Back to top

Image: Bigstock

Equinor (EQNR) to Divest a 51% Stake in North Platte Project

Read MoreHide Full Article

Equinor ASA (EQNR - Free Report) announced its decision to divest 51% of its stake in the North Platte deep water development to Shell plc (SHEL - Free Report) . In the project, located in the US Gulf of Mexico, Equinor will retain a 49% stake, while the new operator of the development will be Shell.

It has been agreed by both Equinor and Shell that the development will be renamed Sparta. The Sparta project is situated in four blocks of the Garden Banks area, which is located 171 miles offshore Louisiana at a water depth of roughly 1,300 meters.

With the front-end engineering and design (FEED) work for the project has been matured, Equinor and Shell will review the developments made so far and will update the program.

It has been clear that the key project will significantly strengthen the footprints of Equinor and Shell in the Gulf of Mexico and help the energy majors add high-value hydrocarbons to their portfolio and supply low carbon intensity oil and natural gas to the United States.

Although the financial terms of the agreement have not been disclosed, Equinor said that the project is dependent on customary conditions and authority approval.

Currently, Equinor carries a Zacks Rank #3 (Hold), whereas Shell has a Zacks Rank #2 (Buy).

Two prospective players in the energy space are Antero Resources (AR - Free Report) and Whiting Petroleum . Both companies sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.

The substantial exposure to improving commodity prices is a huge positive for Antero Resources.

Whiting Petroleum is a leading upstream energy company and the top producer of crude oil in North Dakota. With oil prices improving rapidly, Whiting Petroleum is expected to continue generating handsome cash flows, while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Antero Resources Corporation (AR) - free report >>

Equinor ASA (EQNR) - free report >>

Shell PLC Unsponsored ADR (SHEL) - free report >>

Published in