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.
Coca-Cola’s bottling partners in India are going electric, three wheels at a time. The company just announced a major expansion of its electric delivery fleet, adding thousands of electric three-wheeled vehicles (often called e-rickshaws or electric tuk-tuks) to its logistics operations across the country.
These compact electric vehicles are already a common sight on India’s roads, used for everything from passenger transport to last-mile cargo deliveries. Now Coca-Cola’s bottlers are ramping up their use of these efficient EVs as part of a broader sustainability and welfare initiative dubbed “Vividhta ka Uphaar,” which translates to “a gift of diversity.”
According to the company, the rollout is already underway, with more than 5,000 electric three-wheelers integrated into delivery routes in cities such as Ahmedabad, Bhubaneswar, Bhopal, and more. The vehicles not only reduce tailpipe emissions but also lower noise pollution and operating costs, making them a win for both the company and the communities they serve.
Coca-Cola joins a growing list of multinational corporations turning to electric tuk-tuks to clean up their delivery fleets in Asia. IKEA has deployed similar electric three-wheelers in India and other Southeast Asian countries as part of its push to achieve zero-emissions deliveries. Amazon and Flipkart have also experimented with three-wheeled EVs to reach urban customers on tight, traffic-clogged streets.
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While North America often focuses on four-wheeled electric trucks and vans for commercial use, much of the developing world relies on these nimble three-wheeled workhorses. Affordable, maneuverable, and easy to charge, electric rickshaws are a natural fit for dense cities with hot climates – especially where small businesses and large corporations alike need efficient last-mile solutions.
Electrek’s Take
These types of EVs can’t come soon enough. They use electric drivetrains that are closer in size to an electric bicycle than an electric delivery truck or van (usually 2-4kW motors and 3-5 kWh batteries), yet can carry loads closer in size to those same trucks and vans.
Sure, they can’t carry quite the same tonnage, but they’re often more appropriately sized for the kind of last-mile delivery that so many companies require.
I actually bought an electric tuk-tuk back in 2023 and found it to be the perfect ‘city truck’ for my lifestyle, where I live car-free in a city and my wife and I travel by e-bike and e-motorcycle. For the few times we need to actually haul stuff, an electric tuk-tuk or rickshaw gives truck-like capacity in a smaller and more efficient vehicle. What’s not to like?!
Move over, Bugatti! The new Chinese Yangwang U9 Xtreme electric hypercar just blasted its way to a staggering, 308.4 mph top speed on a German test track, seizing the “world’s fastest car” crown and busting the last traces of the myth that electric cars are slow.
“This record was only possible because the U9 Xtreme simply has incredible performance,” explains German GT racing driver Marc Basseng, who piloted the Chinese EV on its record-setting run. “Technically, something like this is not possible with a combustion engine. Thanks to the electric motor, the car is quiet, there are no load changes, and that allows me to focus even more on the track.”
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The Yangwang U9 features the world’s first mass-produced 1,200V ultra-high-voltage vehicle platform. Developed by BYD, the car is powered by the company’s latest li-ion phosphate batteries in BYD’s now-familiar “blade” configuration.
The U9 Xtreme’s record-setting run dethrones the previous Bugatti Chiron Super Sport 300+, which managed 304.8 mph back in 2019. The Bugatti now has to settle for the lesser “world’s fastest combustion-powered production car” title, which is objectively lame.
Definitely NOT lame
Yangwang U9 Xtreme; via BYD.
The company says it’s selling “no more than 30” of the Xtreme U9 EVs, presumably to customers with incredibly long driveways. The Xtreme version features smaller, 20″ wheels (instead of 21s), and gets wider, 325 mm tires (up from 275 mm) to match the rears. The fronts also ride on a narrower track.
You can watch Marc Messang put the 3,000 hp Yangwang U9 Xtreme electric hypercar to the test in the video, below, then let us know what you think of China’s first-ever world record-setting vehicle in the comments section at the bottom of the page.
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With dual electric motors pumping out 776 hp, over 400 miles of all-electric range, and a relatively low MSRP, the new AUDI E5 Flagship Quattro electric wagon is electrifying the Chinese wagon market – scoring over 10,000 orders in its first thirty minutes on sale!
First launched last fall, the new Audi-backed AUDI sub-brand kept the sexy wagon aesthetic but ditched the Germans’ interlocking rings and Auto Union heritage in favor of a simple, all-caps AUDI logo on the E concept wagon. Now seen in production trim, the production AUDI E5 Sportback is surprisingly true to the original concept – except in the horsepower department, that is.
But, while a production car having lower horsepower figures than the concept car that preceded it is pretty typical, the production AUDI E5 is different: it actually offers more peak power than the 765 hp concept!
That’s right, kids! the range-topping Flagship Quattro version of the new AUDI E5 Sportback offers buyers 776 horsepower (that’s 11 more than the concept), and gets 402 miles (CLTC) of range from its 100 kWh battery. And, while that version is a monster, even the base-level Pioneer version at just 235,900 yuan ($33,000, as I type this) offers a 76 kWh battery pack sending power to a 295 hp rear-mounted electric motor and over 600 km of range (~385 miles).
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It’s a solid achievement in value and tech, and the Audi people seem pretty proud of themselves. “The AUDI E5 Sportback is our first model based on the Advanced Digitized Platform, and it delivers on our brand promise: the best of both worlds,” says Fermín Soneira, CEO of the Audi and SAIC Cooperation Project. “Audi’s DNA and engineering excellence is blended with China’s digital ecosystem and innovations, specifically tailored for our tech-savvy customers.”
And it’s pretty.
AUDI E5 Sportback
The wagon’s exterior, while not necessarily shouting “Audi” in the conventional, Western sense, is still proportioned well enough to carry the four rings (or, looked at another way, a VW logo). But, while it’s a great-looking wagon on the outside, it’s on the inside that the all-new E5 AUDI Sportback really sets itself apart.
The interior of the AUDI E5 Sportback is noticeably different from any Audi model, being much more inline with similar entry-luxe EVs sold in China. The E5 dash also sports a 59″-inch” wide screen that stretches across the entire dash, digital side mirrors, Alcantara seating surfaces, and wireless phone chargers.
All that tech is powered by the QUALCOMM Snapdragon 8295 automotive chipset with 5-nanometer precision and the ability to perform 30 billion operations per second, and the Chinese-market AUDI OS offers what its makers call, “an intuitive experience designed to make the vehicle occupants’ lives easier.”
You can take a look at the new E5 Sportback’s interior, below, then let us know whether or not you think an Audi AUDI like this (and its purple mood lighting) would be a hot seller Stateside in the comments.
E5 Sportback interior
SOURCE | IMAGES: AUDI.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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