Eni Discovers Natural Gas in Indonesia with Exceptional Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy E?
Source: seekingalpha
- Exceptional Discovery: Eni's Geliga-1 natural gas discovery in Indonesia's Kutei Basin has delivered
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Analyst Views on E
Wall Street analysts forecast E stock price to fall
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 52.590
Low
17.45
Averages
18.45
High
19.45
Current: 52.590
Low
17.45
Averages
18.45
High
19.45
About E
Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company's segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-term Market Trends: ABB indicated that the increase in electricity demand is not a short-term trend but is driven by long-term factors such as the construction of data centers, increased electric vehicle usage, and industrial decarbonization, with electricity projected to account for nearly 30% of final energy use by 2030.
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Eni Discovers Natural Gas in Indonesia with Exceptional Results
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- New and Expanded Facilities: The investment includes $100 million for a new factory in Dalmine, Italy, and another $100 million to expand existing plants in Bulgaria, Finland, Germany, Norway, and Poland, enhancing production capacity.
- Capacity Increase: This investment is expected to boost ABB's European production capacity for medium-voltage products by 50% to 300%, creating approximately 800 jobs, reflecting the company's proactive response to market demand.
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- Trump's Recent Talks: Donald Trump has engaged in discussions regarding Iran over the past 24 hours.
- Focus on Iran: The conversations have been characterized as very positive, indicating a potential shift in diplomatic relations.
See More
Eni Restarts Heavy Oil Project in Venezuela
- Project Restart: Eni has agreed to restart the Junin-5 heavy oil project in partnership with PDVSA, estimated to hold about 35 billion barrels of oil, marking a significant step forward as policy constraints begin to ease.
- International Capital Return: The restart follows a major energy conference in Caracas that attracted numerous international energy companies, indicating a gradual reopening of Venezuela's upstream sector to foreign investment, which could help rebuild production capacity.
- Debt Recovery Opportunity: Recent US licenses allow limited oil and gas activities in Venezuela, enabling Eni to potentially recover about $3 billion in outstanding receivables, thereby stabilizing cash flow and supporting the project restart.
- Production Enhancement Potential: Eni's production in Venezuela averages around 64,000 barrels of oil equivalent per day, and the combination of the Junin-5 restart and expansion at Cardon IV could further enhance its resource development capabilities in the country.
See More
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- Production and Growth Outlook: The company achieved an average daily production of 1.80 million BOE, exceeding the estimated 1.78 million, with a projected 3-4% growth in oil and gas production for FY 2026, demonstrating ENI's strong capacity to maintain output levels.
- Shareholder Return Plan: ENI has boosted its 2026 share buyback program to €2.8 billion and confirmed a dividend of €1.1 per share for 2026, representing a 5% increase from 2025, reflecting a continued commitment to shareholder returns.
- Capital Expenditure and Financial Outlook: The company confirmed total capex of €7 billion and net capex of €5 billion for 2026, with an expected adjusted cash flow of €13.8 billion under a Brent price scenario of $83/bbl, showcasing robust financial management in the current market environment.
See More
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- Improved Cash Flow Guidance: Eni has upgraded its 2026 cash flow from operations guidance, which is expected to significantly enhance the company's financial stability and investment capacity, further supporting its competitiveness in the global energy market.
- Export Strategy Development: Eni and Repsol plan to start exporting Venezuelan gas by 2031, a strategic partnership that will help the company expand its influence in the Latin American market and lay the groundwork for future revenue growth.
- Major Gas Discovery: Eni has made a significant gas discovery offshore Indonesia, which not only boosts its resource reserves but also has the potential to generate substantial long-term returns, further solidifying its position in the global energy sector.
See More
