Equinor Q3 Earnings Surpass Estimates, Revenues Decline Y/Y

Equinor ASA EQNR reported third-quarter 2024 adjusted earnings per share of 79 cents, which beat the Zacks Consensus Estimate of 74 cents. However, the bottom line declined from the year-ago quarter’s 98 cents.Total quarterly revenues of $25,416 million declined from $25,924 million in the prior-year quarter. However, the top line surpassed the Zacks Consensus Estimate of $24,447 million.Better-than-expected quarterly earnings can be attributed to higher daily production of liquids and gas, driven by the ramp-up of new fields and a reduction in unplanned losses. The positives were partially offset by the lower liquids' prices.Equinor ASA Price, Consensus and EPS Surprise  Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA QuoteSegmental Analysis of EquinorExploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $5,875 million, down 1% from $5,942 million in the year-ago quarter.The segment was impacted by increased turnaround activities, natural declines and planned maintenance across various fields.The company’s average daily production of liquids and gas increased 2% year over year to 1,308 thousand barrels of oil equivalent per day (MBoe/d). This increase in production was driven by the ramp-up of new fields and a reduction in unplanned losses.E&P International: The segment’s adjusted operating profit totaled $407 million, down 53% from the year-ago quarter’s $860 million. The segment was affected by lower liquids prices and reduced lifted volumes.The average daily equity production of liquids and gas declined to 334 MBoe/d from 355 MBoe/d in the year-ago quarter. Equity production decreased in this quarter compared with the prior-year period due to natural declines in certain fields and temporary shutdowns in Brazil and Libya. However, the reduction was partially offset by the ramp-up of new wells, which helped maintain overall production levels. Additionally, increased turnaround activities during the quarter contributed to the decrease in production.E&P USA: Equinor generated an adjusted quarterly profit of $207 million from this segment. The figure declined 40% from $343 million in the third quarter of 2023. E&P USA was affected by lower liquids' prices, partially mitigated by higher gas prices.The integrated firm’s average equity production of liquids and gas was 342 MBoe/d, down 7% from 369 MBoe/d in the year-ago period. The decline in production was primarily due to turnaround activities, the effects of hurricanes in the Gulf of Mexico and production curtailments affecting the Appalachian onshore assets.Marketing, Midstream & Processing: The segment reported adjusted earnings of $545 million, down 38% from $876 million a year ago.Renewables: The segment reported an adjusted loss of $115 million, which was wider than the year-ago quarter’s loss of $108 million. The segment was impacted as project development costs surpassed earnings from operating assets.Free Cash Flow of EQNRIn the September-end quarter, Equinor generated a negative free cash flow of $3,422 million against a free cash flow of $1,479 million in the year-ago period.Equinor’s Balance SheetAs of Sept. 30, 2024, the company reported $8,002 million in cash and cash equivalents. Its long-term debt was $22,427 million.Outlook for EQNREquinor reiterated stable oil and gas production for 2024. Additionally, it expects renewable power generation to increase 50% from that reported in 2023.The company also gave its organic capital spending budget of $12-$13 billion for the year.Zacks Rank & Key PicksCurrently, EQNR carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks that currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Williams Companies, Inc. WMB is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.75. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.Viper Energy, Inc. VNOM is a variable distribution MLP based in Midland, TX. It generates strong and steady royalty income from mineral interests in Eagle Ford and the Permian Basin. The business strategies of the partnership include acquiring mineral interests from third parties and the parent company.The Zacks Consensus Estimate for VNOM’s 2024 EPS is pegged at $1.99. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.Helmerich & Payne HP is primarily involved in the contract drilling of oil and natural gas, with operations in all major U.S. onshore basins, as well as South America, Australia and the Middle East. In the past few months, the company has secured eight rig contracts with Saudi Aramco, thereby expanding its presence in the Middle East. With plans to capitalize on unconventional drilling growth opportunities, HP’s outlook seems positive.The Zacks Consensus Estimate for HP’s 2024 EPS is pegged at $3.53. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Helmerich & Payne, Inc. (HP): Free Stock Analysis Report Viper Energy Inc. 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