Yahoo Finance Equinor (EQNR) to Invest NOK 13.2B to Upgrade Hammerfest LNG
Equinor ASA EQNR and partners announced plans to invest NOK 13.2 billion to upgrade the Hammerfest liquefied natural gas (“LNG”) facility at Melkoya.
The company submitted a plan for development and operation to the Norwegian Minister of Petroleum and Energy to secure the future of the Hammerfest LNG.
The project involved gas onshore compression and electrification, and will secure the future of Hammerfest LNG. Onshore gas compression will provide enough flow from the reservoir to extend plateau production and maintain high gas exports from the facility beyond 2030.
Beside this, Equinor will replace the facility’s gas turbine generators with an onshore power connection. This will cut carbon dioxide emissions by 850,000 tons per year, which is equivalent to 2% of Norway’s annual emissions. Notably, the project is a major contributor to the energy transition.
Hammerfest is the only large-scale LNG facility in Europe. The Hammerfest facility normally delivers 18.4 million standard cubic meters of gas per day or 6.5 billion cubic meters per year. This corresponds to the energy requirements of 6.5 million Europe homes or 5% of all Norway gas export.
Upgrading the Hammerfest LNG facility will improve Norway’s position as a reliable LNG supplier to Europe. Electrification will enable Equinor and partners to deliver the gas with negligible emissions from production. The project is expected to secure long-term operations and gas exports from Melkoya toward 2050.
The project is one of the largest single-emission-reduction measures for decarbonizing oil and gas production in Norway. The investments will enable Equinor to utilize the capacity at Hammerfest LNG for decades to come.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has gained 10.4% compared with the industry’s 15.1% growth.
Image Source: Zacks Investment Research
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 sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton Company HAL is one of the largest oilfield service providers in the world. HAL’s third-quarter 2022 adjusted net income per share of 60 cents surpassed the Zacks Consensus Estimate of 56 cents.
HAL is expected to see an earnings surge of 94.4% in 2022. With controlled capital spending and strong demand for its products/services, Halliburton expects to generate strong free cash flows going forward. We expect the free cash flow to be more than $1.1 billion in 2022, jumping to $1.9 billion in 2023.
Helmerich & Payne Inc. HP is a major land and offshore drilling contractor in the western hemisphere, having the youngest and most efficient drilling fleet. HP’s fiscal third-quarter 2022 adjusted profit of 27 cents per share beat the Zacks Consensus Estimate of 5 cents.
Helmerich & Payne is expected to see an earnings surge of 277.8% in 2022. HP boasts a strong balance sheet, carrying $542.3 million in long-term debt. The company’s debt-to-capitalization stands at just 16.6% compared with many of its peers that are hugely burdened with debts.
Liberty Energy Inc. LBRT offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.
Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Halliburton Company (HAL) : Free Stock Analysis Report
Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
