Natural gas prices have had an up and down January — taking Club stock Coterra Energy along for the wild ride. After rising more than 30% over the first two weeks of the year, natural gas futures plunged 24% last week and have continued their fall in recent days. The commodity lost 4% on Monday, but in a volatile session Tuesday settled up 1.3%, at $2.45 per million British thermal units. Nevertheless, nat gas prices remained negative year to date. Early Wednesday, nat gas prices swung higher. Shares of Coterra – whose total revenue is split evenly between natural gas and crude oil – gained ground Tuesday to more than $24 each, putting year-to-date declines at less than 3.5%. That performance has been marginally worse than the S & P 500 energy sector over the same stretch. Meanwhile, the broad S & P 500 index has risen roughly 2% in 2024. CTRA .SPX 1M mountain Coterra Energy’s stock price over the past month compared with the S & P 500. Despite some seeing a challenging near-term picture for natural gas prices, our investment outlook on Coterra and the energy sector more broadly remains the same. In a diversified portfolio, it’s worth owning an oil-and-gas stock, partly as a hedge in case there’s a dramatic spike in energy prices, as there was in early 2022 after Russia invaded Ukraine. At this point, Coterra is our company of choice due to its significant exposure to both natural gas and oil, giving it flexibility on production, along with its internal improvements on well productivity to aid profitability — the latter being called out in multiple Wall Street analyst upgrades of the stock in recent weeks. Additionally, the company is committed to returning excess cash to shareholders, with a wise preference on buybacks over variable dividend payouts. It also stands to gain from the expected increases in U.S. liquified natural gas export capacity beginning primarily in 2025. Still, volatile oil and natural gas prices hold sway over Coterra’s near-term stock moves. And the swift reversal of fortunes for natural gas has been hard to ignore. However, some context is necessary when analyzing the swing. “Last week’s meltdown appears so significant because the move higher was, really, from a fundamental perspective completely overdone,” said Eli Rubin, a natural gas analyst at EBW Analytics Group. The commodity was particularly beaten up to end 2023, Rubin said, after one of the warmest Decembers on record limited demand for natural gas to heat homes and other buildings. The warm December added insult to injury amid strong U.S. natural gas production and mild weather throughout the fall, contributing to an oversupplied market. The result is traders had grown quite bearish on natural gas, Rubin said, which created the technical conditions for a dramatic spike in prices if more positive fundamental signs emerged. And they did, in fact, emerge by way of winter storms and bitter-cold temperatures that swept large parts of the U.S., causing a surge in demand for natural gas. That technical and fundamental backdrop created the jump of more than 30% in natural gas prices. However, the market’s focus last week began to shift toward weather forecasts for later in the month, which point to a return of warmer temperatures. And that’s generally what sparked the big decline in natural gas prices that have persisted into this week, Rubin said. Over the next three to six months, Rubin said he expects the natural gas market to remain “vastly oversupplied,” suggesting more pressure on the commodity’s price could be on the horizon. But looking out further on the horizon, Rubin said he sees the outlook starting to brighten as LNG-related demand is set to appear and hopes for a more normal winter emerge. That should bode well for Coterra. (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.
A drilling rig operates in the Permian Basin oil and natural gas production area in Lea County, New Mexico, February 10, 2019.
Nick Oxford | Reuters
Natural gas prices have had an up and down January — taking Club stock Coterra Energy along for the wild ride.
When I first got my hands on a Chinese electric mini-excavator, I thought it would be a fun little machine for digging a few holes and moving some dirt around. What I didn’t expect was just how useful and versatile it would become – and how often I’d reach for it for jobs that I never initially planned on tackling with a compact electric digger.
As I’ve watched all the fun reporting on new electric excavators, I’ve looked on in envy at what the current state of the art is… if you’ve got a quarter million bucks burning a hole in your hefty pocket. They are amazing machines, but I feel like the kid sitting outside of the sandbox and looking in, never able to play with the toys myself. But as it turns out, as long as you don’t need a massive machine, a mini-electric excavator wound up offering me many of the same benefits.
These battery-powered machines are cleaner, quieter, and cheaper to run than their diesel counterparts, which is great. That’s exactly why I started with NESHER in the first place. But what really surprised me was how many odd jobs around my parents’ acreage my little NX2500 excavator managed to take over. Here are five unexpected ways I’ve been using my Chinese electric mini-excavator.
