Eni SpA (E - Free Report) reported first-quarter 2019 adjusted earnings from continuing operations of 67 cents per American Depository Receipt/ADR, lagging the Zacks Consensus Estimate of 76 cents. Lower oil equivalent production attributed to the underperformance.
The bottom line came almost in line with the year-ago figure of 66 cents, thanks to higher natural gas price realizations.
Total revenues in the quarter were €18,801 million, up from $18,067 million in the year-ago period.
Operational Performance
Total liquids and gas production in the first quarter was 1,832 thousand barrels of oil equivalent per day, down 2% year over year. Termination of production contract at the Intisar gas field in Libya primarily attributed to the downside.
Liquids production was 887 thousand barrels per day (MBbl/d), increasing marginally from the year-ago level of 885 MBbl/d. However, natural gas production fell nearly 4% year over year to 5,157 million cubic feet per day.
Realized price of liquids was $58.08 per barrel, which fell 5% from the year-ago figure of $61.17. However, realized natural gas price was $5.61 per thousand cubic feet, up 25% from $4.50 in the year-ago quarter.
Gas sales were 21.33 billion cubic meters, down 5% from the year-ago quarter. The decline was caused by lower sales in Italy and the rest of Europe.
Financials
As of Mar 31, the company had a long-term debt (including current portion) of €23.4 billion. Its debt-to-capitalization ratio was 33%.
In the reported quarter, net cash generated by operating activities amounted to €2.1 billion. Net capital expenditure totaled €1.9 billion.
Outlook
The company expects production growth of hydrocarbon through 2019 to be 2.5%. For 2019, the integrated energy player projects capital budget at €8 billion.
Zacks Rank and Key Picks
Eni currently carries a Zacks Rank #3 (Hold). Meanwhile, some better-ranked players in the energy space are Anadarko Petroleum Corporation , ProPetro Holding Corp. (PUMP - Free Report) and TransCanada Corp. (TRP - Free Report) . While Anadarko sports a Zacks Rank #1 (Strong Buy), ProPetro and TransCanada both hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anadarko Petroleum delivered average positive earnings surprise of 6.6% in the last four quarters.
The Zacks Consensus Estimate for Midland, TX-based ProPetro’s 2019 earnings is pegged at $2.42, indicating 21% growth from the year-ago reported figure. Next year’s forecast is $2.70, hinting at 11.5% growth.
TransCanada surpassed earnings estimates in the last four quarters, with the average being 19%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Eni SpA (E - Free Report) reported first-quarter 2019 adjusted earnings from continuing operations of 67 cents per American Depository Receipt/ADR, lagging the Zacks Consensus Estimate of 76 cents. Lower oil equivalent production attributed to the underperformance.
The bottom line came almost in line with the year-ago figure of 66 cents, thanks to higher natural gas price realizations.
Total revenues in the quarter were €18,801 million, up from $18,067 million in the year-ago period.
Operational Performance
Total liquids and gas production in the first quarter was 1,832 thousand barrels of oil equivalent per day, down 2% year over year. Termination of production contract at the Intisar gas field in Libya primarily attributed to the downside.
Liquids production was 887 thousand barrels per day (MBbl/d), increasing marginally from the year-ago level of 885 MBbl/d. However, natural gas production fell nearly 4% year over year to 5,157 million cubic feet per day.
Realized price of liquids was $58.08 per barrel, which fell 5% from the year-ago figure of $61.17. However, realized natural gas price was $5.61 per thousand cubic feet, up 25% from $4.50 in the year-ago quarter.
Gas sales were 21.33 billion cubic meters, down 5% from the year-ago quarter. The decline was caused by lower sales in Italy and the rest of Europe.
Financials
As of Mar 31, the company had a long-term debt (including current portion) of €23.4 billion. Its debt-to-capitalization ratio was 33%.
In the reported quarter, net cash generated by operating activities amounted to €2.1 billion. Net capital expenditure totaled €1.9 billion.
Outlook
The company expects production growth of hydrocarbon through 2019 to be 2.5%. For 2019, the integrated energy player projects capital budget at €8 billion.
Zacks Rank and Key Picks
Eni currently carries a Zacks Rank #3 (Hold). Meanwhile, some better-ranked players in the energy space are Anadarko Petroleum Corporation , ProPetro Holding Corp. (PUMP - Free Report) and TransCanada Corp. (TRP - Free Report) . While Anadarko sports a Zacks Rank #1 (Strong Buy), ProPetro and TransCanada both hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anadarko Petroleum delivered average positive earnings surprise of 6.6% in the last four quarters.
The Zacks Consensus Estimate for Midland, TX-based ProPetro’s 2019 earnings is pegged at $2.42, indicating 21% growth from the year-ago reported figure. Next year’s forecast is $2.70, hinting at 11.5% growth.
TransCanada surpassed earnings estimates in the last four quarters, with the average being 19%.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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