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Equinor (EQNR) Closes the Sale of Ireland Corrib Gas Project

Equinor ASA EQNR recently concluded a deal for the sale of its non-operated equity stake in the Irish Corrib gas project with Vermilion Energy Inc. The sale was completed on Mar 31, 2023, following receipt of the necessary regulatory approvals. Equinor Energy Ireland Limited, a 100% owned subsidiary of Equinor, sold its shares to facilitate the deal. Since the announcement of this deal, the stock has seen a decline, possibly due to apprehensions of an economic slowdown.

The Corrib field, located 83 kilometers off the northwest coast of Ireland in water depths of almost 350 meters, began production in 2015. This field has long been an important non-operated project for Equinor. The company decided to sell the asset in order to focus on its portfolio, capture value from the present robust market and free up money that may be reinvested elsewhere.

The deal was agreed upon a consideration of $434 million, before closing adjustments, between Equinor and the buyer. As part of the agreement, Equinor and Vermilion have consented to hedge approximately 70% of the production for 2022 and 2023. They have also agreed to a contingent payment that will be made on a portion of the revenues if European petrol prices rise beyond a certain floor level.

With the sale of Corrib, Equinor will no longer have an active business presence in Ireland.

Zacks Rank & Key Picks

Currently, Equinor carries a Zack Rank #3 (Hold).

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Some better-ranked stocks for investors interested in the energy sector are CVR Energy CVI and Par Pacific Holdings Inc. PARR, both sporting a Zacks Rank #1 (Strong Buy) and Valero Energy Corporation VLO carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.

Par Pacific, a growth-oriented company, combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 barrels per day of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines, and trucking operations, PARR owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, PARR has witnessed an upward revision in earnings estimates for 2023 and 2024.

Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products. With 15 refineries spread across Canada, the United States and the United Kingdom, it has a daily refining capacity of 3.1 million barrels. Over the past seven days, VLO has seen an upward revision in earnings estimates for 2023.

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