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ENI S.p.A. (E)

  • Thu, Apr. 2, 8:51 AM
    • In a bit of good news for a beleaguered oil services company, Hercules Offshore (NASDAQ:HERO) +8.8% premarket after agreeing to a five-year contract with Eni (NYSE:E) for use of the Hercules 260 drilling rig in West Africa.
    • HERO says the dayrate under the contract will range from a minimum of $75K/day when the price of Brent crude oil is $86/bbl or less to a maximum of $125K/day when the price of Brent crude is $125/bbl or more.
  • Mon, Mar. 30, 5:35 PM
    • As Iran nears a potential nuclear deal with U.S. that eases Western sanctions, the country is emerging again as a potential prize for Western oil companies such as BP, Royal Dutch Shell (RDS.A, RDS.B), Eni (NYSE:E) and Total (NYSE:TOT); the Chinese also are likely to enter the race, while U.S. companies are expected to be further down the pack.
    • Iran is a big prize for oil companies, as it holds 10% of the world’s oil reserves - no. 4 globally after Venezuela, Saudi Arabia and Canada and ahead of Iraq - and almost a fifth of global gas reserves - second only to Russia.
    • Raymond James says Iran could add 500K bbl/day to world oil supply by year-end 2016 if an agreement is reached.
    • However, experts believe Iran is in a much weaker position since it last negotiated with Western oil majors in the late 1990s, as Iraq is now open to outside investors, Mexico is allowing foreign investment in oil for the first time since 1938, and $50 oil has forced companies to focus on investments that deliver stronger returns and less risk.
  • Mon, Mar. 30, 3:58 PM
    • Exxon Mobil (XOM +2.4%) says it began production at its Hadrian South gas development in the deepwater Gulf of Mexico with facilities tied back to the nearby Lucius project, reducing additional infrastructure requirements.
    • XOM expects daily gross production from Hadrian South, its deepest subsea tie-back in nearly a mile and a half of water, to reach ~300M cf of gas and 3K barrels of liquids from two wells.
    • Hadrian South is a subsea production system with flowlines connected to the Anadarko-operated Lucius truss spar, which started production in January.
    • With the startup of Hadrian South and Lucius, XOM's total Gulf of Mexico net production capacity has increased by more than 45K boe/day.
    • XOM holds a 46.7% interest in Hadrian South, with partners Petrobras (NYSE:PBR) at 23.3% and Eni (NYSE:E) holding a 30% stake; XOM owns a 23.3% interest in Lucius.
  • Thu, Mar. 26, 3:18 PM
    • Italy's Eni (E -0.5%) and Korea Gas fail to find commercial hydrocarbons off Cyprus, the country's energy minister says, marking another strike out for energy exploration in what has been considered a promising region.
    • A consortium between the two companies also failed to discover exploitable reserves during drilling at a different location within the same offshore block in 2014; France's Total also failed to find notable reserves to warrant drilling in Cypriot waters last year.
    • The area's only major gas find so far is Noble Energy's 2011 discovery of a field with an estimated 4.5T cf of gas, but it is close to Israel's Leviathan with its estimated 22T cf of reserves.
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  • Mon, Mar. 23, 6:45 PM
    • Oceaneering International (NYSE:OII) says it has won a $100M contract with Eni (NYSE:E) as part of a consortium with GE Oil & Gas to supply equipment for the Offshore Cape Three Points project off Ghana.
    • OII's scope of work is to supply electro-hydraulic steel tube umbilicals totaling ~32 miles in length, and the contract adds more than $100M to its subsea products backlog.
    • OII expects product manufacturing to be completed by Q4 2017.
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  • Fri, Mar. 20, 7:53 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says its Nigerian subsidiary has sold its 30% stake in an oil mining lease and related facilities in the eastern Niger Delta to Eroton Exploration & Production for $737M.
    • Eroton also took additional stakes in the area from subsidiaries of Total (NYSE:TOT) and Eni (NYSE:E).
    • Shell says the divestment is part of the strategic review of its onshore portfolio, and that it is committed to keeping a long-term presence both onshore and offshore Nigeria.
  • Thu, Mar. 19, 12:26 PM
    • Royal Dutch Shell (RDS.A, RDS.B) is making no progress curbing oil spills in Nigeria and Eni’s (NYSE:E) operations in the country are out of control, according to Amnesty International.
    • The two companies reported more than 550 spills in the oil-rich Niger River delta last year, compared with an average of 10 spills a year in Europe during 1971-2011, Amnesty says; last year, Shell, the biggest oil producer in Nigeria, reported 204 spills while Eni reported 349 spills.
    • Nigeria produces ~2M bbl/day of oil, more than any other African country, and spills are blamed for damaging the environment and fishing villages in the delta.
  • Mon, Mar. 16, 12:55 PM
    • Eni (E -2.1%) says it has made a significant discovery of gas and condensate with a wildcat well drilled at its Bahr Essalam South exploration prospect off Libya.
    • The well produced 29M cf/day and 600 bbl/day of condensate during the production test; once producing, the well is expected to deliver more than 50M cf/day and 1K bbl/day of condensate.
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  • Mon, Mar. 16, 9:14 AM
    • Eni (NYSE:E) signs a framework agreement with Egypt worth $5B over 4-5 years for concessions in the Mediterranean, the Western Desert, the Nile Delta and Sinai.
