Core Viewpoint - Equinor ASA has initiated the third tranche of its share buy-back program, purchasing a total of 519,300 shares at an average price of NOK 258.9479 per share, with a total transaction value of NOK 134,471,659.82 [1][2]. Summary by Sections Buy-Back Program Details - The buy-back tranche was announced on July 23, 2025, and is set to last from July 24 to no later than October 27, 2025 [1]. - The total number of shares purchased during this period is 519,300, with an average price of NOK 258.9479 per share [1][2]. Transaction Overview - On July 24, 2025, Equinor purchased 259,300 shares at a daily weighted average price of NOK 258.5174, resulting in a transaction value of NOK 67,033,561.82 [2]. - On July 25, 2025, the company bought 260,000 shares at a daily weighted average price of NOK 259.3773, with a transaction value of NOK 67,438,098.00 [2]. - The total buy-backs under this tranche amount to 519,300 shares, with a cumulative transaction value of NOK 134,471,659.82 [2]. Ownership Post Transactions - Following these transactions, Equinor ASA now owns a total of 26,085,243 shares, which represents 1.02% of its share capital [2]. - Excluding shares under Equinor's share savings program, the company holds 16,896,488 shares, corresponding to 0.66% of the share capital [2]. Regulatory Compliance - The information disclosed is in accordance with the EU Market Abuse Regulation and the Norwegian Securities Trading Act [3].

Core Viewpoint - Equinor ASA remains a viable investment option despite fluctuations in international oil prices and potential geopolitical developments involving Trump and Putin [1] Company Analysis - Equinor is highlighted as a company with sustained free cash flows, low leverage, and manageable debt levels, making it attractive for value investors [1] - The company is positioned in the oil and gas sector, which is often overlooked by the market, presenting unique investment opportunities [1] Investment Strategy - The focus is on companies in emerging markets that exhibit high margins and potential for medium to long-term growth [1] - A pro-shareholder attitude is emphasized, with a preference for companies that maintain consistent buyback programs or dividend distributions [1]

Core Insights - Equinor ASA has reported impairment costs of $955 million related to its U.S. offshore wind projects, primarily due to regulatory changes and increased tariff exposure [1][4][5] - The regulatory environment under the Trump administration has negatively impacted the offshore wind industry, leading to a loss of synergies for future projects [2][3] - The Biden administration has provided federal support for renewable energy, contrasting with the previous administration's suspension of offshore wind leases [3] Financial Impact - The impairment charges significantly affected Equinor's net operating income in the second quarter, with $763 million attributed to the Empire Wind 1 project and the South Brooklyn Marine Terminal [4][8] - The remaining impairment amount is linked to the lease of the Empire Wind 2 project, which is now uncertain due to the withdrawal of tax credits [4][5] Regulatory Challenges - The withdrawal of investment tax credits has made new offshore wind projects less attractive, contributing to the impairment charges [5][6] - U.S. tariffs on steel have increased the cost of the Empire Wind project by $300 million, further complicating its financial viability [7] Project Viability - The South Brooklyn Marine Terminal was expected to support multiple wind farms, but current regulatory conditions have diminished its potential value [6] - Without tax credits, the development of Empire Wind Phase 2 is unlikely to proceed, raising concerns about the project's future [7][8]

Company Overview - Equinor (NYSE: EQNR) is a major Norwegian oil company, producing over 2 million barrels of oil equivalent per day [2] - The company has a significant presence in renewable energy investments, indicating a diversified portfolio [2] Market Position - Equinor currently has a market capitalization that is not specified but is implied to be lower than expected given its production capacity and investments [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes analyzing 10Ks, analyst commentary, market reports, and investor presentations [2]

