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.
Bojangles, the North Carolina-based chain known for its fried chicken and biscuits, is joining the growing list of fast food chains installing EV chargers in their parking lots.
The restaurant chain is working with Smart Big Box, Alyath EV, and Energy and Environmental Design Services to install turnkey EV charging stations at a “wide range” of its 800 restaurants, which are concentrated heavily in the southeast US. The rollout starts in late 2025, with most chargers expected to be available by sometime in 2026.
Each Bojangles location getting EV chargers will offer at least four ports. The stations will vary between Level 2 and DC fast chargers.
Bojangles CIO Richard Del Valle said, “Working with Alyath and Smart Big Box allows us to introduce a new convenience that aligns with evolving customer needs.”
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It’s a smart move. The charging stations will let people plug in and power up, and they’re more likely to dine at Bojangles while they’re doing so. Plus, Bojangles will get a reputation for having charging stations, so EV drivers will be more inclined to head toward the restaurants as a reliable power source.
Cristiane Rosul, CEO of Alyath, said the partnership “not only benefits EV drivers but also positions Bojangles as a leader in the future of quick-service dining.”
Smart Big Box has contracted with Energy and Environmental Design Services as the exclusive installer and maintenance partner for all EV chargers.
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Toyota’s electric SUV is now its cheapest vehicle to lease. After slashing lease prices again, the Toyota bZ4X is listed for lease at just $199 per month in some states. That’s even cheaper than a Corolla right now, even though it’s nearly double the price.
Toyota bZ4X is now cheaper to lease than a Corolla
The 2025 Toyota bZ4X already starts at $6,000 cheaper than the previous model year, but with a new promotion this month, it’s even more affordable.
Toyota is at it again, having cut lease prices once more this month following the Fourth of July holiday. The 2025 Toyota bZ4X XLE is now listed at just $199 per month for 36 months. With $3,999 due at signing, you’ll end up paying an effective cost of $310 per month.
The offer is $42 less than before the new promo, or about a 12% price cut. It’s hard enough to find any lease nowadays around $300, but for an electric SUV, it’s a pretty good deal.
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According to online auto research firm CarsDirect, it’s even cheaper to lease a bZ4X now in some states than a Toyota Corolla. The 2025 Corolla LE Sedan is available for $229 for 36 months. With $2,999 due at signing, the effective monthly rate is $312, or $2 more than the bZ4X.
2025 Toyota bZ4X Limited AWD Supersonic Red (Source: Toyota)
Although $2 might not seem like much in the grand scheme of things, it’s pretty significant, given that the bZ4X is $16,000 more expensive.
The 2025 Toyota bZ4X XLE has an MSRP of $38,465, compared to the Corolla LE Sedan, which starts at $22,325. That’s a $16,140 cost difference alone.
2025 Toyota bZ4X Limited AWD interior (Source: Toyota)
Toyota’s electric SUV is slightly longer than a RAV4 at 184.6″ in length, but it has a longer wheelbase, which opens up more interior space.
Toyota is also throwing in a free year of unlimited charging (at EV-go-operated public charging stations) for those who buy or lease a new 2025 bZ4X. You can also add a ChargePoint home charger to the cost.
Although the bZ4X is available for just $199 per month, the 2025 Hyundai IONIQ 5 is listed at $179 nationwide this month. With more range, style, and an NACS port for charging at Tesla Superchargers, the 2025 IONIQ 5 offer is hard to pass up right now.
2025 Toyota bZ4X trim
Starting Price (excluding $1,395 DPH fee)
Price reduction (vs 2024MY)
Range (mi)
XLE FWD
$37,070
-$6,000
252
XLE AWD
$39,150
-$6,000
228
Limited FWD
$41,800
-$5,380
236
Limited AWD
$43,880
-$5,380
222
Nightshade
$40,420
N/A
222
2025 Toyota bZ4X prices and range by trim
Like many carmakers, Toyota is currently offering significant incentives on electric vehicles, with the federal tax credit set to expire at the end of September. Accordingly, Toyota’s promotion ends on September 30. Although the bZ4X doesn’t qualify for the credit through purchase, Toyota is passing it on through leasing.
