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Equinor (EQNR), BP Terminate Empire Wind 2 Offshore Agreement
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Equinor ASA (EQNR - Free Report) and BP plc (BP - Free Report) jointly announced the termination of the Offshore Wind Renewable Energy Certificate (“OREC”) Agreement for the Empire Wind 2 project on Wednesday. This offshore wind project in the United States, with a potential generative capacity of 1,260 MW, was terminated in collaboration with the New York State Energy Research and Development Authority (“NYSERDA”).
The Empire Wind offshore project initially envisaged two farms, the 816 MW Empire Wind 1 and the 1,260 MW Empire Wind 2, located 12 miles south of Long Island. The termination of the power sale agreement raises questions about the future trajectory of these ambitious wind ventures.
The decision was attributed to adverse commercial conditions driven by inflation, interest rates and supply-chain disruptions, which rendered the existing OREC agreement for Empire Wind 2 unviable. In response to these challenges, Equinor and BP see the potential for repositioning the mature project to align with the evolving market dynamics and identify fresh offtake avenues.
Molly Morris, president of Equinor Renewables Americas, highlighted the significance of ensuring the commercial viability of ambitious projects of this scale. She expressed that the Empire Wind 2 decision offers the chance to reset and enhance the project for a more robust future. Morris emphasized the commitment to collaborating with community partners throughout the state, emphasizing the preparedness of offshore wind initiatives to create union jobs and stimulate substantial economic activity in New York.
Joshua Weinstein, president of Offshore Wind Americas at BP, expressed support for NYSERDA's leadership and commitment to offshore wind, emphasizing its critical role in New York State and America's clean energy future. Weinstein highlighted the potential of offshore wind to deliver reliable renewable power and economic benefits to the state and its communities.
Despite the reset, Equinor and BP remain dedicated to offshore wind as an integral part of the energy mix, emphasizing their commitment to contributing substantially to the state and local economy.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
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Equinor (EQNR), BP Terminate Empire Wind 2 Offshore Agreement
Equinor ASA (EQNR - Free Report) and BP plc (BP - Free Report) jointly announced the termination of the Offshore Wind Renewable Energy Certificate (“OREC”) Agreement for the Empire Wind 2 project on Wednesday. This offshore wind project in the United States, with a potential generative capacity of 1,260 MW, was terminated in collaboration with the New York State Energy Research and Development Authority (“NYSERDA”).
The Empire Wind offshore project initially envisaged two farms, the 816 MW Empire Wind 1 and the 1,260 MW Empire Wind 2, located 12 miles south of Long Island. The termination of the power sale agreement raises questions about the future trajectory of these ambitious wind ventures.
The decision was attributed to adverse commercial conditions driven by inflation, interest rates and supply-chain disruptions, which rendered the existing OREC agreement for Empire Wind 2 unviable. In response to these challenges, Equinor and BP see the potential for repositioning the mature project to align with the evolving market dynamics and identify fresh offtake avenues.
Molly Morris, president of Equinor Renewables Americas, highlighted the significance of ensuring the commercial viability of ambitious projects of this scale. She expressed that the Empire Wind 2 decision offers the chance to reset and enhance the project for a more robust future. Morris emphasized the commitment to collaborating with community partners throughout the state, emphasizing the preparedness of offshore wind initiatives to create union jobs and stimulate substantial economic activity in New York.
Joshua Weinstein, president of Offshore Wind Americas at BP, expressed support for NYSERDA's leadership and commitment to offshore wind, emphasizing its critical role in New York State and America's clean energy future. Weinstein highlighted the potential of offshore wind to deliver reliable renewable power and economic benefits to the state and its communities.
Despite the reset, Equinor and BP remain dedicated to offshore wind as an integral part of the energy mix, emphasizing their commitment to contributing substantially to the state and local economy.
Zacks Rank & Key Picks
Equinor currently carries a Zack Rank #3 (Hold).
A couple of better-ranked stocks in the energy sector are The Williams Companies, Inc. (WMB - Free Report) and Sunoco LP (SUN - 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.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.