Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
Equinor will book a loss from gas derivatives of between $1.4 billion and $1.5 billion for the final quarter of 2021, in line with previous statements that some third-quarter profits would be reversed, the energy company said on Jan. 11.
Norway's largest company on Oct. 27 reported a surge in July-September earnings, driven by a global energy supply crunch that pushed Europe's natural gas prices to record highs and sent the value of derivative contracts soaring.
But the company had simultaneously warned that this mark-to-market accounting of gas contracts would be followed by losses in the October-December quarter when volumes were delivered under long-term contracts that were concluded at lower prices.
Equinor's gas sales are mostly spot based, but a share of its long term piped gas contracts are based on longer-dated indices.
"The decision to take derivative positions has been beneficial for Equinor as a group," the company reiterated in a statement on Tuesday.
The Dutch TTF day-ahead gas contract soared to a record high of 186.25 euros per megawatt hour (MWh) on Dec. 21, an almost ten-fold increase compared with prices of around 20 euros/MWh at the start of 2021.
Prices have since fallen back to around 85 euros/MWh.
Recommended Reading
The Completions Package: NextTier, ProPetro Electrify Frac Fleets
2024-01-16 - NexTier and ProPetro’s respective electric frac fleets are touting a newer, cheaper and more sustainable approach to hydraulic fracturing through electrification.
Fracturing’s Geometry Test
2024-02-12 - During SPE’s Hydraulic Fracturing Technical Conference, industry experts looked for answers to their biggest test – fracture geometry.
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
Exclusive: NexTier Reveals New Blending Equipment for Fracturing
2024-01-09 - Renee LeBas, vice president of NextGen at NexTier introduces their latest technology and electric driven blending equipment for fracturing operations with risk reducing components in this week's Tech Trends.