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.
The Hyundai IONIQ 6 N is finally here, and it delivers. Hyundai’s electric sports car is loaded with fun new features, a sleek design (including a massive rear wing), 641 horsepower, and much more.
Meet the Hyundai IONIQ 6 N
After teasing the new model for the first time last month, Hyundai created quite a buzz. Now, we are finally getting our first look at the upgraded high-performance EV.
Hyundai unveiled the new IONIQ 6 N at the famed Goodwood Festival of Speed on Thursday in West Sussex, England. The upgraded model follows Hyundai’s first high-performance EV, the IONIQ 5 N.
At the event, the company boasted that its new electric sports car marks “a pivotal milestone in Hyundai N’s electrification journey,” adding “Hyundai N is once again redefining the boundaries of high-performance electrification with the debut of the IONIQ 6 N.”
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The IONIQ 6 N delivers an impressive 641 horsepower (478 kW) and 77 Nm of torque, enabling a 0 to 100 km/h (0 to 62 mph) sprint in just 3.2 seconds. Its top speed is about 160 mph (257 km/h).
Hyundai IONIQ 6 N (Source: Hyundai)
That’s when using Hyundai’s Launch Control, one of the many performance features the new EV offers. Like its other N models, the IONIQ 6 is based on three pillars: Corner Rascal, Racetrack Capability, and, of course, an Everyday Sportscar.
Powered by two electric motors, a 223 hp (166 kW) at the front and another 378 hp (282 kW) motor at the rear, for a combined 600 hp (448 kW).
Hyundai IONIQ 6 N (Source: Hyundai)
Redefining the EV driving experience
The upgraded IONIQ 6 “redefines the EV driving experience,” according to Hyundai, thanks to its advanced in-house vehicle control software.
Central to this is Hyundai’s N Active Sound + system, which mimics the feel and sound of a traditional engine. An added N e-Shift simulates shifting gears.
Hyundai IONIQ 6 N interior (Source: Hyundai)
And that’s just the start. Other performance features, such as N Drift Optimizer, N Grin Boost, and N Torque Distribution, give you even more control over the vehicle while delivering increased power.
The IONIQ 6 N is powered by an 84 kWh battery, providing a WLTP range of up to 291 miles (469 km). However, EPA figures will be revealed closer to launch. Given the IONIQ 5 N has an EPA-estimated range of up to 221 miles, you can expect it to be slightly higher when it arrives.
With a 350 kW DC fast charger, Hyundai’s new performance EV can recharge from 10% to 80% in about 18 minutes.
With a length of 4,935 mm, a width of 1,940 mm, and a height of 1,495 mm, the IONIQ 6 N is about the size of the Porsche Taycan.
Hyundai will showcase the new high-performance EV during the hillclimb event alongside other models like the IONIQ 5 N, IONIQ 6 N Drift Spec, and IONIQ 6 N with N Performance parts. Hyundai promises each vehicle brings unique capabilities to the event, “guaranteeing a dynamic and thrilling on-track experience for all attendees.” Check back soon for more info.
What do you think of Hyundai’s new electric sports car? Would you buy one over the Porsche Taycan? Let us know in the comments.
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Elon Musk said that Tesla owners will “soon” have access to Grok, a large language developed by Musk’s xAI startup, days after the AI started calling itself ‘MechaHitler’.
Yesterday, xAI launched Grok 4, the latest version of its large language model.
The new model is benchmarking very well, but that’s generally the case with the latest model to come out. It edges the latest models from Google and OpenAI on intelligence by a few points, but it falls behind on speed:
At the launch event, Musk announced that Grok will “soon” be integrated into Tesla vehicles.
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This is something that the CEO has been discussing since founding xAI, which has been controversial because Musk has also positioned Tesla to compete in the AI space. He even stepped down from his role at OpenAI due to a “conflict of interest with Tesla.”
The announcement of the imminent integration of Grok into Tesla vehicles comes just days after the language model went haywire on X and started praising Hitler, referring to itself as ‘MechaHitler’, and made several antisemitic comments.
xAI acknowledge the issue and put Grok on timeout while they fixed it:
We are aware of recent posts made by Grok and are actively working to remove the inappropriate posts. Since being made aware of the content, xAI has taken action to ban hate speech before Grok posts on X. xAI is training only truth-seeking and thanks to the millions of users on X, we are able to quickly identify and update the model where training could be improved.
The “bug” came just a few weeks after Musk stated that he was displeased with Grok supporting left-wing narratives, even though it didn’t say anything inncurate, and that he would update Grok to “fix” it.
