Coterra Energy is cutting back on its oil drilling in response to sagging crude prices and spending more on natural gas production — but that move, announced alongside first-quarter results, is being overshadowed by some operational concerns and leading to a stock sell-off Tuesday. Revenue in the first quarter increased 33% year over year to $1.9 billion, short of the $1.97 billion consensus estimate, according to LSEG. Adjusted earnings per share of 80 cents in the three months ended March 31 matched expectations, LSEG data showed. On an annual basis, adjusted EPS increased 56.9%. Free cash flow of $663 million topped estimates of $596 million, according to FactSet. Bottom line We have long coveted Coterra’s mix of oil and natural gas assets because it gives the company flexibility to respond to inherently volatile commodity prices. Our biggest takeaway from Coterra’s late Monday release and Tuesday morning conference call: That flexibility is being put to serious use in the current unfavorable oil market. But even if we support that move in principle, some operational issues in a certain part of the company’s Texas acreage are getting a lot of attention and are likely among the biggest drivers of the steep 8.5% stock decline. CTRA YTD mountain Coterra YTD While executives did a good job explaining their plan to fix the issue on Tuesday’s earnings call — and making it clear that they do not believe it is a structural problem with the quality of inventory — we’re not in a hurry to step in and take advantage of this sell-off. Coterra is still worth owning as our only oil-and-gas play, providing a solid dividend payout, acting as a geopolitical hedge and offering some exposure to long-term trends that could drive increased natural gas demand such as artificial intelligence computing and growing U.S. exports of liquified natural gas. But in the near term, the stock may struggle to gain traction. We’re reiterating our hold-equivalent 2 rating , but lowering our price target to $28. Commentary There are three main themes from Coterra’s earnings report — and none of them really have to do with the actual first-quarter results, which, as the chart above shows, were mixed. Not that bad, but also not exceptional. 1. Macro landscape The first area of discussion is around the macro landscape and Coterra’s decision to spend less on oil. Coterra and its American oil-producing brethren are confronting a difficult setup, thanks to a steep decline in crude prices over the past month that has brought West Texas Intermediate crude , the U.S. oil benchmark, to four-year lows below $58 a barrel . At the start of April, WTI traded above $71 a barrel. There are two main reasons for the pullback: President Donald Trump ‘s intensified trade war has fueled concerns about a global economic slowdown — a bad thing for oil demand if it comes to fruition. At the same time, the group of eight oil-producing nations known as OPEC+ has announced a series of surprisingly aggressive moves to bring more supply to the market in the coming months. The most recent of those decisions was announced over the weekend. While Saudi Arabia-led OPEC+ might typically be expected to curtail output in the face of potential demand destruction, the opposite is happening. A variety of factors could be motivating OPEC+’s counterinitiative actions, including internal politics within the oil cartel, analysts say. But for our purposes here, what matters most is that anything that materially weakens the outlook for crude prices — whether it’s trade-related recession fears, OPEC+ or both — makes Coterra’s job of profitably drilling for oil harder to do. Not impossible, but the company and its peers make a whole lot more money when WTI is $75 a barrel than they do at $55. And so, the new set of facts requires them to reconsider what the best use of money is and adjust accordingly if something else is better for their investors. Coterra’s new plan to reduce oil-focused spending is a sensible one in the near term, and it is made possible by its presence in both the oil-rich Permian Basin in western Texas and Southeastern New Mexico and the natural gas-heavy Marcellus Shale in Pennsylvania and other parts of the Appalachian region. Coterra also has wells in the Anadarko Basin that spans the Texas Panhandle and western Oklahoma, but its planned activity there this year is not changing. In the Permian, though, Coterra now plans to average just seven rigs in the second half of 2025, down from the 10-rig plan announced in late February. Rigs are the machinery used to drill a well. As such, its planned Permian capital investments this year are coming down by $150 million. Meanwhile, Coterra restarted activity in the Marcellus in April with two rigs, as previously projected. But the company said it now expects to keep both rigs running into the second half of the year, lifting its capital spending in the region by an additional $50 million. Another $50 million could be added to those plans if Coterra decides to keep its second rig running through year-end, though executives said that decision will be made in the third quarter. On Tuesday’s earnings call, CEO Tom Jorden said he’s hopeful that the tariff situation is resolved and the “threat of recession is lifted,” but he stressed that “we can’t run our program on hope.” “Right now, we’re relaxing slightly [on oil spending] because we’re concerned that oil prices could further weaken. I hope we’re wrong on that,” Jorden said. “But our experience tells us that when you see these events – and you see the possibility – be prepared for the worst-case scenario.” The net effect of these changes is Coterra’s total capital expenditure projections for 2025 came down by $100 million at the midpoint of its new guidance range — and yet the company’s total production guidance was actually nudged higher for the year, driven entirely by more natural gas output. Expecting more total production on less spending is a reflection of Coterra’s ability to be a capital-efficient operator. That is a positive in the short run. However, investors might be questioning what these changes mean to Coterra’s production levels in 2026 and 2027, analysts at Mizuho Securities wrote before Tuesday’s earnings call, considering last quarter the company provided three-year outlook that included annual average oil growth of at least 5%. Executives fielded a number of questions on the three-year plans, but they repeatedly said it remained intact. “We’re holding to our three-year plan as outlined with the changes that we’ve discussed in this call. We want to be really clear with everybody on that,” Jorden said. 2. Free cash flow Another big theme: Coterra’s free cash flow outlook for this year was cut by 22% to $2.1 billion — and while lower commodity price assumptions outside its control is a big driver of the revision, investors might be worried this will limit the amount of share repurchases this year, particularly if oil prices get even weaker. The company’s commitment has been to return at least half of its free cash flow to shareholders via dividend payouts and stock buybacks. But in 2025, in particular, executives have prioritized paying down debt — tied to its two Permian-focused acquisitions that closed earlier this year — over buybacks. “We still have the ability to do it all, so to speak, but to be really clear, in 2025, our priority is going to be debt repayment. We’re not going to compromise that,” CFO Shane Young said on the call. “That doesn’t mean that there’s not going to be repurchases. … But if you look at 2024, we returned 90% of cash flow to shareholders. [In 2023], we returned 76% of cash flow to shareholders. Why were we able to do that? Because we had low leverage. And we believe that having low leverage is an enabler, and we’re dead-set focused on protecting our long-term shareholder return objectives, and we think the best way to do that is to reduce debt.” 3. Operational issues The final major theme — and likely a major culprit for the stock reaction — is operational issues plaguing some of Coterra’s operations in Culberson County, Texas, which is part of the Permian. At the highest level, some of the wells in an area called Harkey were producing higher-than-normal water volumes, so the company paused development there to work through the issue. At this time, Jorden said Coterra is “pretty optimistic that this is a mechanical operation that is solvable with a combination of revised pipe design and cementing program,” rather than something strategically wrong with the land that threatens the quality of inventory. “As we currently see it, we think we’ll be back to completing and drilling these Harkey wells in months, not years,” Jorden said. 2025 guidance Here’s where Coterra’s full-year guidance stands after the numerous aforementioned revisions: Estimated discretionary cash flow of $4.3 billion based on WTI crude prices of $63 a barrel and natural gas prices of $3.70 per metric million British thermal unit, or mmbtu. That’s below Wall Street expectations of $4.62, according to FactSet, and previous guidance of $5 billion, which factored in higher prices for both commodities. Estimated free cash flow of $2.1 billion based on the commodity price assumptions used in the discretionary cash flow guide. That is down from $2.7 billion previously. Estimated capital expenditure budget of $2 billion to $2.3 billion, down by $100 million on both ends of the range. That results in a new midpoint of $2.15 billion compared with the prior guide of $2.25 billion. Seven rigs in operation in the Permian in the second half of the year, lower than the previous plan to operate 10 rigs. Expected 2025 total equivalent production of 720 to 770 Mboe/d. The 745 midpoint of the range — up from 740 in its previous guidance — is slightly below the FactSet consensus forecast of 757 Mboe/d, which stands for total oil equivalent of a thousand barrels per day. Expected oil production in the range of 155 to 165 Mbo/d, which stands for a thousand of barrels of oil per day. The midpoint of the range is unchanged at 160 Mbo/d, despite modestly lowering the top end of the range and slightly increasing the bottom end. The FactSet consensus is for 163.6 Mbo/d. Expected natural gas production in the range of 2,725 to 2,875 MMcf/d, resulting in a new midpoint of 2,800, up from 2,775. That is below the consensus of 2,837 MMcf/d, according to FactSet. (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.
An oil pumpjack is shown near the Callon Petroleum vicinity on March 27, 2024 in Monahans, Texas.
Brandon Bell | Getty Images News | Getty Images
Coterra Energy is cutting back on its oil drilling in response to sagging crude prices and spending more on natural gas production — but that move, announced alongside first-quarter results, is being overshadowed by some operational concerns and leading to a stock sell-off Tuesday.
Affordably carry cargo with Heybike’s single or dual-battery Hauler e-bike starting from a $999 low
As part of its Prime Day e-bike Sale, Heybike is offering its Hauler Cargo Single-Battery e-bike at $999 shipped, while the dual-battery counterpart is down at $1,399 shipped. You’d normally shell out $1,499 and $1,899 for these two setups at full price, though discounts regularly bring things down to $1,199 and $1,599, which we have seen go lower a few select times in 2025. Only once before have we seen these two low prices appear, back during the brand’s Memorial Day Sale, with you getting another chance at the $500 savings here today.
