Equinor ASA Retakes 200 Day Moving Average, Uptrend Channel

  • Post category:Energy
  • Reading time:5 mins read
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Equinor EQNR stock retook its 200 day moving average on September 1, 2023. EQNR stock is trading in an uptrend channel and has formed a classic turnaround chart pattern on the 1-year daily stock chart.

EQNR stock retook its 200 day moving average on September 1, 2023.

Equinor ASA is a Norwegian multinational energy company primarily engaged in the exploration, production, refining, and distribution of oil, gas, and renewable energy. Formerly known as Statoil, the company changed its name to Equinor in 2018 to reflect its focus on a broader energy portfolio and commitment to sustainable energy solutions. Equinor operates in more than 30 countries worldwide, with a presence in all major oil and gas regions. The company has a strong emphasis on offshore operations and is one of the largest producers of oil and gas from deepwater fields globally. In addition to fossil fuels, Equinor is actively investing in renewable energy sources such as wind power. The company has developed several offshore wind farms and has plans for further expansion in the renewable energy sector. Equinor also has initiatives in carbon capture and storage (CCS) and hydrogen energy. Equinor is committed to reducing carbon emissions and transitioning to a low-carbon future. The company aims to be a leader in the energy transition by leveraging its expertise in oil and gas while expanding its renewable energy portfolio.

Deepwater oil fields are oil reservoirs located beneath bodies of water with depths greater than 500 feet (150 meters). These oil fields are typically found in offshore areas such as oceans, seas, or large lakes. The term “deepwater” refers to the significant distance between the water surface and the oil reservoir, requiring specialized drilling and extraction techniques. Deepwater oil fields are characterized by their challenging exploration and production conditions. They often necessitate advanced technology and equipment due to the harsh environment, high pressures, extreme temperatures, and strong ocean currents. The development of deepwater oil fields involves drilling wells from platforms or floating facilities, as well as installing subsea infrastructure to connect the wells to production facilities. These oil fields can contain substantial oil reserves, attracting significant investment and exploration efforts from oil companies. Deepwater discoveries have played a crucial role in expanding global oil production, with notable examples including the Gulf of Mexico, offshore Brazil, West Africa, and the North Sea. However, the extraction of oil from deepwater fields can be expensive and complex, requiring significant investment and expertise.

Equinor upgraded at Morgan Stanley

With a price target of NOK 324, up from NOK 290, Morgan Stanley upgraded Equinor to Equal Weight on September 1, 2023. Even without relying on an increase in commodity prices, the analyst tells investors in a research note that the energy sector has a long period of strong free cash flow, buybacks, and dividend growth ahead of it. Consensus estimates are once again beatable, market expectations have recently moderated, and valuations appear to be attractive.

Equinor exploring sale of Azerbaijan assets, Bloomberg reports

The sale of Equinor’s operations in Azerbaijan is reportedly being discussed with Jefferies as of August 21, 2023, according to rumors. Bloomberg was informed by sources that the assets, which include a 7.27 percent interest in the sizable Azeri-Chirag-Gunashli field, could be worth around $1B. In the upcoming weeks, bids for the assets are due.

Azerbaijan is located in the South Caucasus region of Eurasia. It is bordered by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south.

Rumors are circulating that Equinor is looking to sell its assets as Azerbaijan amasses troops and equipment near the Armenian border as border clashes between the two countries intensifies.

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