Equinor raises 2026 output growth guidance as earnings nearly double

By Olivia Hart

Equinor raised its 2026 oil and gas production growth guidance to about 4% from 3%, after third-quarter 2026 company-share output averaged 2.166 million barrels of oil equivalent per day (MMboe/d).

What drove the earnings increase?

Equinor reported adjusted operating income of $12.35 billion for third-quarter 2026, nearly double the $6.22 billion recorded a year earlier. Higher oil and natural gas prices, increased production and stronger refining margins supported the result.

Net income reached $2.54 billion, compared with a net loss of $204 million in the year-earlier quarter. Adjusted net income reached $2.86 billion, or $1.20 per share.

Equinor reported an average liquids price of $92.30 per barrel and a European natural gas price of $20 per million British thermal units during the quarter. The company linked those prices to tighter energy markets amid Middle East supply disruptions.

Equinor President and Chief Executive Officer Anders Opedal said: “High production in the third quarter enabled us to capture additional value from higher prices.”

The combination of realized prices, higher upstream volumes and downstream margin strength converted a $204 million year-earlier net loss into $2.54 billion of net income.

Higher commodity prices, production gains and refining margins drove the earnings improvement.

How did production perform?

Company-share oil and gas production averaged 2.166 MMboe/d in the quarter, 2% higher than a year earlier.

Production on the Norwegian continental shelf remained broadly stable. Contributions from new fields, including Halten East and Verdande, and from new wells offset natural declines and unplanned losses at Johan Castberg and Troll.

International production increased 21%, driven by higher volumes from Adura in the UK and Bacalhau offshore Brazil, as well as reduced maintenance activity. US production declined because of planned offshore downtime and natural field declines.

New Norwegian fields and wells sustained the domestic base, while stronger Adura and Bacalhau volumes and lower maintenance lifted international production by 21% during the quarter.

Production growth came mainly outside Norway, while new domestic fields limited the decline.

What did refining and cash flow deliver?

The Marketing, Midstream and Processing segment benefited from stronger refining margins, high utilization and liquefied natural gas (LNG) trading activity. The Mongstad refinery in Norway delivered a record earnings contribution during the quarter.

Cash flow from operations after taxes reached $8.14 billion. Organic capital expenditures totaled $3.28 billion.

Equinor's adjusted net debt-to-capital-employed ratio, a leverage measure, declined to 3.8% at quarter-end from 10.4% in the previous quarter.

High refinery utilization, LNG trading and a record contribution from Mongstad strengthened the downstream segment while the quarter's leverage ratio fell from double digits to 3.8%.

Refining and balance-sheet metrics strengthened alongside the upstream result.

What changed in the upstream portfolio?

Equinor continued reshaping its upstream portfolio, including through its acquisition of bp's interest in the Bay du Nord offshore oil project in Canada. In October, the company agreed to sell a 30% interest in the project to Shell as development planning progressed toward a final investment decision (FID), the formal project-sanction step.

Bay du Nord had not reached FID when Equinor announced the Shell sale, leaving the development pre-sanction rather than a sanctioned production project.

Equinor also expanded its exploration position in Namibia and established an exploration partnership with Aker BP and Vår Energi on the Norwegian continental shelf. Both moves remained at exploration stage rather than sanctioned development.

These moves separate near-term production and shareholder returns from longer-dated exploration and a Canadian development still working through the formal project-sanction process before a decision.

The portfolio shift pairs a Canadian development interest with broader exploration exposure in Namibia and Norway.

What should investors watch next?

Capital returns now combine a $0.39-per-share quarterly cash dividend with a fourth-quarter share-repurchase tranche of up to $1.125 billion and expected full-year 2026 repurchases of up to $3 billion.

The board approved the quarterly cash dividend and fourth-quarter repurchase tranche. Production guidance now points to about 4% growth, which Equinor linked to stronger operational performance.

Bay du Nord's FID is the next disclosed project milestone, although the company did not provide a date. The margin focus is Mongstad, which delivered a record earnings contribution during the quarter.

Watch the Bay du Nord final investment decision, delivery of the 4% production guidance and whether stronger refining margins support another record contribution from Mongstad.