Equinor ASA EQNR and SSE Renewables reached the financial completion for the third phase of the Dogger Bank C offshore wind farm in the North Sea.
Dogger Bank Wind Farm is currently being developed in three phases -- Dogger Bank A, Dogger Bank B and Dogger Bank C. The offshore wind farm will have a total capacity of 3600 megawatts (MW), sufficient to fulfill 5% of the U.K.'s power demand.
Equinor and project partners secured $3.3 billion in senior debt facilities, and $533 million in ancillary facilities. The final group of lenders involved 28 banks and three export credit agencies, the majority of which was the same for Dogger Bank A and B.
Dogger Bank C is the third phase of the project, which the companies are currently developing off the northeast coast of England. It will have a capacity of 1,200 MW and generate 6,000 gigawatt-hours of electricity per year. Both companies own equal shares in Dogger Bank C.
Equinor and British utility firm SSE Renewables are also involved in developing the first two phases of the project. With the completion of three phases, likely by March 2026, Dogger Bank Wind Farm will be the world's largest offshore wind farm. SSE is managing construction activities across all three phases of the project, while Equinor will operate the wind facilities.
The financial completion marks a significant achievement for the third phase of Equinor's offshore wind project. The significant appetite from lenders bolsters the attractiveness of the U.K. offshore wind assets and reflects the quality of the project. Equinor and SSE will utilize their offshore capabilities and continue to add value for the future.
Company Profile & Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.
Shares of EQNR have outperformed the industry in the past six months. The stock has gained 9% compared with the industry's 8% growth.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Centennial Resource Development, Inc. CDEV, based in Denver, CO, is an independent oil and gas exploration and production company. It primarily develops unconventional hydrocarbon reserves in the Delaware Basin, part of the prolific Permian Basin. CDEV's net production in 2020 was 67,161 barrels of oil equivalent per day, of which oil contributed 53.7%, and natural gas and natural gas liquids accounted for the rest.
In the past year, shares of Centennial Resource have gained 283.8% compared with the industry's surge of 93.9%. CDEV is expected to see an earnings growth of 127.6% in 2021. CDEV has witnessed five upward revisions in the past 60 days. In third-quarter 2021, CDEV's constant focus on cost reduction helped it generate net cash of $153.5 million from operating activities compared with $45.7 million in the year-ago period. The free cash flow generated in the quarter was $77.2 million, significantly increasing from $10.5 million in the year-ago period.
PDC Energy PDCE is an independent upstream operator, which engages in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its present form following the January 2020 combination with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020-end, PDC Energy's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 156.6% compared with the industry's growth of 93.9%. PDCE's earnings for 2021 are expected to surge 285.2% year over year. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised by 31.2%. PDCE beat the Zacks Consensus Estimate in the last four quarters, with an earnings surprise of 51.06%, on average.
Diamondback Inc. FANG, based in Midland, TX, is an independent oil and gas exploration and production company. FANG primarily focuses on the Permian basin, with around 414,000 net acres. The upstream operator focuses on growth through a combination of acquisitions and active drilling in America's hottest and lowest-cost shale region. As of 2020-end, Diamondback held 1,316 million barrels of oil equivalent in proved reserves.
In the past year, shares of Diamondback have increased 137% compared with the Zacks Exploration and Production Industry's growth of 93.9%. FANG is expected to see an earnings growth of 269.7% in 2021. The company has also witnessed 11 upward revisions in the past 60 days. Diamondback's board of directors recently declared a quarterly dividend of 50 cents per share for the third quarter, indicating an 11.1% hike in its quarterly payout from the previous level of 45 cents.
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