    • Oil Minister Sherif Ismail says he expects the investment in several discoveries would generate production of 200M barrels of oil and 1.3T cf of gas.
    • Eni, which started Egyptian operations in 1954, currently produces ~210K boe/day.
    • Also: BP signs $12B Egypt energy deal
    • Also: Siemens signs €10B in power plant deals with Egypt
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  • Fri, Mar. 13, 3:44 PM
    • Eni (E -5.9%) is 6% lower after becoming the first global oil major to cut its dividend, as well as suspending the €6B ($6.7B) share buyback plan it announced last year.
    • BP and Royal Dutch Shell (RDS.A, RDS.B) have said they would do their utmost to continue paying high dividends and would rather cut operating and capital spending, sell assets and increase borrowing than reduce payouts.
    • "Everyone was convinced they'd do all they could to keep the dividend steady," says a fund manager at Ifigest, adding that the capex cuts and intensity of the asset sales - the company is eyeing ~$8.5B in sales - also are causes for concern.
    • UBS calls Eni’s decision to cut the dividend a “bold step” because the higher payout risked skewing strategy to protect it; Eni’s dividend payout is now below several peers, including Shell, though the comparison is somewhat false as the other companies are paying partly in shares, UBS adds.
    • Despite a proposed a 17% cut in planned capital spending over the 2015-18 period compared to previous plans, Eni says production will grow 3.5%/year in the four years on the back of several projects started in 2014 in Angola, Congo, the U.K., the U.S. and Norway.
  • Fri, Mar. 13, 11:13 AM
    • Eni (E -5.2%) staggers to two-month lows after its new strategic plan outlines sharply lower spending, a big dividend cut and asset sales totaling €8B ($8.5B) over the next four years amid lower oil prices.
    • Eni traditionally has one of the highest dividend payouts in the industry, but it now plans to pay an annual dividend of €0.80/share, a 29% reduction from last year.
    • Eni's four-year plan for 2015-18 projects a 17% drop in capex compared with its previous plan.
  • Tue, Mar. 10, 2:27 PM
    • Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (RDS.A, RDS.B) are likely to withstand the oil price collapse better than their rivals because they are closer to finishing expensive investment projects, according to a Reuters analysis.
    • Chevron (NYSE:CVX) and Total (NYSE:TOT), on the other hand, are both in the midst of large project spending cycles and will need to tap into more debt in order to stay afloat.
    • While all companies are expected to keep paying high dividends by increasing borrowing, Exxon and Shell appear to be most able to cover both spending and dividend payouts if oil prices stay at current prices, and are likely to be able to pick up bargain assets while the price collapse shakes out the sector.
    • Exxon and Shell also are ahead in terms of where their cash flow breaks even: According to analysts at Jefferies, both have 2015 breakevens of $75-$80/bbl, healthier than Chevron, BP and Eni's (NYSE:E) respective breakevens of $95, $100 and $120.
  • Tue, Feb. 24, 10:14 AM
    • Oil production in the British section of the North Sea continued to decline in 2014 amid rising costs, high taxes and low oil prices, according to a report from an industry lobbying group which wants the U.K. government to cut taxes and streamline the complex regime for the oil and gas sector.
    • British North Sea production in 2014 fell 1.1% Y/Y to 1.42M boe/day, the report says, down ~70% since the area's peak in 1999.
    • The report notes that oil companies drilled only 14 exploration wells last year in the British part of the North Sea, vs. ~70 exploration wells drilled in the nearby Norwegian sector, where the government offers more generous tax incentives.
    • Among the North Sea's major producers: BP, RDS.A, RDS.B, COP, E, BHP, TOT, CVX, CEO, OTCPK:BRGXF, OTCQX:BRGYY, OTCQX:REPYY, OTCPK:REPYF
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  • Wed, Feb. 18, 9:02 AM
    • ENI (NYSE:E): Q4 EPS of €0.13
    • Revenue of €27.45B (-10.0% Y/Y)
    • Shares +2.45% PM.
    • Press Release
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  • Wed, Feb. 18, 3:52 AM
    • A sharp drop in crude prices wreaked havoc on Eni's (NYSE:E) Q4 results, as the Italian oil and gas group reported lower profits and hefty write-downs.
    • Adjusted profit fell by two-thirds to €464M, way below analysts' estimates of €614M, while the company marked down the value of its inventories by €860M and booked asset impairments and other charges of €1.94B.
    • Placating investors, Eni slightly raised its yearly dividend to €1.12 a share, from €1.10 a year ago.
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  • Tue, Feb. 17, 4:39 PM
    • Eni (NYSE:E) says it has reduced the number of expatriates working in Libya but that remaining expats and local workers were enough to guarantee normal production activities in the war-torn country.
    • Libya, which relies on oil revenue for almost its entire budget, is producing less than 200K bbl/day, down from 1.6M bbl/day before Qadhafi's ouster in 2011; Italy, which traditionally has held close ties with Libya, closed its embassy in Tripoli on Sunday.
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Company Description
Eni SpA together with its subsidiaries offers integrated energy services. Its business segments include Exploration & Production, Gas & Power and Refining & Marketing.