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Eni (E) Signs a 3B Euro Deal to Strengthen Green Initiative

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Eni SpA (E - Free Report) , the Italian multinational energy company, inked a five-year Sustainability-Linked revolving credit line amounting to €3 billion. The move aligns with Eni's commitment to sustainable practices and is tied to two specific targets outlined in the company's Sustainability-Linked Financing Framework, last updated in April 2023.

The newly secured credit facility is set to fortify Eni's financial position, providing enhanced flexibility to support its ongoing and future sustainability initiatives. It complements the €6 billion Sustainability-Linked credit line that Eni previously entered into in 2022.

The key metric for the margin of the new credit line is the attainment of sustainability goals, specifically concerning Net Carbon Footprint Upstream (Scope 1 and 2). Additionally, it is linked to the installed capacity for the production of electricity from renewable sources.

A consortium of 26 leading global financial institutions has collaborated to grant the credit line, showcasing the widespread support for Eni's green initiatives. The financial institutions involved in this landmark deal include Mediobanca (global coordinator, documentation, and facility agent), MUFG (global and sustainability coordinator), Citi and Natixis (global coordinators).

Furthermore, HSBC, UniCredit and Intesa Sanpaolo are serving as bookrunners, while Bank of America, BNP Paribas, BPER Banca, Société Générale and Wells Fargo are acting as mandated lead arrangers.

Zacks Rank & Key Picks

E currently has a Zack Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Matador Resources Company (MTDR - Free Report) , Liberty Energy Inc. (LBRT - Free Report) and EOG Resources, Inc. (EOG - Free Report) . While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and EOG Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.

MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.

Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.

LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.

EOG Resources is an energy exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. 

EOG’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.17%.

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