Equinor ASA NYSE: EQNR reported record first-quarter production and strong earnings, while executives emphasized the impact of ongoing geopolitical conflict on energy markets and the company’s focus on operational reliability, cost control and capital discipline.
Chief financial officer Torgrim Reitan said the company delivered its “highest production ever” during a period marked by “high volatility and imbalances in the market,” driven in part by war in the Middle East. Reitan added that while the timing and lasting market impact of the conflict remains unclear, Equinor plans to focus on what it can control by maintaining cost control, capital discipline and safe operations.
Record production and stable guidance
Equinor produced more than 2.3 million barrels of oil equivalent per day in the quarter, an all-time high and up 9% from the same period last year. Reitan said the company remains on track to meet its full-year guidance of 3% production growth, despite outperforming internal plans in the first quarter.
Production on the Norwegian continental shelf (NCS) rose 10% year-over-year, which Reitan attributed to “high regularity across the portfolio” and ramp-ups at Johan Castberg, Halten East and Verdande. In the United States, Equinor posted record production driven by Caesar Tonga offshore and its onshore gas position. International production outside the U.S. also increased, driven by Adura and Bacalhau, partially offset by reduced ownership in Peregrino. Power production was stable at 1.4 terawatt-hours.
Asked about potential upside to the 3% growth target, Reitan said it was “way too early” to adjust guidance given upcoming turnaround activity. He cited maintenance programs expected to reduce output by about 75,000 barrels per day in the second quarter and about 40,000 barrels per day in the third quarter.
Financial results, trading gains and cash flow items
For the quarter, Equinor reported adjusted operating income of $9.8 billion and net income of $3.1 billion. Cash flow from operations after tax totaled $6 billion year-to-date. Reitan said the quarter’s cash flow was impacted by collateral postings tied to trading activity during volatility.
Adjusted earnings per share was $1.48, which Reitan said was positively impacted by strong financial items.
In Norway E&P, adjusted operating income totaled $7.7 billion pre-tax and $1.7 billion post-tax, reflecting higher production and strong price realizations. Reitan highlighted improved crude differentials for certain qualities used in jet fuel and diesel, noting the company benefited at fields including Gullfaks and Johan Sverdrup. He said Johan Sverdrup, which typically trades at a slight discount to Brent, had been trading at a $5 premium, with March cargoes sold at a $13 premium.
Midstream and marketing (MMP) delivered $787 million before tax, “close to double” the company’s quarterly guidance, driven largely by strong products and U.S. gas trading. Reitan said the results demonstrated how Equinor continues to capture value in volatile markets.
Equinor also reported power as a separate segment for the first time, combining renewables, flexible power and power trading. Reitan said the segment result came in “close to zero,” with a strong contribution from power trading.
On costs, adjusted operational costs and SG&A increased 9% year-over-year, but Reitan said underlying OpEx and SG&A—adjusted for portfolio changes—fell 6%, and more than 10% when adjusted for currency, matching an ambition set in February. He also said the company expects unit production costs to fall from $6.6 per barrel to $6 during the year.
Reitan highlighted two cash flow-related items:
- A cash inflow of around $800 million from a positive price review settlement, which he said was not included in cash flow from operations for the quarter.
- Nearly $900 million in cash collateral postings tied to trading activity, which supports trading results but reduces operating cash flow in the period.
In the Q&A, Reitan said collateral requirements are a function of market volatility and Equinor’s desire to take advantage of that volatility through trading. He said collateral postings can reverse when volatility declines, and noted that during the peak of the energy crisis following Russia’s invasion of Ukraine, the company’s collateral balance reached $10 billion.
Capital returns and balance sheet outlook
The board approved a cash dividend of $0.39 per share and a second tranche of share buybacks of up to $375 million. Reitan said this was in line with prior indications and reiterated annual share buyback guidance of $1.5 billion, despite investor questions about potential increases if commodity prices remain elevated.
