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Equinor (EQNR) Commits $6B in Oil and Gas Investment in Norway
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Equinor ASA (EQNR - Free Report) has committed to an ambitious $6-billion annual investment in oil and gas exploration and drilling in Norway to obtain steady production through 2035, per a Reuters report.
The decision comes at a crucial time, as Equinor steps up to become Europe’s primary gas supplier, filling the gap left by reduced Russia gas imports after the EU’s sanctions following the Ukraine conflict.
Per Equinor’s CEO, Anders Opedal, this investment represents the maximum the company can allocate without compromising returns. Given its extensive history of more than 50 years in the sector, Equinor aims to manage and sustain its production effectively. The strategy involves advancing 50 oil and gas projects, either in progress or in planning, within the Norwegian North Sea, ensuring the company’s output remains consistent in response to the natural decline of existing fields.
Equinor has set a goal to drill 30 exploration wells per year for the next decade. This comes against the backdrop of Norway’s reduced gas exports in 2023, which saw a year-over-year decline from 116.9 billion cubic meters (bcm) to 109 bcm. Despite this, Equinor’s net share of production, approximately 40 bcm annually, will be maintained, playing a significant role in Europe’s energy landscape.
In addition to natural gas, Equinor is setting ambitious targets for renewable energy, with plans to significantly increase its solar and wind power generation by the end of the decade. This dual approach not only ensures energy security but also aligns with the broader transition toward sustainable energy sources.
Philippe Mathieu, head of Equinor’s international oil and gas production, emphasized the company’s intent to keep production steady outside Norway as well, focusing on established production hubs in regions like Britain, the Gulf of Mexico, Brazil and Angola. With 70% of its exploration budget earmarked for augmenting resources near existing sites, Equinor is also exploring new territories, including offshore areas near Canada’s east coast and in Argentina.
EQNR’s strategic investments and operational focus are pivotal in stabilizing and securing Europe’s energy supply, demonstrating a resilient and forward-looking approach in the evolving global energy market.
Price Performance
EQNR shares have underperformed the industry in the past three months. The stock has lost 13.7% against the industry’s 6.5% growth.
NuStar Energy, L.P. (NS - Free Report) is a master limited partnership (“MLP”) that engages in the transportation and storage of crude oil and refined products in the United States, the Netherlands Antilles, Canada, Mexico and the U.K.
The Zacks Consensus Estimate for NS’s 2024 and 2025 EPS is pegged at $1.11 and $1.21, respectively. The partnership has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
RPC Inc. (RES - Free Report) derives strong and stable revenues from diverse oilfield services that include pressure pumping, coiled tubing and rental tools. In 2023, the company paid out $34.6 million in dividends, whereas share repurchases totaled $21.1 million.
The Zacks Consensus Estimate for RPC’s 2024 and 2025 EPS is pegged at 88 cents and $1.13, respectively. The company has a Zacks Style Score of A for Growth and Value.
Global Partners (GLP - Free Report) is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 earnings per share is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value, and B for Growth and Momentum.
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Equinor (EQNR) Commits $6B in Oil and Gas Investment in Norway
Equinor ASA (EQNR - Free Report) has committed to an ambitious $6-billion annual investment in oil and gas exploration and drilling in Norway to obtain steady production through 2035, per a Reuters report.
The decision comes at a crucial time, as Equinor steps up to become Europe’s primary gas supplier, filling the gap left by reduced Russia gas imports after the EU’s sanctions following the Ukraine conflict.
Per Equinor’s CEO, Anders Opedal, this investment represents the maximum the company can allocate without compromising returns. Given its extensive history of more than 50 years in the sector, Equinor aims to manage and sustain its production effectively. The strategy involves advancing 50 oil and gas projects, either in progress or in planning, within the Norwegian North Sea, ensuring the company’s output remains consistent in response to the natural decline of existing fields.
Equinor has set a goal to drill 30 exploration wells per year for the next decade. This comes against the backdrop of Norway’s reduced gas exports in 2023, which saw a year-over-year decline from 116.9 billion cubic meters (bcm) to 109 bcm. Despite this, Equinor’s net share of production, approximately 40 bcm annually, will be maintained, playing a significant role in Europe’s energy landscape.
In addition to natural gas, Equinor is setting ambitious targets for renewable energy, with plans to significantly increase its solar and wind power generation by the end of the decade. This dual approach not only ensures energy security but also aligns with the broader transition toward sustainable energy sources.
Philippe Mathieu, head of Equinor’s international oil and gas production, emphasized the company’s intent to keep production steady outside Norway as well, focusing on established production hubs in regions like Britain, the Gulf of Mexico, Brazil and Angola. With 70% of its exploration budget earmarked for augmenting resources near existing sites, Equinor is also exploring new territories, including offshore areas near Canada’s east coast and in Argentina.
EQNR’s strategic investments and operational focus are pivotal in stabilizing and securing Europe’s energy supply, demonstrating a resilient and forward-looking approach in the evolving global energy market.
Price Performance
EQNR shares have underperformed the industry in the past three months. The stock has lost 13.7% against the industry’s 6.5% growth.
Image Source: Zacks Investment Research
Zacks Ranks & Stocks to Consider
Equinor currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NuStar Energy, L.P. (NS - Free Report) is a master limited partnership (“MLP”) that engages in the transportation and storage of crude oil and refined products in the United States, the Netherlands Antilles, Canada, Mexico and the U.K.
The Zacks Consensus Estimate for NS’s 2024 and 2025 EPS is pegged at $1.11 and $1.21, respectively. The partnership has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
RPC Inc. (RES - Free Report) derives strong and stable revenues from diverse oilfield services that include pressure pumping, coiled tubing and rental tools. In 2023, the company paid out $34.6 million in dividends, whereas share repurchases totaled $21.1 million.
The Zacks Consensus Estimate for RPC’s 2024 and 2025 EPS is pegged at 88 cents and $1.13, respectively. The company has a Zacks Style Score of A for Growth and Value.
Global Partners (GLP - Free Report) is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 earnings per share is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value, and B for Growth and Momentum.