Coterra Energy topped Wall Street expectations Thursday with first-quarter results that further proved the Club holding’s nimble production strategy is the right one for shareholders. Revenue in the three months ended March 31 fell 19% year over year to $1.43 billion, beating the consensus forecast of $1.39 billion, according to analyst estimates compiled by LSEG. Adjusted diluted earnings per share fell 41% versus the year-ago period to 51 cents, but still exceeded expectations of 41 cents, LSEG data showed. Coterra Energy Why we own it: Formed by the merger of Cabot Oil & Gas and Cimarex, Coterra Energy is an exploration-and-production company with a high-quality, diversified asset portfolio. The company practices capital discipline and is a low-cost operator. It’s committed to returning 50% or greater of annual free cash flow to shareholders. Our lone energy stock, Coterra also acts as a hedge on inflation and geopolitical risk. Competitors: EQT Corp ., Devon Energy , Marathon Oil Last buy: April 16, 2024 Initiation: April 14, 2022 Bottom line Coterra delivered a strong first quarter, fueled by clean execution. Getting more out of the ground without necessarily spending more is what makes energy producers capital efficient. Coterra provided exactly what we wanted in the January-to-March period: production above the midpoint of guidance, oil production above the high end and capital expenditures below the low end. In addition, we were pleased to see Coterra raise its full-year oil production outlook without moving its capex guidance. This momentum is the result of CEO Tom Jorden’s decision three months ago to shift its production strategy to focus on oil and liquid-rich plays away from natural gas, a prudent decision given the current economics of the two commodities. Since the start of the year, U.S. oil benchmark West Texas Intermediate crude has rallied more than 10% while natural gas prices have fallen 20%. Coterra’s mix of oil and natural gas acreage gives it the flexibility to adjust its drilling focus. It’s something we’ve longed touted as an attractive feature of the company. Shares of Coterra — which will hold its post-earnings conference call Friday morning — rose more than 2% in extended trading Thursday, to around $27.80 each. Following the report, we’re reiterating our buy-equivalent 1 rating on Coterra shares and a price target of $30. Capital allocation Coterra returned a total of $307 million to shareholders in the first quarter, with $157 million in declared dividends and $150 million coming from share repurchases. That buyback was an increase from the $29 million in repurchased in the fourth quarter of 2023. At the end of March, the Houston-based company had $1.4 billion remaining under its previous $2 billion authorization. Guidance Coterra largely maintained its capital-efficient outlook for 2024 — with a notable tweak that makes it even sweeter. The company reiterated its full-year capital expenditure outlook of $1.75 billion to $1.95 billion but raised its oil production guidance to 102 to 107 thousand barrels of oil per day (MBopd), an increase of 2.5% at the midpoint versus prior guidance. This is capital efficient because capex is down 12% year over year at the midpoint — driven by cost reductions, deflation and lower activity in the Marcellus Shale — and yet its barrel of oil equivalent production is expected to be roughly flat, with 9% higher oil volumes. For the second quarter, Coterra expects total equivalent production of 624 to 655 thousand barrels of oil equivalent per day (MBoepd); oil production of 103 to 107 MBopd; natural gas production of 2,600 to 2,7000 million cubic feet per day; and capital expenditures of $470 million to $550 million. The total production guide is a little lighter than the 668 MBoepd expected, according to Factset. However, the oil guide was higher and natural gas production was lighter than anticipated. We’ll gladly take the more oily mix given the more favorable economics it currently has. The capex guide is elevated relative to Wall Street estimates, but combined spending over the first two quarters of the year is line. (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.
Permian Basin rigs in 2020, when U.S. crude oil production dropped by 3 million a day as Wall Street pressure forced cuts.
Paul Ratje | Afp | Getty Images
Coterra Energy topped Wall Street expectations Thursday with first-quarter results that further proved the Club holding’s nimble production strategy is the right one for shareholders.
Jeep may have a secret to unlock even more capability with its upcoming electric off-roader. A new patent suggests that Jeep’s new Recon might just be the Wrangler of EVs, as the brand has been promising.
Will Jeep’s new Recon be the Wrangler of EVs?
Built from the ground up with its signature 4×4 off-road system, Jeep says the Recon EV will be its first true off-road electric SUV.
When it was first unveiled as a concept in 2022, Jeep said the Recon was “inspired by the legendary Wrangler” with features like removable doors and windows.
