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Equinor (EQNR) Stock Up 7.7% Since Posting Q4 Earnings Beat
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Equinor ASA (EQNR - Free Report) rose almost 7.7% since it reported strong fourth-quarter results on Feb 9. Higher commodity prices and increased contributions from the Martin Linge oil field buoyed the company’s fourth-quarter performance.
The energy major reported adjusted earnings per share of $1.36, beating the Zacks Consensus Estimate of $1.22. The bottom line turned around from the year-ago loss of 18 cents per share.
Total quarterly revenues increased to $32,608 million from $11,746 million in the prior-year quarter.
For 2022, Equinor announced the increase of the share buy-back program of up to $5 billion.
The energy major announced a quarterly dividend of 20 cents per share, suggesting an 11.1% increase from the prior dividend of 18 cents. Also, its board announced a special quarterly cash dividend of 20 cents per share for four-quarter 2021 and the first three quarters of 2022.
Segment Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $14,813 million, improving drastically from a profit of $1,841 million in the year-ago quarter. The improvement was led by higher production and liquid prices.
The company’s average daily production of liquids and gas jumped 12% year over year to 1,469 thousand barrels of oil equivalent per day (MBoe/d) due to the increased contributions from the Martin Linge oil field.
E&P International: The segment’s adjusted operating profit was recorded at $688 million, turning around from the year-ago loss of $1,215 million. Improvement in liquid and gas prices attributed to the outperformance.
Average daily equity production of liquids and gas decreased marginally to 339 MBoe/d from 340 MBoe/d in the year-ago quarter. Although an increase in production from Russia fields aided the segment, this was more than offset by a natural decline in mature fields.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $587 million against a loss of $172 million in the December-end quarter of 2020. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was recorded at 350 MBoe/d, down from 390 MBoe/d in the year-ago quarter due to the divestment of unconventional U.S. onshore assets.
Marketing, Midstream & Processing: The segment reported an adjusted loss of $1,007 million, significantly down from a profit of $352 million a year ago.
Renewables: The segment reported an adjusted loss of $38 million, narrower than a loss of $59 million in the year-ago quarter. Lower expenses associated with the Beacon Wind and Empire Wind properties aided the segment.
Free Cash Flows
In the December-end quarter, Equinor generated free cash flows of $8,578 million, improving from $1,363 million in the year-ago period. The improvement was owing to increased operating cashflows, backed by recovering liquids and gas prices.
Balance Sheet
As of Dec 31, 2021, Equinor reported $14,126 million in cash and cash equivalents. The company’s long-term debt amounted to $29,853 million at the quarter-end.
View
Equinor reaffirmed production growth expectations at 2% for 2022.
For the 2022-2023 period, the company expects average organic capital spending of $10 billion per annum. For the 2024-2025 period, spending is expected to increase to $12 billion per annum.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zacks Rank #1 (Strong Buy).
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. As of 2020-end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at 2019-end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY has also witnessed four upward revisions in the past 30 days. It currently has a Zacks Style Score of B for Momentum and Growth. OXY beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 13.7%, on average.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves at 6.1 billion BoE. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Marathon Petroleum Corporation (MPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. MPC reported fourth-quarter 2021 adjusted earnings of $1.30 per share, which comfortably beat the Zacks Consensus Estimate of 47 cents.
Marathon Petroleum is expected to see an earnings growth of 129.8% in 2022. As of Dec 31, MPC had cash and cash equivalents of $5.3 billion. Marathon Petroleum repurchased shares worth $3 billion in the October-January period and has now completed around 55% of its target to buy back $10 billion in common stock. Further planning to reward its shareholders, MPC announced a new $5-billion buyback program.
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Equinor (EQNR) Stock Up 7.7% Since Posting Q4 Earnings Beat
Equinor ASA (EQNR - Free Report) rose almost 7.7% since it reported strong fourth-quarter results on Feb 9. Higher commodity prices and increased contributions from the Martin Linge oil field buoyed the company’s fourth-quarter performance.
The energy major reported adjusted earnings per share of $1.36, beating the Zacks Consensus Estimate of $1.22. The bottom line turned around from the year-ago loss of 18 cents per share.
Total quarterly revenues increased to $32,608 million from $11,746 million in the prior-year quarter.
Equinor ASA Price, Consensus and EPS Surprise
Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA Quote
Share Buyback
For 2022, Equinor announced the increase of the share buy-back program of up to $5 billion.
The energy major announced a quarterly dividend of 20 cents per share, suggesting an 11.1% increase from the prior dividend of 18 cents. Also, its board announced a special quarterly cash dividend of 20 cents per share for four-quarter 2021 and the first three quarters of 2022.
Segment Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $14,813 million, improving drastically from a profit of $1,841 million in the year-ago quarter. The improvement was led by higher production and liquid prices.
The company’s average daily production of liquids and gas jumped 12% year over year to 1,469 thousand barrels of oil equivalent per day (MBoe/d) due to the increased contributions from the Martin Linge oil field.
E&P International: The segment’s adjusted operating profit was recorded at $688 million, turning around from the year-ago loss of $1,215 million. Improvement in liquid and gas prices attributed to the outperformance.
Average daily equity production of liquids and gas decreased marginally to 339 MBoe/d from 340 MBoe/d in the year-ago quarter. Although an increase in production from Russia fields aided the segment, this was more than offset by a natural decline in mature fields.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $587 million against a loss of $172 million in the December-end quarter of 2020. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was recorded at 350 MBoe/d, down from 390 MBoe/d in the year-ago quarter due to the divestment of unconventional U.S. onshore assets.
Marketing, Midstream & Processing: The segment reported an adjusted loss of $1,007 million, significantly down from a profit of $352 million a year ago.
Renewables: The segment reported an adjusted loss of $38 million, narrower than a loss of $59 million in the year-ago quarter. Lower expenses associated with the Beacon Wind and Empire Wind properties aided the segment.
Free Cash Flows
In the December-end quarter, Equinor generated free cash flows of $8,578 million, improving from $1,363 million in the year-ago period. The improvement was owing to increased operating cashflows, backed by recovering liquids and gas prices.
Balance Sheet
As of Dec 31, 2021, Equinor reported $14,126 million in cash and cash equivalents. The company’s long-term debt amounted to $29,853 million at the quarter-end.
View
Equinor reaffirmed production growth expectations at 2% for 2022.
For the 2022-2023 period, the company expects average organic capital spending of $10 billion per annum. For the 2024-2025 period, spending is expected to increase to $12 billion per annum.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. As of 2020-end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at 2019-end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY has also witnessed four upward revisions in the past 30 days. It currently has a Zacks Style Score of B for Momentum and Growth. OXY beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 13.7%, on average.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves at 6.1 billion BoE. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Marathon Petroleum Corporation (MPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. MPC reported fourth-quarter 2021 adjusted earnings of $1.30 per share, which comfortably beat the Zacks Consensus Estimate of 47 cents.
Marathon Petroleum is expected to see an earnings growth of 129.8% in 2022. As of Dec 31, MPC had cash and cash equivalents of $5.3 billion. Marathon Petroleum repurchased shares worth $3 billion in the October-January period and has now completed around 55% of its target to buy back $10 billion in common stock. Further planning to reward its shareholders, MPC announced a new $5-billion buyback program.