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Eni (E) Withdraws Share Repurchase Plan Amid Crude Oil Plunge

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In the wake of a weak crude pricing scenario, Eni SpA (E - Free Report) announced its decision to take back its plan of authorizing €400 million stock repurchases in 2020.

With oil price now in the bearish territory since the coronavirus pandemic is hurting global energy demand, the outlook for exploration and production business seems gloomy. Thus, upstream energy players are restricting their operational activities and thereby reducing capital budget. Eni — an integrated energy player with huge upstream business — will also be considering to slash its capital budget and anticipated cost levels to cope with the weak crude pricing scenario. Other energy firms that followed suit are Cimarex Energy Co. (XEC - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and EOG Resources Inc. (EOG - Free Report) .

Eni added that it will reconsider the stock buy-back program once the Brent crude price recovers to at least $60 per barrel.

Importantly, the integrated energy player has lowered its forecast for Brent crude for 2020 and 2021 to $40-$45 per barrel and $50-$55 per barrel, respectively. In view of the downward revision in commodity prices, the company has decided to review its business plan for 2020-2021.

Headquartered in headquartered in Rome, Italy, Eni currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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