Equinor (EQNR) to Develop Floating Offshore Wind in Spain
Equinor ASA EQNR entered an agreement with utility company Naturgy Energy Group SA to compete in Spain’s first offshore wind power auction, which is expected to occur in the offshore Canary Islands in 2023.
As part of the auction, the companies will seek opportunities to develop and construct a floating offshore wind project in the country.
Equinor and Naturgy plan to develop renewable assets in Spain, starting with commercial floating wind projects. Naturgy will provide its onshore wind development expertise in Spain. Equinor will utilize its proven abilities in floating offshore wind technology and development.
Equinor has long-standing experience in working with Spain’s offshore supply industry. Major components like floating substructures, the tower and the mooring system for Equinor’s Hywind Scotland floating wind farm were manufactured in Spain. The partnership will benefit from Equinor’s previous activities with floating wind technologies and the Spanish offshore supply industry.
Spain plays a crucial part in the offshore wind supply chain for the rest of Europe. The development of floating wind opens an important opportunity for Spain, enabling it to capitalize on locations away from the coast with excellent wind resources.
The government of Spain intends to transform its energy mix, with plans to develop up to 3 gigawatts of offshore wind capacity by 2030. With more than 90% of the Spanish offshore wind areas being deep waters, Spain has an exciting opportunity to lead the way for a new wave of floating offshore wind in Europe.
Company Profile & Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.
Shares of EQNR have outperformed the industry in the past six months. The stock has gained 43.6% compared with the industry’s 27.5% growth.
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Zacks Rank & Other Stocks to Consider
Equinor currently flaunts a Zack Rank #1 (Strong Buy).
Investors interested in the energy sector might also look at the following companies that presently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips COP, based in Houston, TX, primarily explores and produces oil and natural gas. COP ended 2021 with proved reserves of 6.1 billion barrels of oil equivalent (Boe). In 2021, the company produced 1,567 thousand Boe per day, comprising more than 52.9% oil.
ConocoPhillips’ earnings for 2022 are expected to increase 79.4% year over year. COP revised higher its expected 2022 return of capital to shareholders. The new guidance is at $8 billion, marking an increase from the prior mentioned $7 billion. The incremental returns to stockholders will get distributed through share repurchases and VROC tiers.
TotalEnergies SE TTE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. At present, the company has more than 12 years of proved reserves and 20 years of proved and probable reserves.
TTE’s 2022 earnings are expected to increase 45.8% year over year. TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. As of Dec 31, 2021, TotalEnergies’ cash and equivalents were $21,342 million, enough to address the current borrowings of $13,645 million.
Antero Resources Corporation AR is among the fast-growing natural gas producers in the United States. As of 2021-end, AR had an estimated proved reserve base of 17.7 trillion cubic feet of gas equivalent, suggesting a 1% increase from the 2020 reported levels.
Antero Resources’ earnings for 2022 are expected to increase 213.2% year over year. AR is targeting a capital return program of 25-50% of free cash flow annually, beginning with the implementation of the share repurchase program. The company’s board authorized a share repurchase program, enabling it to repurchase up to $1 billion of outstanding common stock. The open market share repurchase program is expected to begin in the first quarter of 2022.
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