Coterra Energy shares dropped 3% on Tuesday despite the oil and natural gas producer delivering better-than-expected fourth-quarter earnings late Monday. Capital efficiency was a highlight with output levels above management’s outlook range and capital expenditures near the low end of guidance. Revenue in the three months ended Dec. 31 declined 13% versus the year-ago period at $1.395 billion, slightly missing the $1.4 billion consensus forecast, according to analyst estimates compiled by LSEG. Adjusted diluted earnings per share fell 6% versus the year-ago period to 49 cents and beat expectations of 43 cents, LSEG data showed. 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. Our lone energy stock, Coterra also acts as a hedge on inflation and geopolitical risk. Competitors: EQT Corp ., Devon Energy Last buy: Oct. 1, 2024 Initiation: April 14, 2022 Bottom Line Coterra Energy ended the year on a good note thanks to strong production on a lower-than-expected capital expenditure base. This is what we mean when we say Coterra is a disciplined, capital-efficient operator. It is able to get more out of the ground while keeping spending in check. There was some nitpicking around the company’s first-quarter outlook, which featured a lower-than-consensus production outlook and higher capital expenditures. However, the 2025 outlook was pretty much in line with what management provided in November when the company announced the acquisition of two assets in the Permian basin, a resource-rich area in western Texas and southeastern New Mexico. But there were two noteworthy updates to the full-year projections: (1) Coterra is lowering its planned Permian spending this year by $70 million, driven by cost and service deflation and acquisition synergies. (2) It’s taking part of those cost savings and raising its investment in the natural gas-rich Marcellus Shale by $50 million to increase drilling activity that will impact next winter’s volumes. The Marcellus encompasses parts of New York, Pennsylvania, Ohio, West Virginia, Maryland, Tennessee, Virginia and Kentucky. If macro conditions present an opportunity, management said it could increase Marcellus capital by an incremental $50 million in the second half of 2025 to deliver higher volumes by early 2026. This flexibility between basins and commodities is what has always attracted us to Coterra. If oil has a stronger outlook versus natural gas, Coterra can shift some of its investment activity toward more oily regions, like the Permian. If nat gas has the better fundamental outlook, it can flex some of that spending towards Marcellus to capitalize on the opportunity. “Although our 2025 plan includes significant oil investments, we also have flexibility if oil markets were to wobble. Rest assured, if we need to adjust our capital plan during the year, we will do so thoughtfully and explain it thoroughly. Flexibility is the coin of the realm,” CEO Tom Jorden said on Tuesday’s post-earnings conference call, which always held the morning after the results are released. Powering energy-intensive data centers that run artificial intelligence workloads is also an opportunity for Coterra as nat gas is the most immediate answer given many of the recent nuclear power deals with tech companies will take time to have an impact. Jorden, who will be on “Mad Money” on Tuesday evening said on the earnings call that the company is in discussions with “everything from good old fashioned combined cycle plants to, behind the meter type power solutions for data centers.” He added, “I think everyone’s still trying to figure out exactly what the end state looks like. But we have so many molecules and so many places that, we’re really well positioned to take advantage of some of this. And I’m hopeful we’ll have some good announcements coming before too long on this.” As for cash returns, Coterra paid out $218 million to shareholders in the quarter — split between $168 million in dividends and $50 million coming from share repurchases. The buyback was a step down from the $111 million spent in the third quarter but that was due to the company funding its Permian acquisitions and prioritizing debt repayment. Slower buybacks may continue this year despite $1.1 billion remaining on a $2 billion share repurchase program. As for the dividend, the company is hiking its quarterly payment by 5% to 22 cents per share, which brings the annual dividend yield on the stock up to around 3.2% based on a $27.25 stock price. That’s roughly where shares were trading Tuesday. We booked profits in Coterra in late January when the stock neared $30 per share. With the stock down about 5% since the trim, we are warming up to the idea of buying those shares back. However, we’re looking for a little bit more of a pullback to pull the trigger. So, while reiterating our 2 rating, we’re nudging up our price target to $30 per share from $28. CTRA 1Y mountain Coterra Energy 1 year 2025 guidance Following its announced Permian Basin acquisitions, Coterra provided pro forma 2025 capital expenditure, total production, and oil production outlook. The company tweaked the total production and oil production ranges but left them unchanged at the midpoint. The capital expenditure budget was also unchanged. Estimated discretionary cash flow of $5 billion based on recent strip prices. That’s higher than the consensus estimate of $4.64 billion. Estimated capital expenditure budget of $2.1 billion to $2.4 billion. The $2.25 billion midpoint is in line with the consensus of $2.23 billion. Free cash flow is estimated to be $2.7 billion based on recent strip prices. That’s higher than the consensus estimate of $2.375 billion. The company expects 2025 total equivalent production of 710 to 770 Mboe/d. The 740 midpoint of the range is slightly below the consensus forecast of 747 Mboe/d, which stands for total oil equivalent of a thousand barrels per day. Oil production is expected to be in the range of 152 to 168 Mbo/d and inline with consensus of estimate of 160 Mbo/d, which stands for a thousand of barrels of oil per day. Natural gas production is now expected to be in the range of 2,675 to 2,875 MMcf/d. The 2,775 midpoint is below the consensus of 2,808 MMcf/d, which stands for a million standard cubic feet per day. (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.
