Energy
Tuesday, August 8th, 2023 6:37 am EDT
We’re be buying 400 shares of Coterra Energy (CTRA) at roughly $26.79 each. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 1,550 shares of CTRA, increasing its weighting in the portfolio to 1.48% from 1.1%. Stocks are lower Tuesday after Moody’s downgraded its credit rating on several small and mid-sized U.S. banks and China reported yet another downbeat economic number, with exports in July falling 14.5% from last year representing its worst decline since February 2020. The energy trade may be the group hit hardest Tuesday as worries about the China economic recovery, which continues to disappoint, put pressure on oil prices. So far this morning, the price of a barrel of West Texas Intermediate (WTI) is down more than 2% trading at around $80. Tuesday’s pullback presents an opportunity to buy small in the group, and we’re dipping into our large cash position to add to the position. CTRA YTD mountain Coterra Energy YTD performance Shares of Coterra Energy dropped more than 3.5% on Tuesday morning, one day after reporting second-quarter earnings . The quarter was strong despite the weakness in natural gas prices at the start of the quarter. Total production exceeded the high end of management’s guidance on strong well performance and improved cycle times in all three of its regions. Additionally, Coterra raised its full-year nat gas production by 2% and oil production by 3% while maintaining its capital expenditure (capex) outlook. The efficiency gains of higher production at the same capex may not be as strong as fellow exploration and production (E & P) company Club name Pioneer Natural Resources (PXD), which had the best of both when it reported last week . However, we’re encouraged by what Coterra sees as the potential for about 5% service cost deflation next year. It’s worth noting, it may not come all at once. Coterra’s conference call is set to begin at 10 a.m. ET. We’ll be listening. (Jim Cramer’s Charitable Trust is long CTRA, 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.
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