Equinor rallies on $375M buyback, dividend announcement
Norwegian energy company launches first tranche of 2026 repurchase program alongside Q4 cash distribution
Equinor ASA shares climbed 1.5% on Tuesday after the Norwegian energy company announced a $375 million share buyback program and detailed its fourth-quarter dividend distribution, underscoring its commitment to shareholder returns amid a challenging energy pricing environment.
The Oslo-based company will commence the first tranche of its 2026 share repurchase program on February 5, targeting purchases valued at approximately $375 million through April 29. The announcement was accompanied by confirmation of a $0.39 per share cash dividend for the fourth quarter of 2025, payable on February 27 to shareholders of record as of February 17.
The stock closed at $26.34, extending its recent momentum with trading volume of approximately 8 million shares, significantly above its daily average of 5 million. Equinor now trades above both its 50-day moving average of $23.78 and 200-day moving average of $24.36, with the relative strength index at 55.4, suggesting room for additional upside without reaching overbought territory.
The shareholder return program signals Equinor's confidence in its cash flow generation despite persistent volatility in oil and gas markets. The company has consistently prioritized distributions to investors, with a current dividend yield of 5.5% and a trailing price-to-earnings ratio of 12.55, making it attractive to income-focused investors.
However, analysts at HSBC have projected that Equinor may reduce its overall annual share repurchases to $2 billion in 2026, down from $5 billion in 2025, citing lower oil prices and the need to balance capital allocation between shareholder returns and investment in the energy transition. This year's buyback program will be closely watched for insights into Equinor's evolving capital priorities.
Equinor's financial position remains robust, with trailing twelve-month revenue of $107.1 billion and an EBITDA of $37 billion. The company's operating margin of 23% demonstrates its ability to generate profits even through commodity price cycles. Yet quarterly earnings have declined 23.1% year-over-year, reflecting broader sector headwinds.
The stock remains below its 52-week high of $27.49 reached last year but has recovered from its 52-week low of $20.50. Analysts currently maintain a consensus price target of $23.47, with mixed ratings including one buy recommendation and three holds, suggesting caution about the company's growth prospects even as its dividend policy remains reliable.
Equinor's dual strategy of maintaining strong traditional energy production while investing in renewable projects positions it as a key player in the global energy transition. The company has committed to substantial investments in offshore wind and carbon capture technology, though these initiatives require significant capital that could otherwise fund higher buybacks.
With the ex-dividend date approaching on February 17, investors must decide whether to hold through the payout or capture the dividend and reassess their position. The combination of immediate buyback activity and steady dividend payments provides a measure of support for the stock, though the energy sector's sensitivity to macroeconomic factors and geopolitical events remains a key risk factor.