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Eni (E) Makes Natural Gas Discovery in Offshore Abu Dhabi

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Eni SPA (E - Free Report) uncovered natural gas in its first exploration well off Abu Dhabi’s coast.

The discovery was made at the XF-002 exploration well, which is currently being drilled in offshore Block 2, 115 feet below the water surface. The block covers 4,033 square kilometers northwest of Abu Dhabi.

Eni operates the offshore Block 2, with a 70% ownership interest. The remaining stake is owned by Thailand-based PTTEP. In January 2019, Eni was awarded the exploration rights in offshore Block 2 as part of the first-ever competitive bid round for exploration blocks initiated by Abu Dhabi National Oil Company (“ADNOC”).

The interim results from XF-002 indicate 1.5-2 trillion cubic feet of raw gas in place. The gas was discovered in various good quality reservoirs of the Jurassic exploration targets. The drilling operations will continue to reach the deeper levels of the Khuff and Pre-Khuff Formations. Once the well drilling is completed, which is expected in the second quarter of 2022, the size of the final discoveries will be evaluated.

Eni has been contributing to Abu Dhabi’s growth since 2018. It is the operator of three exploration licenses and has a partnership with ADNOC in three offshore development and production concessions. Notably, the latest discovery was the first from Abu Dhabi’s offshore exploration concessions.

The latest discovery was backed by insights from ADNOC’s ongoing 3D mega seismic survey in Abu Dhabi. The discovery highlights how ADNOC's expanded approach to strategic partnerships is enabling it to boost the exploration and development of Abu Dhabi's unexploited reserves.

Company Profile & Price Performance

Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world. The stock has gained 31.5% in the past six months.

Zacks Rank & Other Key Picks

Eni currently sports a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might also look at the following companies that also presently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

PetroChina Company Limited is the largest integrated oil company in China. PetroChina's parent CNPC carries a high investment grade rating of A1 from Moody's, which translates into low borrowing rates.

PetroChina is expected to see an earnings growth of 8.5% in 2022. In the first nine months of 2021, PetroChina's upstream segment posted an operating income of RMB 58.4 billion, nearly tripling from the year-ago profit of RMB 20 billion.

BP plc (BP - Free Report) , based in London, the U.K., is a fully integrated energy company, with a strong focus on renewable energy. BP has a strong portfolio of upstream projects, which has been backing impressive production growth. 

BP is expected to see an earnings growth of 22.3% in 2022. BP announced that before declaring results for the December-end quarter, it intended to execute an additional $1.25 billion of share repurchases. The company continues to anticipate buying back $1 billion shares by every quarter, considering the Brent crude price at $60 per barrel.

Murphy USA Inc. (MUSA - Free Report) , based in El Dorado, AR, is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA’s unique high-volume, low-cost business model helps it retain high profitability even in the fiercely competitive retail environment.

Murphy USA currently has a Zacks Style Score of A for Growth, Value and Momentum. As of Dec 31, Murphy USA had cash and cash equivalents of $256.4 million. MUSA is committed to returning excess cash to shareholders through continued share buyback programs.


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