We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equinor (EQNR) Puts Johan Sverdrup Phase 2 Project Online
Read MoreHide Full Article
Equinor ASA (EQNR - Free Report) commenced production from the Johan Sverdrup Phase 2 project in the North Sea after the oilfield came online.
Johan Sverdrup is the third-largest oilfield offshore Norway, with recoverable volumes of 2.7 billion barrels of oil equivalent. A considerable portion of the Johan Sverdrup field’s oil and gas production is expected to reach Europe, strengthening its energy security. Equinor operates the field with a 42.6% interest.
At the plateau, the Johan Sverdrup field will produce 720,000 barrels of oil per day, with a target to rise to 755,000 barrels per day. The field alone is expected to meet 6-7% of the daily oil requirements in Europe.
The field involves a new platform, five new subsea systems, 28 new wells, a new module for the existing riser platform and facilities to transfer power from shore to the Utsira High area. Despite the pandemic, the Johan Sverdrup Phase 2 project was delivered on schedule and within budget.
The field receives power from shore through cables from Haugsneset, north of Stavanger. The first cable powers the first four platforms on the Johan Sverdrup field, while the new cable supplies the fifth platform and the rest of the Utsire High installations. This reduces carbon dioxide emissions by 1.2 million tons per year, which corresponds to 2.5% of Norway’s annual emissions.
Equinor mentioned that the Johan Sverdrup field has been in stable production for more than three years. Production from the field has significantly contributed to the Norwegian welfare state, with 82% of revenues going to the state through taxes and direct ownership interest. The field’s development is estimated to provide an income of more than NOK 900 billion to Norway over its lifetime.
Investments in the Johan Sverdrup Phase 2 project total NOK 48 billion. Johan Sverdrup is expected to deliver significant energy volumes, with high profitability and low emissions, for several decades to come.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has gained 8.6% compared with the industry’s 13.3% growth.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s third-quarter 2022 adjusted profit of 23 cents per share beat the Zacks Consensus Estimate of 13 cents.
OII is expected to see an earnings rise of 82.4% in 2022. For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
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. RES’ adjusted earnings of 32 cents per share in the third quarter beat the Zacks Consensus Estimate of 25 cents.
RPC is expected to see an earnings surge of 2,933.3% in 2022. With no debt load, RPC had cash and cash equivalents of $35.9 million at the third-quarter end. This reflects the company’s strong balance sheet, providing it with massive financial flexibility and allowing it to remain afloat during tough times.
Liberty Energy Inc. (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.
Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Equinor (EQNR) Puts Johan Sverdrup Phase 2 Project Online
Equinor ASA (EQNR - Free Report) commenced production from the Johan Sverdrup Phase 2 project in the North Sea after the oilfield came online.
Johan Sverdrup is the third-largest oilfield offshore Norway, with recoverable volumes of 2.7 billion barrels of oil equivalent. A considerable portion of the Johan Sverdrup field’s oil and gas production is expected to reach Europe, strengthening its energy security. Equinor operates the field with a 42.6% interest.
At the plateau, the Johan Sverdrup field will produce 720,000 barrels of oil per day, with a target to rise to 755,000 barrels per day. The field alone is expected to meet 6-7% of the daily oil requirements in Europe.
The field involves a new platform, five new subsea systems, 28 new wells, a new module for the existing riser platform and facilities to transfer power from shore to the Utsira High area. Despite the pandemic, the Johan Sverdrup Phase 2 project was delivered on schedule and within budget.
The field receives power from shore through cables from Haugsneset, north of Stavanger. The first cable powers the first four platforms on the Johan Sverdrup field, while the new cable supplies the fifth platform and the rest of the Utsire High installations. This reduces carbon dioxide emissions by 1.2 million tons per year, which corresponds to 2.5% of Norway’s annual emissions.
Equinor mentioned that the Johan Sverdrup field has been in stable production for more than three years. Production from the field has significantly contributed to the Norwegian welfare state, with 82% of revenues going to the state through taxes and direct ownership interest. The field’s development is estimated to provide an income of more than NOK 900 billion to Norway over its lifetime.
Investments in the Johan Sverdrup Phase 2 project total NOK 48 billion. Johan Sverdrup is expected to deliver significant energy volumes, with high profitability and low emissions, for several decades to come.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has gained 8.6% compared with the industry’s 13.3% 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 carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s third-quarter 2022 adjusted profit of 23 cents per share beat the Zacks Consensus Estimate of 13 cents.
OII is expected to see an earnings rise of 82.4% in 2022. For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
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. RES’ adjusted earnings of 32 cents per share in the third quarter beat the Zacks Consensus Estimate of 25 cents.
RPC is expected to see an earnings surge of 2,933.3% in 2022. With no debt load, RPC had cash and cash equivalents of $35.9 million at the third-quarter end. This reflects the company’s strong balance sheet, providing it with massive financial flexibility and allowing it to remain afloat during tough times.
Liberty Energy Inc. (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.
Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.