A newly discovered patent suggests that the Recon will borrow more than just its looks from the Wrangler, including its legendary off-road capabilities. The patent, filed with the United States Patent and Trademark Office (USPTO), is for a three speed gearbox for EVs. It was published on May 1, 2025.
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Most current electric vehicles use a single-speed gearbox, which is perfect for everyday travel. Rather than sacrificing range or performance, Stellantis has a better idea for added on and off-road capability.
Stellantis three speed gearbox patent for EVs (Source: USPTO)
The new unit features two planetary gear sets and three clutches, allowing for three distinct gear ratios. The first gear limits output speed with more torque for off-roading, rock crawling, and towing. It also improves control on sand, snow, mud, and more.
The second gear is more useful during typical everyday driving, while the third is designed to improve efficiency on highways.
Jeep Recon EV (Source: Stellantis)
Although Stellantis has yet to officially reveal the new EV tech, Jeep’s new Recon would be the perfect fit as the brand’s first true off-road EV. It could be used in Ram’s upcoming electric pickup or an electric Dodge muscle car.
Based on the STLA Large platform, the same one underpinning the Jeep’s first EV, the Wagoneer S, the Recon is expected to have a driving range of around 300 miles.
After the Recon EV was spotted in Michigan last year by a user on Jeep Recon Forum, we caught a glimpse of the interior, featuring Jeep’s signature Selec-Terrain system, which includes Rock, Mud, and several other modes.
A display screen showed a range of 147 miles with 66% battery remaining. That would suggest a range of around 223 miles, but the production model is expected to be closer to 300 miles.
You can expect it to include standard four-wheel drive, packing around 400 to 600 horsepower. At least three trims are expected to be available, including Willys, Overland, and a Moab edition.
Prices and final specs will be revealed closer to launch, but Jeep’s Recon EV is expected to start at around $60,000. More expensive trims, like the Moab, will likely cost upwards of $80,000.
We should learn more soon, with Stellantis planning to launch the Wrangler-like Recon EV later this year.
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Groups of US city mayors and representatives from state governments announced a delegation of officials who will attend climate talks for the US today, as the lack of a real US federal government with any interest in solving problems for Americans has led to lower, subnational representatives having to step up and do their job for them.
These groups all have different focuses and membership, but share the common thread that all of them consist of subnational US representatives who want to solve the problem of climate change. They include representatives from governments of all sizes – as small as, say, McCall, Idaho (population 3,686); to as large as California, the 4th largest economy in the world.
The groups announced a delegation that will attend several global climate events in the coming weeks, including the the UNFCCC June Climate Meetings in Bonn (June 16-26), London Climate Action Week (June 21-29), and a Paris Agreement 10-year anniversary event on June 23. Delegation members include:
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Laura Tierney, Vice President of International Programs, Business Council for Sustainable Energy
Mayor Kate Gallego, Climate Mayors Chair, C40 Steering Committee and Phoenix Mayor
Secretary Yana Garcia, California Environmental Protection Agency
Secretary Serena McIlwain, Maryland Department of the Environment
Elizabeth Lien, Program Director for America Is All In
Kate Wright, Executive Director, Climate Mayors
Nathan Hultman, Director of the Center for Global Sustainability
The delegation will work to showcase that, despite the backpedaling we see regarding US federal climate action, states and cities are ready to pick up the slack until US leadership returns.
Today’s move became necessary only due to the lack of a real US federal government that wants to work on solving the largest problem in human history.
Climate change is the biggest problem that humanity has ever caused for itself, and will take a concerted effort of people all over the globe to solve. Over the last century (and particularly over the last 30 years, where humanity emitted more than half of all-time global emissions), humans have collectively put significant effort into ignoring the environmental destruction we are causing, and so will need to reverse that damage with a global effort.
Currently, the atmosphere is at 430ppm CO2, while the safe historical level is around 350ppm. In order to get us back to a reasonable level, humanity needs to not only stop polluting, but also remove about a trillion tons of CO2 from the atmosphere. The more we pollute now, the more we’ll have to remove later, at much greater cost – so nothing is “too fast” as far as pollution reductions are concerned. Implementing drastic pollution reductions today will only save effort and misery for humanity in the long term.
This is a tall order, so cooperation from the world’s largest governments is necessary. To this end, the UN and other intergovernmental organizations host regular climate talks for countries to negotiate how we’re going to fix this problem in an equitable and efficient manner.
