Equinor has agreed to acquire an 87.71% stake in the 1,483 MW Lackawanna gas-fired power plant in Pennsylvania for $940 million. The deal marks a significant expansion of the energy company's footprint in the United States, specifically targeting its growing presence in the domestic power sector.

Deal Structure

The acquisition involves purchasing a controlling interest in the Lackawanna facility, which is located in Pennsylvania. The plant operates as a gas-fired power station with a capacity of 1,483 MW.

Strategic Context

The move is part of Equinor's broader strategy to strengthen its position in the US power market. By securing a majority stake in a substantial gas-fired asset, the company aims to enhance its generation capabilities and market share in North America.

Equinor ASA will commence the third tranche of its share buy-back programme for 2026 on 23 July 2026, valued at up to USD 1,125 million. This tranche includes shares for up to USD 371.3 million to be purchased in the market and shares to be redeemed from the Norwegian State. The total share buy-back programme for 2026 has been increased to up to USD 3 billion, following an initial announcement of USD 1.5 billion made in February 2026. The third tranche is scheduled to conclude no later than 26 October 2026.

Programme Details and Execution

The third tranche will be executed under a non-discretionary agreement with a third party who will make trading decisions independently of Equinor. Shares will be purchased on the Oslo Stock Exchange and potentially other trading venues within the EEA. The programme is based on an authorisation from the annual general meeting held on 12 May 2026, which allows for the purchase of a maximum of 78 million shares. At the commencement of the third tranche, 74,465,025 shares remain available for purchase. The price per share is set between a minimum of NOK 50 and a maximum of NOK 1,000.

Strategic Context and Capital Distribution

Equinor reported an adjusted operating income of USD 11.48 billion in the second quarter of 2026, supporting the capital distribution initiatives. The board of directors declared a cash dividend of USD 0.39 per share for the second quarter. The share buy-back programme aims to reduce the issued share capital of the company. All shares purchased under the third tranche will be cancelled through a capital reduction at the annual general meeting in May 2027.

Norwegian State Participation

An agreement with the Norwegian State governs its participation in the programme to maintain its ownership share at 67%. The State will vote for the cancellation of shares purchased in the market and the redemption of a proportionate number of its own shares. The redemption price for the State's shares will be the volume-weighted average price paid by Equinor for market purchases, plus interest rate compensation and adjusted for dividends.

Key Financial Metrics