Now, the large language model (LLM) is expected to power the new voice assistant inside Tesla vehicles.
LLMs are becoming quite common in cars, especially premium vehicles. Ford, Mercedes-Benz, Stellantis, and a few others have all integrated Chat-GPT in some models.
Many Chinese automakers have also developed their own and deployed them in cars, even entry-level ones.
Tesla is playing catch up on that front.
Electrek’s Take
As I have previously stated, I think Musk is setting up Tesla to invest or even merge with xAI at a ridiculous valuation – making Tesla shareholders virtually pay twice for Twitter, which is now part of xAI.
This is how he will be able to gain wider control over the company’s share.
From the first discovery in Prudhoe Bay in 1968, Alaskans have had a love-hate relationship with oil.
On one hand, it allowed Alaska to abolish its state income tax, fund most government operations and provide every Alaskan with a dividend that continues to this day. On the other hand, it has left the state at the near total mercy of the global oil market.
In recent years, that has proven to be a bad bet. And it is the major reason Alaska finishes at the bottom of the CNBC America’s Top States for Business rankings in 2025.
With the price of Alaska North Slope crude oil down by double digits from a year ago, according to the Alaska Department of Revenue, Alaska has America’s worst economy as measured by the CNBC study. Economy is the heaviest-weighted category under this year’s methodology.
More coverage of the 2025 America’s Top States for Business
Alaska’s gross domestic product growth is in the bottom ten nationally. The state’s economy grew by just 1.5% last year, compared to 2.8% nationally.
More crucially, the state’s fiscal year 2026 budget is based on a forecast of $68 per barrel for crude oil, and it is unclear if that will hold. Alaska North Slope crude traded as low as $63.49 on May 5 before rebounding above $70 in recent weeks. State forecasters are counting on oil for around 70% of the state’s revenue over the next ten years, or nearly half the state’s operating budget. And some localities are far more dependent.
“When you look at the economic engine by default,” North Slope Borough Mayor Josiah Patkotak told CNBC last month, “That happens to be oil and gas by about 98% of our operating budget.”
$40 billion bet on natural gas as diversifier
For decades, Alaska has sought ways to diversify its economy, but it has had limited success. Proposals have involved alternative energy, agriculture, and the state’s tourism sector.
Alaska Governor Mike Dunleavy speaks during a news conference at his office in Anchorage, Alaska, U.S. March 22, 2022.
Yereth Rosen | Reuters
In 2023, Gov. Mike Dunleavy, a Republican, signed legislation to put Alaska into the carbon market, using the state’s vast public lands for carbon storage, and to generate carbon offset credits for high carbon emitters in other states. But the program is still in the study phase. A report to the legislature in January said the program is not expected to generate any revenue until at least 2027.
More recently, the Trump administration is backing a proposal to build a natural gas pipeline alongside the Trans-Alaska oil pipeline, allowing the U.S. to ship liquid natural gas — a byproduct of North Slope oil production — to Asia.
The idea has been around for years, but the price tag, estimated at around $40 billion, was impossible for the industry to swallow even when petroleum prices were high.
Now, however, administration officials think that trade tensions might change the economics.
“There [are] countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy,” U.S. Energy Secretary Chris Wright told CNBC’s Brian Sullivan in Prudhoe Bay last month.
“If you get the commercial offtakers for the gas, financing is pretty straightforward,” Wright said.
If the project gets off the ground, it could provide a huge boost to Alaska’s economy, though it would still be at the mercy of commodity prices.
Lack of tech infrastructure, high costs
Alaska’s struggling economy is a major reason for its poor competitive performance, but it is not the only one.
The state ranks No. 49 in Infrastructure. While the state’s roads and bridges are in better shape than in many states in the Lower 48, its virtual infrastructure leaves much to be desired. Fewer than 2% of Alaskans have access to affordable broadband service, according to BroadbandNow Research. The data center boom has passed Alaska by thus far, with only four in the entire state.
Alaska is a notoriously expensive place to live, especially in the many remote parts of the state.
“When you’re paying 16 bucks a gallon for milk, we’ve got to figure out how to make sure that you can afford to buy the milk so you can live here. We’ve got to make sure you can afford to buy the gas so you can hunt here,” said Patkotak.
But one aspect of life is a bargain in Alaska. At a time of soaring homeowner premiums, online insurance marketplace Insurify projects Alaska homeowners insurance premiums will average $1,543 this year, the second lowest in the nation.
Join the conversation. Didn’t see your state mentioned? You can see where it ranked overall, and in all 10 categories of competitiveness, in the full rankings of the 2025 America’s Top States for Business.