Core Insights - Eni S.p.A. has entered exclusive negotiations with Global Infrastructure Partners to potentially sell a 49.99% co-control stake in its carbon capture, utilization, and storage subsidiary, Eni CCUS Holding [1][2] - The deal is part of Eni's strategy to accelerate investments in energy transition and unlock value from its decarbonization assets [2][5] - Eni CCUS Holding operates key carbon capture initiatives in the UK and the Netherlands, and holds future acquisition rights to the Ravenna CCS project in Italy, indicating strong market interest in CCUS [3][4] Company Strategy - The exclusivity period allows both Eni and GIP to complete due diligence and finalize transaction documentation [2] - GIP is expected to co-invest in expanding the CCUS platform, validating Eni's energy transition portfolio which includes renewable energy and low-carbon technologies [5] Project Developments - Eni has secured financing for the Liverpool Bay CCS project, which aims to capture CO2 emissions from industrial facilities in North West England and transport them for permanent storage beneath the Irish Sea [6] - Major EPC contracts have been awarded to Italian firms for the construction of CO2 compression stations and offshore platforms for long-term CO2 storage [7] Regulatory Context - Eni is among 44 oil and gas firms tasked by the EU to advance carbon storage initiatives, with a goal of injecting at least 50 million tons of CO2 annually by 2030, highlighting the urgency for CO2 storage solutions [8] - The timing of Eni's stake sale discussions reflects strong investor appetite for carbon management infrastructure as regulatory and climate ambitions intensify in Europe [8] Market Implications - Eni's potential partnership with GIP could serve as a model for legacy energy companies to monetize transition-related assets while leveraging external capital to scale their decarbonization efforts across Europe [9]

Group 1 - Eni S.p.A is exploring the sale of a 20% stake in its renewable and retail business Plenitude, engaging in exclusive discussions with Ares Alternative Credit Management [1][2] - The equity value of Plenitude is estimated between 9.8 billion and 10.2 billion euros, with potential to exceed 12 billion euros when considering debt [2] - The sale aligns with Eni's satellite strategy, aimed at developing low-carbon businesses and attracting external investments [3][5] Group 2 - Eni's strategy includes selling small stakes in its business units to support capital expenditures for low-carbon initiatives while retaining investment capacity in upstream projects [3][4] - The interest from Ares highlights the attractiveness of Eni's business model and its growth prospects [4] - Eni has previously executed similar transactions, including a stake sale in Plenitude to Energy Infrastructure Partners and a 30% interest in its biofuel unit Enilive to KKR [5]

Group 1 - The article expresses a supportive view on Eni S.p.A. due to its satellite strategy and lower sensitivity to Brent's price [1] - The commentary follows a recent oil update on TotalEnergies SE, indicating a broader context of analysis within the oil sector [1] Group 2 - The analysis is aimed at buy-side hedge professionals conducting fundamental, income-oriented, long-term analysis across sectors globally in developed markets [1]

