Equinor: A Strategic European Energy Buy With Margin Of Safety

Core Viewpoint - Equinor ASA is positioned as a vital player in Europe's oil and gas industry, with a justified Buy rating due to its solid financial health and rising need for its assets amidst macro pressures [2]. Internal Developments - Equinor's production in the Norwegian Continental Shelf (NCS) increased by 9%, US onshore production rose by 40%, and offshore production also grew by 9% in Q3'25, while international production declined due to asset divestments [3]. - The company anticipates a 4% growth in overall oil and gas production for 2025 [3]. - Total capital distribution for the year is expected to be around $9 billion, yielding approximately 14.75% based on a market cap of about $61 billion [4]. - Share buybacks were predominantly executed in Q3, with the State's buybacks being significant, as Equinor aims to maintain the state's ownership through repurchasing shares in line with its open market buybacks [5].