Oil-and-gas producer Coterra Energy (CTRA) on Thursday delivered a top-and -bottom-line beat for the first quarter, while reiterating its commitment to return at least half of its free cash flow to shareholders like us. Revenue for the three months ended March 31 increased 6% year-over-year, to $1.78 billion, beating analysts’ forecasts of $1.61 billion, according to estimates compiled by Refinitiv. Adjusted diluted earnings-per-share (EPS) fell by 14% on the year prior, to 87 cents, but still outpaced analysts’ predictions of 70 cents per share, Refinitiv data showed. Bottom line Coterra’s realized prices for its first-quarter oil sales came in a tad below expectations, but that proved inconsequential, as strong production and low costs resulted in better-than expected earnings and cash-flow generation. Free cash flow is a particularly important metric for Coterra because the company’s management remains committed to returning at least 50% to shareholders through a base dividend and share repurchases. This was a strong performance across the board and we look forward to hearing more from management on the results. Coterra is scheduled to host a post-earnings conference call on Friday at 10:00 a.m. ET. Capital allocation Coterra said it plans to return a total of $420 million to shareholders, representing about 76% of its free cash flow in the first quarter. Of that, $152 million will be distributed through a 20 cent-per-share dividend, to be paid out on June 9, while the remaining $268 million will be returned to investors via share repurchases. Annualizing that $420 million figure results in a yield of just over 9%, based on the company’s roughly $18.50 billion market capitalization as of Thursday’s close. First-quarter production The stellar production results not only exceeded the high end of managements guidance — in terms of total production, as well as for oil and gas distinctly — but also outpaced analysts’ forecasts. Outlook Looking ahead, guidance for both the second quarter and full year 2023 was largely in line with expectations. Notably, Coterra lowered its full-year expectation for free cash flow by $300 million, largely due to a $400 million reduction in its forecast for operating cash flow. But the new target was still slightly ahead of analysts’ predictions. The downward revision isn’t surprising, given natural gas prices have come under significant pressure since the start of the year. Accordingly, Coterra reduced its full-year price assumption for natural gas to $2.89 per million British thermal units (MMBtu), from a previous estimate of $3.50 per MMBtu. The company reiterated its expectation for West Texas Intermediate (WTI) crude to average $76 a barrel for the full year. The price of natural gas, which has fallen roughly 37% year-to-date, closed out Thursday at $2.30 per MMBtu. WTI has fallen more than 17% from its 2023 high last month, settling Thursday at $68.56 a barrel. (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.
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas.
Angus Mordant | Reuters
Oil-and-gas producer Coterra Energy (CTRA) on Thursday delivered a top-and -bottom-line beat for the first quarter, while reiterating its commitment to return at least half of its free cash flow to shareholders like us.
Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.
“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”
Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.
Canadian pricing has yet to be announced.
Electrek’s Take
FedEx electric delivery vehicle; via Workhorse.
There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.
The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.
Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).
The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.
LIEBHERR
Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.
The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.
The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.