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Equinor Shares Gain 75.7% in a Year: Buy the Strength or Wait?
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Key Takeaways
EQNR shares have surged 75.7% in a year, outperforming the industry's 46.3% gain and nearing a 52-week high.
EQNR expects 3% production growth in 2026, driven by new Norwegian fields and international developments.
Elevated oil and gas prices, strong refining margins and a discounted valuation support EQNR's outlook.
Equinor ASA (EQNR - Free Report) shares are trading close to their 52-week high of $45.84, closing at $41.61 on Oct. 7. The Norwegian integrated energy company’s upstream operations are primarily focused on the Norwegian Continental Shelf (“NCS”). Equinor is also the largest supplier of piped gas to Europe. In addition, the company operates in the renewable energy segment and low-carbon energy solutions.
Over the past year, EQNR stock has gained 75.7% compared with the industry’s 46.3% growth. Its peers, Eni S.p.A (E - Free Report) and BP plc (BP - Free Report) , have risen 57.2% and 35.5%, respectively, during the same time frame. While price performance indicates a stock's attractiveness to some extent, it would be wiser to closely examine the company’s current business environment before offering any investment advice.
Image Source: Zacks Investment Research
Production Growth From the NCS
Equinor has a strong history of operating on the NCS, which is the company’s primary asset and accounts for nearly two-thirds of its equity oil and gas production. In the second quarter, the company reported that NCS production increased 4% from 2025, supported by the ramp-up of the Johan Castberg, Halten East and Verdande fields, as well as the start-up of new fields, including Eirin and Symra. Management expects oil and gas production to grow approximately 3% in 2026, supported by contributions from new developments across Norway and its international assets, such as Adura and Bacalhau.
Image Source: Equinor
Equinor is also advancing the Greater PAJ offshore project in Angola, solidifying its international growth prospects. The company continues to accelerate production growth on the NCS through tie-back projects that are expected to reduce costs and shorten the production timeline. These developments are expected to support upstream production growth and aid stronger earnings and cash flow generation.
High Oil & Gas Prices to Support EQNR’s Profitability
Per the U.S. Energy Information Administration, the Brent crude spot price is expected to average around $96 per barrel in 2026. The prolonged conflict in the Middle East has significantly disrupted energy flows through the Strait of Hormuz, keeping commodity prices elevated. Higher benchmark oil prices are expected to benefit Equinor’s exploration and production activities.
In addition, constrained refining capacity and lower product inventories in Europe are expected to support refining margins and benefit EQNR’s refining operations. In fact, the company has reported that it expects its downstream segment profits to surpass the guidance provided for the third quarter, supported by European refining margins.
EQNR’s Prominence as Gas Supplier to Europe
Equinor is a leading natural gas supplier to Europe, giving the company a unique competitive advantage in the current energy market scenario. Several energy companies operating in the Middle East have suffered key infrastructure damage due to the war, causing them to reduce output. These disruptions have tightened global LNG supplies and pushed European gas prices higher. With the autumn and winter seasons approaching, LNG demand is expected to remain robust.
Equinor can provide reliable energy supplies to Europe, supported by its low-cost gas portfolio and flexible transportation network. In its latest earnings call, the company highlighted that it benefits from low gas costs of approximately $2 per MMBtu, which can generate attractive margins during periods of elevated gas prices. Europe’s increasing dependence on LNG imports is expected to be favorable for Equinor, aiding cash flows in the future.
Valuation Snapshot
Coming to the valuation story, EQNR is currently considered cheap on a relative basis, with the stock trading at a 2.15X trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a discount compared with the broader industry average of 5.88X. Equinor also appears cheaper compared to its peers Eni and BP, which are currently trading at 7.41X and 2.87X trailing 12-month EV/EBITDA, respectively.
Image Source: Zacks Investment Research
Time to Buy the Stock?
Equinor’s outlook remains constructive, supported by expanding production on the NCS and its strong position in European natural gas markets. The current commodity price environment is extremely favorable for upstream activities, which should benefit EQNR’s oil and gas operations. Refining margins also remain elevated, supporting downstream operations for the integrated energy player.