Core Viewpoint - Eni S.p.A reported first-quarter 2025 adjusted earnings of 92 cents per American Depository Receipt, surpassing the Zacks Consensus Estimate of 91 cents, but down from $1.04 in the same quarter last year. Total revenues of $24.2 billion exceeded the estimate of $22.3 billion but declined from $25.2 billion year-over-year. The results were positively influenced by higher natural gas prices but negatively impacted by decreased hydrocarbon production and lower refining and biofuels margins [1]. Operational Performance - Eni operates through four business segments: Exploration & Production, Global Gas & LNG Portfolio and Power, Refining and Chemicals, and Enilive and Plenitude [2]. Exploration & Production - Total oil and gas production was 1,647 thousand barrels of oil equivalent per day (MBoe/d), a 5% decrease from 1,741 MBoe/d in the prior-year quarter. Liquids production was 786 thousand barrels per day (MBbl/d), down 1% from 797 MBbl/d a year ago. Natural gas production was 4,502 million cubic feet per day (mmcf/d), compared to 4,937 mmcf/d in the previous year [3]. - The average realized price of liquids was $69.72 per barrel, down 6% from $74.53 a year ago. The realized natural gas price was $7.57 per thousand cubic feet, up 8% from $7.04 in the year-ago period [4]. - The Exploration & Production segment reported a pro-forma adjusted EBIT of €3.3 billion, down 2% from €3.4 billion in the first quarter of 2024, affected by lower hydrocarbon production due to asset divestitures finalized in 2024 [5]. Global Gas & LNG Portfolio and Power - Worldwide natural gas sales totaled 12.12 billion cubic meters (bcm), down 22% year-over-year, with lower wholesale gas volumes sold in Italy and declines in the European market, particularly in Turkey. This segment reported a pro-forma adjusted EBIT of €473 million, reflecting a 34% increase from €353 million in the prior year [6]. Refining and Chemicals - Total refinery throughputs were 5.86 million tons (mmtons), down from 6.38 mmtons in the corresponding period of 2024. Petrochemical product sales decreased 7% year-over-year to 0.80 mmtons [7]. - The segment reported a pro-forma adjusted negative EBIT of €334 million, compared to a negative €53 million in the year-ago quarter, impacted by lower throughput volumes and refining margins globally [8]. Enilive & Plenitude - Retail gas sales managed by Plenitude declined 7% year-over-year to 2.39 bcm. The segment reported a pro-forma adjusted EBIT of €336 million, down from €426 million a year ago, attributed to lower margins in the biofuels business [9][10]. Financials - As of March 31, Eni had a long-term debt of €20.1 billion and cash and cash equivalents of €9.1 billion. For the quarter, net cash generated by operating activities was €2.4 billion, with capital expenditures totaling €1.8 billion [11]. Outlook - Eni has lowered its 2025 capital spending guidance to below €8.5 billion from approximately €9 billion due to recent trade tariff events. Oil and gas production for 2025 is expected to be around 1.7 million barrels of oil equivalent per day [12].