In this photo illustration, a Coterra Energy Inc. logo is seen on a smartphone screen.
Coterra Energy shares dropped 3% on Tuesday despite the oil and natural gas producer delivering better-than-expected fourth-quarter earnings late Monday. Capital efficiency was a highlight with output levels above management’s outlook range and capital expenditures near the low end of guidance.
The Boring Company, Elon Musk’s tunneling startup, is reportedly facing significant issues with its new project in Nashville, Tennessee. A key subcontractor has walked off the job, alleging that the company has failed to pay for work completed on the “Music City Loop,” claiming they have received only 5% of what they are owed.
We have been following The Boring Company’s expansion efforts closely.
After the relative success of the Las Vegas Loop and several projects that failed to materialize, it looked like the company was winding down until a new proposal in Nashville gained some momentum.
However, a new report from the Nashville Banner indicates that the project is hitting a major wall.
Advertisement – scroll for more content
Shane Trucking and Excavating, a local contractor hired to handle preliminary work for the tunnel project, pulled its workers off the site this Monday. William Shane, the owner of the company, told the Banner that The Boring Company has “ghosted” them and failed to pay invoices totaling in the six figures.
According to Shane, the payment terms were initially set for every 15 days, then unilaterally switched to 60 days. Now, he claims it has been over 120 days since they broke ground, and his company has received only a fraction of the payment due.
“We were really skeptical from the beginning, and then since then, things pretty much just went downhill,” Shane said.
The contractor was reportedly responsible for preparing the launch pad for “Prufrock,” The Boring Company’s proprietary tunnel boring machine (TBM). We previously reported on Prufrock’s capabilities, with the company claiming it can dig tunnels significantly faster than conventional machines, supposedly porpoising directly from the surface to avoid digging expensive launch pits.
If the launch pad isn’t finished because the excavator wasn’t paid, Prufrock isn’t digging anywhere.
This isn’t the first time we’ve heard of payment issues involving Musk-led companies. Tesla has been known to not pay its bills, leading to small companies going bankrupt.
As The Boring Company was stiffing Shane on the bills, the company tried to poach workers from its own contractor and lied about it:
“One of their head guys texts two of my welders, offering them a job for $45 an hour from his work phone,” Shane described, noting that the same TBC employee denied sending the texts when confronted with screenshots. “That’s actually a breach of contract.”
On top of the missed payments, Shane alleges serious safety concerns. They made several official complaints to OSHA:
“Where we’re digging, we’re so far down, there should be concrete and different structures like that to hold the slope back from falling on you while you’re working. Where most people use concrete, they currently have — I’m not even kidding — they currently have wood. They had us install wood 2x12s.”
The Boring Company Vice President David Buss blamed missed payments on “invoicing errors” in a statement to the Banner:
“It does look like we had some invoicing errors on that. It was, you know, unfortunately, too common of a thing, but I assured them that we are going to make sure that invoices are wired tomorrow.”
He also said that he would look into the poaching allegations, but added that he is not aware of any OSHA complaints.