1. Trench digging for irrigation
This was actually one of the first “off-script” jobs I tackled. My parents needed to run some irrigation lines through their property for a new garden setup, and while I originally planned to help my dad out the old-fashioned way (with a trenching shovel and a lot of sweat), I had my first mini-excavator delivered only a month ahead of time, and the timing couldn’t have been more perfect.
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I figured, “Why not?” and before I knew it, I was carving clean, even trenches in a fraction of the time. What would’ve taken an entire weekend by hand was done in about an hour or two, and with zero back pain. It’s a perfect example of how machines like this can turn exhausting, sweaty work into something you actually enjoy.
That picture was taken only part way through… that trench kept going to more planters further out!
Ever since I hurt my back a few years ago, a part of my rude welcome to how the mid-30s feels quite different from the mid-20s, I’ve been a little more aware of the kind of stress I put on my body. While I’m still quick to grab a shovel when I need one, the thought of hand trenching all day with a shovel versus an hour in the operator’s chair was a no-brainer.
2. Tree planting made way easier
Planting one tree is no big deal. Planting 10? Or 20? That’s starting to become a project. Planting 50? That’s a whole day with a shovel – or just a couple of hours with the mini-excavator.
The machine makes short work of digging perfect-sized holes, whether you’re dropping in fruit trees, palms, or trying to reforest a bare section of land.
Digging a hole and dropping the spoils on the sled
In the beginning, there was some trial and error, but I’ve learned that you can fine-tune your technique to get the hole shape just right, so the trees don’t settle awkwardly or too deeply. It’s still manual labor in a sense, since those joysticks don’t work themselves, but it’s a lot less manual than working the shovel all day!
I also found that I can use a simple yard sled to load the spoils onto, then use the UTV to drag it away to the spoil pile elsewhere on the property. If you don’t have a dump truck or mini-truck around, a yard sled is a cool little way to move heavy things easily by dragging them around.
3. Mulch moving machine
I hadn’t originally planned on using the excavator for this one, but I had a big pile of mulch that needed to get loaded into the back of my mini-truck to bring over to a planting area. Instead of shoveling it by hand or using buckets, I figured I’d see how the excavator would handle scooping and dropping. And it worked beautifully.
Is it a perfect loader bucket? Not really. But it does save a lot of time and effort compared to doing it by hand. For loose materials like mulch, compost, or even sandy soil, it’s a no-brainer.
Wild that all three of these machines are electric! We’re living in the future…
I still generally prefer to go with one of my loaders for bulk material like this, but in a pinch, the excavator can move 4-5x the amount I can per shovelfull, and each pass is a heck of a lot less exhausting on me!
4. Grading around trees for a shipping container pad
Here’s one I definitely didn’t expect to work so well. I had an area near some trees where I wanted to drop a shipping container. The ground was a mess – uneven, root-covered, and just generally not flat enough for the container to sit level.
I figured I’d give the excavator a shot at scraping and grading the area flat, and with a little finesse, it worked surprisingly well. It took some careful passes, and I wouldn’t call it laser-level precision, but it was more than good enough to get the container settled evenly and safely.
I’ve since put a second container next to it and built a roof structure between them, so now I have a 40×10-foot (12×3-meter) covered parking area between two shipping containers. I’d say it worked quite well!
5. Hoisting and lifting logs (and other heavy stuff)
Now this one’s a bit outside the box – and outside the manual. These machines aren’t really designed for lifting heavy objects the way a larger excavator or crane is, but they’re surprisingly capable if you’re smart about it.
I’ve hoisted several hundred pounds with mine, like awkward loads or cut log sections. A lifting strap slung over the bucket makes it easy to mount weird-shaped things, and you just have to be careful about swinging around too quickly.
I added a manual thumb attachment, and that proved to be a real game-changer. I can now pick up logs and branches, spin them around, and drop them into the bed of the mini-truck like a tiny mobile crane. Again, one or two logs are easy enough to toss by hand. But when a tree or two comes down after a storm and there are 20 or 30 logs, my back is going to thank me for not trying to toss each one by hand.
Final thoughts
It’s easy to write off these Chinese electric mini-excavators as toys or underpowered knock-offs. But after putting on real-world use for everything from planting trees to loading mulch and lifting logs, I can say they’ve proven themselves. No, they won’t replace a full-size backhoe or dozer, but they’re not trying to. These things are for the small jobs – the ones that wear you out if you try to do them by hand and don’t justify calling in a pro crew. They’re for the homesteaders, not the contractors.