Financial Performance - Eni reported €3.7 billion of proforma adjusted EBIT, €1.4 billion of adjusted net profit, and €3.4 billion of adjusted cash flow, covering gross capex of €1.9 billion[10]. - In Q1 '25, the company reported an adjusted net profit of €1,313 million, an increase of 11% compared to Q1 '24, driven by contributions from joint ventures and associates[24]. - Adjusted net profit attributable to Eni's shareholders in Q1 2025 was €1,412 million, reflecting an 11% decrease compared to Q1 2024[64]. - The Group's proforma adjusted EBIT for Q1 2025 was €3,681 million, down 11% from the previous year, mainly due to a downturn in downstream businesses[63]. - Proforma adjusted EBITDA for Q1 2025 was €358 million, a 3% increase compared to Q1 2024[49]. - The refining business reported a proforma adjusted loss of €91 million, reflecting ongoing challenges in product crack spreads[17]. - The tax rate in Q1 '25 was approximately 46%, a decrease of about 7 percentage points compared to the same period in 2024, primarily due to a more favorable geographical mix of pretax profit[26]. Production and Operations - Hydrocarbon production decreased to 1,741 kboe/d in Q1 2025, down 5% from Q4 2024, while installed renewable capacity increased by 37% to 4.1 GW[11]. - Hydrocarbon production averaged 1.65 million boe/d in Q1 '25, down by 5% year-over-year, with divestments in Nigeria, Alaska, and Congo offset by ramp-ups in Côte d'Ivoire, Congo, Mexico, and Italy[25]. - Production of oil and natural gas totaled 1,716 kboe/d in Q1 2025, a decrease from 1,741 kboe/d in Q1 2024[121]. - Production of liquids was 786 kbbl/d in Q1 2025, consistent with Q4 2024 but down from 797 kbbl/d in Q1 2024[122]. - Production of natural gas reached 4,862 mmcf/d in Q1 2025, an increase from 4,502 mmcf/d in Q4 2024 but a decrease from 4,937 mmcf/d in Q1 2024[123]. Capital Expenditure and Investments - The company expects FY gross capex to be below €8.5 billion, down from initial guidance of around €9 billion, with net capex seen below €6 billion[21]. - Capital expenditure in Q1 2025 was €1,819 million, a decrease of 6% year-over-year from €1,931 million in Q1 2024[120]. - Exploration & Production capital expenditure was €1,439 million, primarily focused on oil and gas development in regions including the UAE, Indonesia, and Italy[120]. - The company completed a buyback program of €2 billion, repurchasing a total of 144 million shares[71]. - Cash inflows from divestments net of acquisitions were approximately €0.2 billion, including a post-closing adjustment of €0.12 billion from Ithaca Energy Plc[69]. Dividends and Shareholder Returns - The company confirmed a 5% increase in FY 2025 dividend to €1.05 per share and announced a buyback program of €1.5 billion[19]. - The company paid dividends of €765 million to shareholders in Q1 2025, slightly down from €767 million in Q1 2024[118]. Financial Position and Cash Flow - Net cash provided by operating activities in Q1 2025 was €2,385 million, an increase of €481 million compared to Q4 2024[68]. - Free cash flow for Q1 2025 was €1,789 million, significantly up by €1,895 million from Q4 2024[66]. - Net borrowings before IFRS 16 decreased by approximately €1.8 billion, amounting to €10.3 billion as of March 31, 2025[76]. - Shareholders' equity increased by €1.6 billion to €57.3 billion, driven by a net profit of €1.2 billion and equity transactions related to subsidiaries[74]. - Cash and cash equivalents increased from €8,183 million in December 2024 to €9,147 million in March 2025, an increase of approximately 11.8%[1]. Strategic Initiatives and Joint Ventures - Eni has identified over €2 billion in mitigating actions to offset negative scenario effects in 2025, reflecting the company's financial discipline[13]. - The company established a joint venture with Petronas targeting a long-term production plateau of 500 kboe/d in Indonesia[17]. - In March, the company and Vitol agreed on the economic terms for a farm-out of a 25% working interest in the Congo FLNG project, with expected proceeds of $2.7 billion[28]. - In April, the company and KKR completed a transaction increasing KKR's stake in Enilive to 30% for approximately €601 million[43]. Market Conditions and Challenges - In Q1 '25, natural gas sales were 12.12 bcm, a decrease of 22% from the previous year, attributed to lower volumes sold in Italy and the European market[30]. - Enilive reported a proforma adjusted EBIT of €95 million in Q1 '25, down by 48% year-over-year, impacted by deteriorated margins in the biofuels business[40]. - The company reported a significant impact from inventory holding gains and losses, which were excluded from adjusted results[89]. - Special items recorded in operating profit amounted to net charges of €286 million, primarily due to write-downs in the E&P segment[78].

Q1 2025 RESULTS APRIL 24, 2025 Baleine, Côte d'Ivoire Q1 2025 | HIGHLIGHTS EXECUTING OUR DYNAMIC STRATEGIC PRIORITIES FINANCIAL RESULTS GLOBAL NATURAL RESOURCES TRANSITION & TRANSFORMATION UPSTREAM & CCS Start-up of Johan Castberg Agreement for the exploitation of Cyprus' Cronos Block 6 resources MoU with YPF for Eni's participation in the Argentina LNG project in April Financial close for the Hynet Liverpool Bay CCS project PORTFOLIO MoU with Petronas for Indonesia-Malaysia business combination Valorizatio ...