Heybike’s Hauler e-bike comes as an affordable means to transport precious cargo, with the 750W brushless geared hub motor peaking at up to 1,400W to tackle inclines and for better pick-up when you’ve got packages, groceries, and more on board. It can max out at 28 MPH speeds in states where it’s allowed, and comes with the two battery options that largely depend on how much travel time you need, with the solo-battery setup giving you up to 55 miles of pedal assisted support and the dual-battery setup increasing that travel range up to 85 miles.
Advertisement – scroll for more content
The Heybike Hauler e-bike boasts a 440-pound payload, as well as foldable running boards for when you want to bring a passenger along, not to mention the obvious integrated rear cargo rack that doubles as the seat. For the price right now, you’re also getting a solid lineup of features, including hydraulic front suspension, hydraulic disc brakes, puncture-protected tires, a Shimano 7-speed derailleur, an auto-on LED headlight, a brake-lighting integrated taillight, and an LCD screen for data and setting adjustments.
Get sectional backup support with EcoFlow’s DELTA Pro and transfer switch + free power bank at $1,709 low
It’s the final day of EcoFlow’s early Prime Day Sale, and the brand’s final flash sale is in full swing through the rest of the day. The flash savings here are taking up to 54% off three units – two power station bundles and a bundle for the brand’s newest AC/heater solution. Leading the sale is the DELTA Pro Portable Power Station that comes with a free transfer switch for $1,709.05 shipped, after using the code EFPDAFF5 at checkout for an additional 5% savings – plus, you’ll also be getting a free RAPID 5,000mAh power bank thrown in too. We’ve been seeing many different flash sales focusing on the DELTA Pro at this same rate during this sale, which usually carries a $3,699 MSRP, though it is regularly sitting around $1,999 from Amazon (currently $1,784 there). Not only are you getting another chance at the biggest savings and the best price here, but you’re doing so while also getting the means for sectional home backup support.
One of the best and most expansive of EcoFlow’s legacy models, the DELTA Pro power station is ready to cover your campsites, outdoor gatherings, and home backup emergencies with a 3,600Wh LiFePO4 capacity that you can expand as high as 25kWh with future investments. There are 14 port options here, through which the station provides up to a steady 3,600W output that can surge up to 7,200W to cover larger appliances. It comes with three primary means to recharge: plugged into a standard outlet, through your car’s auxiliary port, or by connecting up to a maximum 1,600W solar input. The included transfer switch gives you sectional backup support of up to six circuits in your home or on an RV, with it pre-wired for easier installation.
You can also pick up the brand’s DELTA 3 Portable Power Station with a free protective bag at $529 shipped, down from its usual $778 pricing. This is a smaller and more affordable backup option that has a 1,024Wh LiFePo4 capacity and can be expanded up to 5,120Wh with various expansion batteries from across the DELTA ecosystem. It provides 1,800W output, surging to 2,200W when needed, and has 13 total output ports to use for connections to devices and appliances. It also boasts an expanded list of recharging options, including through an AC outlet, with a max 500W solar input, through car charging, generator charging, or there’s the multi-charging option of AC and solar together.
The last of these offers gives you the latest WAVE 3 Portable AC and Heater with an add-on battery and a free bag at $899 shipped, coming down from $1,299. With the battery included here, you can get up to 8 hours of wireless cooling/heating in your tent, car, or anywhere else you’re settling down. The 1,800W output here can “drop temperatures by 15 degrees in 15 minutes,” while the 2,000W heating output hits similar speeds, “raising the temperature by 17 degrees in 15 minutes” – with it able to cover 120 to 180 square feet spaces. There’s even some cool smart control expansions here, including the PetCare mode that automatically starts cooling once temperatures reach 77 degrees, among others.
Get 13.3 feet of reach with Worx’s telescoping Nitro 20V 8-inch cordless pole chainsaw at $119 annual low
Amazon is offering the best pricing of the last year on the Worx Nitro 20V 8-inch Cordless Pole Chainsaw at $119 shipped. Normally, you’d have to shell out $170 for this tool at full price, which we’ve seen discounts taking as low as $120 once over the last 12 months, with prices otherwise keeping above $129. While it has gone lower in past years, you’re looking at the best price we have tracked since summer 2024, giving you $51 in savings off its going rate.
You’ll have plenty of reach to trim high branches with this Worx Nitro pole chainsaw, especially with the telescoping pole allowing for tool-free extensions up to 13.3 feet – plus, it weighs in at just 8 pounds, making it easy to manage and operate, despite varying operator sizes. The 8-inch bar and chain has three different cutting angles (0 degrees, 15 degrees, and 30 degrees) it can be set to, with the automatic oiler keeping things lubricated and running smoothly as you work. What’s more, your comfort has been taken into account with the 180-degree rotating rear handle, allowing you to easily switch between vertical and horizontal cutting positions.
