Pioneer Natural Resources (PXD) is an oil stock worth owning on its own merits. But a fresh report that Exxon Mobil (XOM) could acquire the Club holding would likely unlock even more value. Exxon has held “informal” talks about buying Pioneer, The Wall Street Journal reported Friday, citing people familiar with the matter. Any potential deal would not transpire until later this year or in 2024, the Journal reported. Exxon — which generated $62 billion in free cash flow in 2022 and ended the year with nearly $30 billion in cash — has held acquisition discussions with at least one other oil-and-gas firm, according to the Journal. Pioneer shares jumped more than 6% Monday, to around $221 each — making it by far the best-performing energy stock in the S & P 500 . Shares of Exxon fell by by 0.25%, to just under $115 apiece. Pioneer and Exxon did not immediately respond to CNBC’s request for comment Monday. Exxon’s reported interest in Pioneer is hardly a surprise because the Texas shale driller is a “marquee” independent exploration-and-production company in the lower 48 states, Stifel analyst Derrick Whitfield told the CNBC Monday. If Exxon wants to meaningfully bolster its rig count in the Permian Basin, it’s “going to need quality depth of inventory,” which Pioneer has, Whitfield said. The analyst, who has a buy rating and $286 per share price target on PXD, said the likelihood of a Pioneer-Exxon deal comes down to how much Exxon is willing to pay. “I think management would want to … improve performance of their asset base and arguably have a higher stock price before coming to the table with Exxon Mobil,” Whitfield said. “That’s not to say if Exxon Mobil offered a 25% premium, it wouldn’t be done. Personally, that was the number I had pegged in my mind. If you saw a 25% premium, I think that would bring them to the table because, let’s be realistic, every independent wants to be acquired by Exxon Mobil.” The Club believes it may take a bit more for Pioneer to seriously consider selling. A 25% premium from where Pioneer closed Thursday, at roughly $208 per share, would value shares at around $260 each. However, Jim Cramer said Monday he thinks Pioneer CEO Scott Sheffield — an industry veteran in his second stint leading the company — would hesitate to sell at a per-share price below $285. That’s Pioneer stock’s all-time closing high, reached in June 2022. “I am not saying he wouldn’t sell. I am saying that he’s not going to sell below where this stock was, given the fact oil could be going back to $90 [a barrel], given the fact that he’s got the best Permian assets,” he added. West Texas Intermediate crude — the U.S. oil benchmark — was trading down more than 1% Monday afternoon, at $79.70 a barrel. We were content with our Pioneer investment prior to Exxon’s reported interest in the company, adding to our PXD stake twice last month at lower levels than Monday’s market price. Our most recent purchase of 25 shares on March 20 came at roughly $185 each. Pioneer’s attractiveness stems in large part from its quality acreage and low oil price breakevens, at roughly $39 per barrel. That enables the firm to generate hefty amounts of free cash flow and return most of it to shareholders through stock buybacks and quarterly dividends. Knowing that Exxon is reportedly on the prowl for an acquisition, investors may look at Pioneer and other Permian operators even more favorably. Stifel’s Whitfield believes the Journal story could put a near-term floor underneath Pioneer’s stock price — a view we share. At the very least, Pioneer’s shareholders may be more likely to remain invested in the company, Whitfield said. And that’s certainly our intention at this time. “What I suspect is it’s going to further firm the shareholder base because you now have an article that directly links Exxon Mobil to Pioneer, and the way it was set up, there is clearly an interest there,” Whitfield said. “I think if you’ve seen Pioneer at [a] much higher share price in the past, that gives you that much more conviction to hold onto it now.” (Jim Cramer’s Charitable Trust is long PXD. 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
Pioneer Natural Resources (PXD) is an oil stock worth owning on its own merits. But a fresh report that Exxon Mobil (XOM) could acquire the Club holding would likely unlock even more value.
In a bold bid to combat the crippling air pollution crisis in its capital, Delhi, Indian lawmakers have begun high-level discussions about a plan to phase out gas and diesel combustion vehicles by 2035 – a move that could cause a seismic shift in the global EV space and provide a cleaner, greener future for India’s capital.
Long considered one of the world’s most polluted capital cities, Indian capital Delhi is taking drastic steps to cut back pollution with a gas and diesel engine ban coming soon – but they want results faster than that. As such, Delhi is starting with a city-wide ban on refueling vehicles more than 15 years old, and it went into effect earlier this week. (!)