The “Music City Loop” was pitched as a solution to connect downtown Nashville to the airport, a route that is notoriously congested.
The Boring Company claims it can complete the project without public money, but there are some obvious issues with its financing.
Electrek’s Take
I’ve been willing to give them the benefit of the doubt on the “Loop” concept. While it falls short of the original “autonomous pods” vision or the “Hyperloop” speed dreams, the system in Las Vegas does work to move people, even if it is just Teslas in tunnels driven by humans.
There’s just no evidence that it would be more efficient than any other public transit system.
When Musk launched The Boring Company’s first test tunnel in LA, I asked him if he had any simulations showing his “loop” system to be more efficient. He said that they were working on that. That was 7 years ago.
Therefore, while The Boring Company appears to have achieved marginal improvements in tunnel boring, mainly when it comes to smaller tunnels; it has yet to show clear evidence that its Loop system is a better solution than any other public transit system.
FTC: We use income earning auto affiliate links.More.
Heybike drops new Mars 3.0 folding e-bike back to its $1,199 low during Black Friday sale for first time since launch
As part of its ongoing Black Friday e-bike sale, and coming right alongside the equally new price cut on the Ranger 3.0 Pro, Heybike is giving us the first official post-launch discount on its Mars 3.0 Folding Fat-Tire e-bike for $1,199 shipped, as well as a FREE Black Friday gift pack. It launched back at the top of August with a $100 discount from its $1,299 full price, which is repeating here for the first time since those initial deals cooled, and while the discount may not be large, you’re certainly getting a lot of upgraded features for such a low price.
Designed for those riders who seek greater thrills, the new Heybike Mars 3.0 e-bike brings along the new Galaxy Perform eDrive System, which pairs a 750W rear hub motor (1,400W peak) with 95nM of torque (and an obvious torque sensor), as well as a removable 624Wh battery. This system allows you to reach 20 or 28 MPH top speeds, determined by your local laws, and provides pedal-assisted support for up to 65 miles on one full charge. Just like the equally new Ranger 3.0 Pro model, you’ll find a new TFT display on this generation that delivers NFC start-up so you can turn it on by simply tapping your device to the display.
Advertisement – scroll for more content
Aside from its continued space-saving, folding frame, you’ll also notice an improved 440-pound payload so heavier riders can get in on the fun or allow smaller riders to haul some serious cargo weight. The lineup of upgraded features includes a hydraulic suspension fork, a rear Horst link suspension, hydraulic disc brakes, 4-inch puncture-protected tires with fenders, a brake-lit taillight with turn signals, a headlight, a horn, a rear cargo rack, a Shimano Altus 8-speed derailleur, and more.
Heybike’s new-gen Ranger 3.0 Pro folding commuter e-bike gets first post-launch cut to $1,399 low for Black Friday
As part of Heybike’s ongoing Black Friday Sale, and coming in right alongside the new Mars 3.0 Folding e-bike price drop, we’re also now seeing the new Ranger 3.0 Pro Folding Fat-Tire e-bike getting a cut to $1,399 shipped and coming with a FREE Black Friday gift pack. This model was released alongside the Mars 3.0 back in August, and has remained at its $1,499 full price since the initial launch deals ended that month. Now, during this Black Friday season, the brand is offering the first post-launch discount we have seen, giving you another chance at $100 savings on an already lower-cost commuter solution at its best price that we have tracked. Of course, if you want an even more premium look, this model has a Limited Miami Sunset colorway option that has been given a price cut to $1,599 shipped, as well as a Black Friday gift pack and a Miami Sunset gift pack for more added goodies.
Like the Mars 3.0 counterpart, the new Heybike Ranger 3.0 Pro e-bike is quite the higher-end solution for folks seeking new commuting options, all while retaining accessible pricing. It’s been upgraded from the popular Ranger S model with the new Galaxy Perform eDrive System, combining a 750W rear hub motor (1,200W peak), 80nM of torque, and a 720Wh battery. This combination provides a max speed of 20/28 MPH (depending on individual state laws), as well as pedal-assisted support (presided over by a torque sensor) for up to 90 miles on one charge, making it quite the handy commuter – plus, there’s the space-saving folding frame when you reach your destination. It boasts a new TFT display that allows you to tap your phone for NFC start-ups, giving you an extra layer of smart security.
