Equinor Forms New Power Unit to Support AI, Data Center Growth

Equinor ASA EQNR, the Norwegian energy major, is restructuring its energy portfolio to form a new Power business area — PWR. It is doing so by combining its Renewables (“REN”) division with flexible power assets from its Marketing, Midstream and Processing (“MMP”) segment. The move, announced on Thursday, is aimed at enhancing competitiveness and unlocking stronger returns in an increasingly electrified and dynamic global power market.The new division will be led by Helge Haugane, currently head of Gas & Power in MMP. He will step into his role as executive vice president of PWR this September.EQNR Looks to Blend Renewables With FlexibilityCEO Anders Opedal highlighted that merging renewables with flexible power assets is a strategic step to enhance Equinor's competitiveness and financial performance, laying the groundwork for sustained and disciplined growth in the evolving power sector.The decision comes at a time when electricity demand is being driven by megatrends such as AI, data center expansion and the global shift toward electrification. Equinor is positioning itself to bridge the intermittency of renewable generation with reliable, dispatchable sources like natural gas and battery storage.EQNR's Expanding Power FootprintOver the years, Equinor has built a significant portfolio of offshore wind projects across the UK, the United States and Poland, alongside growing solar and onshore wind developments. The company is also building battery energy storage capabilities in key regions, such as the United States and the UK.On the flexible side, assets like the Triton Power joint venture with SSE Thermal and the under-construction Net Zero Teesside project — which aims to be the world’s first gas-fired power station equipped with carbon capture — highlight Equinor’s commitment to firm, low-carbon energy solutions.By integrating these efforts under one roof, Equinor plans to enhance coordination across technologies, improve capital allocation and pursue more efficient project execution. That said, its gas and power trading operations will continue to be managed under MMP to maintain a strategic focus on trading.Leadership Signals Stability for EQNR’s TransitionHelge Haugane’s appointment as EVP of the new PWR unit highlights Equinor’s focus on continuity and strategic alignment as it advances through the energy transition. With years of experience in gas and power markets, he is expected to guide the integrated division by leveraging a cross-technology and cross-market perspective, which is seen as key to achieving profitable growth in a rapidly evolving energy landscape.The reorganization also comes as European energy firms face growing pressure to balance decarbonization efforts with energy reliability and shareholder returns. With global energy majors increasingly leaning on hybrid energy models, combining renewables with dispatchable and stored power, Equinor’s new structure positions it well for the long haul.The updated structure and potential changes to segment reporting are expected to take effect in September.EQNR’s Zacks Rank & Key PicksEQNR currently carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and Enterprise Products Partners L.P. EPD. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030. Kinder Morgan’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 1.85%.Enterprise generates stable fee-based revenues from its vast network of oil and gas pipelines spanning 50,000 miles, connecting prolific U.S. shale plays. Notably, the acquisition of Pinon Midstream, which aims to provide services in the prolific Permian Basin, is expected to drive the partnership’s cash flows. This move enhances its NGL value chain and addresses regional infrastructure constraints, with strong customer demand expected to boost revenues.EPD’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 1.83%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks