What Happened to LNG Stocks and 10 Best LNG Stocks to Buy Now

8. Equinor ASA (NYSE:EQNR)

Number of Hedge Fund Holders: 14

Headquartered in Stavanger, Norway, Equinor ASA (NYSE:EQNR) is an energy company engaged in oil and gas exploration, production, and transportation. It develops carbon capture and storage projects while providing transportation solutions, including pipelines, shipping, trucking, and rail.

Equinor ASA (NYSE:EQNR) is also actively involved in the liquefied natural gas (LNG) sector, operating the Hammerfest LNG plant in Norway, which produces LNG for global markets. The company has signed long-term agreements, such as a 15-year deal with Deepak Fertilizers in India, starting in 2026. Additionally, Equinor has extended its long-term contract with Finnish energy company Gasum for LNG bunkering, ensuring continued supply to Equinor’s dual-fuel chartered fleet. This agreement highlights both companies’ commitment to reducing emissions in the maritime sector.

While the stock has pulled down significantly, its underperformance has nothing to do with the weakness of the core business. The pullback comes from the broader energy sector, which is under pressure, resulting in weak oil and gas prices.

Nevertheless, despite the weakness in the energy sector, European energy prices have remained significantly high due to the impact of the Russian-Ukraine war. Consequently, Equinor remains well-positioned to continue generating shareholder value owing to its robust revenue streams.

Equinor ASA (NYSE:EQNR) delivered robust second-quarter results, which were attributed to robust LNG gas production and higher liquids prices across major segments. Nevertheless, the company could have generated more revenues and earnings had it not been subjected to lower gas prices.

Revenues in the quarter rose to $25.5 billion from $22.87 billion delivered a year ago. Earnings per share also rose to 84 cents, a share-bearing cost census estimate, and sofa 81 ends per share.

Equinor ASA (NYSE:EQNR) stands out as one of the best LNG stocks to buy owing to its over $37 billion cash and cash equivalent. Consequently, the company is well-positioned to return value to shareholders through dividends. It currently rewards investors with a 5.28% dividend yield. The company plans to return close to $14 billion to shareholders in 2024.

Additionally, Equinor trades at a discount with a price-to-earnings multiple of 7, which affirms a potential undervaluation compared to its industry peers.

At the end of Q2 2024, 14 hedge funds tracked by Insider Monkey reported having stakes in Equinor ASA (NYSE:EQNR), down from 17 in the previous quarter. The overall value of these stakes is over $158.58 million. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q2.