Geopolitical Impact - Geopolitical volatility is creating a more challenging environment for Equinor's traders [1] - The situation highlights the risks faced by Europe's oil and gas majors [1]

Financial Data and Key Metrics Changes - The company reported an adjusted operating income of $6.5 billion before tax, with a net income of $300 million impacted by an impairment on U.S. offshore wind projects [6][7] - Adjusted earnings per share was NOK 0.64, with cash flow from operations after tax being strong at $9.2 billion [8][22] - The net debt to capital employed ratio increased to 15.2%, reflecting the state's share of the buyback from last year booked as finance debt [23] Business Line Data and Key Metrics Changes - E&P Norway adjusted operating income totaled $5.7 billion before tax, while E&P International saw higher production from Brazil and new wells in Argentina and Angola [20] - U.S. Onshore gas production increased by 50%, capturing almost 80% higher gas prices [12] - Renewable production increased by 26%, mainly driven by the ramp-up of Dogger Bank A in the UK [19] Market Data and Key Metrics Changes - The European gas market is impacted by lower storage levels, with inventories almost 20 percentage points lower than last year [8] - Liquids prices were lower than the same quarter last year, while gas prices were higher in Europe and the U.S. [19] Company Strategy and Development Direction - The company is focused on maintaining production levels on the Norwegian Continental Shelf (NCS) until 2035, with strategic progress in projects like Johan Castberg and Johan Sverdrup Phase III [11] - Long-term contracts for gas supply to the UK and Germany demonstrate the demand for Norwegian gas in Europe [11] - The company is optimizing its portfolio internationally, with a focus on U.S. Onshore gas and divesting from less strategic assets like the Peregrino field in Brazil [13][44] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical unrest and trade wars on energy markets, emphasizing a commitment to cost and capital discipline [8][9] - The company expects to maintain a robust financial position despite lower price environments and is focused on delivering capital distributions of around $9 billion for the year [10][16] Other Important Information - The company announced an ordinary cash dividend of $0.37 per share and a share buyback of up to $1.265 billion [16] - An impairment of $955 million was recorded due to changes in regulations for future offshore wind projects in the U.S. [14][15] Q&A Session Summary Question: Empire Wind impairment and discount rate rationale - Management clarified that the 3% discount rate used for Empire Wind is an unlevered real discount rate after tax, justified by a fixed revenue profile for 25 years [28][29] Question: Working capital and volatility - Working capital is currently $5 billion, a reduction of $550 million, driven by upstream segment movements rather than trading activities [30][31] Question: New tax system in Norway - Tax payments will be evenly distributed over the year, with five installments in the second half of 2025 and five in the first half of 2026 [35][36] Question: Peregrino divestment timing and Bacalau project - The divestment of Peregrino is expected to close towards the end of the year, with Bacalau progressing well and expected to contribute significantly to international production [44][46] Question: Unit OpEx costs in Norway - Unit production costs are stable quarter on quarter, with efforts to keep costs flat despite inflation [53][54] Question: Johan Sverdrup production plateau - Production from Johan Sverdrup is expected to remain high, with ongoing efforts to manage water production and enhance recovery rates [92][94] Question: CapEx and competitive distributions - Management emphasized that CapEx is a pretax number, and cash flow from operations is after tax, affecting comparisons with peers [86][87]