Add in the fact that they’re electric – so you can run them in a garage or barn without worrying about fumes –and you’ve got a pretty compelling machine for landowners, landscapers, hobby farmers, or anyone who wants a quiet, capable, compact helper.
They aren’t without their downsides. Run times are only between 4-6 hours, and the roughly 1 mph (0.6 km/h) walking speed is excruciatingly slow when you need to travel to the farther flung areas of the property. But at least they’re relatively quiet and vibration-free, not to mention emission-free, for that long traverse!
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Slate Auto, a new EV startup backed by Jeff Bezos, has poached a key Tesla manufacturing leader to build its electric pickup truck factory in Indiana.
Napoleon Reyes is a US Marine from Indiana who got a degree in mechanical engineering from Purdue after leaving the force.
He then worked a few years at Subaru and Wabash before joining Tesla’s manufacturing team at the Fremont Factory in 2020.
There, he became part of the Model Y production ramp and was quickly promoted to lead the Model Y General Assembly in Fremont in 2022.
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Reyes led Model Y GA, one of the most critical parts of vehicle manufacturing, for more than a year before being promoted again to lead new pilot processes at the factory.
Most recently, he led the launch of the general assembly line for the Model Y refresh.
The new engineering manager announced this week that he is leaving Tesla to join Slate:
A bit late on the post but after nearly 5 years working at Tesla in Fremont, I made the difficult decision to leave the Company and move closer to home with my family. It was an incredible experience being part of multiple line expansions and multiple Model Y program launches. Leading and managing the Model Y Refresh launch for GA in Fremont this year tested me professionally however we ultimately succeeded due to our amazing cross functional team collaboration. It’s been an absolute pleasure working with such great people, and I will forever be proud and thankful for everything we accomplished together.
I will be taking on a new role as Senior Manager, Plant Vehicle Engineering at Slate Auto in Warsaw, In.
The company raised over $700 million through two rounds of investments from several different investors, including Jeff Bezos. It is currently raising more, which basically guarantees that it will be able to reach production.
The startup acquired a former printing plant in Warsaw, Indiana. It is currently converting to manufacture its electric pickup with a team from legacy automakers and also several former engineers and leaders from Tesla.
Rich Schmidt, an early Tesla manufacturing director, is the head of manufacturing.
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Genesis is preparing to shake things up with its most luxurious SUV yet, the GV90. Thanks to a new patent filing, we are getting a detailed look at how its Rolls-Royce-style coach doors will work.
New patent reveals Genesis GV90 coach door system
When Genesis first unveiled the full-size SUV at the NY Auto Show last March, it wasn’t the stunning design or advanced tech that caught everyone’s attention. It was the coach doors.
Although we were worried it wouldn’t make it to the production model, like many concepts, the Genesis GV90 will be offered with coach doors.
The ultra-luxe electric SUV was first caught with coach doors earlier this year on a car carrier in South Korea. Just last month, the GV90 was spotted in California with a hinge at the rear to open the coach doors.
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After several new patents were filed with the United States Patent and Trademark Office for new door latching devices, we are getting a sneak peek at how they are expected to work.
The patents, titled “Cinching Device For Door Latches in Vehicle,” and “Door Latch Device for Vehicles,” give a pretty detailed explanation of how the Genesis GV90’s coach doors will operate. The “Door Latch Device” uses a door striker on the lower side of the door, which is opened or closed by a hinge unit.
Unlike traditional doors, which use the B-pillar for support, the device is attached directly to the door itself, allowing for hinge-like movement.
The cinching device works in a similar way. It’s also attached to the door and part of the vehicle. However, unlike most of its kind, Genesis found a way to use a single cinching device to control multiple units. Again, the device is used for B-pillarless doors that swing open.
Genesis already said that B-pillarless coach doors are now feasible in production vehicles. The patent reveals a glimpse into how the luxury automaker could make it a reality.
Genesis Neolun ultra-luxury electric SUV concept (Source: Genesis)
Although the Genesis GV90 is expected to be offered with coach doors, they will likely not be standard. Other variants, with traditional door handles, have also been spotted testing in the US and South Korea.
Genesis is expected to launch the GV90 in mid-2026. It will be built at Hyundai’s Ulsan plant in South Korea. The flagship Genesis SUV is scheduled to debut on Hyundai’s new eM platform, which the company said will “provide 50% improvement in driving range.” It will also be loaded with the latest technology, software, connectivity, and Level 3 or higher autonomous driving capabilities.