Green energy company Equinor (EQNR) has reached a new financing agreement providing $3 billion for its Empire Wind 1 project. The company is developing wind power production facilities off the coast of New York with the goal of a 2027 commercial launch.
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According to Equinor, the $3 billion finance agreement helps cover the $5 billion total capital investments it expects for the Empire Wind 1 project. The company says this includes fees required to use the South Brooklyn Marine Terminal and expected tax credits.
Equinor notes the Empire Wind 1 project will provide power for up to 500,000 New York homes. The company is also utilizing a farm-down model. This has it selling stakes in the green energy assets to institutional investors. The advantage of this is freeing up Enquinor’s capital while providing stable, long-term yields for investors who benefit from subsidies.
How This Affects EQNR Stock Today
Investors are excited about the $3 billion finance agreement for the Empire Wind 1 project, with EQNR shares up 3.4% as of this writing. With that comes about 2.35 million shares traded, which is closing in on its three-month daily average trading volume of about 3.63 million units. Considering it’s still early in the day, it appears likely that today’s trading volume will surpass the company’s average.
While EQNR stock is rising today, the shares haven’t performed the best over the last year. The stock is down 18.81% over the past 52 weeks.
Is EQNR Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Equinor is Moderate Buy based on one Buy and two Hold ratings over the last three months. The current coverage lacks enough data to formulate an average price target for EQNR shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