Among its upgraded features, you’ll find a hydraulic suspension fork, 4-inch puncture-protected tires with fenders over each, hydraulic disc brakes, a headlight and horn at its front, a taillight with brake lighting and turn signal lighting, an 8-speed Shimano Altus derailleur, and more. And pivoting back to its folding design, this model condenses even smaller than its predecessor to a 41.7-inch by 20.5-inch by 32.7-inch size.
Tesla’s Universal Wall Connector with dual NACS + J1772 connectors and customizable 48A speeds retains $50 cut to $600
Lectric XP4 Standard Folding Utility e-bikes with $326 bundle: $999 (Reg. $1,325)
Lectric XP Lite 2.0 Long-Range e-bikes with $449 bundles: $999 (Reg. $1,448)
Heybike Mars 2.0 Folding Fat-Tire e-bike with Black Friday gift: $999 (Reg. $1,499)
Heybike Ranger S Folding Fat-Tire e-bike with Black Friday gift: $999 (Reg. $1,499)
Best new Green Deals landing this week
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
FTC: We use income earning auto affiliate links.More.
The EV4 will sadly not arrive in the US as expected, but Kia said it’s still planning on launching another EV that’s expected to be an even bigger hit.
Kia confirms EV4 delay, says another EV is still US-bound
The EV4, Kia’s first electric sedan, was expected to launch in the US within the next few months, but that will no longer be the case.
Kia has indefinitely delayed the launch of the EV4 in the US due to policy changes under the Trump administration.
The loss of the $7,500 federal EV tax credit and added tariffs on Korean imports have forced Kia, like many others, to adjust their US lineup.
Advertisement – scroll for more content
According to Kia America’s marketing boss, Russel Wager, the EV4 is only a small part of the broader tariff-related impacts the Korean automaker is facing. Wager told Car and Driver on the sidelines of the LA Auto Show that the changes will likely impact other vehicles and prices.
2026 Kia EV4 US-spec (Source: Kia)
When asked for specifics about why the EV4 is being pushed back, Wager said, “Can you give me the answer of when the tariffs are going to be resolved in Mexico, Canada, and Seoul? If you give me that answer, I’ll be as specific as possible.”
While the EV4 is delayed indefinitely, Wager suggested bringing the EV3 to the US, Kia’s compact SUV, is still part of the plan.
Kia EV3 (Source: Kia)
The Kia EV3 is already one of the most popular EVs in Europe and the UK’s best-selling retail electric car this year. Given the growing demand for smaller SUVs, the EV3 is expected to be an even bigger hit with US buyers than the EV4.
When it will launch in the US or how much it will cost remains up in the air until Kia gets a better idea of market conditions.
The 2026 Kia EV9 (Source: Kia)
Kia’s EV sales plunged after the federal tax credit expired at the end of September. Sales of the EV6 and EV9 fell by 71% and 66% last month compared to October 2024.
According to Wager, the automaker won’t really know what demand looks like until February or March 2026, since the loss of the $7,500 credit likely pulled buyers forward.
Kia EV3 Air in Frost Blue (Source: Kia UK)
Kia is still ready to launch the EV4 in the US, but that’s only if the tariff situation stabilizes. Earlier this month, the US and South Korea agreed to reduce tariffs on imports from 25% to 15%.
“At that point in time we look at it and say, are we at 25 [percent], are we at 15—and then we can build our business case,” Wager said, adding, “It was originally designed and engineered when the tariffs were zero percent.”
The electric pickup that Kia announced just a few months ago may never make it to the US. Wager pointed to Ford halting F-150 Lightning production and reports that it could be scrapped altogether.
In the meantime, Kia is heavily discounting its current electric vehicles, offering a $10,000 customer cash bonus on every model. Or, you can opt for 0% financing for 72 months plus an extra $2,500 bonus cash. Kia’s sister company, Hyundai, is also offering generous discounts with IONIQ 5 leases starting at just $189 per month.
Interested in a test drive? We can help you get started. You can use our links below to find Kia and Hyundai models in your area.
FTC: We use income earning auto affiliate links.More.