Bring home EGO’s 56V 21-inch cordless electric mower with a 5.0Ah battery and rapid charger at $365
Amazon is offering the EGO Power+ 56V 21-inch Cordless Electric Lawn Mower with 5.0Ah battery and rapid charger at $364.60 shipped. This package would normally go for $430 at full price, which we’ve mostly seen it keeping at over the last 12 months, with few large price cuts on the books in that timeframe. While we have seen it go as low as $309 in the past, over the last 12 months, the rate we’re seeing today has only been beaten out by a short-lived drop to $350 back in April, with it otherwise being the best price we’ve spotted this year thanks to the $65 markdown.
You’ll get a much more budget-friendly means to tackle lawn care with this 56V 21-inch model over EGO’s higher-end mowers, giving you the torque of a gas engine without the noise and fumes. With the included 5.0Ah battery, the brushless motor will get up to 45 continuous minutes of runtime, while the rapid charger can have it back to full at much faster rates than a standard charger. There are six cutting height levels to adjust between (from 1.5 to 4 inches), as well as the versatility to side discharge, mulch, or collect clippings into the two-bushel bag. Not only does it come with an IPX4 weather-resistance construction, but it starts up at the push of a button and folds to a more compact size for easier storage options.
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.
One of Arizona’s biggest grid battery storage projects is now online and helping power homes as the summer heat ramps up.
Recurrent Energy, a subsidiary of Canadian Solar, just brought its 1,200 MWh Papago Storage facility in Maricopa County into commercial operation. The big grid battery is now supplying stored electricity to Arizona Public Service (APS), the state’s largest utility, in time for peak air-conditioning season.
Papago is the first of three Recurrent projects with APS. Together, they’ll provide 1,800 MWh of storage and 150 MW of solar power. That’s enough to run about 72,000 homes for four hours and provide year-round solar for another 24,000 homes.
“Summer is here, and we’re ready to serve APS customers with the energy they need when they need it,” said APS director of resource acquisition Derek Seaman.
Advertisement – scroll for more content
The Arizona Corporation Commission chair, Kevin Thompson, noted that bringing online one of Arizona’s largest battery storage projects during a critical time when energy demand is skyrocketing is a milestone.
Canadian Solar’s e-STORAGE arm built the project and will keep it running under a long-term agreement.
Recurrent CEO Ismael Guerrero said, “We’re proud to deliver flexible capacity that meets the state’s growing energy needs and grateful for APS’s continued partnership.”
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links.More.
Porsche promises the new electric SUV will “set new standards,” and it’s already proving it. Ahead of its upcoming launch, the Porsche Cayenne EV proved its might by towing a 100-year-old classic car and trailer weighing around 3 tons in public.
Porsche Cayenne EV flexes its performance in public
The Porsche Cayenne EV is already smashing records, and it’s not even out yet. Last month, a prototype beat every gas-powered SUV, setting a new SUV record at the Shelsley Walsh hill climb by more than four seconds.
Now, it’s at it again. Porsche showcased a near-production-ready Cayenne EV prototype in England for the first time as part of a public film shoot.
The camouflaged Cayenne EV showcased its impressive power by towing a 100-year-old classic car weighing over 2 tons. Including the trailer, the total weight was around 3 tons.
Advertisement – scroll for more content
British TV presenter Richard Hammond took the Cayenne EV from his workshop in Hereford to his garage, towing the classic car behind.
According to Hammond, the electric SUV “handled it effortlessly,” adding, “We were trailing significant weight behind us, but you wouldn’t know it.”
Porsche Cayenne EV towing a 3-ton trailer and classic car (Source: Porsche)
Porsche designed the Cayenne EV and its high-voltage system, “to be one of the first BEVs in the world to achieve a towing capacity of up to 3.5 tonnes.” Depending on the configuration, it will be just as capable, if not more, than the current combustion-engine Cayenne.
As Michael Schätzle, Vice President of the Product Line Cayenne, explained, “That’s why we didn’t want to make any compromises in the development of the all-electric model.”
Porsche Cayenne EV prototype at Shelsley Walsh 2025 (Source: Porsche)
The Porsche Cayenne EV was initially set to launch this year, but it’s now expected to debut in production form later this year as a 2026 model. A “conspicuously camouflaged prototype” will be on display at the Goodwood Festival of Speed from July 10 to July 13.
More information, including prices and specifications, will be revealed closer to launch. However, we do know that it will be based on the PPE platform, the same one underpinning the Macan EV and the Audi Q6 e-Tron.
The Macan EV has an EPA-estimated range of 308 miles. On the European WLTP scale, it’s rated at 613 km (381 miles). However, Porsche said the platform will receive “comprehensive upgrades” for the Cayenne.
FTC: We use income earning auto affiliate links.More.