Equinor Halts Empire Wind Offshore Work After US Government Order

Equinor ASA EQNR, the Norwegian energy major, has suspended offshore construction on the Empire Wind project after the U.S. Bureau of Ocean Energy Management (“BOEM”) issued a halt work order. The order, received by Empire Offshore Wind LLC on April 16, requires an immediate cessation of all activities on the outer continental shelf until BOEM concludes its review.EQNR Responds to BOEM Order, Weighs Legal OptionsEmpire, a joint venture led by Equinor Wind US LLC, is engaging with federal authorities to clarify the reasons behind the suspension. The company is also evaluating legal options, including the possibility of appealing the BOEM directive.Despite the order, Empire confirmed that it is complying fully and has promptly suspended relevant marine operations. The decision prioritizes worker and environmental safety as the project navigates this regulatory hurdle.Empire Wind 1, one of the two phases of the project, had already secured all required state and federal permits and was under active construction. The project is backed by a contract with the New York State Energy Research and Development Authority (“NYSERDA”) and is expected to provide clean electricity to approximately 500,000 New York homes. The construction phase alone has already created more than 1,500 jobs in the United States.EQNR Faces Financial Exposure Amid Project UncertaintyAs of March 31, 2025, the gross book value of Empire Wind was around $2.5 billion, including investments in the South Brooklyn Marine Terminal. Equinor’s financial exposure is notable — approximately $1.5 billion has been drawn under the project’s term loan facility, backed by guarantees from Equinor US Holdings Inc.If the suspension escalates into a complete halt, Equinor would have to repay the loan from its equity commitment and face termination penalties from suppliers, adding further pressure to the project's economics.Equinor emphasized its long-term investment in the United States, where it has been active for over 35 years and invested more than $60 billion in oil, gas and renewables. The company stated that the halt work order will be reflected as a subsequent event in its first-quarter 2025 report.The temporary halt adds another layer of uncertainty to the offshore wind sector in the United States, even as EQNR continues to bet on the country’s energy transition efforts.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 missed estimates in three of the trailing four quarters and met once, delivering an average negative surprise of 3.33%.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' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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