Equinor Earnings: Payout Set to Dip in 2025, but Yield Remains Attractive; Shares Undervalued

No-moat Equinor's third-quarter adjusted earnings largely exceeded expectations, while falling to $6.9 billion before tax and $2.2 billion after tax, compared with $7.9 billion and $2.9 billion last year, respectively, as extensive turnarounds and lower liquid prices offset higher realized gas prices and favorable production mix. Operating cash flow, excluding working capital and taxes, was $9.2 billion during the quarter, compared with $11.3 billion in 2023. We maintain our fair value estimate of $30.50 and see the stock as undervalued.