Equinor Wraps Up $2 Billion Asset Sale, Streamlining Global Oil And Gas Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2024
0mins
Should l Buy EQNR?
Source: Benzinga
Equinor's Divestment Strategy: Equinor ASA has completed transactions to exit its upstream businesses in Azerbaijan and Nigeria, receiving a total consideration of up to $2 billion, which aligns with its strategy to optimize its oil and gas portfolio.
Impact on Future Operations: The divestments are expected to positively affect cash flow for the fourth quarter of 2024, with Equinor projecting an average annual cash flow from operations of around $20 billion through 2035.
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Analyst Views on EQNR
Wall Street analysts forecast EQNR stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 42.200
Low
22.00
Averages
23.89
High
25.79
Current: 42.200
Low
22.00
Averages
23.89
High
25.79
About EQNR
Equinor ASA, formerly Statoil ASA is a Norway-based international energy company. The Company’s purpose is to turn natural resources into energy. Equinor sells crude oil and delivers natural gas to the European market. It is also engaged in processing, refining, offshore wind and carbon capture and storage activities. Equinor ASA has five reporting segments: Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN). The Company has several subsidiaries such as Equinor Nigeria Energy Company Ltd, Equinor Wind Power AS, Equinor International Netherlands BV and Equinor Brasil Energia Ltda.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and Iran's threats to energy infrastructure create uncertainty in LNG supply, potentially driving up global prices, especially pressuring the European market.
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- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
See More
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Response to U.S. Actions: Iran's leadership has issued a lukewarm response to U.S. proposals, signaling a lack of interest in compromise.
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See More
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- Drilling Operations Initiated: Drilling operations have begun on the Valaris DS-17 drillship, with plans to drill six wells in the Raia area at a water depth of approximately 2,900 meters, laying the groundwork for future production.
- Strong Production Capacity: The project will feature a large floating production, storage, and offloading vessel capable of handling over 125,000 barrels per day of condensate and 16 million cubic meters per day of natural gas, with production expected to launch in 2028, potentially meeting 15% of Brazil's natural gas demand.
See More
Investment Protection Strategies Amid Persian Gulf Conflict
- Oil and Gas Stock Opportunities: Amid the ongoing conflict in the Persian Gulf, companies like Devon Energy and Diamondback Energy, focused on U.S. oil production, present attractive investment options due to rising oil prices, especially considering pre-conflict price levels, making them ideal for risk management.
- Refining Sector Benefits: With the 3-2-1 crack spread soaring from $20 at the start of the year to $54, refining companies like Valero Energy and PBF Energy are set to benefit from this trend, provided that demand for transportation products does not suffer due to high prices.
- LNG Supply Gap: The International Energy Agency notes that 34% of global crude oil trade and 20% of LNG trade pass through the Strait of Hormuz, with companies like Woodside Energy and Cheniere Energy positioned to fill the supply gap created by the blockade, particularly for Asian markets.
- Shipping and Fertilizer Sector Outlook: Flex LNG is poised to benefit from increased LNG shipping demand, while CF Industries, as a U.S.-focused fertilizer producer, will leverage its manufacturing facilities in the West and U.S. gas supply to fill the global fertilizer flow gap.
See More
Oil and Gas Sector Benefits from Supply Chain Disruptions
- Supply Chain Impact: Ongoing conflicts in the Persian Gulf are likely to benefit oil, LNG, refining, shipping, and fertilizer companies, particularly U.S. producers and exporters, who are expected to outperform due to supply chain shifts.
- Widening Crack Spread: The 3-2-1 crack spread has surged from under $20 at the start of the year to over $54, which is advantageous for refiners like Valero Energy and PBF Energy, who are likely to continue outperforming the market in a high-price environment.
- LNG Supply Gap Filling: Companies like Woodside Energy, Cheniere Energy, and Equinor are positioned to fill the LNG supply gap created by the Strait blockade, with Cheniere expanding its export capacity expected to ramp up production imminently.
- Fertilizer Producers Benefit: Approximately one-third of global seaborne fertilizer flows through the Strait of Hormuz, and U.S.-focused CF Industries will benefit from its manufacturing facilities in the West and access to domestic gas supplies, enhancing its market competitiveness.