Investment Overview - Eni S.p.A is set to invest nearly 24 billion euros over the next four years in projects across Algeria, Libya, and Egypt to amplify energy production in North Africa [1][3] - The investment aligns with the Roman government's Mattei Plan, aimed at strengthening relations with Africa and re-establishing economic and political connections [2] Market Potential - Algeria, Libya, and Egypt have significant potential to become oil and gas suppliers for Europe, but require foreign investments to scale energy production and meet domestic demand [3] - The demand for energy in these countries is rising substantially, approximately 7-8% each year, driven by population growth [4] Specific Country Insights - Eni has a long-standing presence in Egypt, particularly after discovering the Zohr offshore gas field, but the country is facing setbacks with declining domestic production since 2021, reaching a six-year low in 2024 [5] - An agreement was signed between Egypt and Cyprus in 2025 for gas processing, where Eni will export gas to Egypt for liquefaction and re-export to Europe, enhancing regional energy security [6]

Core Viewpoint - Eni SpA is advancing its strategy to sell a minority stake in its retail and renewables business, Plenitude, with an expected valuation exceeding €10 billion (~$11 billion) including debt [1][2]. Group 1: Stake Sale Details - Eni has received binding offers from five bidders for a further stake in Plenitude, indicating strong investor interest despite market volatility [2][3]. - The exact size of the stake being offered and the identities of the bidders have not been disclosed [3]. - Eni is entering negotiations regarding governance terms and contract specifics with potential investors [3]. Group 2: Strategic Context - The sale aligns with Eni's "satellite strategy," aimed at raising funds to support energy transition by divesting stakes in high-growth units [4]. - Recently, Eni sold 30% of its biofuels unit Enilive to KKR, a U.S.-based private equity firm [4]. - Over the next four years, Eni anticipates its satellite operations, including Plenitude and Enilive, to generate approximately €13 billion in cash flow [5]. Group 3: Valuation Insights - There are reports suggesting Plenitude's valuation could rise to €13 billion, although Eni's CFO did not confirm these figures but indicated a premium over the previous valuation [6][7]. - The strong interest from global investors and a clear capital deployment roadmap suggest Eni is balancing energy transition goals with financial prudence [7].

Group 1: Eni's Strategic Moves - Eni SpA is considering additional sales of its upstream oil and gas assets to optimize its portfolio, following a recent agreement with Vitol to sell stakes in assets in the Ivory Coast and the Republic of Congo [1][3] - The deal with Vitol, valued at $1.65 billion, reflects Eni's strategy to streamline its portfolio and attract capital through divestments while advancing energy transition goals [3][4] - Eni's chief operating officer noted significant investor interest in the company's asset divestments, prompting further consideration of additional sales [2][4] Group 2: Market Response and Implications - The potential new sales could enable Eni to reallocate capital more efficiently, invest in energy transition projects, or reduce debt [4] - High investor interest indicates a resilient appetite for upstream oil and gas assets, particularly in Africa, where Eni has a significant presence [4]

Buyback Program - Eni's Board of Directors proposed a new buyback program for up to €1.5 billion, potentially increasing to €3.5 billion in favorable cash flow scenarios[7][9] - The maximum number of shares to be purchased under the buyback program is 315 million, representing approximately 10% of Eni's share capital[9] - The new buyback program is set to run until the end of April 2026, aimed at rewarding shareholders[7] - The cancellation of treasury shares acquired under the buyback program will be proposed without reducing share capital by July 2026[12] Dividend Distribution - Eni plans to distribute 35%-40% of annual Cash Flow From Operations (CFFO) as dividends and share buybacks, with up to 60% of additional cash in upside scenarios allocated to buybacks[8] - The fourth tranche of the 2024 dividend was approved at €0.25 per share, contributing to a total annual provision of €1.00 per share[15] - Holders of ADRs will receive €0.50 per ADR, payable on June 9, 2025, with each ADR representing two Eni shares[16] Treasury Shares - Eni currently holds 91,610,327 treasury shares, which is about 2.9% of its share capital[13] Regulatory Filings - Eni's Annual Report on Form 20-F for the year ended December 31, 2024, has been filed with the SEC[21] - The documentation for the Shareholders' Meeting will be available to the public in accordance with current regulations[13]