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Eni (E) Decides to Suspend Nigerian Oilfield Arbitration
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Eni SpA (E - Free Report) has temporarily halted arbitration proceedings concerning an oilfield dispute with Nigeria authorities.
The oilfield, oil prospecting license (OPL) 245, is at the heart of the controversy and is thought to be potentially the largest oil block in Nigeria.
With the move, Eni aims to extend the negotiation timeframe and facilitate the conversion of the prospecting license into a production license.
The company reached an agreement with the Federal Government of Nigeria to temporarily halt the arbitration proceedings. This pause is intended to facilitate discussions with the government regarding the essential measures for transitioning the license from prospecting to extraction (mining).
The development occurred a few days after Nigeria initiated the withdrawal of $1.1 billion in civil claims against Eni related to suspicions of misconduct in the OPL 245 agreement. An OPL permits a company to explore for oil. However, upon the discovery of recoverable oil, the license must undergo a conversion process to become an oil mining license to facilitate the production and export of oil.
In 2011, Eni secured the rights for the OPL 245 offshore oilfield. However, the area was never explored due to several disputes. In 2022, an appeals court ruled that Eni was not guilty in a corruption prosecution related to the deal for OPL 245.
Nigeria is currently engaged in negotiations seeking improved terms for the block license compared with those previously agreed upon.
Recent developments suggest a positive trajectory in resolving outstanding disputes between Eni and the Nigeria government. These include the withdrawal of a fraud complaint and Eni's commitment to divest its Nigeria onshore subsidiary.
PBF Energy Inc. (PBF - Free Report) reported third-quarter 2023 earnings of $6.61 per share, beating the Zacks Consensus Estimate of $4.86 per share. The better-than-expected quarterly results were primarily driven by lower costs and expenses.
Compared with composite stocks belonging to the industry, the leading upstream energy company’s debt-to-capitalization ratio has been consistently lower over the past few years. The company boasts a robust liquidity position, with a cash balance of $1.9 billion, which is more than sufficient to cover its long-term debt of $1.2 billion. This underscores the company’s strong financial liquidity.
Liberty Energy (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents per share. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59 per share. MTDR’s milestone led to the better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
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Eni (E) Decides to Suspend Nigerian Oilfield Arbitration
Eni SpA (E - Free Report) has temporarily halted arbitration proceedings concerning an oilfield dispute with Nigeria authorities.
The oilfield, oil prospecting license (OPL) 245, is at the heart of the controversy and is thought to be potentially the largest oil block in Nigeria.
With the move, Eni aims to extend the negotiation timeframe and facilitate the conversion of the prospecting license into a production license.
The company reached an agreement with the Federal Government of Nigeria to temporarily halt the arbitration proceedings. This pause is intended to facilitate discussions with the government regarding the essential measures for transitioning the license from prospecting to extraction (mining).
The development occurred a few days after Nigeria initiated the withdrawal of $1.1 billion in civil claims against Eni related to suspicions of misconduct in the OPL 245 agreement. An OPL permits a company to explore for oil. However, upon the discovery of recoverable oil, the license must undergo a conversion process to become an oil mining license to facilitate the production and export of oil.
In 2011, Eni secured the rights for the OPL 245 offshore oilfield. However, the area was never explored due to several disputes. In 2022, an appeals court ruled that Eni was not guilty in a corruption prosecution related to the deal for OPL 245.
Nigeria is currently engaged in negotiations seeking improved terms for the block license compared with those previously agreed upon.
Recent developments suggest a positive trajectory in resolving outstanding disputes between Eni and the Nigeria government. These include the withdrawal of a fraud complaint and Eni's commitment to divest its Nigeria onshore subsidiary.
Zacks Rank & Stocks to Consider
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PBF Energy Inc. (PBF - Free Report) reported third-quarter 2023 earnings of $6.61 per share, beating the Zacks Consensus Estimate of $4.86 per share. The better-than-expected quarterly results were primarily driven by lower costs and expenses.
Compared with composite stocks belonging to the industry, the leading upstream energy company’s debt-to-capitalization ratio has been consistently lower over the past few years. The company boasts a robust liquidity position, with a cash balance of $1.9 billion, which is more than sufficient to cover its long-term debt of $1.2 billion. This underscores the company’s strong financial liquidity.
Liberty Energy (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents per share. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59 per share. MTDR’s milestone led to the better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.