EQNR - Equinor: European Natural Gas Player Priced At 2x Free Cash Flow
- Equinor is very well positioned for high European natural gas prices.
- Equinor is partly Norwegian state-owned. This has led it to be less aggressive with its capital return program than many of its peers.
- Priced at just 2x free cash flow, I make the argument that this negative consideration is already factored into the multiple many times over.
- For now, investors expect that by late 2022 and early 2023, we'll see natural gas prices revert lower on the back of demand destruction. I don't believe that to be the case.
- I rate EQNR stock a buy.
For further details see:
Equinor: European Natural Gas Player Priced At 2x Free Cash Flow