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Equinor (EQNR) Completes Exit From Its Russia Operations
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Equinor ASA (EQNR - Free Report) completed its exit from Russia operations due to the country’s aggressive invasion of Ukraine, delivering on its commitment made in February.
The company clinches the title of the first major Western oil producer to completely remove its exposure in the country, while the pressure to exit mounts on other oil majors.
Equinor had been contributing to Russia’s growth for more than three decades. In February, it initiated a plan to end all investments and partnerships in Russia. By the first-quarter end, the company witnessed an impairment of more than $1 billion after it stopped trading Russia hydrocarbons.
In May, Equinor announced its exit from all joint ventures in Russia. From all future commitments and obligations, the company has freed itself, thereby transferring its participating interests in four joint ventures in Russia to Rosneft.
After that, Equinor was left to divest one Russia asset — the Arctic Kharyaga oilfield operated by the state-controlled oil company Zarubezhneft. Notably, the withdrawal from Kharyaga has been completed. Equinor has no remaining assets or projects in Russia after the exit from Kharyaga.
Russia is the third-largest oil producer and the biggest exporter of gas in the world. Over the last decade, the country was regarded as the most promising exploration and development destination globally. The country exports 4-5 million barrels of crude per day, making it the second-largest exporter of crude globally after Saudi Arabia.
However, Russia’s invasion of Ukraine has had widespread repercussions in the energy sector. Equinor joined other oil and gas traders in its decision to stop purchasing oil from Russia, which supplies about a third of Europe’s oil.
Equinor is currently exploring every possibility to keep its production level high. It is crucial to ensure that enough investments are going into oil and gas, other than renewables.
Price Performance
Shares of EQNR have outperformed the industry in the past six months. The stock has gained 15.9% compared with the industry’s 1.6% growth.
RPC Inc. (RES - Free Report) is among the leading providers of advanced oilfield services, and equipment to almost all prospective oil and gas shale plays in the United States. With no debt load, RPC had cash and cash equivalents of $78.2 million at the second-quarter end. This reflects the company’s strong balance sheet position that provides it with massive financial flexibility.
RPC has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The company currently has a Zacks Style Score of A for Growth. RES is expected to see earnings growth of 1,733.3% in 2022.
Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy firm. Between 2020 and 2024, Cenovus expects to see compound annual production growth of 2-3%.
Cenovus has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The company currently has a Zacks Style Score of A for Growth and B for Value. CVE is expected to see earnings growth of 321% for 2022.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. The fuel retailer approved a repurchase authorization of up to $1 billion, which will commence once the existing $500-million authorization expires and be completed by Dec 31, 2026.
Murphy USA has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Value and Growth. MUSA is expected to see earnings growth of 43.4% in 2022.
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Equinor (EQNR) Completes Exit From Its Russia Operations
Equinor ASA (EQNR - Free Report) completed its exit from Russia operations due to the country’s aggressive invasion of Ukraine, delivering on its commitment made in February.
The company clinches the title of the first major Western oil producer to completely remove its exposure in the country, while the pressure to exit mounts on other oil majors.
Equinor had been contributing to Russia’s growth for more than three decades. In February, it initiated a plan to end all investments and partnerships in Russia. By the first-quarter end, the company witnessed an impairment of more than $1 billion after it stopped trading Russia hydrocarbons.
In May, Equinor announced its exit from all joint ventures in Russia. From all future commitments and obligations, the company has freed itself, thereby transferring its participating interests in four joint ventures in Russia to Rosneft.
After that, Equinor was left to divest one Russia asset — the Arctic Kharyaga oilfield operated by the state-controlled oil company Zarubezhneft. Notably, the withdrawal from Kharyaga has been completed. Equinor has no remaining assets or projects in Russia after the exit from Kharyaga.
Russia is the third-largest oil producer and the biggest exporter of gas in the world. Over the last decade, the country was regarded as the most promising exploration and development destination globally. The country exports 4-5 million barrels of crude per day, making it the second-largest exporter of crude globally after Saudi Arabia.
However, Russia’s invasion of Ukraine has had widespread repercussions in the energy sector. Equinor joined other oil and gas traders in its decision to stop purchasing oil from Russia, which supplies about a third of Europe’s oil.
Equinor is currently exploring every possibility to keep its production level high. It is crucial to ensure that enough investments are going into oil and gas, other than renewables.
Price Performance
Shares of EQNR have outperformed the industry in the past six months. The stock has gained 15.9% compared with the industry’s 1.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RPC Inc. (RES - Free Report) is among the leading providers of advanced oilfield services, and equipment to almost all prospective oil and gas shale plays in the United States. With no debt load, RPC had cash and cash equivalents of $78.2 million at the second-quarter end. This reflects the company’s strong balance sheet position that provides it with massive financial flexibility.
RPC has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The company currently has a Zacks Style Score of A for Growth. RES is expected to see earnings growth of 1,733.3% in 2022.
Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy firm. Between 2020 and 2024, Cenovus expects to see compound annual production growth of 2-3%.
Cenovus has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The company currently has a Zacks Style Score of A for Growth and B for Value. CVE is expected to see earnings growth of 321% for 2022.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. The fuel retailer approved a repurchase authorization of up to $1 billion, which will commence once the existing $500-million authorization expires and be completed by Dec 31, 2026.
Murphy USA has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Value and Growth. MUSA is expected to see earnings growth of 43.4% in 2022.