In some areas, like LA, Toyota is currently offering $12,000 off bZ4X leases. With the loss of the tax credit, the savings would drop to just $4,500, which would add over $100 a month to the lease price.
Transport Canada has finished its investigation into Tesla’s questionable filing of $43 million worth of EV incentives in a single day, finding that the claims did indeed represent cars sold before the deadline to file for incentives – still raising questions about disorganization within Tesla.
To recap, Canada suddenly sunsetted its electric vehicle incentives back in January, as the program ran out of money. It caught a lot of EV dealers by surprise, and there was a sudden rush to sell cars and to file for incentives, given that the end of the program was announced with just three days notice.
One of these dealerships that showed a rush was a single Tesla dealership in Quebec, which recorded 4,000 rebate requests in a single weekend, an impossible number at the relatively small location. Other Tesla locations also filed for suspiciously high numbers of incentive claims on the same weekend.
This raised alarm bells, and other Canadian auto dealers pointed it out to Transport Canada, with Huw WIlliams, head of the Canadian Auto Dealers Association (CADA) claiming that Tesla “gamed the system” to hog an illegitimate number of incentive claims out of the limited money left. The total amount was $43 million, which was more than half of the amount left in the Canadian government’s coffers.
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Even accounting for Tesla delivery pushes, and for increased sales as the credit rapidly sunset, these numbers did not seem possible.
This – perhaps combined with Tesla’s unpopular position in Canada at the time given CEO Elon Musk’s participation in a US government which was attacking Canada’s sovereignty at the time – led to Transport Canada announcing an investigation into Tesla’s incentive claims (Canadian Transport Minister Chrystia Freeland even said at the time that future Canadian ZEV incentives should exclude Tesla until the US’ “illegitimate and illegal” tariffs were lifted).
Tesla responded to the investigation in a typically standoffish manner, claiming in a letter that it was “shocked” to hear about the investigation, threatening legal action if payments weren’t resumed, and blaming Transport Canada for causing Tesla’s negative public perception and exposing Tesla’s Canadian employees to harassment (the letter did not, however, mention anything about CEO Musk’s government activities, or his recent actions attempting to spread white supremacy around the globe, and how those are much more responsible for negative public perception of the company).
Well now, the result of that investigation is back, and Freeland said on Friday that Tesla’s claims “were determined to legitimately represent cars sold before January 12.”
Transport Canada also pledged to CADA that all cars delivered before January 12 will have their incentive claims fulfilled, regardless of the program’s budget. CADA estimates it’s owed around $11 million in past-due claims, and Williams still wonders how Tesla knew to file those claims so suddenly.
Electrek’s Take
Questions still remain about this incentive. As pointed out by the Canadian Press, it’s still not clear whether Tesla’s incentive claims were for cars sold on that weekend, or for cars sold prior to that weekend and delivered all in a lump.
Given the physical limitations of the locations involved, it’s likely the latter. Which raises a different kind of alarm bell: that of disorganization within Tesla, as I pointed out as my main concern over this situation in a previous article.
I just don’t see how Tesla Canada can justify leaving tens of millions of dollars on the table for potentially several months, when all it took was the filing of some pieces of paper for them to get it. That’s capital that Tesla could have used to do business, and letting it sit in someone else’s bank account doesn’t benefit Tesla at all.
Now, disorganization is nothing new for Tesla, but businesses usually don’t like leaving money laying around for no reason. And Tesla, with its focus on quarterly results and end-of-quarter pushes, surely would have enjoyed having that extra cash in December, the end of a fiscal quarter/year, rather than the beginning of January when they filed for these incentives.
So regardless of the now proven legitimacy of these claims, this aspect should be cause for some amount of concern. It’s a reflection of a longtime problem in Tesla, where things tend to fall through the cracks until there’s some sort of emergency, and then it’s all-hands-on-deck from whoever happens to be closest to the problem at the time. But this has been an issue within Tesla for so long that it’s hard to see it being fixed at this point – and certainly not under its longtime CEO who seems far more interested in using Tesla to bail out his private companies or turning Twitter into “MechaHitler” than on making actual good decisions for Tesla.
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