See More
Impact of Strait of Hormuz Closure on Oil Prices
- Crude Supply Tightness: The IEA reports that 25% of global seaborne oil flows through the Strait of Hormuz, and the prospect of its closure has driven oil prices up, prompting investors to consider U.S. companies like Devon Energy and Diamondback Energy to mitigate supply risks and secure capital returns.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and its closure will lead to rising prices worldwide, particularly impacting Europe; investors might look to Norway's Equinor and Australia's Woodside Energy to fill the supply gap in Asia.
- Refining Profit Surge: Refining stocks such as PBF Energy and Valero Energy have seen significant gains in 2026, with the 3-2-1 crack spread soaring from $20 at the start of the year to over $58, indicating that Asian refiners are facing higher crude procurement costs due to product shortages from the Gulf.
- Fertilizer Price Surge: The blockade of the Strait has stranded many fertilizer-laden ships, causing prices to soar and severely impacting Asian and African countries reliant on Gulf fertilizers; investors are turning to U.S. producers like CF Industries to navigate the tightening global fertilizer supply situation.
See More
Closure of Strait of Hormuz Disrupts Global Energy Markets
- Oil Price Surge: The International Energy Agency reports that 25% of the world's seaborne oil flows through the Strait of Hormuz, and its closure has led to a sharp increase in oil prices, destabilizing global energy markets, particularly affecting import-dependent nations.
- LNG Trade Disruption: Approximately 20% of global LNG trade passes through the Strait, and Iran's threats to energy infrastructure create uncertainty in LNG supply, potentially driving up global prices, especially pressuring the European market.
- Refining Sector Gains: Due to crude oil supply shortages, the refining crack spread has skyrocketed from $20 at the beginning of the year to $58, significantly boosting stocks of refining companies like PBF Energy and Valero Energy, indicating strong profit potential in the current market environment.
- Fertilizer Price Increases: The blockade of the Strait has left many fertilizer-laden ships stranded, causing fertilizer prices to soar, which poses a significant challenge for Asian and African countries reliant on Gulf fertilizers, prompting investors to focus on U.S. producers like CF Industries.
See More
IRAN STICKS TO HARDLINE POSITION—WAR WILL PERSIST, DISMISSES U.S. TIMELINE, RESPONDS COLDLY TO PROPOSAL, AND ASSERTS SOVEREIGNTY OVER THE STRAIT OF HORMUZ.
Iran's Stance on War: Iran maintains a hardline stance regarding ongoing conflicts, indicating that war will continue despite external pressures.
Rejection of U.S. Proposals: The Iranian government has rejected the U.S. timeline for negotiations and proposals related to regional security.
Response to U.S. Actions: Iran's leadership has issued a lukewarm response to U.S. proposals, signaling a lack of interest in compromise.
Demand for Sovereignty: Iran emphasizes its demand for sovereignty over the Strait of Hormuz, asserting its rights in the region amidst international tensions.
See More
Equinor Begins Development Drilling at $9B Raia Pre-Salt Field in Brazil
- Massive Investment: Equinor announced the commencement of development drilling at the Raia pre-salt field in Brazil's Campos Basin, with a total investment of $9 billion, marking the company's largest international investment to date and significantly enhancing its competitive position in the global market.
- Rich Reserves: The Raia field is estimated to hold over 1 billion barrels of oil equivalent in recoverable reserves, with Equinor holding a 35% stake in partnership with Repsol Sinopec Brasil and Petrobras, ensuring a strategic foothold in the Brazilian market.
- Drilling Operations Initiated: Drilling operations have begun on the Valaris DS-17 drillship, with plans to drill six wells in the Raia area at a water depth of approximately 2,900 meters, laying the groundwork for future production.
- Strong Production Capacity: The project will feature a large floating production, storage, and offloading vessel capable of handling over 125,000 barrels per day of condensate and 16 million cubic meters per day of natural gas, with production expected to launch in 2028, potentially meeting 15% of Brazil's natural gas demand.
See More
