Equinor (EQNR, Financial) and its joint venture, Smackover Lithium, have achieved a significant milestone with the Arkansas Oil and Gas Commission's unanimous approval of a 2.5% royalty rate for their South West Arkansas (SWA) Project's Reynolds Unit. Located in Lafayette and Columbia Counties, this project marks the state's first sanctioned royalty rate specifically for lithium extracted from brine, setting a new benchmark for similar initiatives in Arkansas.
SWA Lithium LLC had initially proposed a quarterly gross royalty of 2.5% earlier this month. Additionally, the project will pay a "in lieu bromine royalty" fee amounting to $65.05 per acre annually to brine owners. This aggregates to an overall projected royalty compensation approximating 3%, depending on current market lithium prices. This approval was granted in a special session held in Magnolia, AR, establishing a crucial precedent for future lithium development ventures in the region.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Equinor ASA (EQNR, Financial) is $22.86 with a high estimate of $28.00 and a low estimate of $19.00. The average target implies an downside of 4.91% from the current price of $24.04. More detailed estimate data can be found on the Equinor ASA (EQNR) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Equinor ASA's (EQNR, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equinor ASA (EQNR, Financial) in one year is $27.69, suggesting a upside of 15.18% from the current price of $24.04. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equinor ASA (EQNR) Summary page.
