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ENI S.p.A. (E)

  • Fri, Jan. 9, 8:38 AM
    • Eni (NYSE:E) says it has signed an agreement to operate a new exploration block in the western desert of Egypt, strengthening its position in the country where it has held sway since 1954 with an equity production of ~210K boe/day.
    • The agreement as the government settles debt owed to energy companies with a legacy of operations in the country.
  • Thu, Jan. 8, 12:06 PM
    • Big oil companies including Exxon (NYSE:XOM), Shell (RDS.A, RDS.B) and BP soon must decide whether to risk upsetting investors by cutting dividends, risk earnings by cutting projects, or take on more debt in the hope that oil prices will soon recover, according to a WSJ report.
    • A Citi analysis shows spending on dividends and capital investment was 24% higher than cash flow in 2013; Shell, for example, had $40B in net cash flow in 2013 but its capital spending and dividend payments outstripped cash flow by 36%, while XOM's shareholder payouts and investment are seen exceeding cash flow by 22% in 2015.
    • Estimated capex and dividends also are expected to exceed cash flow by 20% or more this year at ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX), Eni (NYSE:E), Total (NYSE:TOT) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY).
  • Thu, Jan. 8, 9:14 AM
    • DryShips (NASDAQ:DRYS) +3.9% premarket on news that its Ocean Rig UDW (NASDAQ:ORIG) subsidiary has secured a contract extension for one of its drillships with Eni (NYSE:E) and gains work for possibly another two units.
    • As part of the contract extension for the Ocean Rig Poseidon, ORIG will adjust the existing dayrate of the Ocean Rig Poseidon contract and Eni will enter into two contracts for the employment of one or more of ORIG's available drillships in West Africa starting in Q1.
    • DRYS says the agreement increases ORIG's total contract backlog by ~$187M.
  • Mon, Jan. 5, 2:44 PM
    • Chevron (CVX -3.8%) is downgraded to Neutral from Buy at Citigroup after outperforming big oil peers in the past three months in a reflection of the resilience of CVX's balance sheet.
    • Citi revises its earnings forecasts to reflect lower oil prices, and says the stock now offers little upside in absolute and relative terms, "certainly when balanced against a portfolio that still carries uncertainties around both execution and reinvestment."
    • The firm also downgrades Eni (E -8.6%) and Repsol (OTCQX:REPYY -5.8%), whose business models and valuations will look more challenged in a lower oil environment, but prefers companies it says boast strong growth credentials, such as BG (OTCPK:BRGXF), Total (NYSE:TOT) and ConocoPhillips (NYSE:COP); it keeps Exxon (XOM -2.6%) at Neutral, thinking share buybacks likely will be dialed down to preserve the balance sheet for a prolonged period of lower prices or eventual acquisitions.
  • Mon, Jan. 5, 12:39 PM
    • ConocoPhillips (COP -4.8%) says it is flowing its first barrels of oil from the Eldfisk II project in the Norwegian North Sea, in the company’s second big startup off the coast of Norway since late 2013.
    • COP says its newly productive project, alongside its other Norwegian offshore wells, will boost its output by 60K boe/day by 2017, and plans to drill 40 new water-injection and oil wells at its Norwegian field over the next three years.
    • The Eldfisk field is one of four offshore oil regions that make up Norway’s Greater Ekofisk Area, operated by COP and co-owned with Total (NYSE:TOT), Eni (NYSE:E), Statoil (NYSE:STO) and others.
  • Mon, Jan. 5, 9:10 AM
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  • Dec. 22, 2014, 3:23 PM
    • S&P revises its outlook to negative for BP, Royal Dutch Shell (RDS.A, RDS.B) and Total (NYSE:TOT), as it cites “the dramatic deterioration in the oil price outlook” in forecasting still more negative free cash flow in 2015 extending possibly into 2016, given fairly inflexible capital expenditure and high dividends.
    • S&P says debt and dividends for Europe's oil majors have increased 50%, leaving them less flexibility in dealing with a cash crunch; BP has an indicated dividend yield of 6.85%, followed by 5.7% for TOT and 5.25% for Shell.
    • S&P also says it may cut the ratings on Eni (NYSE:E) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY).
  • Dec. 19, 2014, 11:55 AM
    • Another casualty of oil’s collapse: The Italian government's plans to make a dent in the country's national debt by selling ~4.5% of oil and gas company Eni (E +0.7%) and Italian utility Enel (OTCPK:ENLAY).
    • The government has never officially taken the sale off the table, but with Brent crude down by half since June and Eni shares about a third lower, the sale has become unlikely, at least in the short term.
