EQNR - Equinor sees Q2 gas derivatives gain as much as $550M

Equinor ( NYSE: EQNR ) said on Thursday its Q2 results would get a $400M-$550M boost from trading in natural gas derivatives used to hedge its physical deliveries, primarily in its Marketing, Midstream and Processing segment, Reuters reports.

In Q1, Equinor ( EQNR ) reported a negative hedging impact of $400M-$500M.

In Q2, "price volatility and spreads within the European gas and power markets have been higher than normal, which means that MMP expects results above the normal guidance range," the company said.

Equinor ( EQNR ) is "very well positioned for high European natural gas prices," and shares are priced at just 2x free cash flow, Michael Wiggins de Oliveira writes in a bullish analysis posted on Seeking Alpha .

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