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Equinor (EQNR) States Strategies to Boost Energy Transition
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Equinor ASA (EQNR - Free Report) set out its strategy to enhance the company’s transformation into a net-zero carbon emitter, while significantly increasing cash flows and returns.
Notably, its clear ambition is to become a net-zero energy business within 30 years. Hence, the company plans to invest more in renewables and low-carbon solutions as the pressure from investors to tackle climate change continues to intensify for oil and gas companies.
Equinor will allot more than 50% of its investments to renewables and low-carbon solutions by 2030, which ramped up from less than 5% in 2020 due to the rising demands from investors and some Norwegian politicians for a sustainable low carbon future.
However, the oil giant still expects to see rising oil and gas production in the medium term as new fields enter operation. By 2030, the daily output will be nearly the same as 2020 and is expected to decline further henceforth.
The company reiterated its 2050 net-zero emission goals and plans to reduce net carbon intensity by 20% by 2030 and 40% by 2035. The company announced a long-term renewable energy target of reaching 12-16 gigawatt of installed capacity by 2030. It aims to store 15-30 million metric tons of carbon dioxide per year and offer clean hydrogen in 3-5 industrial clusters by 2035. Notably, the company intends to invest about $23 billion in renewables between 2021 and 2026.
Moreover, the Norway-based oil giant planned to increase its quarterly cash dividend to 18 cents per share from 15 cents, which is currently paid. It also expects to generate free cash flow of $35 billion before capital distribution in 2021-2026 and a 12% return on capital employed in 2021-2030.
The company also revealed a new $1.2-billion share buyback program starting from 2022. Additionally, two tranches of share buy-backs, each amounting to $300 million, will be launched during this year. Notably, Equinor expects annual capex of $9-$10 billion for 2021-2022, and $12 billion for 2023-2024. Also, production growth is expected to be 2% from 2020 to 2021.
The company is optimizing its oil and gas portfolio to deliver stronger cash flow and returns, with reduced emissions from production. It expects significant growth within renewables and low-carbon solutions, which will contribute to the energy transition process.
Company Profile & Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.
Shares of the company have outperformed the industry in the past six months. Equinor has gained 29.8% compared with the industry’s 26.6% growth.
PDC Energy’s earnings for 2021 are expected to increase 21% year over year.
Enbridge’s earnings for 2021 are expected to grow 16.3% year over year.
Shell’s earnings for 2021 are expected to increase 15.5% year over year.
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Equinor (EQNR) States Strategies to Boost Energy Transition
Equinor ASA (EQNR - Free Report) set out its strategy to enhance the company’s transformation into a net-zero carbon emitter, while significantly increasing cash flows and returns.
Notably, its clear ambition is to become a net-zero energy business within 30 years. Hence, the company plans to invest more in renewables and low-carbon solutions as the pressure from investors to tackle climate change continues to intensify for oil and gas companies.
Equinor will allot more than 50% of its investments to renewables and low-carbon solutions by 2030, which ramped up from less than 5% in 2020 due to the rising demands from investors and some Norwegian politicians for a sustainable low carbon future.
However, the oil giant still expects to see rising oil and gas production in the medium term as new fields enter operation. By 2030, the daily output will be nearly the same as 2020 and is expected to decline further henceforth.
The company reiterated its 2050 net-zero emission goals and plans to reduce net carbon intensity by 20% by 2030 and 40% by 2035. The company announced a long-term renewable energy target of reaching 12-16 gigawatt of installed capacity by 2030. It aims to store 15-30 million metric tons of carbon dioxide per year and offer clean hydrogen in 3-5 industrial clusters by 2035. Notably, the company intends to invest about $23 billion in renewables between 2021 and 2026.
Moreover, the Norway-based oil giant planned to increase its quarterly cash dividend to 18 cents per share from 15 cents, which is currently paid. It also expects to generate free cash flow of $35 billion before capital distribution in 2021-2026 and a 12% return on capital employed in 2021-2030.
The company also revealed a new $1.2-billion share buyback program starting from 2022. Additionally, two tranches of share buy-backs, each amounting to $300 million, will be launched during this year. Notably, Equinor expects annual capex of $9-$10 billion for 2021-2022, and $12 billion for 2023-2024. Also, production growth is expected to be 2% from 2020 to 2021.
The company is optimizing its oil and gas portfolio to deliver stronger cash flow and returns, with reduced emissions from production. It expects significant growth within renewables and low-carbon solutions, which will contribute to the energy transition process.
Company Profile & Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.
Shares of the company have outperformed the industry in the past six months. Equinor has gained 29.8% compared with the industry’s 26.6% growth.
Zacks Rank & Stocks to Consider
Equinor currently has a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are PDC Energy, Inc. , Enbridge Inc. (ENB - Free Report) and Royal Dutch Shell Plc , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PDC Energy’s earnings for 2021 are expected to increase 21% year over year.
Enbridge’s earnings for 2021 are expected to grow 16.3% year over year.
Shell’s earnings for 2021 are expected to increase 15.5% year over year.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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