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Eni Farms Out 30% Stake in Shourouk Concession to Rosneft
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Eni SpA (E - Free Report) recently announced that it has agreed to divest a participating interest of 30% in the Shourouk Concession, offshore Egypt, to Rosneft. The impact of this news on the stock price is yet to be seen. Eni’s price chart reveals that it has moved at a slower pace than the Zacks categorized Zacks sub industry Oil & Gas-International Interated Market, year to date. Shares of Eni have risen by 4.4%, whereas the broader market has increased by 16%. Currently, Eni holds a 90% stake in the block, through its subsidiary IEOC. Recently, Eni divested 10% of its stake to BP plc (BP), which is about to be completed. The conditions agreed upon for Eni’s stake sale to Rosneft includes a consideration of $1,125 million and the pro quota reimbursement of previous expenses, which amount to about $450 million as yet. Moreover, Rosneft has an option to buy a further 5% stake under the same terms.
This agreement further establishes the success of Eni’s “dual exploration model” which, along with an enhanced development of the hydrocarbons reserves, targets early monetization of the value through the dilution of the high participating interest owned in huge exploration discoveries. Including this deal, the model has generated a total cash of about $6.3 billion in the last four years.
The supergiant gas field Zohr is located in the Shourouk Concession. Discovered by Eni in Aug 2015, the Zohr field is so far the largest natural gas field to be discovered in the Mediterranean. It is estimated to have a total potential of 850 billion cubic meters of gas in place. In Feb 2015, the authorization process for the development of field was completed. The first gas from the field is expected by the end of 2017.
Eni’s presence in Egypt dates back to 1954, where it operates through IEOC Production BV. In 2015, the equity production was about 200,000 barrels of oil equivalent per day.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
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Eni Farms Out 30% Stake in Shourouk Concession to Rosneft
Eni SpA (E - Free Report) recently announced that it has agreed to divest a participating interest of 30% in the Shourouk Concession, offshore Egypt, to Rosneft. The impact of this news on the stock price is yet to be seen. Eni’s price chart reveals that it has moved at a slower pace than the Zacks categorized Zacks sub industry Oil & Gas-International Interated Market, year to date. Shares of Eni have risen by 4.4%, whereas the broader market has increased by 16%.
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Currently, Eni holds a 90% stake in the block, through its subsidiary IEOC. Recently, Eni divested 10% of its stake to BP plc (BP), which is about to be completed. The conditions agreed upon for Eni’s stake sale to Rosneft includes a consideration of $1,125 million and the pro quota reimbursement of previous expenses, which amount to about $450 million as yet. Moreover, Rosneft has an option to buy a further 5% stake under the same terms.
This agreement further establishes the success of Eni’s “dual exploration model” which, along with an enhanced development of the hydrocarbons reserves, targets early monetization of the value through the dilution of the high participating interest owned in huge exploration discoveries. Including this deal, the model has generated a total cash of about $6.3 billion in the last four years.
The supergiant gas field Zohr is located in the Shourouk Concession. Discovered by Eni in Aug 2015, the Zohr field is so far the largest natural gas field to be discovered in the Mediterranean. It is estimated to have a total potential of 850 billion cubic meters of gas in place. In Feb 2015, the authorization process for the development of field was completed. The first gas from the field is expected by the end of 2017.
Eni’s presence in Egypt dates back to 1954, where it operates through IEOC Production BV. In 2015, the equity production was about 200,000 barrels of oil equivalent per day.
Eni currently has a Zacks Rank #3 (Hold). Some better-ranked players from the same sector are SunCoke Energy Inc. (SXC - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Futurefuel Corp. (FF - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>