“We are installing gadgets at petrol pumps which will identify vehicles older than 15 years, and no fuel will be provided to them,” said Delhi Environment Minister Manjinder Singh Sirsa … but they’re not stopping there. “Additionally, we will intensify scrutiny of heavy vehicles entering Delhi to ensure they meet prescribed environmental standards before being allowed entry.”
The Economic Times is reporting that discussions are underway to pass laws requiring that all future bus purchases will be required to be electric or “clean fuel” (read: CNG or hydrogen) by the end of this year, with a gas/diesel ban on “three-wheelers and light goods vehicles,” (commercial tuk-tuks and delivery mopeds) potentially coming 2026 to 2027 and a similar ban privately owned and operated cars and bikes coming “between 2030 and 2035.”
Electrek’s Take
Xpeng EV with Turing AI and Bulletproof battery; via XPeng.
Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
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The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
T7X all-electric track loader at CES 2022; via Doosan Bobcat.
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.
Based on a Peterbilt 579 commercial semi truck, the ReVolt EREV hybrid electric semi truck promises 40% better fuel economy and more than twice the torque of a conventional, diesel-powered semi. The concept has promise – and now, it has customers.
Austin, Texas-based ReVolt Motors scored its first win with specialist carrier Page Trucking, who’s rolling the dice on five of the Peterbilt 579-based hybrid big rigs — with another order for 15 more of the modified Petes waiting in the wings if the initial five work out.
The deal will see ReVolt’s “dual-power system” put to the test in real-world conditions, pairing its e-axles’ battery-electric torque with up to 1,200 miles of diesel-extended range.
ReVolt Motors team
ReVolt Motors team; via ReVolt.
The ReVolt team starts off with a Peterbilt, then removes the transmission and drive axle, replacing them with a large genhead and batteries. As the big Pete’s diesel engine runs (that’s right, kids – the engine stays in place), it creates electrical energy that’s stored in the trucks’ batteries. Those electrons then flow to the truck’s 670 hp e-axles, putting down a massive, 3500 lb-ft of Earth-moving torque to the ground at 0 rpm.
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The result is an electrically-driven semi truck that works like a big BMW i3 or other EREV, and packs enough battery capacity to operate as a ZEV (sorry, ZET) in ports and urban clean zones. And, more importantly, allows over-the-road drivers to hotel for up to 34 hours without idling the engine or requiring a grid connection.
That ability to “hotel” in the cab is incredibly important, especially as the national shortage of semi truck parking continues to worsen and the number of goods shipped across America’s roads continues to increase.
And, because the ReVolt trucks can hotel without the noise and emissions of diesel or the loss of range of pure electric, they can immediately “plug in” to existing long-haul routes without the need to wait for a commercial truck charging infrastructure to materialize.
“Drivers should not have to choose between losing their longtime routes because of changing regulatory environments or losing the truck in which they have already made significant investments,” explains Gus Gardner, ReVolt founder and CEO. “American truckers want their trucks to reflect their identity, and our retrofit technology allows them to continue driving the trucks they love while still making a living.”
If all of that sounds familiar, it’s probably because you’ve heard of Hyliion.
In addition to being located in the same town and employing the same idea in the same Peterbilt 579 tractor, ReVolt even employs some of the same key players as Hyliion: both the company’s CTO, Chandra Patil, and its Director of Engineering, Blake Witchie, previously worked at Hyliion’s truck works.
Still, Hyliion made their choice when they shut down their truck business. ReVolt seems to have picked up the ball – and their first customer is eager to run with it.
“Our industry is undergoing a major transition, and fleet owners need practical solutions that make financial sense while reducing our environmental impact,” said Dan Titus, CEO of Page Trucking. “ReVolt’s hybrid drivetrain lowers our fuel costs, providing our drivers with a powerful and efficient truck, all without the need for expensive charging infrastructure or worrying about state compliance mandates. The reduced emissions also enable our customers to reduce their Scope 2 emissions.”
Page Trucking has a fleet of approximately 500 trucks in service, serving the agriculture, hazardous materials, and bulk commodities industries throughout Texas. And, if ReVolt’s EREV semis live up to their promise, expect them to operate a lot more than 20 of ’em.