Equinor (EQNR) discovers oil in the Snofonn North exploration well

Equinor ASA EQNR has announced an oil discovery at Snofonn North with exploration well 7220/8-2 S located on the Johan Castberg field in the Barents Sea.

In February 2022, the Norwegian authorities granted Equinor a drill permit for the 7220/8-2 S well in the 532 production license.

Equinor is the operator of production license 532, which was awarded in the 20th licensing round in 2009. Var Energi ASA and Petoro are the other licensees. This is notably the 12th exploration well to be drilled in production license 532.

The well was drilled five kilometers south-southeast of discovery well 7220/8-1 on the Johan Castberg field. Using the semi-submersible Transocean Enabler drilling rig, the well was drilled 1269 meters below the water surface. It has now been permanently capped and abandoned.

Based on preliminary estimates, the size of the latest discovery is estimated at 37 to 50 million barrels of recoverable oil equivalent. The discovery will further increase the profitability of Equinor’s Johan Castberg field.

Snofonn Nord is a significant discovery near the Johan Castberg development. It can add valuable volumes to the installation in the future. Equinor, along with the other licensees, will consider tying the latest discovery to the Johan Castberg field.

With this latest discovery, Var Energi is celebrating its first exploration success this year. The discovery adds valuable volumes to the company’s resource base, supporting its long-term growth objectives.

Company profile

Based in Stavanger, Norway, Equinor is one of the world’s leading integrated energy companies.

Zacks Ranking and Other Stocks to Consider

Equinor currently carries a Zack Rank #1 (Strong Buy).

Investors interested in energy The industry may be looking at the following companies that also currently boast a #1 Zacks rank. You can see the full list of today’s Zacks #1 Rank stocks here.

Kinder Morgan, Inc. KMI is one of North America’s leading midstream energy infrastructure providers. The company’s board of directors has approved a cash dividend of 27.75 cents per share for the first quarter of 2022. This suggests a 2.8% increase from the previous dividend of 27 cents per share.

Kinder Morgan expects to generate net income of $2.5 billion in 2022. The company forecasts DCF and adjusted EBITDA of $4.7 billion and $7.2 billion, respectively. In addition, to strengthen the balance sheet, it plans to end this year with a net debt to adjusted EBITDA of 4.3 times. With this plan, KMI expects the ratio for 2022 to be below its long-term target of 4.5 times.

Petrobras PBR is one of the largest listed oil companies in Latin America, which dominates Brazil’s oil and gas sector. In the first quarter, PBR generated positive free cash flow for the 28th consecutive quarter, the metric rising to $7,932 million from $5,594 million recorded in the corresponding period last year.

Heavily indebted Petrobras has emphasized its debt reduction in its recent five-year (2022-2026) corporate management plan to boost its credit rating. As PBR focuses on restoring its financial footing by selling assets and reducing debt burdens, it managed to reduce gross debt below its 2022 target of $60 billion in the third quarter of 2021. , well ahead of time. After the latest quarterly results, the figure stands at $58.6 billion.

Murphy Oil Company MUR is a global oil and gas exploration and production company. Recently, MUR’s Board of Directors approved a 40% increase in the quarterly dividend rate starting in the fourth quarter of 2022, bringing the total annualized figure to 70 cents per share.

Murphy Oil’s total debt to equity fell from 40.2% at the end of 2021 to 37% for the first quarter of 2022. Its ratio multiplied by interest earned (EIR) was 2.9 for the first quarter 2022, up from the level of the fourth quarter of 2021. of 1.2. A strong and positive ratio indicates the ability of the company to honor its debts in the near future without any difficulty.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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