EQNR Q2 Earnings Miss Estimates, Revenues Rise Y/Y on Higher Output

The results were supported by higher liquids and European gas prices, 3% production growth and strong trading performance.  

EQNR Benefits From Higher Prices and Output

Equinor’s adjusted operating income increased 76% year over year to $11.48 billion. Adjusted net income climbed 93% to $3.23 billion. Reported net operating income more than doubled to $12.99 billion, aided by higher commodity prices, positive derivative effects and the sale of assets in Argentina.

The company realized an average liquids price of $97.90 per barrel, up 55% from $63 per barrel a year earlier. Total equity liquids and gas production reached 2,165 thousand barrels of oil equivalent (Mboe) per day. Total power generation attributed to Equinor in the second quarter was 1.19 terawatt-hours (TWh) compared with 1.12 TWh a year ago.

 The realized European piped gas price rose to $15.79 per million British thermal units (MMBtu) from $12 MMBtu in the year-earlier period. However, the U.S. piped gas price declined 16% year over year to $2.30 MMBtu.

Equinor’s Norway Business Delivers Strong Growth

Exploration & Production (E&P) Norway generated adjusted operating income of $9.19 billion, up 61% from $5.71 billion in the prior-year quarter. The improvement reflected robust production levels and stronger realized prices, partly offset by higher operating expenses.

E&P Norway liquids and gas production increased 4% to 1,415 MBoe per day. The ramp-up of the Johan Castberg, Halten East and Verdande fields, along with new wells coming online, contributed to the production increase. Planned turnaround activity and natural decline partially offset these gains.

EQNR’s International & U.S. Units Improve

Exploration & Production International generated adjusted operating income of $843 million, up from $429 million a year earlier. Average daily equity production rose 4% to 317 MBoe per day, driven by contributions from Adura in the U.K. and the start-up of Bacalhau in Brazil. Lower turnaround activity further contributed to the production increase, partially offset by the Peregrino and Argentina divestments, natural production declines and operational issues at Roncador.

Exploration & Production USA’s adjusted operating income jumped to $720 million from $183 million a year earlier. The increase was supported by stable production volumes, higher liquids prices and lower operating and administrative expenses in the reported quarter. Equity liquids and gas production averaged 433 Mboe in the second quarter compared with 431 Mboe in second-quarter 2025, supported by higher U.S. offshore production.

Equinor’s Trading Operations Add Meaningful Value

Marketing, Midstream & Processing reported adjusted operating income of $777 million, up from $337 million in the year-ago period. The result exceeded management’s normal quarterly guidance of roughly $400 million.

Strong crude trading, shipping optimization and refining performance drove the improvement. High refinery margins and solid operating reliability at the Mongstad refinery further supported the results. LNG trading performed above expectations, while the company’s regular gas-trading activities were broadly in line with normal levels.

EQNR Expands Renewable Power Generation

The Power segment recorded an adjusted operating loss of $30 million compared with a loss of $80 million a year earlier. Strong power trading contributions and the benefits of a one-off event related to insurance helped narrow the loss.

Renewable generation rose 11% to 0.91 terawatt-hours, reflecting the ramp-up of Dogger Bank and contributions from new onshore assets. Lower gas-to-power generation partly offset the renewable gains.

Equinor Generates Strong Cash Flow

Cash flow from operations after taxes paid totaled $7.68 billion, up from $1.94 billion a year earlier. The company paid $7.08 billion in taxes, including three Norwegian Continental Shelf tax installments totaling $6.4 billion. Organic capital expenditures were $3.35 billion. Equinor generated net cash flow before capital distribution of $5.48 billion in the second quarter.

Equinor’s Balance Sheet

As of June 30, 2026, the company reported $8.1 billion in cash and cash equivalents, along with an adjusted net debt-to-capital-employed ratio of 10.4%, down from 17.8% at the end of 2025.

EQNR Maintains 2026 Operating Outlook

Equinor continues to expect oil and gas production to grow approximately 3% in 2026. First-half production increased 6%, providing stronger support for the full-year target despite planned third-quarter turnarounds and a temporary outage at Johan Castberg.

The company maintained its organic capital expenditure forecast of about $13 billion. Its board approved a quarterly dividend of 39 cents per share in the second quarter and initiated a third share-repurchase tranche of up to $1.125 billion. Equinor expects total 2026 share repurchases of up to $3 billion.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Par Pacific Holdings PARR, Valero Energy VLO and FuelCell Energy FCEL. While Par Pacific sports a Zacks Rank #1 (Strong Buy), Valero Energy and FuelCell Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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