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Equinor (EQNR) Beats on Q3 Earnings, Hikes Special Dividend
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Equinor ASA’s (EQNR - Free Report) shares have gained 2.7% since it reported strong earnings for the third quarter of 2022. The outperformance can be attributed to the company’s dividend hike cheering investors.
Equinor reported third-quarter adjusted earnings per share of $2.12, beating the Zacks Consensus Estimate of $1.78. The bottom line significantly improved from the year-ago quarter’s 85 cents per share.
Total quarterly revenues increased to $43,633 million from $23,264 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $57,678 million.
The strong quarterly earnings were aided by higher commodity prices and production.
Equinor’s board increased its extraordinary cash dividend to 70 cents per share from 50 cents per share for the third of 2022. This reflects the firm’s strong commitment to returning capital to shareholders.
Segmental Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $21,079 million, improving drastically from $6,762 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 increased 2% year over year to 1,368 thousand barrels of oil equivalent per day (MBoe/d) mainly due to Snohvit being back in production and Martin Linge producing at a stable rate.
E&P International: The segment’s adjusted operating profit was $942 million, up from the year-ago quarter’s profit of $556 million. Improvement in liquid and gas prices contributed to the outperformance.
The average daily equity production of liquids and gas increased to 324 MBoe/d from 322 MBoe/d in the year-ago quarter. The segment was aided primarily by the resumption of the Peregrino field in Brazil.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $889 million, up from $288 million in the September-end quarter of 2021. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was 329 MBoe/d, marginally up from 328 MBoe/d in the year-ago quarter.
Marketing, Midstream & Processing: The segment reported an adjusted profit of $1,452 million, significantly down from $2,197 million a year ago.
Renewables: The segment reported an adjusted loss of $46 million, wider than a loss of $28 million in the year-ago quarter. Higher business development costs primarily hurt the segment.
Free Cash Flow
In the September-end quarter, Equinor generated a free cash flow of $2,402 million, declining from $6,725 million in the year-ago period. The underperformance resulted from declining operating cash flows.
Balance Sheet
As of Sept 30, 2022, Equinor reported $23,348 million in cash and cash equivalents. The company’s long-term debt was $25,793 million at the third-quarter end.
Outlook
Equinor kept its production growth expectations at 1% for 2022. The company stated its organiccapital spending budget of $8.5 billion for the year.
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).
MPLX LP (MPLX - Free Report) reported third-quarter earnings of 96 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents. The distribution will be paid out on Nov 22, 2022, to common unitholders of record as of Nov 15, 2022.
Exxon Mobil Corporation (XOM - Free Report) reported third-quarter 2022 earnings per share of $4.45, excluding identified items, beating the Zacks Consensus Estimate of $3.88. The strong earnings have resulted from higher realized commodity prices and oil-equivalent production, and strong refining margins.
ExxonMobil has announced a fourth-quarter dividend of 91 cents per share, indicating an increase of 3.4% from the last paid dividend of 88 cents. The dividend is payable on Dec 9.
Liberty Energy Inc. (LBRT - Free Report) announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents. The outperformance reflects the impacts of strong execution, higher activity and increased service pricing, which more than offset rising costs.
As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million of cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers that are hugely burdened with debts.
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Equinor (EQNR) Beats on Q3 Earnings, Hikes Special Dividend
Equinor ASA’s (EQNR - Free Report) shares have gained 2.7% since it reported strong earnings for the third quarter of 2022. The outperformance can be attributed to the company’s dividend hike cheering investors.
Equinor reported third-quarter adjusted earnings per share of $2.12, beating the Zacks Consensus Estimate of $1.78. The bottom line significantly improved from the year-ago quarter’s 85 cents per share.
Total quarterly revenues increased to $43,633 million from $23,264 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $57,678 million.
The strong quarterly earnings were aided by higher commodity prices and production.
Equinor ASA Price, Consensus and EPS Surprise
Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA Quote
Dividend Hike
Equinor’s board increased its extraordinary cash dividend to 70 cents per share from 50 cents per share for the third of 2022. This reflects the firm’s strong commitment to returning capital to shareholders.
Segmental Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $21,079 million, improving drastically from $6,762 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 increased 2% year over year to 1,368 thousand barrels of oil equivalent per day (MBoe/d) mainly due to Snohvit being back in production and Martin Linge producing at a stable rate.
E&P International: The segment’s adjusted operating profit was $942 million, up from the year-ago quarter’s profit of $556 million. Improvement in liquid and gas prices contributed to the outperformance.
The average daily equity production of liquids and gas increased to 324 MBoe/d from 322 MBoe/d in the year-ago quarter. The segment was aided primarily by the resumption of the Peregrino field in Brazil.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $889 million, up from $288 million in the September-end quarter of 2021. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was 329 MBoe/d, marginally up from 328 MBoe/d in the year-ago quarter.
Marketing, Midstream & Processing: The segment reported an adjusted profit of $1,452 million, significantly down from $2,197 million a year ago.
Renewables: The segment reported an adjusted loss of $46 million, wider than a loss of $28 million in the year-ago quarter. Higher business development costs primarily hurt the segment.
Free Cash Flow
In the September-end quarter, Equinor generated a free cash flow of $2,402 million, declining from $6,725 million in the year-ago period. The underperformance resulted from declining operating cash flows.
Balance Sheet
As of Sept 30, 2022, Equinor reported $23,348 million in cash and cash equivalents. The company’s long-term debt was $25,793 million at the third-quarter end.
Outlook
Equinor kept its production growth expectations at 1% for 2022. The company stated its organiccapital spending budget of $8.5 billion for the year.
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 presently carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
MPLX LP (MPLX - Free Report) reported third-quarter earnings of 96 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents. The distribution will be paid out on Nov 22, 2022, to common unitholders of record as of Nov 15, 2022.
Exxon Mobil Corporation (XOM - Free Report) reported third-quarter 2022 earnings per share of $4.45, excluding identified items, beating the Zacks Consensus Estimate of $3.88. The strong earnings have resulted from higher realized commodity prices and oil-equivalent production, and strong refining margins.
ExxonMobil has announced a fourth-quarter dividend of 91 cents per share, indicating an increase of 3.4% from the last paid dividend of 88 cents. The dividend is payable on Dec 9.
Liberty Energy Inc. (LBRT - Free Report) announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents. The outperformance reflects the impacts of strong execution, higher activity and increased service pricing, which more than offset rising costs.
As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million of cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers that are hugely burdened with debts.