We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eni (E) Revises 2020 Capex Downward on Oil Price Weakness
Read MoreHide Full Article
Eni S.p.A (E - Free Report) announced that it has downwardly revised 2020 capital budget in the wake of a weak crude pricing scenario.
The company has decided to lower capital budget for 2020 by roughly €2 billion, representing 25% of the total budget. The integrated energy firm will also slash its planned capital spending for 2021 by roughly €2.5-€3 billion, representing 30-35% of the budget. In addition to capital spending reduction, the company has also decided to cut operating expenditure for 2020 by almost €400 million.
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, energy firms with significant presence in upstream businesses are restricting operational activities and thereby reducing capital budget. Other energy firms that followed suit are Cimarex Energy Co. , Pioneer Natural Resources Company (PXD - Free Report) and EOG Resources Inc. (EOG - Free Report) .
Given lower spending, the company projects 2020 production volumes to decline year over year. In 2020, Eni expects to produce daily oil equivalent volumes in the range of 1.8-1.84 million barrels per day, indicating a decline from the prior-year’s 1.87 million barrels. The average annual production volume estimate for 2021 is the same as 2020, Eni added.
Importantly, the company believes that the measures taken so far will help it maintain strong balance sheet and dividend payments amid the coronavirus pandemic.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Eni (E) Revises 2020 Capex Downward on Oil Price Weakness
Eni S.p.A (E - Free Report) announced that it has downwardly revised 2020 capital budget in the wake of a weak crude pricing scenario.
The company has decided to lower capital budget for 2020 by roughly €2 billion, representing 25% of the total budget. The integrated energy firm will also slash its planned capital spending for 2021 by roughly €2.5-€3 billion, representing 30-35% of the budget. In addition to capital spending reduction, the company has also decided to cut operating expenditure for 2020 by almost €400 million.
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, energy firms with significant presence in upstream businesses are restricting operational activities and thereby reducing capital budget. Other energy firms that followed suit are Cimarex Energy Co. , Pioneer Natural Resources Company (PXD - Free Report) and EOG Resources Inc. (EOG - Free Report) .
Given lower spending, the company projects 2020 production volumes to decline year over year. In 2020, Eni expects to produce daily oil equivalent volumes in the range of 1.8-1.84 million barrels per day, indicating a decline from the prior-year’s 1.87 million barrels. The average annual production volume estimate for 2021 is the same as 2020, Eni added.
Importantly, the company believes that the measures taken so far will help it maintain strong balance sheet and dividend payments amid the coronavirus pandemic.
Eni SpA Price
Eni SpA price | Eni SpA Quote
Headquartered in Rome, Italy, Eni currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>