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Equinor (EQNR) Commences Operations At Hammerfest LNG Facility
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Equinor ASA (EQNR - Free Report) commenced operations at its Hammerfest liquefied natural gas ("LNG") facility, situated on Melkoya Island in Norway, per a report by Reuters.
The company is preparing to commence LNG production, following a 20-month outage due to a fire incident. Equinor operates the Hammerfest facility, which has a processing capacity of more than four million tons of gas per year.
In September 2020, Equinor shut the Hammerfest LNG facility due to the damages caused by the fire on the air intake on one of the facility’s five power turbines. The company initially stated that the facility would be closed for almost 12 months for repair.
The Hammerfest facility suffered continued time overrun issues since the fire. Eventually, the facility started operations after extensive maintenance work and an improved operational period, including checking more than 22,000 components and replacing 180 kilometers of electrical cables.
Hammerfest is the only large-scale LNG facility in Europe. Once fully operational, it can process 18.4 million cubic meters of gas per day. This is equivalent to 5% of Norway’s gas export capacity.The facility receives and processes natural gas from the Snohvit field in the Barents Sea. The gas is transferred in a 160-kilometer pipeline, which transports the field’s well stream to the Hammerfest LNG plant.
Equinor is a leading player in the global LNG market. The restoration of the facility would address the plight of Europe’s strained LNG market, which has been seeking alternatives to Russian supplies due to the country’s aggressive invasion of Ukraine.
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 54.9% compared with the industry’s 49.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Equinor currently sports a Zack Rank #1 (Strong Buy).
PDC Energy, Inc. is an independent upstream operator that explores, develops and produces natural gas, crude oil and natural gas liquids. As of Mar 31, 2022, PDC Energy had $1.65 billion in total liquidity, while its credit facility currently has a total borrowing base of $3 billion. Moreover, PDC Energy’s debt maturity profile is a favorable one.
PDC Energy’s cash flows will also receive some downside protection from oil and gas hedges. The company has hedged a portion of its 2022 oil production at attractive prices. At that price, PDC Energy's hedges are expected to add robust positive value in revenues and considerably soften the blow if there is another meltdown in oil prices.
EQT Corporation (EQT - Free Report) is a pure-play Appalachian explorer, which is one of the largest natural gas producers in the United States. EQT expects a free cash flow of $1.4-$1.75 billion for 2022, suggesting an increase from $934.7 million last year.
Almost 65% of EQT’s production in 2022 is hedged, thereby securing the best risk-adjusted upside in natural gas. The upstream energy player has lower exposure to debt capital than composite stocks belonging to the industry. Hence, EQT can rely on its strong balance sheet to sail through the volatility in commodity prices.
TotalEnergies SE (TTE - Free Report) has one of the best production growth profiles among the oil super majors. TTE expects second-quarter 2022 hydrocarbon production to improve, driven by new start-ups in Brazil, offset by sales of mature assets completed in 2021. It is also working on expanding the LNG portfolio globally.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. Net debt to capital was 12.5% at the end of first-quarter 2022, down from 23.7% at the end of first-quarter 2021. As of Mar 31, 2022, cash and cash equivalents were $31,276 million. This was enough to address the current borrowings of $16,759 million as of Mar 31, 2022.
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Equinor (EQNR) Commences Operations At Hammerfest LNG Facility
Equinor ASA (EQNR - Free Report) commenced operations at its Hammerfest liquefied natural gas ("LNG") facility, situated on Melkoya Island in Norway, per a report by Reuters.
The company is preparing to commence LNG production, following a 20-month outage due to a fire incident. Equinor operates the Hammerfest facility, which has a processing capacity of more than four million tons of gas per year.
In September 2020, Equinor shut the Hammerfest LNG facility due to the damages caused by the fire on the air intake on one of the facility’s five power turbines. The company initially stated that the facility would be closed for almost 12 months for repair.
The Hammerfest facility suffered continued time overrun issues since the fire. Eventually, the facility started operations after extensive maintenance work and an improved operational period, including checking more than 22,000 components and replacing 180 kilometers of electrical cables.
Hammerfest is the only large-scale LNG facility in Europe. Once fully operational, it can process 18.4 million cubic meters of gas per day. This is equivalent to 5% of Norway’s gas export capacity.The facility receives and processes natural gas from the Snohvit field in the Barents Sea. The gas is transferred in a 160-kilometer pipeline, which transports the field’s well stream to the Hammerfest LNG plant.
Equinor is a leading player in the global LNG market. The restoration of the facility would address the plight of Europe’s strained LNG market, which has been seeking alternatives to Russian supplies due to the country’s aggressive invasion of Ukraine.
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 54.9% compared with the industry’s 49.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Equinor currently sports a Zack Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that also presently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
PDC Energy, Inc. is an independent upstream operator that explores, develops and produces natural gas, crude oil and natural gas liquids. As of Mar 31, 2022, PDC Energy had $1.65 billion in total liquidity, while its credit facility currently has a total borrowing base of $3 billion. Moreover, PDC Energy’s debt maturity profile is a favorable one.
PDC Energy’s cash flows will also receive some downside protection from oil and gas hedges. The company has hedged a portion of its 2022 oil production at attractive prices. At that price, PDC Energy's hedges are expected to add robust positive value in revenues and considerably soften the blow if there is another meltdown in oil prices.
EQT Corporation (EQT - Free Report) is a pure-play Appalachian explorer, which is one of the largest natural gas producers in the United States. EQT expects a free cash flow of $1.4-$1.75 billion for 2022, suggesting an increase from $934.7 million last year.
Almost 65% of EQT’s production in 2022 is hedged, thereby securing the best risk-adjusted upside in natural gas. The upstream energy player has lower exposure to debt capital than composite stocks belonging to the industry. Hence, EQT can rely on its strong balance sheet to sail through the volatility in commodity prices.
TotalEnergies SE (TTE - Free Report) has one of the best production growth profiles among the oil super majors. TTE expects second-quarter 2022 hydrocarbon production to improve, driven by new start-ups in Brazil, offset by sales of mature assets completed in 2021. It is also working on expanding the LNG portfolio globally.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. Net debt to capital was 12.5% at the end of first-quarter 2022, down from 23.7% at the end of first-quarter 2021. As of Mar 31, 2022, cash and cash equivalents were $31,276 million. This was enough to address the current borrowings of $16,759 million as of Mar 31, 2022.