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Dril-Quip (DRQ) Sets New Climate Targets to Reduce Emissions

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Dril-Quip, Inc. DRQ laid out decarbonization targets to align with a global warming pathway of 1.5 degree Celsius, in line with the Paris Agreement.

The company is planning to reduce its combined Scope 1 and Scope 2 emissions by more than 50% by 2030.

Dril-Quip’s decarbonization process involves shifting to renewable sources of energy at particular manufacturing sites, restructuring facilities, investing in infrastructure to reduce emissions, reducing vehicle fleet and assessing opportunities related to electrification.

Dril-Quip commits to protecting the environment not only throughout the organization but also in the broader energy sector. More than 75% of the company’s Scope 3 emissions are believed to be associated with equipment, products and services purchased by it and the use of equipment leased by customers. Hence, it is engaging with suppliers and customers to explore ways to further decarbonize their operations.

The company is collaborating with major suppliers to reduce upstream emissions in the sourcing process to reduce their carbon footprint and meet long-term emission-reduction targets. Beside this, the drilling and manufacturing company is attempting to develop engineered solutions to reduce emissions, while fitting and installing products by aligning their solutions with their long-term decarbonization goals.

Dril-Quip continues to invest in technologies and services, which reduce carbon and environmental effects through both internal R&D efforts and collaborations. This is backed by the company’s innovative e-Series products, which help customers reduce their carbon footprint. Also, the company’s recently-announced collaboration with Aker Solutions will provide customers with an optimal carbon capture, utilization and storage solution.

Headquartered in Houston, Dril-Quip is a leading developer, manufacturer and provider of highly engineered equipment, services and innovative technologies for the energy sector. The company also provides installation and reconditioning services, and rents tools for use in the installation and retrieval of its products.

Dril-Quip currently has a Zacks Rank #3 (Hold). Investors interested in the energy space might look at the following companies, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise Products Partners EPD is among the leading midstream energy players in North America. EPD is also well-positioned to generate additional cash flow from $4.6-billion worth of under-construction growth capital projects.

Enterprise Products Partners’ bottom line for 2022 is expected to rise 14.3% year over year. The partnership’s board of directors increased its cash distribution to 46.5 cents per unit, suggesting a 3.3% hike from the previous dividend of 45 cents.

TotalEnergies SE TTE is among the top five publicly traded global integrated oil and gas companies. With improving hydrocarbon prices, TTE’s net cash flow at the end of first-quarter 2022 was $8.7 billion compared with $1.4 billion in the year-ago period.

TotalEnergies’ bottom line for 2022 is expected to surge 76.8% year over year. TTE is managing long-term debt quite efficiently and trying to keep it at manageable levels. As of Mar 31, 2022, cash and cash equivalents were $31,276 million. This was enough to address the current borrowings of $16,759 million as of Mar 31, 2022.

Valero Energy Corporation VLO is the largest independent refiner and marketer of petroleum products in the United States. VLO’s Gulf Coast contributed 60.5% to the total throughput volume in the first quarter of 2022.

Valero’s 2022 earnings are expected to surge 409% year over year. VLO currently has a Zacks Style Score of A for Growth and Momentum. Through the March-end quarter, Valero returned $545 million to stockholders as dividend payments.


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