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Equinor (EQNR) to Sell 20% Stake in Rosebank Project for $1.5B

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Equinor ASA (EQNR - Free Report) , the Norwegian energy giant, is gearing up to divest a 20% stake in its Rosebank oil development project located in the U.K. North Sea, per a Reuters report. This move represents a quarter of Equinor's 80% holding in the project and is anticipated to yield approximately $1.5 billion.

Equinor, the operator of the Rosebank project, doubled its stake in the field after acquiring Suncor Energy's (SU - Free Report) U.K. business for $850 million earlier this year. EQNR previously stated that the field is slated to commence production between 2026 and 2027, with an estimated lifetime output of 300 million barrels of oil.

In an effort to streamline operations and reduce costs, Equinor has successfully implemented measures such as the redeployment of a floating production, storage, and offloading vessel, along with the simplification of the development process. These strategic initiatives have contributed to bringing down the anticipated project cost, which is $3.8 billion.

Although the projected sale value is estimated at $1.5 billion, the final sum will ultimately hinge on fluctuating oil prices and the specifics of the deal structure, per the sources. Equinor has opted not to provide any official commentary on the matter yet.

Zacks Rank & Key Pick

Equinor currently carries a Zack Rank #3 (Hold).

A couple of better-ranked players in the energy sector are Matador Resources Company (MTDR - Free Report) and Liberty Energy Inc. (LBRT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2023 and 2024 over the past 30 days.

MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.

Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared to most of its peers. Liberty's strong relationship with high-quality customers provide revenue visibility and business certainty. LBRT has witnessed an upward earnings estimate revision for 2023 and 2024 over the past seven days.

LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.


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