Equinor ASA’s ( EQNR Quick Quote EQNR - Free Report) shares have gained almost 3% since it reported strong results for the first quarter of 2022.
Equinor reported first-quarter adjusted earnings per share of $1.60, beating the Zacks Consensus Estimate of $1.57. The bottom line significantly improved from the year-ago quarter’s 82 cents per share.
Total quarterly revenues increased to $36,050 million from $16,129 million in the prior-year quarter.
The strong quarterly results were aided by higher commodity prices and increased contributions from the Martin Linge oil field.
Segmental Analysis Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $16,258 million, improving drastically from $3,563 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 4% year over year to 1,436 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 $1,081 million, up from the year-ago quarter’s profit of $382 million. Improvement in liquid and gas prices contributed to the outperformance.
Average daily equity production of liquids and gas declined to 341 MBoe/d from 360 MBoe/d in the year-ago quarter. The segment was affected by a natural decline in mature fields.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $713 million, up from $192 million reported in the March-end quarter of 2021. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was recorded at 329 MBoe/d, down from 423 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 profit of $22 million, significantly down from $61 million a year ago. Renewables: The segment reported an adjusted loss of $10 million, narrower than a loss of $38 million in the year-ago quarter. Lower expenses associated with the Beacon Wind and Empire Wind properties aided the segment. Free Cash Flow
In the March-end quarter, Equinor generated a free cash flow of $12,689 million, improving from $5,170 million in the year-ago period. The improvement resulted from increased operating cash flows, backed by higher liquids and gas prices.
As of Mar 31, 2022, Equinor reported $20,882 million in cash and cash equivalents. The company’s long-term debt was $27,493 million at the first-quarter end.
Equinor reaffirmed production growth expectations at 2% for 2022.
For the 2022-2023 period, the oil major 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
Equinor currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the
energy sector might look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here . Kinder Morgan Inc. ( KMI Quick Quote KMI - Free Report) reported first-quarter 2022 adjusted earnings per share of 32 cents, beating the Zacks Consensus Estimate of 27 cents per share. The better-than-expected results can be attributed to higher refinery utilization rates and a rebound in fuel demand.
Kinder Morgan’s board of directors approved a cash dividend of 27.75 cents per share for the first quarter of 2022. This suggests a 2.8% increase from the prior dividend of 27 cents per share.
EOG Resources, Inc. ( EOG Quick Quote EOG - Free Report) reported first-quarter 2022 adjusted earnings per share of $4.00, beating the Zacks Consensus Estimate of $3.69. The strong earnings were driven by higher oil-equivalent production and commodity prices.
EOG Resources announced a special dividend of $1.80 per share. The special dividend is likely to be paid out on Jun 30 to stockholders of record as of Jun 15.
Pioneer Natural Resources Company ( PXD Quick Quote PXD - Free Report) reported first-quarter 2022 earnings of $7.74 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.32. The strong quarterly earnings can be attributed to higher oil-equivalent production volumes and commodity price realizations.
As of Mar 31, 2022, Pioneer Natural’s cash and cash equivalents totaled $2,385 million, while long-term debt was $5,446 million.