Financial Data and Key Metrics Changes - The company reported an adjusted operating income of $6.5 billion before tax and an IFRS net income of $300 million, impacted by an impairment on U.S. offshore wind projects [5][6] - Adjusted earnings per share was NOK 0.64, with cash flow from operations after tax being strong at $9.2 billion [6][20] - The net debt to capital employed ratio increased to 15.2%, reflecting the state's share of the buyback from last year booked as finance debt [21] Business Line Data and Key Metrics Changes - The company produced 2.096 million barrels per day, up more than 2% from last year, with a target of 4% production growth for the year [15] - Liquids production increased by 4%, driven by the ramp-up of Johan Castberg and high regularity on Johan Sverdrup [16] - Renewable production increased by 26%, mainly due to the ramp-up of Dogger Bank A in the UK [17] Market Data and Key Metrics Changes - The European gas market is impacted by lower storage levels, with inventories almost 20 percentage points lower than last year [7] - Gas prices in Europe and the U.S. were higher, while liquids prices were lower compared to the same quarter last year [17] - The company captured almost 80% higher gas prices in the U.S. onshore market [10] Company Strategy and Development Direction - The company is committed to cost and capital discipline, reporting flat cost development in the quarter [8] - Strategic progress includes the ramp-up of Johan Castberg and final investment decisions on Johan Sverdrup Phase III [9] - The company announced two long-term contracts for gas supply to the UK and Germany, indicating strong demand for Norwegian gas [9][61] Management's Comments on Operating Environment and Future Outlook - Management noted that energy markets are affected by geopolitical unrest and trade wars, leading to significant volatility in oil markets [7] - The company remains focused on operations and resilience amid uncertainty, with a robust balance sheet [8] - Management expressed confidence in the long-term role of natural gas in energy transition and electrification [46] Other Important Information - The company expects to deliver around $9 billion in capital distribution for the year, including a cash dividend of $0.37 per share and a share buyback of up to $1.265 billion [14] - An impairment of $955 million was recorded due to changes in regulations for future offshore wind projects in the U.S. [12] Q&A Session Summary Question: On the Empire Wind impairment and discount rate - Management clarified that the 3% discount rate used for impairment testing is an unlevered real discount rate after tax, justified by the fixed revenue profile for 25 years [26][27] Question: On working capital and trading volatility - Working capital is currently $5 billion, a reduction of $550 million, driven by upstream segment movements rather than trading activities [28][29] Question: On the new tax system in Norway - Tax payments will be evenly distributed over the year, with five installments in the second half of 2025 and five in the first half of 2026 [34][35] Question: On the Peregrino divestment and Bacalau project - The divestment of Peregrino is expected to close towards the end of the year, with Bacalau progressing well and expected to contribute significantly to international production [44][45] Question: On CapEx and competitive cash returns - Management emphasized that CapEx is a pretax number, while cash flow from operations is after tax, affecting comparisons with peers [87][88] Question: On Johan Sverdrup production and cost inflation - Johan Sverdrup is expected to maintain high production levels, with ongoing efforts to manage water and improve recovery rates [94][96] - Cost inflation pressures are expected to ease in Norway, while the market remains tight overall [98][99]

[Second Quarter 2025 Highlights](index=2&type=section&id=Equinor%20second%20quarter%202025%20results) [Financial and Operational Overview](index=2&type=section&id=Financial%20and%20Operational%20Overview) Equinor delivered solid Q2 2025 results with $6.53 billion in adjusted operating income and a 2% rise in production Q2 2025 Key Financial and Operational Metrics | Metric | Value | Unit | | :--- | :--- | :--- | | Adjusted Operating Income* | 6.53 | USD Billion | | Net Operating Income | 5.72 | USD Billion | | Net Income | 1.32 | USD Billion | | Adjusted Earnings Per Share* | 0.64 | USD | | Equity Oil & Gas Production | 2,096 | mboe/d | | Renewable Power Generation | 0.83 | TWh | - CEO Anders Opedal highlighted strong operational performance, production growth from Johan Castberg, and significant value creation from the US onshore gas portfolio, which saw a **50% production increase** and nearly **80% higher prices** year-over-year[5](index=5&type=chunk) - Total equity liquids and gas production increased by **2% year-over-year**, from 2,048 mboe/day in Q2 2024 to 2,096 mboe/day in Q2 2025[9](index=9&type=chunk)[11](index=11&type=chunk) [Strategic Progress and Capital Distribution](index=2&type=section&id=Strategic%20Progress%20and%20Capital%20Distribution) The company advanced key projects, recognized impairments on Empire Wind, and maintained its $9 billion capital distribution target for 2025 - Key strategic milestones achieved include Johan Castberg field reaching plateau, financial close of Bałtyk 2 & 3 offshore wind projects, and the announced divestment of the Peregrino field for **USD 3.5 billion**, though impairments were recognized on Empire Wind[7](index=7&type=chunk) - The board has decided on an ordinary cash dividend of **$0.37 per share** for Q2 2025[7](index=7&type=chunk)[23](index=23&type=chunk) - A third tranche of the 2025 share buy-back program was initiated, valued at up to **$1.265 billion**, with an expected total capital distribution for 2025 of **$9 billion**[7](index=7&type=chunk)[24](index=24&type=chunk) [Second Quarter 2025 Review](index=5&type=section&id=Second%20quarter%202025%20review) [Group Review](index=5&type=section&id=Group%20review) Group net operating income fell 25% to $5.72 billion, impacted by lower liquids prices and a $955 million impairment on US offshore wind assets Group Financial Performance (Q2 2025 vs Q2 2024) | Metric (USD million) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income/(loss) | 5,721 | 7,656 | (25)% | | Net income/(loss) | 1,317 | 1,872 | (30)% | | Adjusted operating income* | 6,535 | 7,482 | (13)% | | Adjusted net income* | 1,670 | 2,417 | (31)% | | Cash flow from operations after taxes paid* | 1,938 | 2,097 | (8)% | - Net operating income was negatively impacted by a **$955 million impairment** related to the Empire Wind projects in the US, driven by regulatory changes and increased tariff exposure[15](index=15&type=chunk)[35](index=35&type=chunk) - The net debt to capital employed adjusted ratio increased to **15.2%** at the end of Q2 2025, up from 6.9% at the end of Q1 2025, mainly due to a liability to the Norwegian state for share buy-backs[18](index=18&type=chunk)[42](index=42&type=chunk) [Outlook](index=6&type=section&id=Outlook) Equinor reaffirms its 2025 guidance, projecting 4% production growth and approximately $13 billion in organic capital expenditures - Oil & gas production for 2025 is estimated to grow by **4%** compared to 2024[49](index=49&type=chunk) - Organic capital expenditures are estimated at **$13 billion** for 2025[49](index=49&type=chunk) - Scheduled maintenance is expected to reduce equity production by around **30 mboe per day** for the full year of 2025[49](index=49&type=chunk) [Exploration & Production Norway](index=7&type=section&id=Exploration%20%26%20Production%20Norway) The E&P Norway segment's net operating income fell 7% to $5.71 billion, as higher gas prices were offset by lower liquids prices E&P Norway Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 5,706 | 6,129 | (7)% | | Entitlement production (mboe/day) | 1,359 | 1,375 | (1)% | | Average liquids price (USD/bbl) | 65.4 | 80.6 | (19)% | | Average internal gas price (USD/mmbtu) | 10.60 | 8.47 | 25% | - Production remained robust and stable compared to the same quarter last year, as contributions from new fields (Johan Castberg, Halten East) and high efficiency from Johan Sverdrup offset natural decline and maintenance at Hammerfest LNG[55](index=55&type=chunk) [Exploration & Production International](index=8&type=section&id=Exploration%20%26%20Production%20International) E&P International's net operating income fell 41% to $415 million, driven by a 9% production drop from asset divestments E&P International Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 415 | 699 | (41)% | | Equity production (mboe/day) | 306 | 336 | (9)% | | Average liquids price (USD/bbl) | 60.1 | 75.4 | (20)% | - The decrease in production was mainly due to the **divestment of assets in Azerbaijan and Nigeria**, partially offset by new wells and improved production efficiency in Brazil[62](index=62&type=chunk) [Exploration & Production USA](index=8&type=section&id=Exploration%20%26%20Production%20USA) The E&P USA segment saw a 28% production surge to 431 mboe/day, though net operating income declined 31% due to higher costs E&P USA Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 