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E Stock Nears 52-Week High: Is It a Smart Bet Amid Rising Oil Prices?
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Key Takeaways
Eni shares approach a 52-week high after gaining 111.6% over the past year, outperforming peers.
E benefits from higher oil prices, with Brent seen averaging $96 per barrel in 2026.
Eni expanded upstream assets, adding 900M barrels and targeting 850 kboed production by 2030.
Eni S.p.A (E - Free Report) shares are rapidly climbing toward its 52-week high of $58, closing at $56.43 on April 10. E is an integrated energy company headquartered in Rome, Italy. Eni operates through four business segments, which include Exploration & Production, Global Gas & LNG Portfolio, Power, Refining and Chemicals, and Enilive and Plenitude.
The company's Exploration & Production segment is primarily involved in the exploration, field development and production of oil and natural gas across several countries worldwide, along with LNG-related businesses. The Global Gas & LNG Portfolio engages in the wholesale supply and sale of natural gas through pipelines and LNG. The Power business sells electricity in the Italian market. The Refining and Chemicals business underscores E’s presence in downstream activities. Enilive and Plenitude cover the company’s biofuels operations and renewables & retail energy business, respectively.
Over the past year, E stock has gained 111.6%, surpassing the industry’s 53.9% growth. This compares with its peers, Equinor ASA (EQNR - Free Report) and BP plc (BP - Free Report) , which have grown a whopping 66.2% and 72.5%, respectively. While the price performance makes Eni an attractive choice, it is wise to evaluate the fundamentals and overall business environment for the stock before coming to an investment decision.
Image Source: Zacks Investment Research
Expansion of Upstream Operations
Eni has a diversified portfolio of upstream assets across several countries, including Egypt, Côte d'Ivoire, Mozambique, Italy, the UK, Norway, Angola, Congo, Indonesia and many more. At the end of 2025, the company’s full-year production reached 1.73 million barrels of oil equivalent per day, reflecting an underlying production increase of 4% from 2024. Eni added approximately 900 million barrels of new resources to its asset base.
Eni has taken final investment decisions on four major upstream projects, which are expected to secure its production outlook in the near term. In 2026, Eni will continue expanding its exploration and production footprint across multiple regions, such as West Africa, North Africa, the Eastern Mediterranean, Norway and Southeast Asia. It will strengthen its pipeline of projects that support future production.
The company has highlighted that its current portfolio of development and pre-development projects is expected to contribute an anticipated 850 thousand barrels of oil equivalent per day (kboed) to production by 2030. These exploration successes provide Eni with strong future production potential, enhance its long-term resource base and improve its reserve replacement ratio.
Image Source: Eni
High Oil Prices to Support Eni’s Cash Flows
Per the U.S. Energy Information Administration, the Brent crude spot price is expected to average around $96 per barrel in 2026. Earlier this year, oil prices were expected to average between $50 and $60 per barrel. This significant increase was mainly driven by the conflict in the Middle East between the United States and Iran, leading to supply disruptions through the Strait of Hormuz, which is a critical oil chokepoint.
The significant rise in benchmark oil prices is expected to be favorable for its exploration and production activities. The majority of Eni’s earnings come from its Exploration & Production segment, which is expected to benefit from the rise in oil and gas prices. E has a well-established, geographically diverse portfolio of assets, implying that its operations are not entirely affected by the current geopolitical scenario. The company is well-positioned to capitalize on elevated oil prices.
Eni announced that if Brent crude prices average above $90 per barrel in the year, or if gas prices or refining margins exceed company expectations by 50%, it will reward shareholders with an extra dividend. This underscores Eni’s commitment to sharing its incremental cash flows with shareholders.
Valuation Snapshot
Coming to the valuation story, E is currently considered cheap on a relative basis. The stock is trading at a 6.7x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a discount compared with the broader industry average of 6.78x. Its peers, EQNR and BP, are currently trading at 3.04x and 3.76x trailing 12-month EV/EBITDA, respectively.
Image Source: Zacks Investment Research
Time to Bet on the Stock or Wait?
