Eni SpA (E - Free Report) expands footprints in Mexico with the latest award of Block 24 in the fourth international competitive bid round, Ronda 2, by the National Hydrocarbon Commission (CNH).
Eni and its partner Qatar Petroleum won the rights to Block 24 in the deep waters of Cuenca Salina Basin in Mexico. Eni, as an operator of the block, owns 65% in joint venture, while Qatar Petroleum has a stake of 35%.
Further, the latest award will help Eni strengthen its position in a new core area with considerable operational synergies in the country.
Eni’s presence in Mexico dates back to 2006. However, the company established its wholly-owned subsidiary Eni Mexico S. de R.L. de C.V. in 2015.
Eni already holds a 100% stake in Area 1 in the Cuenca Salina Basin in Mexico. Moreover, the company has submitted the Development Plan for approval from the local authorities. It also operates three other exploration and production blocks in the same basin — Block 7 (holding 45%), Block 10 (100%) and Block 14 (60%).
Q4 Price Performance
Eni is a leading Italian energy player with strong focus on upstream and midstream businesses. During the fourth quarter, Eni’s shares have underperformed the industry. The company’s shares have gained 0.4% compared with the industry’s rally of 6.6%.
Zacks Rank & Other Stocks to Consider
Eni carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the same sector are EOG Resources (EOG - Free Report) , Pioneer Natural Resources Co. (PXD - Free Report) and Devon Energy (DVN - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% over the preceding four quarters.
Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% over the preceding four quarters.
Devon Energy Corp., based in Oklahoma City, is an independent energy company engaged primarily in the exploration, development and production of oil and natural gas. The company delivered a positive earnings surprise of 13.77% in the preceding quarter.
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