Norway’s Equinor ASA said its U.S. E&P unit reported higher production in the first three months of 2023 due to rising volumes in the Gulf of Mexico and the Appalachian Basin.
“The Caesar Tonga field in the U.S. Gulf of Mexico back in production with new flow lines, combined with additional wells online in the Appalachian Basin, were the main drivers for increased production in the first quarter of 2023 compared to the prior year,” Equinor announced May 3 in its first quarter of 2023 press release.
“The increase was partially offset by a natural decline in the Appalachian Basin and several mature fields in the Gulf of Mexico,” the company said.
Equity liquids and gas production from Equinor’s U.S. E&P unit averaged 347 Mboe/d in the first quarter of 2023, up 5% compared to 329 Mboe/d in the first quarter of 2022. Production averaged 302 Mboe/d in the fourth quarter of 2022, the company said.
Equinor’s U.S. E&P unit reported an adjusted net income of $340 million in the first quarter of 2023, down 52% compared to $713 million in the same quarter a year ago amid liquids and internal gas prices averaging $61.30/bbl, down 26%, and $2.80/MMbtu, down 33%, year-over-year.
“Increased entitlement production helped to mitigate some of the downward impacts on revenue caused by the lower price environment,” Equinor said.
Financial results impacted by lower commodity prices
Equinor’s total equity production averaged 2,130 Mboe/d in the first quarter of 2023, up 1% compared to 2,106 Mboe/d in the same year ago quarter of 2022. Production averaged 2,046 Mboe/d in the fourth quarter of 2022, the company said in its release.
Higher production was driven by “the ramp-up of new fields and wells, and fields back in production, such as Johan Sverdrup phase 2 and Snøhvit in Norway and Peregrino in Brazil. Short-term operational issues at Johan Sverdrup early in the quarter impacted the increase,” Equinor said.
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Equinor reported adjusted earnings of $12 billion in the first quarter of 2023 and $3.51 billion after tax, down 33% and 36% respectively compared to the same quarter a year ago due to lower liquids and gas prices, but partly offset by production growth, the company said.
The Norwegian energy giant realized a price for piped gas to Europe of $18.8/MMbtu and liquids of $73.80/bbl, down by 37% and 24%, respectively, compared to the first quarter of 2022.
In terms of total capital distributions in 2023, Equinor expects that figure to reach $17 billion, including $6 billion related to a share buy-back program.