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Equinor (EQNR) Renews Rig Contract for North Sea Project
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Equinor ASA (EQNR - Free Report) has chosen to utilize options for drilling additional wells using a rig owned by Odfjell Drilling.
This decision extends the backlog of the rig, thereby prolonging its presence on the Norwegian Continental Shelf.
The company has chosen to exercise options for seven wells, thereby extending the deployment of the Deepsea Aberdeen semi-submersible rig on the Breidablikk field. This field is situated in the central part of the North Sea, ten kilometers northeast of Grane.
Equinor intends to initiate the exercised options for utilizing the rig in the midst of the first quarter of 2025. The continuation of the current firm period is anticipated to extend the firm backlog for the Deepsea Aberdeen rig until the end of the fourth quarter of 2025.
The options hold an estimated value of $138 million, excluding integrated services, performance incentives and fuel incentives.
The contract also encompasses additional optional periods, and if these options are exercised, they have the potential to keep the Deepsea Aberdeen drilling rig under contract until 2029.
These optional periods include six wells initially, followed by three subsequent optional periods, each involving eight wells — equivalent to approximately three one-year intervals. The rates for all these optional periods are to be mutually agreed upon before exercising.
Due to the exercised optional wells, Odfjell Drilling is expected to experience significant cash flow earlier than the original forecast as the rig transitions to a higher day rate level.
PBF Energy Inc. (PBF - Free Report) reported third-quarter 2023 earnings of $6.61 per share, beating the Zacks Consensus Estimate of $4.86 per share. Better-than-expected quarterly results were primarily driven by lower costs and expenses.
Compared with composite stocks belonging to the industry, the leading upstream energy company’s debt-to-capitalization ratio has been consistently lower over the past few years. The company boasts a robust liquidity position, with a cash balance of $1.9 billion, which is more than sufficient to cover its long-term debt of $1.2 billion. This underscores the company’s strong financial liquidity.
Liberty Energy (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents per share. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of earnings of 27 cents per share. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from the figure reported in the third quarter.
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Equinor (EQNR) Renews Rig Contract for North Sea Project
Equinor ASA (EQNR - Free Report) has chosen to utilize options for drilling additional wells using a rig owned by Odfjell Drilling.
This decision extends the backlog of the rig, thereby prolonging its presence on the Norwegian Continental Shelf.
The company has chosen to exercise options for seven wells, thereby extending the deployment of the Deepsea Aberdeen semi-submersible rig on the Breidablikk field. This field is situated in the central part of the North Sea, ten kilometers northeast of Grane.
Equinor intends to initiate the exercised options for utilizing the rig in the midst of the first quarter of 2025. The continuation of the current firm period is anticipated to extend the firm backlog for the Deepsea Aberdeen rig until the end of the fourth quarter of 2025.
The options hold an estimated value of $138 million, excluding integrated services, performance incentives and fuel incentives.
The contract also encompasses additional optional periods, and if these options are exercised, they have the potential to keep the Deepsea Aberdeen drilling rig under contract until 2029.
These optional periods include six wells initially, followed by three subsequent optional periods, each involving eight wells — equivalent to approximately three one-year intervals. The rates for all these optional periods are to be mutually agreed upon before exercising.
Due to the exercised optional wells, Odfjell Drilling is expected to experience significant cash flow earlier than the original forecast as the rig transitions to a higher day rate level.
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.
PBF Energy Inc. (PBF - Free Report) reported third-quarter 2023 earnings of $6.61 per share, beating the Zacks Consensus Estimate of $4.86 per share. Better-than-expected quarterly results were primarily driven by lower costs and expenses.
Compared with composite stocks belonging to the industry, the leading upstream energy company’s debt-to-capitalization ratio has been consistently lower over the past few years. The company boasts a robust liquidity position, with a cash balance of $1.9 billion, which is more than sufficient to cover its long-term debt of $1.2 billion. This underscores the company’s strong financial liquidity.
Liberty Energy (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents per share. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of earnings of 27 cents per share. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from the figure reported in the third quarter.