Equinor Q4 Earnings Beat Estimates on Higher Production Volumes

Core Insights - Equinor ASA (EQNR) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 81 cents, exceeding the Zacks Consensus Estimate of 60 cents, and up from 63 cents in the same quarter last year [1][11] - Total quarterly revenues were $25.3 billion, a decline from $27.7 billion in the prior-year quarter, but still surpassed the Zacks Consensus Estimate of $23.4 billion [1][11] Financial Performance - The better-than-expected quarterly results were primarily due to increased liquids and gas production across major Exploration & Production segments, although a decline in liquid prices offset some of the positives [2] - The company's average daily production of liquids and gas increased by 5% to 1,468 thousand barrels of oil equivalent per day (MBoe/d) from 1,398 MBoe/d in the prior-year quarter, attributed to new fields and additional wells [4][11] - Equinor ended the fourth quarter with a negative net cash flow of $1,062 million, an improvement from a negative net cash flow of $4,969 million in the year-ago period [12] Segment Analysis - Exploration & Production Norway (E&P Norway) reported adjusted earnings of $5,026 million, down 26% from $6,804 million in the year-ago quarter, affected by natural declines in several fields and lower gas and liquids prices [3] - E&P International's adjusted operating profit totaled $214 million, down 29% from $303 million in the year-ago quarter, primarily due to a decline in production volumes and lower liquids prices [5] - E&P USA generated an adjusted operating profit of $359 million, a 95% increase from $184 million in the fourth quarter of 2024, supported by higher natural gas prices and production volumes [7] - The Marketing, Midstream & Processing segment reported adjusted earnings of $678 million, a 3% increase from $659 million a year ago, benefiting from higher sales volumes and increased realized gas prices in the U.S. [9] Future Outlook - Equinor expects oil and gas production to grow around 3% in 2026 compared to 2025 levels, with plans to drill approximately 30 exploration wells and projected organic capital expenditures of approximately $13 billion [14]