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Here's Why it is Worth Investing in Eni (E) Stock Right Now
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Eni SpA (E - Free Report) has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days.
The company, with a Zacks Rank #2 (Buy), has a Zacks Style Score of A for Value and Momentum.
What’s Favoring the Stock?
The West Texas Intermediate crude price is trading around the $67-per-barrel mark, highlighting a handsome commodity pricing environment. Despite uncertainties prevailing in the energy market on fears of recession, oil prices are highly favorable for exploration and production activities.
For 2023, Eni expects a total hydrocarbon production of 1.63-1.67 million barrels of oil equivalent per day (MMBoe/d), indicating an increase from the 1.61 MMBoe/d reported last year. Coupled with higher oil prices, increased production will boost the company’s bottom line.
In 2022, Eni added about 750 million barrels of oil equivalent (MMBoe) of discovered resources to its reserve base. The significant discoveries amid soaring oil prices are pretty compelling. The Italian oil giant expects to discover exploration resources of 700 MMBoe this year. The developments will enhance Eni’s organic growth and cash flow generation.
Eni’s commitment to the energy transition is commendable. It has an ambitious plan to reach 60 gigawatts of installed renewable energy capacity by 2050. Eni’s integration of its retail and renewable power business, Plenitude, reflects its strong focus on capitalizing on the mounting demand for renewables and green energy products.
Eni is strongly focused on returning capital to shareholders. Benefitting from the rising commodity prices, the company announced a share buyback plan of €2.2 billion for 2023. Eni increased its 2023 annual dividend to €0.94 per share, indicating a 7% hike from 2022. The company intends to return 25-30% of its annual cash flow to shareholders through these methods.
Thus, Eni is poised for an upside in the coming days.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 and $4.01 per share, respectively.
PHX Minerals is an oil and natural gas mineral company. PHX Minerals posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of 7 cents per share.
PHX Minerals has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for PHX’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Enterprise Products reported first-quarter 2023 adjusted earnings per limited partner unit of 64 cents, which beat the Zacks Consensus Estimate of 62 cents. This was primarily due to higher contributions from the Natural Gas Pipelines & Services business.
In the first quarter, Enterprise Products generated an adjusted free cash flow of $1,347 million against a negative free cash flow of $1,618 million in the year-ago quarter. EPD recorded a distributable cash flow of $863 million in the same time frame.
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Here's Why it is Worth Investing in Eni (E) Stock Right Now
Eni SpA (E - Free Report) has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days.
The company, with a Zacks Rank #2 (Buy), has a Zacks Style Score of A for Value and Momentum.
What’s Favoring the Stock?
The West Texas Intermediate crude price is trading around the $67-per-barrel mark, highlighting a handsome commodity pricing environment. Despite uncertainties prevailing in the energy market on fears of recession, oil prices are highly favorable for exploration and production activities.
For 2023, Eni expects a total hydrocarbon production of 1.63-1.67 million barrels of oil equivalent per day (MMBoe/d), indicating an increase from the 1.61 MMBoe/d reported last year. Coupled with higher oil prices, increased production will boost the company’s bottom line.
In 2022, Eni added about 750 million barrels of oil equivalent (MMBoe) of discovered resources to its reserve base. The significant discoveries amid soaring oil prices are pretty compelling. The Italian oil giant expects to discover exploration resources of 700 MMBoe this year. The developments will enhance Eni’s organic growth and cash flow generation.
Eni’s commitment to the energy transition is commendable. It has an ambitious plan to reach 60 gigawatts of installed renewable energy capacity by 2050. Eni’s integration of its retail and renewable power business, Plenitude, reflects its strong focus on capitalizing on the mounting demand for renewables and green energy products.
Eni is strongly focused on returning capital to shareholders. Benefitting from the rising commodity prices, the company announced a share buyback plan of €2.2 billion for 2023. Eni increased its 2023 annual dividend to €0.94 per share, indicating a 7% hike from 2022. The company intends to return 25-30% of its annual cash flow to shareholders through these methods.
Thus, Eni is poised for an upside in the coming days.
Other Stocks to Consider
Some other top-ranked players in the energy space are Seadrill Limited (SDRL - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and PHX Minerals Inc. (PHX - Free Report) and Enterprise Products Partners LP (EPD - Free Report) , currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 and $4.01 per share, respectively.
PHX Minerals is an oil and natural gas mineral company. PHX Minerals posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of 7 cents per share.
PHX Minerals has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for PHX’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Enterprise Products reported first-quarter 2023 adjusted earnings per limited partner unit of 64 cents, which beat the Zacks Consensus Estimate of 62 cents. This was primarily due to higher contributions from the Natural Gas Pipelines & Services business.
In the first quarter, Enterprise Products generated an adjusted free cash flow of $1,347 million against a negative free cash flow of $1,618 million in the year-ago quarter. EPD recorded a distributable cash flow of $863 million in the same time frame.