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Equinor (EQNR) Scores Deal to Divest Its Nigeria Business
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Equinor ASA (EQNR - Free Report) entered an agreement to divest its Nigeria business to Nigeria-based Chappal Energies.
The move is part of Equinor’s initiatives to optimize asset allocation and align its portfolio with its core business strategy.
The divestment encompasses the company’s stake in the Agbami oil field. The Agbami oilfield project stands as one of Nigeria’s major deepwater developments. Since its commencement in 2008, the Agbami field has yielded more than 1 billion barrels of oil.
Nigeria has long been a pivotal element of Equinor’s international operations. The company’s decision to divest its Nigeria business marks a substantial shift in its global footprint.
Equinor’s Nigeria business includes a 53.85% interest in exploration licenses OMLs 128 and a 20.21% stake in the Agbami field. The transaction’s completion is subject to obtaining all necessary regulatory and contractual approvals.
Chappal Energies’ acquisition of Equinor’s Nigeria business could signify strategic expansion goals or a substantial investment in the Nigerian energy sector. Chappal Energies aims to develop the acquired assets and play a significant role in contributing to the Nigeria economy in the years ahead.
The Nigeria energy sector has seen various international companies reevaluate their positions due to shifting market dynamics, regulatory changes and operational challenges. The latest divestment could have implications for the Nigeria energy sector, potentially prompting other international energy firms to reconsider their strategies and presence in Nigeria.
Murphy Oil Corporation (MUR - Free Report) possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and independent E&P group.
The company’s board of directors approved a 10% increase in the quarterly dividend rate beginning in the first quarter of 2023, taking the total annualized figure to $1.10 per share. MUR's current dividend yield is 2.57%, better than the Zacks S&P 500 composite's average of 1.7%.
Suncor Energy, Inc. (SU - Free Report) is Canada’s premier integrated energy company. Suncor boasts an impressive supply-chain network, owning significant oil sands and conventional production platforms.
Suncor's robust liquidity position will allow it to sustain its dividend, even if oil prices stay lower for longer. The company recently hiked its dividend by 5% to 54.5 Canadian cents per share (over the prior quarter) and increased the buyback authorization to roughly 10% of its public float.
Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. The company has a strong position in the oilfield service space.
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.
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Equinor (EQNR) Scores Deal to Divest Its Nigeria Business
Equinor ASA (EQNR - Free Report) entered an agreement to divest its Nigeria business to Nigeria-based Chappal Energies.
The move is part of Equinor’s initiatives to optimize asset allocation and align its portfolio with its core business strategy.
The divestment encompasses the company’s stake in the Agbami oil field. The Agbami oilfield project stands as one of Nigeria’s major deepwater developments. Since its commencement in 2008, the Agbami field has yielded more than 1 billion barrels of oil.
Nigeria has long been a pivotal element of Equinor’s international operations. The company’s decision to divest its Nigeria business marks a substantial shift in its global footprint.
Equinor’s Nigeria business includes a 53.85% interest in exploration licenses OMLs 128 and a 20.21% stake in the Agbami field. The transaction’s completion is subject to obtaining all necessary regulatory and contractual approvals.
Chappal Energies’ acquisition of Equinor’s Nigeria business could signify strategic expansion goals or a substantial investment in the Nigerian energy sector. Chappal Energies aims to develop the acquired assets and play a significant role in contributing to the Nigeria economy in the years ahead.
The Nigeria energy sector has seen various international companies reevaluate their positions due to shifting market dynamics, regulatory changes and operational challenges. The latest divestment could have implications for the Nigeria energy sector, potentially prompting other international energy firms to reconsider their strategies and presence in Nigeria.
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.
Murphy Oil Corporation (MUR - Free Report) possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and independent E&P group.
The company’s board of directors approved a 10% increase in the quarterly dividend rate beginning in the first quarter of 2023, taking the total annualized figure to $1.10 per share. MUR's current dividend yield is 2.57%, better than the Zacks S&P 500 composite's average of 1.7%.
Suncor Energy, Inc. (SU - Free Report) is Canada’s premier integrated energy company. Suncor boasts an impressive supply-chain network, owning significant oil sands and conventional production platforms.
Suncor's robust liquidity position will allow it to sustain its dividend, even if oil prices stay lower for longer. The company recently hiked its dividend by 5% to 54.5 Canadian cents per share (over the prior quarter) and increased the buyback authorization to roughly 10% of its public float.
Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. The company has a strong position in the oilfield service space.
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.