BASF Signs 10-Year Deal With Equinor, Secures Natural Gas Supply

BASF SE BASFY entered into a long-term agreement with Equinor to secure a substantial share of its natural gas needs in Europe through the annual delivery of up to 23 terawatt hours (TWh), around 2bcm, of natural gas over a 10-year period from Equinor. As natural gas is a crucial feedstock for basic chemical production, the agreement strengthens its availability with deliveries under the deal expected to start from Oct. 1, 2025.

BASF requires natural gas, both as an energy source and a raw material. The deal supports BASF’s energy and raw material portfolio diversification and efforts to reduce its carbon footprint. Equinor’s gas supply from Norway is claimed to have the lowest emissions from production and transportation. The strategic agreement entails the supply of gas on market terms.

The partnership builds on the long history of collaboration in supplying gas and liquids to BASF, which develops varied solutions in manufacturing components for car interiors, sportswear, personal care items and agricultural solutions. The terms of the deal are competitive and support BASF’s sustainability targets.

For Equinor, the deal not only solidifies its role as a key energy provider to BASF, one of Europe’s industry giants, but also highlights the strategic edge provided by the low-carbon energy infrastructure.

BASFY stock has gained 4.2% over the past year against the industry’s 15.3% decline.

BASFY’s Zacks Rank & Key Picks

BASFY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Royal Gold, Inc. RGLD, Coeur Mining, Inc. CDE and Carpenter Technology Corporation CRS. While RGLD and CDE currently sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RGLD’s current-year earnings is pegged at $7.47 per share, indicating a 42% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 9%. RGLD’s shares have gained 13.6% in the past year.

The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 69 cents per share, implying a 283.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 136.2%.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $7.28 per share, indicating a rise of 53.6% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have gained 141.4% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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