    • The sale of part of the government’s 30% holding in Eni was considered a key part of a program to raise ~€11B from privatizations this year and in each of the next two years in a bid to reduce Italy’s national debt, the EU's second highest based on a percentage of GDP.
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  • Dec. 19, 2014, 8:29 AM
    • FMC Technologies (NYSE:FTI) wins an order from Eni (NYSE:E) to supply subsea production systems for the Italian company's deepwater Block 15/06 East Hub development off Angola.
    • The order has an estimated value of $393M in revenue.
    • Earlier this week, FTI received an order worth $268M from Chevron to provide susbea equipment for the Agbami field off Nigeria.
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  • Dec. 17, 2014, 5:40 PM
    • Top gainers, as of 5:15 p.m.: TTPH +19.0%. ZAGG +14.5%. E +8.4%. AKS +5.9%. ORCL +5.4%.
    • Top losers, as of 5:15 p.m.: REI -16.5%. GTI -7.8%. RCAP -7.7%. RUSS -7.3%. PKD -7.0%.
  • Dec. 4, 2014, 6:17 PM
    • Saipem (OTCPK:SAPMY) says it has received notice to suspend marine activities for Gazprom's (OTCPK:OGZPY) South Stream pipeline project, which Russia scrapped earlier this week amid opposition from the European Union; at the time, Saipem said it had not been notified of the project’s cancellation.
    • Saipem could lose as much as €1.25B ($1.55B) in revenue next year without South Stream, CEO Umberto Vergine says.
    • Eni (NYSE:E) owns 43% of Saipem and has a 20% stake in South Stream.
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  • Dec. 2, 2014, 12:15 PM
    • Chevron (CVX +1.8%) says oil and natural gas production has begun from the Jack and St. Malo fields development project in the deepwater Gulf of Mexico, 10 years after the fields were first discovered.
    • CVX expects total production from the $7.5B project - its costliest active investment in the Americas - to ramp up to 94K bbl/day of crude and 21M cf/day of gas by 2020, with 500M boe from the two fields over their 30-year lifespan.
    • CVX has a 50% interest in the Jack field, with Statoil (NYSE:STO) and Maersk splitting the remaining half, and it owns 51% of St. Malo, with co-owners Petrobras (NYSE:PBR), Statoil, Exxon (NYSE:XOM) and Eni (NYSE:E).
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  • Nov. 24, 2014, 9:13 AM
    • Ghana's government gives Eni (NYSE:E) its final approval to develop gas resources in the Offshore Cape Three Points block, expected to begin production in 2017.
    • The government also says it plans to acquire a third FPSO vessel, to be used for the $6B project, which still must be approved by Ghana's parliament.
    • Ghana hopes the project will deliver up to 170M cf/day of gas for the next 20 years; the country already produces ~100K bbl/day of oil and 120M cf/day of gas from the offshore Jubilee field, and expects to begin production of oil and 50M cf/day of gas from the TEN offshore field by 2016.
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  • Nov. 20, 2014, 8:39 AM
    • Israel's Tamar gas field reportedly would get a $1.5B-$2B expansion of production capabilities with new wells, platform upgrades and an underwater pipeline to Egypt if a final supply deal is signed with Spain's Union Fenosa Gas.
    • If the deal is finalized, the U.S.-Israeli group running Tamar would cover pipeline costs up to the maritime border with Egypt and UFG would pay for the rest.
    • The group includes Noble Energy (NYSE:NBL), which holds 36%, in addition to Israeli companies Avner Oil (OTCPK:AVOGF) and Delek Drilling (OTC:DKDRF); Union Fenosa Gas is a joint venture between Spain's Gas Natural (OTCPK:GASNY) and Italy's Eni (NYSE:E).
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  • Nov. 20, 2014, 8:11 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it has sold its stake in a set of oil wells and processing plants in Nigeria’s Niger Delta to locally owned Newcross Exploration for ~$600M.
    • Shell says it sold its 30% stake in Oil Mining Lease 24, along with smaller shares owned by Total (NYSE:TOT) and Eni (NYSE:E).
    • Shell has struggled in the area with oil theft and other security issues.
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  • Nov. 14, 2014, 4:56 PM
    • New developments and the expansion of older oil fields are expected to lift deepwater Gulf of Mexico production 18% Y/Y to 1.9M boe/day in 2016, the first new production peak seen since 2009, according to Wood Mackenzie’s latest outlook.
    • However, production is expected to plateau for the remainder of the decade following the 2016 peak due to the depletion of legacy fields and a limited number of new projects coming onstream.
    • Among top Gulf producers: RDS.A, RDS.B, BP, CVX, BHP, APC, APA, HES, E, EXXI.
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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.