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ENI S.p.A. (E)

  • 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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  • Nov. 10, 2014, 8:43 AM
    • BP and its partners plan to invest $240M over 6-8 years in new gas exploration blocks in Egypt after being awarded the licenses in September.
    • One of the blocks will be BP’s first entry into the Onshore Nile Delta, while the company will team up with Eni (NYSE:E) for the Karawan block in the Mediterranean Sea.
    • BP produced 38K bbl/day of oil and 444M cf/day of gas from its licenses in Egypt in 2013.
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  • Nov. 5, 2014, 5:35 PM
    • Eni (NYSE:E) reportedly is working with Credit Suisse bankers to explore options for the  sale of its 43% stake in oil service company Saipem (OTCPK:SAPMY).
    • Rosneft (OTC:RNFTF) recently said it was waiting to see what Eni planned to do with its Saipem stake before deciding whether to buy into the Italian oil services company, but some sources say Eni would not sell to Rosneft because the sanctions in place against the Russian company mean it could not raise funding in Europe.
    • Eni is eager to sell its Saipem debt, worth ~$3B at current market prices, to help underpin its dividend, and proceeds from any sale could be used to accelerate its makeover into a slimmer upstream oil and gas player.
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  • Oct. 30, 2014, 11:59 AM
    • Eni (E +0.9%) reports Q3 earnings that beat analyst estimates, as a lower tax rate offset falling crude prices and a weaker performance in its E&P business.
    • Q3 adjusted net income rose 2.5% Y/Y to €1.17B ($2.15B), easily beating the €896M analyst consensus estimate, however revenues fell 11% to €26.6B.
    • Q3 adjusted net profit at Eni’s E&P unit, which accounts for the vast majority of the company’s earnings, fell 26%.
    • Operating cash flow was €3.98B, which the company says was its best Q3 result in five years.
    • Q3 oil and gas production fell 3.5% to 1.58M boe/day, as declines in mature fields and unscheduled interruptions dragged down production gains in the U.K., Algeria and the U.S.; reaffirms expectations for full-year output to finish in-line with 2013.
    • Reiterates that Saipem, the oil services unit it controls with a 43% stake, is not considered a strategic asset and could be sold.
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  • Oct. 21, 2014, 11:59 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it has signed agreements to sell all the Nigerian oil assets it put up for sale last year, as it continues to reduce its exposure to the area amid violence and rampant oil theft.
    • Shell says that, together with its partners Total (NYSE:TOT) and Eni (NYSE:E), it signed an agreement to sell OML 18 to a consortium led by Canadian oil and gas company Mart Resources (OTCPK:MAUXF); it has now made sale and purchase agreements for four oil blocks, and made an agreement for the Nembe Creek Trunk Line pipeline.
    • Shell also reportedly has agreed to sell another productive Nigerian oil block, Oil Mining License 29, and an associated pipeline, to a local consortium.
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  • Oct. 13, 2014, 3:53 PM
    • Eni (E -0.3%) has signed two production-sharing contracts for the exploration of blocks 116 and 124 off the coast of Vietnam.
    • Eni's wholly-owned Block 116, part of the Song Hong basin, covers 5K sq. km in 10-120 meters of water; the PSC provides for an exploration period of seven years divided into three phases.
    • Block 124, part of the Phu Khanh basin, covers 6K sq. km. in 50-2,600 meters of water; the PSC provides for a seven-year exploration period divided into phases; Eni operates the block with 60% interest.
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  • Oct. 10, 2014, 8:48 AM
    • BP says it will start production this month from the Kinnoull field in the North Sea in a $1.1B project expected to produce oil and gas into the next decade.
    • Output from Kinnoull is forecast to peak at 45K bbl/day, and is one of three reservoirs being developed as part of the Andrew area rejuvenation program; BP says the reservoir holds 45M boe.
    • BP owns a ~77% stake in the project, Eni (NYSE:E) holds 16.67% and JX Nippon Oil has the rest.
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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.