Standard Lithium (SLI), in partnership with Equinor (EQNR, Financial) under their joint venture Smackover Lithium, has secured unanimous approval from the Arkansas Oil and Gas Commission (AOGC) for the brine production unit, now designated as the Reynolds Unit, in Phase I of the South West Arkansas (SWA) Project. This decision was reached during an open hearing with no opposition from community stakeholders.
Dr. Andy Robinson, President and COO of Standard Lithium, expressed gratitude towards the AOGC for their thorough evaluation and prompt authorization. The establishment of the Reynolds Unit marks a significant milestone in the SWA Project, facilitating the journey toward a final investment decision. This approval is also critical for setting a royalty for the unit, anticipated in late May.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Equinor ASA (EQNR, Financial) is $24.76 with a high estimate of $29.00 and a low estimate of $22.00. The average target implies an upside of 8.36% from the current price of $22.85. More detailed estimate data can be found on the Equinor ASA (EQNR) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Equinor ASA's (EQNR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equinor ASA (EQNR, Financial) in one year is $27.84, suggesting a upside of 21.84% from the current price of $22.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equinor ASA (EQNR) Summary page.
EQNR Key Business Developments
Release Date: February 05, 2025
- Return on Capital Employed: 21% for the year.
- Free Cash Flow: Expected $23 billion over the next three years (2024-2027).
- Capital Distribution for 2025: $9 billion, including a $0.02 increase in quarterly cash dividend and $5 billion for share buyback.
- Cash Flow from Operations: $18 billion after tax for the year.
- Production Growth: More than 10% expected from 2024 to 2027.
- Organic CapEx: $12.1 billion for the full year.
- Net Debt Ratio: 11.9%.
- Adjusted Operating Income for Q4: $7.9 billion before tax.
- IFRS Net Income for Q4: $2 billion.
- Adjusted Earnings per Share for Q4: $0.63.
- Cash Reserves: Over $23 billion.
- Production Efficiency: Johan Sverdrup and Troll fields delivered close to 95%.
- Organic Reserve Replacement Ratio: Above 110%, including transactions more than 150%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Equinor ASA (EQNR, Financial) is positioned to deliver industry-leading returns with an expected return on capital employed above 15% through 2030.
- The company anticipates more than 10% growth in oil and gas production from 2024 to 2027, supported by high-value transactions and project progress.
- Equinor ASA (EQNR) expects to generate $23 billion in free cash flow over the next three years, enabling competitive shareholder distribution.
- The company has announced a total capital distribution of $9 billion for 2025, including a $0.02 increase in the quarterly cash dividend and $5 billion for share buybacks.
- Equinor ASA (EQNR) has achieved strong operational performance, with a 21% return on capital employed and $18 billion in cash flow from operations after tax in 2024.
Negative Points
- The company faced a tragic helicopter accident in 2024, highlighting ongoing safety challenges despite improvements.
- Equinor ASA (EQNR) has reduced its investments in renewables and low-carbon solutions by 50% compared to last year's outlook, impacting the pace of growth in these segments.
- The geopolitical tension and market uncertainty pose risks to the company's operations and price outlook.
- The uneven pace of the energy transition and regulatory uncertainties have affected segments like offshore wind and hydrogen.
- The company has lowered its renewables ambition for 2030 and introduced a range for its net carbon intensity ambitions, reflecting challenges in the energy transition.