The current oil price environment is favorable for Eni’s upstream activities. Since the company derives the majority of its earnings from exploration and production, the current oil price environment is anticipated to boost its revenues and cash flows and support higher shareholder returns.
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E Stock Nears 52-Week High: Is It a Smart Bet Amid Rising Oil Prices?
Key Takeaways
Eni S.p.A (E - Free Report) shares are rapidly climbing toward its 52-week high of $58, closing at $56.43 on April 10. E is an integrated energy company headquartered in Rome, Italy. Eni operates through four business segments, which include Exploration & Production, Global Gas & LNG Portfolio, Power, Refining and Chemicals, and Enilive and Plenitude.
The company's Exploration & Production segment is primarily involved in the exploration, field development and production of oil and natural gas across several countries worldwide, along with LNG-related businesses. The Global Gas & LNG Portfolio engages in the wholesale supply and sale of natural gas through pipelines and LNG. The Power business sells electricity in the Italian market. The Refining and Chemicals business underscores E’s presence in downstream activities. Enilive and Plenitude cover the company’s biofuels operations and renewables & retail energy business, respectively.
Over the past year, E stock has gained 111.6%, surpassing the industry’s 53.9% growth. This compares with its peers, Equinor ASA (EQNR - Free Report) and BP plc (BP - Free Report) , which have grown a whopping 66.2% and 72.5%, respectively. While the price performance makes Eni an attractive choice, it is wise to evaluate the fundamentals and overall business environment for the stock before coming to an investment decision.
Expansion of Upstream Operations
Eni has a diversified portfolio of upstream assets across several countries, including Egypt, Côte d'Ivoire, Mozambique, Italy, the UK, Norway, Angola, Congo, Indonesia and many more. At the end of 2025, the company’s full-year production reached 1.73 million barrels of oil equivalent per day, reflecting an underlying production increase of 4% from 2024. Eni added approximately 900 million barrels of new resources to its asset base.
Eni has taken final investment decisions on four major upstream projects, which are expected to secure its production outlook in the near term. In 2026, Eni will continue expanding its exploration and production footprint across multiple regions, such as West Africa, North Africa, the Eastern Mediterranean, Norway and Southeast Asia. It will strengthen its pipeline of projects that support future production.
The company has highlighted that its current portfolio of development and pre-development projects is expected to contribute an anticipated 850 thousand barrels of oil equivalent per day (kboed) to production by 2030. These exploration successes provide Eni with strong future production potential, enhance its long-term resource base and improve its reserve replacement ratio.
Image Source: Eni
High Oil Prices to Support Eni’s Cash Flows
Per the U.S. Energy Information Administration, the Brent crude spot price is expected to average around $96 per barrel in 2026. Earlier this year, oil prices were expected to average between $50 and $60 per barrel. This significant increase was mainly driven by the conflict in the Middle East between the United States and Iran, leading to supply disruptions through the Strait of Hormuz, which is a critical oil chokepoint.
The significant rise in benchmark oil prices is expected to be favorable for its exploration and production activities. The majority of Eni’s earnings come from its Exploration & Production segment, which is expected to benefit from the rise in oil and gas prices. E has a well-established, geographically diverse portfolio of assets, implying that its operations are not entirely affected by the current geopolitical scenario. The company is well-positioned to capitalize on elevated oil prices.
Eni announced that if Brent crude prices average above $90 per barrel in the year, or if gas prices or refining margins exceed company expectations by 50%, it will reward shareholders with an extra dividend. This underscores Eni’s commitment to sharing its incremental cash flows with shareholders.
Valuation Snapshot
Coming to the valuation story, E is currently considered cheap on a relative basis. The stock is trading at a 6.7x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a discount compared with the broader industry average of 6.78x. Its peers, EQNR and BP, are currently trading at 3.04x and 3.76x trailing 12-month EV/EBITDA, respectively.
Image Source: Zacks Investment Research
Time to Bet on the Stock or Wait?
The current oil price environment is favorable for Eni’s upstream activities. Since the company derives the majority of its earnings from exploration and production, the current oil price environment is anticipated to boost its revenues and cash flows and support higher shareholder returns.
Given the current business environment, investors should consider owning the stock at present. E currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.