Oil-and-gas producer Coterra Energy (CTRA) on Thursday delivered a top-and -bottom-line beat for the first quarter, while reiterating its commitment to return at least half of its free cash flow to shareholders like us. Revenue for the three months ended March 31 increased 6% year-over-year, to $1.78 billion, beating analysts’ forecasts of $1.61 billion, according to estimates compiled by Refinitiv. Adjusted diluted earnings-per-share (EPS) fell by 14% on the year prior, to 87 cents, but still outpaced analysts’ predictions of 70 cents per share, Refinitiv data showed. Bottom line Coterra’s realized prices for its first-quarter oil sales came in a tad below expectations, but that proved inconsequential, as strong production and low costs resulted in better-than expected earnings and cash-flow generation. Free cash flow is a particularly important metric for Coterra because the company’s management remains committed to returning at least 50% to shareholders through a base dividend and share repurchases. This was a strong performance across the board and we look forward to hearing more from management on the results. Coterra is scheduled to host a post-earnings conference call on Friday at 10:00 a.m. ET. Capital allocation Coterra said it plans to return a total of $420 million to shareholders, representing about 76% of its free cash flow in the first quarter. Of that, $152 million will be distributed through a 20 cent-per-share dividend, to be paid out on June 9, while the remaining $268 million will be returned to investors via share repurchases. Annualizing that $420 million figure results in a yield of just over 9%, based on the company’s roughly $18.50 billion market capitalization as of Thursday’s close. First-quarter production The stellar production results not only exceeded the high end of managements guidance — in terms of total production, as well as for oil and gas distinctly — but also outpaced analysts’ forecasts. Outlook Looking ahead, guidance for both the second quarter and full year 2023 was largely in line with expectations. Notably, Coterra lowered its full-year expectation for free cash flow by $300 million, largely due to a $400 million reduction in its forecast for operating cash flow. But the new target was still slightly ahead of analysts’ predictions. The downward revision isn’t surprising, given natural gas prices have come under significant pressure since the start of the year. Accordingly, Coterra reduced its full-year price assumption for natural gas to $2.89 per million British thermal units (MMBtu), from a previous estimate of $3.50 per MMBtu. The company reiterated its expectation for West Texas Intermediate (WTI) crude to average $76 a barrel for the full year. The price of natural gas, which has fallen roughly 37% year-to-date, closed out Thursday at $2.30 per MMBtu. WTI has fallen more than 17% from its 2023 high last month, settling Thursday at $68.56 a barrel. (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.
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas.
Angus Mordant | Reuters
Oil-and-gas producer Coterra Energy (CTRA) on Thursday delivered a top-and -bottom-line beat for the first quarter, while reiterating its commitment to return at least half of its free cash flow to shareholders like us.
A new, all electric Peterbilt 579EV is in-service at Honda’s Lincoln, Alabama assembly plant, where it’s busy transporting newly-built Honda cars from the plant to a nearby railhead for shipment to dealers across the country.
Part of a pilot program between Honda, Alabama Power, and Virginia Transportation Corp., the new electric semi truck will help stakeholders gather data about the practicality and performance of the battery-powered Pete and use it to generate case studies for broader electrification initiatives. Other supporters of the pilot project include the Alabama Clean Fuels Coalition and, of course, Peterbilt.
“We remain committed to delivering for our customers and the environment,” offered Leo Doire, owner and CEO of Virginia Transportation Corp. “Our new Peterbilt 579EV model will be tested to determine how well it performs against the high productivity demands of our operations. The partners we have at the table will help us maximize this opportunity and prepare to scale up if we get the results we are hoping for.”
The truck itself has been spec’ed to be perfect for the kind of short haul and drayage applications Honda has in mind. This particular Peterbilt 579EV is fitted with PACCAR’s 400 kWh battery and a 670 hp electric motor good for an impressive 2,050 lb-ft of peak torque at 0 rpm.
The truck offers 150 miles of operating range and can be charged in about 3 hours on a 120 kW charger installed specifically for that purpose. A charger, it should be noted, that was partially paid for by Alabama Power.
“Alabama Power’s ‘Make Ready’ program provides businesses with valuable rebates to help reduce the upfront costs of installing EV infrastructure,” says Alabama Power Electric Transportation Manager Hasin Gandhakwala. “We are committed to partnering with customers who are exploring state and federal grant opportunities. Alabama Power is dedicated to advancing EV technologies to better serve the needs of our customers.”
With the big Pete’s 82,000 lb. GVWR and 150 miles of range between charging sessions, it seems like these guys will be making a lot of back-and-forth runs between the Honda plant and the CSX terminal to me. Here’s hoping they see the benefits of electrifying the rest of their vehicle transport fleets somewhat sooner than later.
On today’s episode of Quick Charge, we’ve got big solar breaking ground all over, despite the incoming administration’s supposed lack of love for home-grown clean energy. Our guests today walk us through home solar, energy storage, and more.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations sitewide. Learn more by clicking here.
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Tesla is now using ‘Tesla Electric’, its electric utility service in Texas, to help sell cars with a new incentive.
After gaining experience through its virtual power plants (VPPs), Tesla took things a step further with the launch of “Tesla Electric” back in 2022.
Instead of reacting to specific “events” and providing services to your local electric utilities, as Tesla Powerwall owners have done in VPPs in California, Australia, and a few other markets, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.
The company is essentially becoming an energy retailer.
Tesla Electric is currently only available to Powerwall owners in Texas and the UK, but the company has plans to expand its products through this new division.
The company has been growing its Tesla Electric userbase in Texas and now it plans to use it to help sell cars.
Tesla has two different plans under the program:
Feature
Tesla Electric Fixed Plan
Tesla Electric Dynamic Plan
Pricing Structure
Competitive fixed rate for electricity, with a discounted rate during low-cost hours.
Competitive variable rate, with higher rates during peak demand periods.
Contract Term
12-month commitment.
Month-to-month flexibility.
Unlimited Vehicle Charging
Available for an additional $15/month per vehicle, allowing unlimited charging.
Available for an additional $25/month per vehicle, allowing unlimited charging.
Powerwall Credits
Earn $400 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with Tesla managing the Powerwall to share energy with the grid when needed.
Earn $120 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with the customer managing the Powerwall to optimize earnings.
Energy Sharing with Grid
Sell energy back to the grid at a fixed rate per kWh.
Sell energy back to the grid at 90% of the real-time market price per kWh.
The first one enable you to charge your electric car for just $15 a month.
With this new incentive, Tesla is brining that down to $5 a month for a year for people who take delivery by the end of the year:
Get $5/mo Unlimited Overnight Charging With Tesla
To get unlimited overnight charging for $5 per month per vehicle for a full year, you must complete the following steps by December 31, 2024:
Order and take delivery of a new Tesla vehicle
Sign up for the Tesla Electric Fixed Plan
To be eligible, you need to live in an area of Texas that allows you to choose your electricity provider, be a new Tesla Electric member and take delivery of a new Tesla vehicle. Promotion is subject to change at any time.
This appear to be part of Tesla’s effort to deliver a record number of more than 515,000 vehicles in Q4 in order for its annual deliveries not to be down for the full year.
ver the last few weeks, we have been reporting on a series of sale incentives that Tesla has put in place to make sure it has the demand to achieve this record quarter.