183 | 264 | (31)% | | Equity production (mboe/day) | 431 | 337 | 28% | | Average liquids price (USD/bbl) | 56.3 | 68.0 | (17)% | | Average internal gas price (USD/mmbtu) | 2.41 | 1.32 | 83% | - Production growth was primarily driven by increased gas output from the **Appalachia onshore assets** following the acquisition of additional interests in late 2024[60](index=60&type=chunk) [Marketing, Midstream & Processing (MMP)](index=9&type=section&id=Marketing%2C%20Midstream%20%26%20Processing) The MMP segment's net operating income decreased 34% to $329 million, impacted by lower LNG and crude trading results MMP Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 329 | 497 | (34)% | | Adjusted operating income* (USD million) | 333 | 521 | (36)% | | Realised piped gas price Europe (USD/mmbtu) | 12.00 | 9.94 | 21% | - The segment's results were impacted by lower contributions from LNG trading, primarily due to turnaround activities at **Hammerfest LNG**, and reduced crude and product trading results[30](index=30&type=chunk) [Renewables (REN)](index=9&type=section&id=Renewables) The Renewables segment reported a $1.0 billion net operating loss, driven almost entirely by a $955 million impairment on US offshore wind assets Renewables Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income/(loss) (USD million) | (1,002) | (90) | >(100)% | | Adjusted operating income/(loss)* (USD million) | (75) | (90) | 17% | | Renewable power generation (TWh) | 0.78 | 0.63 | 24% | - Net operating income includes a significant impairment of **USD 955 million** related to US offshore wind assets, primarily Empire Wind 1 and 2[35](index=35&type=chunk)[109](index=109&type=chunk) - The growth in power generation is primarily attributed to the ramp-up of production from **Dogger Bank A** and a new onshore acquisition in Sweden[74](index=74&type=chunk) [Condensed Interim Financial Statements and Notes](index=10&type=section&id=Condensed%20interim%20financial%20statements%20and%20notes) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) The statements show Q2 net income of $1.32 billion, total assets of $139.1 billion, and operating cash flow of $2.48 billion Consolidated Statement of Income (Q2 2025) | (in USD million) | Q2 2025 | | :--- | :--- | | Total revenues and other income | 25,145 | | Net operating income/(loss) | 5,721 | | Net income/(loss) | 1,317 | Consolidated Balance Sheet (as of June 30, 2025) | (in USD million) | At 30 June 2025 | | :--- | :--- | | Total assets | 139,091 | | Total equity | 41,972 | | Total liabilities | 97,119 | Consolidated Statement of Cash Flows (Q2 2025) | (in USD million) | Q2 2025 | | :--- | :--- | | Cash flows provided by operating activities | 2,477 | | Cash flows provided by/(used in) investing activities | 880 | | Cash flows provided by/(used in) financing activities | (2,579) | [Notes to the Condensed Interim Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements) Key notes detail a $955 million impairment, a $491 million gain on an asset swap, dividend declarations, and geopolitical risks - Note 1: The company changed its accounting policy for classifying cash collaterals, resulting in the **restatement of comparative figures** for 2024[102](index=102&type=chunk)[104](index=104&type=chunk) - Note 2: A net impairment of **$955 million** was recognized in the Renewables segment related to US offshore wind projects (Empire Wind 1/SBMT and Empire Wind 2) due to regulatory changes and increased tariff exposure[109](index=109&type=chunk) - Note 8: The board declared a Q2 2025 cash dividend of **$0.37 per share** and initiated a third share buy-back tranche of up to **$1.265 billion** as part of its 2025 program[132](index=132&type=chunk)[134](index=134&type=chunk) - Note 9: Geopolitical and market uncertainty, particularly regarding US international trade policy, is cited as a key risk and a factor contributing to the **$955 million impairment** on US offshore wind projects[137](index=137&type=chunk) [Supplementary Disclosures](index=19&type=section&id=Supplementary%20disclosures) [Use and Reconciliation of Non-GAAP Financial Measures](index=19&type=section&id=Use%20and%20reconciliation%20of%20Non-GAAP%20financial%20measures) This section reconciles reported results to adjusted non-GAAP measures, showing a Q2 adjusted operating income of $6.54 billion - Non-GAAP measures like 'Adjusted