Like the last time a former reality TV host squatted in the White House (after receiving 3 million fewer votes than his opponent), it’s expected that the US federal government won’t be engaging in much climate diplomacy during the next 4 years, which are crucial to solving this immediate problem. In fact, that stint is what led to the formation of some of today’s groups in the first place.
That same former reality TV host (now also a convicted felon who further attempted an insurrection to overthrow a legitimate election, thus disqualifying him from holding office per the US Constitution) unfortunately stumbled into the White House again, after receiving more votes than his opponent for the first time, despite that US law barring him from running in the first place.
So, in their absence, states and mayors are having to step up.
Besides, in many parts of the world, climate action has been driven by cities. For example, several European cities have instituted low-emissions zones or congestion charges to reduce car dependency and pollution in the places most populated by people. These moves have worked to reduce pollution, and the US has seen success with a similar idea in NYC too.
However, despite that the majority of the world’s population now lives in cities, the problem of climate change is global and doesn’t just affect people where population density is the highest, but everywhere around the globe. For this reason, we need cooperation at the highest level – and a competent delegation from the federal government of the world’s largest historical emitter would be a nice thing to have, instead of relying on the mayor of the aforementioned McCall, Idaho to shoulder the burden (thank you, Mr. Giles, for your service).
Another thing the US government might destroy is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
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Can Ford really compete with China’s electric vehicles? The American automaker believes it may hold the key to competing with Chinese EV makers. Ford shared a few more details about its upcoming low-cost EV platform and how it plans to keep pace with China.
Ford says its new low-cost EV platform will match China
Remember the “skunkworks” team that Ford’s CEO Jim Farley revealed was working on a new EV platform last year?
Well, it’s not so small, and the secret is out. Led by former Tesla engineer Alan Clarke, the team has grown to around 500 members, many of whom were previously employed at Tesla, Rivian, Lucid, and Apple.
Farley said on the company’s earnings call early last year that the “ultimate competition is going to be affordable Tesla and the Chinese OEMs.” In October 2024, Ford’s CEO said the team is benchmarking costs “against the best competitors in the world,” including those in China.
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According to Farley, the first vehicle based on the new platform —a midsize electric pickup —will “match the cost structure of Chinese OEMs building in Mexico.”
2025 Ford F-150 Lightning (Source: Ford)
During a “candid dinner discussion” last week, Daniel Roeska, Bernstein’s lead automotive analyst, spoke with Lisa Drake, Ford’s vice president of tech platform programs and EV systems, about the new platform.
Roeska wrote in a note to investors (via Axios) that “Lisa Drake was explicit: Ford intends to match the cost structure of leading Chinese players.” The note added, “That means not just battery pricing, but full system cost from chassis and thermal systems to inverters and electronics.”
Ford’s electric Explorer for Europe (Source: Ford)
To cut costs, Ford will use prismatic LFP batteries licensed from China’s leading EV battery maker, CATL. They will be manufactured at a new plant in Michigan.
Drake explained that Ford’s new low-cost EV platform will support eight body styles, including trucks, crossover SUVs, and maybe even sedans. The midsize EV pickup, Ford’s first low-cost model, is expected to look like an electric Ranger.
Ford Mustang Mach-E (left) and F-150 Lightning (right) (Source: Ford)
Roeska explained, “With eight body styles and potential global applicability, it’s intended to underpin Ford’s EV strategy for much of the next decade.”
Ford still has a few hurdles. The new LFP battery plant in Michigan costs about $3 billion, and Ford expects to receive roughly $700 million in federal tax credits to help offset some of the costs. With Republicans aiming to eliminate government subsidies and other incentives for EVs, batteries, and other clean energy projects, it could face an uphill battle.
Electrek’s Take
Can Ford rival China with its new low-cost EV platform? It doesn’t help that the Trump administration is working against it.
After flying Xiaomi’s SU7 from Shanghai to Chicago last year, Farley called the Chinese EV “fantastic” on the Fully Charged Podcast and even said he “doesn’t want to give it up.” Xiaomi has already delivered over 200,000 SU7 models, which was launched just last March.
Farley explained that “You’ve got to get behind the wheel to truly understand and beat the competition.” Ford will have some ground to make up with Chinese EV makers, like BYD, which are quickly expanding into new overseas markets.
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