, positively, 100% certain at the upcoming Jeddah E-Prix, on February 14-15 in Jeddah, Saudi Arabia.
Formula E thinks that proving this high-power charging technology could help road cars to charge more quickly, which could have myriad benefits for electric cars in general.
The series is calling the system “Pit Boost,” and it will consist of a 34-second pit stop that provides around 10% additional charge to the cars (about 4kWh). While 10% isn’t a lot, 34 seconds is also not a lot of time. For comparison, one of the fastest-charging cars out there, the Ioniq 5, can charge from 10-80% in 18 minutes, which means 10% charge takes 2.5 minutes – five times as long as Formula E cars will manage the feat.
The stop will be mandatory for all drivers to take at some point in the race, and will mean new strategy options for drivers. Taking the stop means getting more energy, which means that your car won’t have to do as much energy saving to get to the end of the race – but it also means giving up your position on track, which can be hard to get back if you do it late in the race.
However, we’ve never seen it happen before, so it will be interesting to see what kind of strategic options develop.
If you’re interested in seeing how it turns out, tune in to the Jeddah E-Prix on February 14-15 to see what happens. It’s a doubleheader race weekend, with night races both on Saturday and Sunday, February 14-15, at 5pm UTC, 9am PST, 12pm EST, and 8pm local time. You can check out how to watch the race in your area by going to Formula E’s “Ways to Watch” section. In the US, Roku should be the most reliable way to watch.
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JackRabbit, the maker of pint-sized electric microbikes, is back with a new product designed to quickly recharge their batteries from pure, uncut photons mainlined into an e-bike directly from the sun. In true independent charging form, the Solar Charging Kit from JackRabbit keeps riders rolling even when there’s not a convenient AC outlet in sight.
Unveiled this week, the Solar Charging Kit consists of a single folding solar panel and a tiny voltage converter that is configured to output 42.0V, which is the exact voltage required by JackRabbit’s little e-bike batteries. There’s also an added USB-A and a USB-C charging port for powering other devices in addition to charging JackRabbit batteries.
“This Solar Charging Kit plugs directly into your bike,” explained the company, “letting you recharge without needing an outlet, but with a speed comparable to the charger that comes with the OG/OG2 (42V, 2A).”
That would mean the panel outputs around 80W of solar power, which the company says can recharge its batteries in just three hours. That fairly quick recharging speed is helped by the fact that JackRabbit’s batteries are a mere 151 Wh, or around a third of the size of most e-bike batteries.
If that sounds small, then you’re right – it is. But JackRabbit is all about going micro, offering barely 25 lb rideables that are easy to store and bring on adventures, even when they aren’t actually being ridden.
With small batteries that fit under the 160Wh limit for many airlines in the US, the batteries can be quickly charged and taken to the widest number of locations. And for riders that want to go further than a single 10-mile (16-km) battery will allow, extra batteries are small enough to fit a pants pocket. The company also offers much larger Rangebuster batteries, though they won’t pass by TSA and make it onto an airplane in your personal item.
It sounds like the Solar Chargking Kit should be able to charge up JackRabbit’s large RangeBuster batteries, though likely in more than three hours.
The $349 Solar Charging Kit is a bit pricier than building something similar yourself, but it’s also safer and more convenient than hacking together your own battery charger since it’s designed to work with JackRabbit’s batteries right out of the box.
Technically it’s only inteded for JackRabbit’s micro e-bikes (themselves technically seated scooters, even if they look and feel more like a typical bike), but it’d probably work for just about any 36V e-bike that requires 42.0V to charge.
This isn’t the first time we’ve seen solar charging kits for electric bikes, and it’s a trend that is certainly appreciated by outdoors and camping enthusiasts, festival goers, or anyone who finds themself and their bike spending extended periods in the great, sunny outdoors.
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On today’s episode of Quick Charge, Polestar hopes to steal customers from Tesla now that Elon is involved in politics, CATL revenue dips for the first time ever, and a whole new way to feed the orcas drops down under.
As above, Polestar is hoping Elon’s descent into politics spells opportunity for the struggling Swedish/Chinese performance brand, CATL has big news in Europe, and Scooter Doll shows off a new electric submarine that’s so expensive, they won’t even tell us the price.
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.
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