operating income' are used to separate out effects that may not be correlated to underlying operational performance, such as impairments, gains/losses on asset sales, and fair value changes of certain derivatives[144](index=144&type=chunk)[149](index=149&type=chunk)[157](index=157&type=chunk) Reconciliation of Net Operating Income to Adjusted Operating Income (Q2 2025) | (in USD million) | Amount | | :--- | :--- | | **Net operating income/(loss)** | **5,721** | | Impairment | 955 | | Other adjusting items | (142) | | **Sum of adjusting items** | **813** | | **Adjusted operating income/(loss)** | **6,535** | Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | (in USD million) | Amount | | :--- | :--- | | **Net income/(loss)** | **1,317** | | Adjusting items (impacting operating & financial items) | 670 | | Tax effect on adjusting items | (317) | | **Adjusted net income** | **1,670** | [Forward-Looking Statements](index=26&type=section&id=Forward-looking%20statements) This section cautions that projections are subject to significant risks, including price volatility, regulatory changes, and geopolitical instability - The report identifies numerous risks that could cause actual results to differ from forward-looking statements, including levels of industry supply and demand, price volatility, exchange rate fluctuations, and regulatory changes[190](index=190&type=chunk) [End Notes](index=27&type=section&id=End%20notes) The end notes clarify key terminology, including the distinction between equity and entitlement volumes and transactions with the SDFI - The distinction between equity and entitlement volumes is explained: equity volumes represent Equinor's ownership share, while entitlement volumes are the share distributed after deductions for royalty and the host government's profit oil, which can increase in times of high prices[192](index=192&type=chunk) - Equinor sells natural gas from the Norwegian state's Direct Financial Interest (SDFI) in its own name, but for the state's account and risk[191](index=191&type=chunk)

Financial Performance - Adjusted earnings per share were USD 0.64[6] - Adjusted operating income reached USD 6.5 billion[6] - Net income amounted to USD 1.3 billion[6] - Cash flow from operations after tax totaled USD 9.3 billion year-to-date[6] Production and Operations - Oil and gas production experienced a growth of over 2%[21] - Renewable production increased by 26%[21] - Organic capex is projected to be USD 13 billion for 2025[28] Capital Distribution and Balance Sheet - A significant capital distribution of USD 1.3 billion was executed[27] - The company expects a total capital distribution of USD 9 billion in 2025[7,28] - Cash, cash equivalents, and financial investments stand at USD 23.8 billion[27] Safety and Environment - Serious Incident Frequency (SIF) was recorded at 0.27 per Q2 2025[10] - Total Recordable Injury Frequency (TRIF) was 2.2 per Q2 2025[12]

Core Viewpoint - Equinor is set to commence the third tranche of its share buy-back program for 2025, amounting to up to USD 1,265 million, with a specific focus on purchasing shares worth up to USD 417.5 million in the market [1][2]. Group 1: Share Buy-Back Program Details - The total share buy-back program for 2025 is up to USD 5 billion, which includes shares to be redeemed from the Norwegian State, and is structured into tranches [2]. - The third tranche will be executed under a non-discretionary agreement with a third party, allowing independent trading decisions [2]. - The maximum number of shares that can be purchased in the market is 84 million, with 67,622,812 shares remaining available at the start of the third tranche [5]. Group 2: Cancellation and Redemption Process - All shares purchased in the third tranche will be cancelled through a capital reduction at the annual general meeting in May 2026 [4]. - The Norwegian State will vote for the cancellation of shares purchased in the market and redeem a proportionate number of its shares to maintain a 67% ownership stake [6][8]. Group 3: Regulatory Compliance - Share purchases will be conducted on the Oslo Stock Exchange and possibly other trading venues within the EEA, adhering to applicable safe harbour conditions and regulations [7]. - The board of directors will propose the cancellation of shares purchased in the third tranche at the annual general meeting in May 2026 [8].