Equinor (OB:EQNR) Valuation in Focus as Major Drilling and Investment Strategy Unveiled

Equinor (OB:EQNR) is drawing a lot of attention after announcing plans to drill 250 oil and gas wells in Norwegian waters. The company aims to maintain production levels through 2035 with substantial annual investments.

See our latest analysis for Equinor.

Equinor’s commitment to major drilling and tech investments comes following several boardroom and partnership updates, while its share price has slipped 16.8% since the start of the year. Despite a flat week and a modest one-year total shareholder return decline of 6.2%, the longer-term five-year total shareholder return of 139% suggests underlying strength, even as short-term momentum has faded recently.

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With the energy giant’s shares recently lagging, yet long-term gains still dramatic, investors are asking a key question: does Equinor’s current valuation reflect untapped upside, or is future growth already built into the price?

Most Popular Narrative: 5.9% Undervalued

Equinor's most widely followed narrative points to a fair value that is modestly higher than the latest closing price. This suggests analysts see some lingering upside potential versus where shares currently sit. This invites a direct look at the assumptions shaping that estimate.

Current valuations reflect assumptions of sustained or increasing shareholder returns (dividends and buybacks). However, high capital distribution may become harder to maintain if energy prices soften, FX movements turn adverse, or capex needs for transition projects increase, which could pressure future EPS and total shareholder yield.

Read the complete narrative.

Want to know what fuels this valuation? Behind the headline figure are bold projections about profits, cash returns, and the company’s capital discipline. The big surprise is that these numbers rest on assumptions usually reserved for industry standouts. Ready to uncover what makes these estimates unique? Dive into the full narrative to see which expectations drive this price target.

Result: Fair Value of $246.41 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, key catalysts such as successful project ramp-ups and resilient European gas demand could challenge the expectation of near-term revenue or margin pressure.

Find out about the key risks to this Equinor narrative.

Build Your Own Equinor Narrative

If you'd like to look beyond consensus or want to reach your own conclusions, building and sharing your unique view takes just a few minutes. Do it your way

A great starting point for your Equinor research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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