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Equinor (EQNR) Grabs Oil & Gas Production Licenses in Norway

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Equinor ASA (EQNR - Free Report) has been awarded 26 production licenses by the Norwegian Ministry of Petroleum and Energy in the Awards in Predefined Areas 2021.

Norway awarded ownership interests in 53 oil and gas production licenses on the Norwegian Continental Shelf, with 84 blocks on sale. Of the total, 28 production licenses are within the North Sea, 20 are in the Norwegian Sea and the rest are in the Barents Sea.

Norway offered interests in one or more production licenses to 28 energy companies, from large international majors to small domestic exploration firms. Notably, 15 firms have been offered one or more operatorship.

Equinor won 26 licenses, wherein 12 are in the North Sea, 10 are in the Norwegian Sea and four are in the Barents Sea. It won 12 licenses as an operator and 14 as a partner. The other prominent winners are Aker BP, Vår Energi, Lundin Energy, Spirit Energy and Wintershall Dea.

Equinor is committed to accelerating exploration and production activities across the Norwegian Continental Shelf. In 2022, EQNR plans to drill 25 exploration wells near existing infrastructure and mostly in the North Sea. The production licenses add significant opportunities to Equinor’s exploration portfolio.

The awards complement Equinor’s strategy to maximize value creation through existing infrastructure and seek insights to create growth opportunities. These are valuable contributions to maintain exploration activities and make significant discoveries on the continental shelf.

Company Profile & Price Performance

Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.

Shares of EQNR have outperformed the industry in the past six months. The stock has gained 47.4% compared with the industry’s 33.7% growth.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Zacks Rank & Other Stocks to Consider

Equinor currently flaunts a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Continental Resources, Inc. (CLR - Free Report) , based in Oklahoma City, OK, is an explorer and producer of oil and natural gas. As of Dec 31, 2020, CLR’s estimated proved reserves were 1,103.8 MMBoe. In 2020, CLR produced 300,090 barrels of oil equivalent per day (BOE/D), lower than 340,395 BOE/D in the year-ago quarter.

Continental Resources is expected to see an earnings growth of 50.6% in 2022. CLR currently has a Zacks Style Score of A for Growth and B for Value. The company generated a free cash flow of $1,908.9 million in the first nine months of last year. It expects to generate $3.9 billion of cash flow from operations and $2.6 billion of free cash flow for 2021.

Halliburton Company (HAL - Free Report) is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. The company operates in more than 80 countries.

Halliburton is expected to see an earnings growth of 63% in 2022. HAL currently has a Zacks Style Score of A for Momentum, and B for Value and Growth. The overall depth of the company’s global oilfield service franchise is evident because it generated a free cash flow of more than $1.1 billion in a year as volatile as 2020. HAL followed it up with $900 million of free cash flow in the first three quarters of 2021. Halliburton’s ample cash flows provide it with the flexibility to pursue a growth-oriented initiative.

Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII owns a geographically diversified asset base spread across the United States and the rest of the world. The company's revenue profile is evenly split between its international and domestic operations, lowering Oceaneering’s risk profile.

Oceaneering is expected to see an earnings growth of 164% in 2022. OII's strong relationships with high-quality customers provide revenue visibility and business certainty. The clients, mostly well-capitalized, blue-chip E&P companies with long-term production growth plans, are likely to be less susceptible to commodity price fluctuations. This should ensure multi-year earnings stability for OII.