Equinor ASA (EQNR Quick QuoteEQNR - Free Report) , the Norwegian energy major, is restructuring its energy portfolio to form a new Power business area — PWR. It is doing so by combining its Renewables (“REN”) division with flexible power assets from its Marketing, Midstream and Processing (“MMP”) segment. The move, announced on Thursday, is aimed at enhancing competitiveness and unlocking stronger returns in an increasingly electrified and dynamic global power market.

The new division will be led by Helge Haugane, currently head of Gas & Power in MMP. He will step into his role as executive vice president of PWR this September.

EQNR Looks to Blend Renewables With Flexibility

CEO Anders Opedal highlighted that merging renewables with flexible power assets is a strategic step to enhance Equinor's competitiveness and financial performance, laying the groundwork for sustained and disciplined growth in the evolving power sector.

The decision comes at a time when electricity demand is being driven by megatrends such as AI, data center expansion and the global shift toward electrification. Equinor is positioning itself to bridge the intermittency of renewable generation with reliable, dispatchable sources like natural gas and battery storage.

EQNR's Expanding Power Footprint

Over the years, Equinor has built a significant portfolio of offshore wind projects across the UK, the United States and Poland, alongside growing solar and onshore wind developments. The company is also building battery energy storage capabilities in key regions, such as the United States and the UK.

On the flexible side, assets like the Triton Power joint venture with SSE Thermal and the under-construction Net Zero Teesside project — which aims to be the world’s first gas-fired power station equipped with carbon capture — highlight Equinor’s commitment to firm, low-carbon energy solutions.

By integrating these efforts under one roof, Equinor plans to enhance coordination across technologies, improve capital allocation and pursue more efficient project execution. That said, its gas and power trading operations will continue to be managed under MMP to maintain a strategic focus on trading.

Leadership Signals Stability for EQNR’s Transition

Helge Haugane’s appointment as EVP of the new PWR unit highlights Equinor’s focus on continuity and strategic alignment as it advances through the energy transition. With years of experience in gas and power markets, he is expected to guide the integrated division by leveraging a cross-technology and cross-market perspective, which is seen as key to achieving profitable growth in a rapidly evolving energy landscape.

The reorganization also comes as European energy firms face growing pressure to balance decarbonization efforts with energy reliability and shareholder returns. With global energy majors increasingly leaning on hybrid energy models, combining renewables with dispatchable and stored power, Equinor’s new structure positions it well for the long haul.

The updated structure and potential changes to segment reporting are expected to take effect in September.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. (AROC Quick QuoteAROC - Free Report) , Kinder Morgan, Inc. (KMI Quick QuoteKMI - Free Report) and Enterprise Products Partners L.P. (EPD Quick QuoteEPD - Free Report) . While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.

Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030. 

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EPD’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 1.83%.