“There’s no change to that guiding,” Reitan said, adding it was “way too early” to discuss any buybacks beyond the base plan, particularly given market uncertainty. He emphasized that competitive capital distribution remains a key priority.
Equinor reported organic capital expenditures of 3 billion Norwegian kroner, in line with guidance. The company ended the quarter with a cash position of 20 billion Norwegian kroner, and its net debt ratio decreased to 15%.
Reitan said higher prices are expected to impact cash flow and net debt toward the end of the year. He noted that in February, Equinor expected 2026 cash flow from operations after tax of 16 billion Norwegian kroner under a scenario of $65 Brent and $9 per MMBtu European gas. Under an illustrative scenario of $85 oil and $13 per MMBtu European gas, Reitan said Equinor would expect roughly $8 billion more cash flow from operations in 2026, while future tax liabilities would rise by about $4 billion due to Norway’s tax lag.
With higher prices, Reitan said the company no longer expects to “lean on the balance sheet” this year. He also said the net debt ratio could remain fairly stable through the second quarter before reducing to somewhat below 15% during the second half.
Gas market commentary, exploration and project updates
Reitan devoted significant attention to natural gas markets in response to analyst questions. He said Equinor began the year expecting a softer gas market in 2026 and 2027 due to more LNG supply, but that the situation has changed. He argued that the natural gas market could face longer-lasting disruption than oil, citing remarks he attributed to QatarEnergy that 70% of export capacity from the Gulf is damaged and could take three to five years to repair.
In Europe, Reitan said storage levels were about 30%, roughly 6% below seasonal normal, and that the market did not currently provide incentives to inject gas. He said Equinor believes storage levels may not reach the 80% target, leaving the region vulnerable to weather events and operational issues. He also cited 32 bcm of Russian gas expected to leave the market over two years, increasing Europe’s need for LNG.
On exploration, Reitan said Equinor made seven commercial discoveries on the NCS and was awarded 35 new licenses in January. Internationally, he said the company has streamlined into fewer countries and is targeting higher international production toward 950,000 barrels per day in 2030, with lower unit costs and emissions. Exploration will primarily focus on existing areas such as Brazil and Angola, and Reitan said the company would be cautious about frontier step-outs beyond its current footprint.
Equinor provided several project updates during Q&A:
- Raia (Brazil): Reitan said drilling has started at the Raia gas field, expected on stream in 2028.
- Dogger Bank (U.K.): Reitan said Dogger Bank B installation is on track, and Dogger Bank C is expected to be completed “around 2 years time.”
- Bay du Nord (Canada): Reitan said the development is moving toward a concept select planned for this year. He described the project as a large development with Equinor holding 60%, total investment of $9 billion to $10 billion on a 100% basis, and plateau production “a little bit below 200,000 barrels per day.”
On safety, Reitan said Equinor’s safety performance has improved over time but acknowledged an increase in incidents during the quarter. He said technical integrity across the company’s aging platform fleet is higher than it has been for many years and that the company is monitoring the issue closely.
Equinor’s guidance presented in February remains unchanged, Reitan said, including expectations for $13 billion in organic capital expenditures in 2026 and around 3% growth in oil and gas production.
About Equinor ASA NYSE: EQNR
Equinor ASA NYSE: EQNR is a Norway-based integrated energy company headquartered in Stavanger. Historically established as Statoil in the 1970s to develop Norway's petroleum resources, the company changed its name to Equinor in 2018 to reflect a strategic shift toward a broader energy portfolio. Equinor's operations span the full upstream value chain, including exploration, development and production of oil and natural gas, alongside trading and marketing activities that support its global commercial operations.
In recent years Equinor has pursued a transition strategy that combines continued development of conventional oil and gas resources with growing investments in low‑carbon energy.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Equinor ASA, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Equinor ASA wasn't on the list.
While Equinor ASA currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Spring 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.
Get This Free Report
