Equinor (EQNR) increases renewable capacity with the Lipno solar plant

Equinor ASA EQNR has begun test production at its third solar power plant in Poland, called Lipno, significantly increasing the country’s onshore renewable energy capacity to 200 megawatts (MW).

This development highlights Equinor’s strategic expansion in one of the fastest growing renewable energy markets in Europe.

The 53 MW Lipno photovoltaic power plant, located in the Greater Poland Voivodeship in central Poland, was built and will be operated by Wento, a wholly owned subsidiary of Equinor.

EQNR acquired Wento in 2021 with 1.6 GW of planned solar projects. Since the acquisition, Wento has transformed from a small solar developer into a multi-technology energy producer. Currently, it operates three solar power plants and one onshore wind farm in Poland, reaching a total capacity of approximately 200 MW.

Total annual production from the Wento portfolio is estimated at 280 GWh, which is enough to power approximately 140,000 Polish households. Equinor’s energy trading house, Danske Commodities, has signed a balancing agreement with the photovoltaic power plant in Lipno and will be responsible for the commercialization of the produced energy on the Polish energy market. Lipno is expected to deliver returns in line with Equinor’s prior renewables guidance.

Since acquiring Wento, Equinor has effectively doubled its pipeline of projects to over 3 GW of capacity at various stages of maturity. This pipeline now includes not only power generation projects but also battery storage projects, increasing flexibility and increasing the potential for value creation.

Poland is actively developing renewable energy in order to increase national generation capacity and increase energy security. This represents an exciting opportunity for Wento and Equinor to become a leading player in the growing renewable energy market.

Equinor’s strategy in Poland includes a wide energy offer and diversification of energy generation and supply sources. In addition to onshore renewable energy sources, Equinor is involved in the development of three large offshore wind energy projects Baltic I, Baltic II and Baltic III in cooperation with Polenergia. Additionally, Equinor supplies natural gas to Poland from the Norwegian Continental Shelf via the Baltic Pipe.

With these strategic initiatives, EQNR is well positioned to contribute to Poland’s renewable energy goals and establish itself as a key player in the European renewable energy market.

Zacks Ranks and Stocks to Consider

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

Investors interested in the energy sector can look at companies with better quotations, e.g Archrock Inc. AROC, Sunoco board SUN i Matador Resources Business MTDR, each of them is currently sporting a Zacks Rank #1 (Strong Buy). You can see complete list of today’s Zacks #1 ranked stocks here.

Archrock is a US-based energy infrastructure company specializing in midstream natural gas compression. It provides a compression service for natural gas contracts and generates stable fee-based revenues.

The Zacks Consensus Estimate estimates AROC’s fiscal 2024 and 2025 EPS at $1.07 and $1.23, respectively. The company has a Zacks Rank of A for Growth. Over the last 60 days, the company has seen upward revisions to its earnings estimates for 2024 and 2025.

Sunoco is a leading wholesale distributor of motor fuels in the United States, with an extensive distribution network spanning 40 states. Thanks to long-term contracts serving over 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable source of revenue. SUN currently has a Value Rating of A.

The Zacks Consensus Estimate projects earnings per unit for 2024 and 2025 of $7.29 and $7.17, respectively. Over the last 30 days, the company has witnessed upward revisions to earnings estimates for 2024 and 2025. The company has a Zacks Rank of A for Value and Growth.

Matador Resources’ mining operations are primarily concentrated in the Delaware Basin, which is one of the most prolific oil and gas regions in the United States. Since 2019, the company has shown a constant upward trend in total production.

The Zacks Consensus Estimate for MTDR EPS for 2024 and 2025 is $7.90 and $9.59, respectively. The company has a Zacks Rank of A for Growth and B for Value. Over the last seven days, the company has witnessed upward revisions to its earnings estimates for 2024 and 2025.

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