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Equinor Shares Gain 75.7% in a Year: Buy the Strength or Wait?
Key Takeaways
Equinor ASA (EQNR - Free Report) shares are trading close to their 52-week high of $45.84, closing at $41.61 on Oct. 7. The Norwegian integrated energy company’s upstream operations are primarily focused on the Norwegian Continental Shelf (“NCS”). Equinor is also the largest supplier of piped gas to Europe. In addition, the company operates in the renewable energy segment and low-carbon energy solutions.
Over the past year, EQNR stock has gained 75.7% compared with the industry’s 46.3% growth. Its peers, Eni S.p.A (E - Free Report) and BP plc (BP - Free Report) , have risen 57.2% and 35.5%, respectively, during the same time frame. While price performance indicates a stock's attractiveness to some extent, it would be wiser to closely examine the company’s current business environment before offering any investment advice.
Image Source: Zacks Investment Research
Production Growth From the NCS
Equinor has a strong history of operating on the NCS, which is the company’s primary asset and accounts for nearly two-thirds of its equity oil and gas production. In the second quarter, the company reported that NCS production increased 4% from 2025, supported by the ramp-up of the Johan Castberg, Halten East and Verdande fields, as well as the start-up of new fields, including Eirin and Symra. Management expects oil and gas production to grow approximately 3% in 2026, supported by contributions from new developments across Norway and its international assets, such as Adura and Bacalhau.
Image Source: Equinor
Equinor is also advancing the Greater PAJ offshore project in Angola, solidifying its international growth prospects. The company continues to accelerate production growth on the NCS through tie-back projects that are expected to reduce costs and shorten the production timeline. These developments are expected to support upstream production growth and aid stronger earnings and cash flow generation.
High Oil & Gas Prices to Support EQNR’s Profitability
Per the U.S. Energy Information Administration, the Brent crude spot price is expected to average around $96 per barrel in 2026. The prolonged conflict in the Middle East has significantly disrupted energy flows through the Strait of Hormuz, keeping commodity prices elevated. Higher benchmark oil prices are expected to benefit Equinor’s exploration and production activities.
In addition, constrained refining capacity and lower product inventories in Europe are expected to support refining margins and benefit EQNR’s refining operations. In fact, the company has reported that it expects its downstream segment profits to surpass the guidance provided for the third quarter, supported by European refining margins.
EQNR’s Prominence as Gas Supplier to Europe
Equinor is a leading natural gas supplier to Europe, giving the company a unique competitive advantage in the current energy market scenario. Several energy companies operating in the Middle East have suffered key infrastructure damage due to the war, causing them to reduce output. These disruptions have tightened global LNG supplies and pushed European gas prices higher. With the autumn and winter seasons approaching, LNG demand is expected to remain robust.
Equinor can provide reliable energy supplies to Europe, supported by its low-cost gas portfolio and flexible transportation network. In its latest earnings call, the company highlighted that it benefits from low gas costs of approximately $2 per MMBtu, which can generate attractive margins during periods of elevated gas prices. Europe’s increasing dependence on LNG imports is expected to be favorable for Equinor, aiding cash flows in the future.
Valuation Snapshot
Coming to the valuation story, EQNR is currently considered cheap on a relative basis, with the stock trading at a 2.15X trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a discount compared with the broader industry average of 5.88X. Equinor also appears cheaper compared to its peers Eni and BP, which are currently trading at 7.41X and 2.87X trailing 12-month EV/EBITDA, respectively.
Image Source: Zacks Investment Research
Time to Buy the Stock?
Equinor’s outlook remains constructive, supported by expanding production on the NCS and its strong position in European natural gas markets. The current commodity price environment is extremely favorable for upstream activities, which should benefit EQNR’s oil and gas operations. Refining margins also remain elevated, supporting downstream operations for the integrated energy player.
Given the current business environment, investors should consider owning EQNR stock at present. EQNR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.