Yahoo Finance Equinor (EQNR), BP Finalize Offshore Wind Projects in New York
Equinor ASA EQNR and BP plc BP announced the finalization of the purchase and sale agreements with the New York State Energy Research and Development Authority for two of their U.S. offshore wind projects — Empire Wind 2 and Beacon Wind 1.
In January 2021, Equinor and BP were awarded the offshore wind tenders in the United States to provide New York with offshore wind power. The two projects have a total capacity of 2.5 gigawatts (GW).
Once operational, the Empire Wind 2 project will generate 1.26 GW of renewable offshore wind power. Then again, Beacon Wind 1, situated more than 60 miles east of Montauk Point and 20 miles south of Nantucket, will generate 1.23 GW of renewable power. In 2019, Equinor also won the contract for the adjacent Empire Wind 1 project, with a capacity of 816 megawatts.
Equinor and BP’s portfolio of ongoing offshore wind projects comprise the Empire Wind 1, Empire Wind 2 and Beacon Wind 1. The projects will produce sufficient electricity to power as much as 2 million homes in New York. Beside this, it will help generate more than $1 billion in economic returns to New York.
Equinor is one of the leading offshore wind energy developers in the United States. The agreements represent a significant achievement for the Equinor-BP partnership. The projects set the companies on the path to offer more than 3.3 GW of offshore wind power to New York and seek additional growth in the U.S. offshore wind market.
New York has been persistent in establishing itself as the leading offshore wind market and offshore wind is bringing unprecedented investment to the state. The projects will help create a better energy system in New York, while creating employments to accelerate the expanding green economy.
Company Profile & Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.
Shares of EQNR have outperformed the industry in the past six months. The stock has gained 56.6% compared with the industry’s 36.1% growth.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson-UTI Energy, Inc. PTEN is one of the largest North American land drilling contractors, having a large, high-quality fleet of drilling rigs. PTEN’s technologically advanced ‘Apex’ rigs are the key to its success. Patterson-UTI’s proprietary design makes the rigs move faster than conventional ones, drill quicker and more efficiently than conventional ones, and allows for a safer operating environment.
Patterson-UTI’s long-term debt is around $902 million. PTEN's debt-to-capitalization at the end of the third quarter was 34.3%, quite conservative versus 39.4% for the sub-industry to which it belongs. Apart from low leverage for its industry, Patterson-UTI has ample liquidity with cash and cash equivalents of $956 million and $600 million available under the revolving credit facility. Also, the company has a comfortable debt maturity profile with no major debt outstanding until 2028.
Oceaneering International, Inc. OII is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII owns a geographically diversified asset base across the United States and worldwide. The company's revenue profile is evenly split between its international and domestic operations, lowering Oceaneering’s risk profile.
Oceaneering's strong relationships with high-quality customers provide revenue visibility and business certainty. The clients, mostly well-capitalized, blue-chip E&P companies with long-term production growth plans, are likely to be less susceptible to commodity price fluctuations. This should ensure multi-year earnings stability for OII.
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