Equinor Misses Q1 Earnings Estimates, Expects '25 Output to Grow 4%

Equinor ASA EQNR reported first-quarter 2025 adjusted earnings per share (EPS) of 66 cents, which missed the Zacks Consensus Estimate of 83 cents. The bottom line declined 32% from the year-ago quarter’s 96 cents.Total quarterly revenues of $29.92 billion increased from $25.14 billion in the prior-year quarter. The top line also surpassed the Zacks Consensus Estimate of $28.21 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Weak quarterly earnings can be attributed to lower production across major segments and weaker commodity prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan contributed to reduced production.Equinor ASA Price, Consensus and EPS Surprise  Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA QuoteSegmental Analysis of EquinorExploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $7,453 million, up 29.5% from $5,756 million in the year-ago quarter.The segment benefited from a substantial rise in gas prices, while liquids prices saw only a modest decline from the first quarter of 2024. This favorable pricing trend led to increased revenues, even though production volumes were lower.The company’s average daily production of liquids and gas decreased 5% to 1,390 thousand barrels of oil equivalent per day (MBoe/d) from 1,462 Mboe/d in the prior-year quarter. Production declined due to natural depletion across several fields, the shutdown of Sleipner B following the October 2024 incident, and a combination of planned and unplanned maintenance activities at Hammerfest LNG.E&P International: The segment’s adjusted operating profit totaled $531 million, down from the year-ago quarter’s $616 million. The segment was affected by lower liquid prices.The average daily equity production of liquids and gas declined 12.2% to 309 MBoe/d from 352 MBoe/d in the year-ago quarter. Equity production decreased year over year due to natural declines in certain fields and divestments of assets in Azerbaijan and Nigeria. However, the reduction was partially offset by contributions from new wells.E&P USA: Equinor generated an adjusted quarterly profit of $511 million from this segment. The figure increased 35.5% from $377 million in the first quarter of 2024. E&P USA was aided by elevated gas prices and increased gas production.The integrated firm’s average equity production of liquids and gas was 424 MBoe/d, up 21% from 350 MBoe/d in the year-ago period. The rise in production was primarily fueled by increased gas output from the Appalachia onshore assets following the acquisition of additional interests in late 2024. This growth was bolstered by heightened operational activity in the region.Marketing, Midstream & Processing: The segment reported adjusted earnings of $253 million, plummeting 71.5% from $887 million a year ago.Renewables: The segment reported an adjusted loss of $48 million, narrower than the year-ago quarter’s loss of $70 million. This can be attributed to the decrease in total operating and administrative costs.Net Cash Flow of EQNRIn the March-end quarter, Equinor generated a net cash flow of $2,086 million compared with a free cash flow of $125 million in the year-ago period.Equinor’s Balance SheetAs of March 31, 2025, the company reported $7,370 million in cash and cash equivalents. Its long-term debt was $22,737 million.Outlook for EQNRFor 2025, Equinor expects oil and gas production to grow 4% year over year. The company also announced its organic capital spending budget of $13 billion for the year.The company plans to maintain its unit production costs within the top 25% of its peer group. Planned maintenance activities are expected to lower equity production by approximately 30 thousand barrels of oil equivalent per day throughout 2025.Zacks Rank & Key PicksCurrently, EQNR carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.RPC Inc. RES reported first-quarter 2025 adjusted earnings of 6 cents per share, which missed the Zacks Consensus Estimate of 7 cents. The bottom line declined from the year-ago figure of 13 cents. The weak quarterly earnings primarily resulted from flat pressure pumping revenues and slightly declining performance across other service lines.As of March 31, the company had cash and cash equivalents of $326.7 million and maintained a debt-free balance sheet. RPC has a Zacks Style Score of A for Value and Momentum.Enterprise Products Partners LP’s EPD first-quarter 2025 adjusted earnings per limited partner unit of 64 cents missed the Zacks Consensus Estimate of 69 cents. The bottom line also declined from the year-ago level of 66 cents. Weak quarterly earnings can be primarily attributed to weak petrochemical margins and lower crude oil marine terminal volumes despite record natural gas processing and pipeline volumes.As of March 31, 2025, the outstanding total debt principal was $31.9 billion, and consolidated liquidity amounted to $3.6 billion. It generated an adjusted free cash flow of $2.1 billion, flat year over year.Kinder Morgan, Inc. KMI reported first-quarter 2025 adjusted earnings per share of 34 cents, which missed the Zacks Consensus Estimate of 35 cents. The bottom line was flat year over year. Lower-than-expected quarterly earnings primarily resulted from a planned turnaround at its condensate processing facility and increased operating costs.As of March 31, 2025, KMI reported $80 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.8 billion. Kinder Morgan announced a quarterly cash dividend of 29.25 cents per share for the first quarter of 2025, reflecting an almost 2% increase sequentially.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks