Core Viewpoint - The delivery ceremony of the new floating liquefied natural gas (LNG) production facility "NGUYA FLNG" was held in Milan, Italy, marking a significant achievement for China's independent construction capabilities in the LNG sector [1] Company Summary - The facility was built by Huisheng Clean Energy Technology Group Co., Ltd. for the Italian energy company Eni, serving as the core production unit for Eni's LNG project in the Republic of Congo [1] - Huisheng Clean Energy is the first company globally to achieve independent total package delivery of an FLNG project, utilizing standardized modular design to enhance efficiency and responsiveness to client needs [1] Industry Summary - The "NGUYA FLNG" facility measures 376 meters in length, 60 meters in width, and 35 meters in depth, with an LNG storage capacity of 180,000 cubic meters and an annual production capacity of 2.4 million tons [1] - Upon commissioning, the project is expected to increase the annual LNG production capacity of the Republic of Congo to 3 million tons, contributing to local industrial development and employment, while also enhancing Eni's supply resilience in the global LNG market [1]

Core Viewpoint - Egypt has signed agreements worth over $340 million with four international energy companies to explore oil and gas in the Mediterranean and Nile Delta regions, aiming to increase its oil and gas production [1] Group 1: Agreements and Companies Involved - The agreements were signed by the Egyptian Natural Gas Holding Company with Shell, Italy's Eni, Russia's Zarubezhneft, and a joint venture of BP and Abu Dhabi National Oil Company called Arcius Energy [1] - The exploration involves drilling 10 oil and gas wells [1] Group 2: Context and Objectives - Egypt's natural gas production has been declining in recent years, prompting the country to seek new investments and increase exploration efforts to reverse this trend [1]

Group 1 - Eni S.p.A. has entered a partnership with Global Infrastructure Partners, granting GIP a 49.99% co-control stake in Eni CCUS Holding, marking a significant advancement in carbon capture, utilization, and storage (CCUS) solutions across Europe [1][8] - Eni CCUS includes key projects such as Liverpool Bay and Bacton in the UK, the L10 project in the Netherlands, and an option for the Ravenna CCS project in Italy, aimed at decarbonizing industrial clusters by capturing and storing CO2 emissions [2][8] - The partnership will leverage GIP's infrastructure expertise and Eni's operational know-how to accelerate CCUS deployment, addressing the demand for affordable, low-carbon energy solutions [3][6] Group 2 - Eni's CEO, Claudio Descalzi, emphasized that consolidating the CCUS portfolio and partnering with GIP enhances growth prospects and validates the attractiveness of Eni's decarbonization platforms to external investors [4] - CCUS is recognized as a scalable solution for decarbonizing heavy industries, enabling sectors like steel and cement to align with climate targets while maintaining competitiveness [5] - GIP highlighted that the energy transition represents a generational investment opportunity, with over $100 trillion needed globally, positioning CCUS as a critical component of this shift [6]

Company Performance - Array Technologies, Inc. (ARRY) has shown a year-to-date performance increase of approximately 26.2%, significantly outperforming the average gain of 1.7% in the Oils-Energy sector [4] - The Zacks Consensus Estimate for ARRY's full-year earnings has increased by 5.6% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Comparison - Array Technologies, Inc. is part of the Solar industry, which includes 15 companies and currently ranks 94 in the Zacks Industry Rank. The average gain for this group is 5.7% this year, suggesting that ARRY is performing better than its peers [5] - In contrast, Eni SpA, another stock in the Oils-Energy sector, has a year-to-date return of 28.7% and belongs to the Oil and Gas - Integrated - International industry, which is ranked 152 and has moved up by 3.3% this year [4][6]

One company to watch right now is Eni (E) . E is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.67, while its industry has an average P/E of 11.99. Over the last 12 months, E's Forward P/E has been as high as 10.97 and as low as 6.79, with a median of 7.77. We should also highlight that E has a P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total ...

Core Viewpoint - The article emphasizes the importance of shareholder yield as a key metric for investors, combining dividend yield, share buybacks, and net debt reduction to assess how effectively a company returns capital to its shareholders [2][4][5]. Shareholder Yield Components - Dividends provide a steady income stream and signal management's confidence in financial health, contributing significantly to total equity returns, especially in sideways or bear markets [3][6]. - Share buybacks reduce share count, enhancing per-share metrics like earnings and cash flow, which is particularly beneficial in low-growth environments [3][4]. - Debt reduction improves balance sheet strength and reduces default risk, enhancing resilience during economic downturns, thus benefiting investors through both capital returns and improved financial positioning [4][5]. Investment Opportunities - Companies with high shareholder yield, such as Eni, BanColombia, Columbia Banking System, Donaldson, and W.P. Carey, are highlighted as attractive options for investors seeking income and capital appreciation [4][8][18]. - Eni offers a competitive dividend yield of approximately 4.46%, with a 10-time increase in dividend payout over five years, reflecting a 28.1% annualized growth rate [9][10]. - BanColombia, with an 11.49% dividend yield, has increased its payout eight times in five years, showing a 71.36% annualized growth rate [12][13]. - Columbia Banking System provides a 5.62% dividend yield, with a 7.2% annualized growth rate over two increases in five years [14][15]. - Donaldson has a 1.64% dividend yield, with a 6.26% annualized growth rate over five increases in five years [16][17]. - W.P. Carey offers a 5.53% dividend yield, having increased its payout 20 times in five years despite a negative annualized growth rate of 4.64% [18][19][20]. Financial Stability and Management - Companies with high shareholder yield tend to exhibit disciplined capital allocation and align management interests with those of investors, avoiding expensive acquisitions and value-destructive expansions [5][7]. - Empirical studies indicate that portfolios focused on shareholder yield outperform broader market indices over the long term, often with lower volatility [5][6].

Exploration and Development - Ivory Coast and Eni SpA signed a contract for a new offshore oil-exploration block acquisition [1]

[Report on the Purchase of Treasury Shares](index=4&type=section&id=Eni%3A%20report%20on%20the%20purchase%20of%20treasury%20shares%20during%20the%20period%20from%2021%20to%2025%20July%202025) This report details Eni's treasury share purchases from July 21 to July 25, 2025, including daily and cumulative program status [Summary of Share Purchases (July 21-25, 2025)](index=4&type=section&id=Summary%20of%20Share%20Purchases%20%28July%2021-25%2C%202025%29) Eni acquired 3,494,960 treasury shares (0.11% of share capital) for approximately €50 million on Euronext Milan, part of a program approved on May 14, 2025 Treasury Share Purchases (July 21-25, 2025) | Metric | Value | | :--- | :--- | | **Shares Acquired** | 3,494,960 | | **Percentage of Share Capital** | 0.11% | | **Weighted Average Price per Share** | €14.3063 | | **Total Consideration** | €49,999,996.86 | - The share purchase program was executed under the authorization granted by the Shareholders' Meeting on May 14, 2025[7](index=7&type=chunk) [Cumulative Buyback Program Status](index=4&type=section&id=Cumulative%20Buyback%20Program%20Status) Since May 20, 2025, Eni has acquired 35.66 million shares (1.13% of share capital) for €490 million, bringing total treasury stock to 127.27 million shares (4.04%) Cumulative Buyback Program Status as of July 25, 2025 | Metric | Value | | :--- | :--- | | **Shares Acquired Since May 20, 2025** | 35,658,286 | | **Percentage of Share Capital Acquired** | 1.13% | | **Total Consideration Since Start** | €490,005,718.64 | | **Total Treasury Shares Held** | 127,268,613 | | **Total Percentage of Share Capital Held** | 4.04% | [Detailed Daily Transactions](index=4&type=section&id=Detailed%20Daily%20Transactions) This section provides a daily summary and comprehensive list of individual treasury share transactions from July 21 to July 25, 2025 Daily Summary of Treasury Share Purchases (Euronext Milan) | Trade date | Transaction quantity | Transaction weighted average price (euro) | Transaction amount (euro) | | :--- | :--- | :--- | :--- | | 21/07/2025 | 705,913 | € 14.1660 | € 9,999,994.62 | | 22/07/2025 | 705,800 | € 14.1551 | € 9,990,682.99 | | 23/07/2025 | 722,384 | € 14.3230 | € 10,346,722.65 | | 24/07/2025 | 663,388 | € 14.4012 | € 9,553,602.50 | | 25/07/2025 | 697,475 | € 14.4937 | € 10,108,994.10 | | **Total** | **3,494,960** | **€ 14.3063** | **€ 49,999,996.86** | - The report includes a complete list of all individual daily transactions for the period from July 21 to July 25, 2025[9](index=9&type=chunk)

Core Insights - Eni S.p.A reported second-quarter 2025 adjusted earnings of 79 cents per American Depository Receipt, exceeding the Zacks Consensus Estimate of 67 cents, but down from 98 cents in the same quarter last year [1][10] - Total revenues for the quarter were $21.7 billion, surpassing the Zacks Consensus Estimate of $20.7 billion, although this represents a decline from $24.8 billion a year ago [1][10] Operational Performance - Eni operates through four business segments: Exploration & Production, Global Gas & LNG Portfolio and Power, Refining and Chemicals, and Enilive and Plenitude [3] Exploration & Production - Total oil and gas production was 1,668 thousand barrels of oil equivalent per day, a decrease of 3% from 1,712 Mboe/d in the prior-year quarter [4] - Liquids production increased by 6% to 825 thousand barrels per day, while natural gas production fell to 4,415 million cubic feet per day, down from 4,888 mmcf/d a year ago [4] - The average realized price of liquids was $62.77 per barrel, down 19% from $77.25 a year ago, and the realized natural gas price was $7.14 per thousand cubic feet, down 2% from $7.26 [5] - The Exploration & Production segment reported a pro-forma adjusted EBIT of €2.4 billion, a decline of 33% from €3.6 billion in the second quarter of 2024, impacted by asset divestitures and natural declines in mature fields [6] Global Gas & LNG Portfolio and Power - Worldwide natural gas sales totaled 9.01 billion cubic meters, down 4% year over year, primarily due to lower wholesale segment sales [7] - The segment reported a pro-forma adjusted EBIT of €387 million, reflecting a 9% increase from €356 million in the prior year [8] Refining and Chemicals - Total refinery throughputs were 6.38 million tons, up from 5.82 million tons in the corresponding period of 2024 [9] - Petrochemical product sales decreased by 5% year over year to 0.72 million tons [9] - The segment reported a pro-forma adjusted negative EBIT of €193 million, flat year over year, affected by lower throughput volumes and refining margins [11] Enilive & Plenitude - Retail gas sales managed by Plenitude declined by 7% year over year to 0.68 billion cubic meters [12] - Plenitude's installed renewable capacity increased to 4.5 GW from 3.1 GW a year ago [12] - The segment reported a pro-forma adjusted EBIT of €262 million, down from €278 million a year ago, impacted by weaker biofuel margins [12] Financials - As of June 30, 2025, Eni had long-term debt of €19.8 billion and cash and cash equivalents of €9.2 billion [13] - Net cash generated by operating activities was €3.5 billion, with capital expenditures totaling €1.95 billion [13] Outlook - Eni expects full-year gross capital expenditures to be below €8.5 billion, down from prior guidance of approximately €9 billion [14] - Oil and gas production for 2025 is projected to be around 1.7 million barrels of oil equivalent per day, with third-quarter production expected in the range of 1.70-1.72 million boe/d [14]

Financial Data and Key Metrics Changes - The company reported production of 1,670,000 barrels per day, consistent with guidance, and EBIT for the quarter was approximately €1,700,000,000, with pro forma EBIT of €2,400,000,000 [11] - Cash flows before working capital for the quarter were €2,800,000,000, totaling €6,200,000,000 for the half year, maintaining efficient conversion of earnings into cash [13] - Net debt decreased to €10,200,000,000, which is €2,000,000,000 lower than year-end 2024, with leverage at 19%, the lowest level in company history [14] Business Line Data and Key Metrics Changes - In the Upstream segment, the company discovered approximately 600 million barrels of oil equivalent of new resources, with significant projects in Norway and Angola contributing to production growth [5][6] - Transition businesses, including Plenitude and Eni Life, are expected to see EBITDA close to tripling between 2024 and 2030, with Plenitude's renewable capacity projected to grow by over 30% year-on-year [7][8] - Versalis showed improvement quarter-on-quarter but remains significantly loss-making, with a turnaround in EBIT expected to approach €1,000,000,000 by the end of the full-year plan [10][12] Market Data and Key Metrics Changes - The refining operations improved on Q1 due to better margins, although impacted by downtime at key assets [12] - The company expects to grow cash flow from operations (CFFO) in 2025 to €11,500,000,000, which is €500,000,000 higher than previous guidance [18] - The company anticipates a strong ramp-up in production in the second half of the year, with guidance for production to reach between 1.7 million and 1.72 million barrels per day [17] Company Strategy and Development Direction - The company aims to grow CFFO by around 40% by 2030 and improve return on capital employed, focusing on shareholder returns through dividends and share buybacks [4] - The strategy includes integrating equity gas production into the LNG chain and building complementary energy businesses related to decarbonization [4][5] - The company is advancing its upstream satellite model, which is expected to create significant cash flow and strategic options, particularly in Indonesia and Malaysia [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational momentum and positive outlook for the second half of the year, driven by production ramp-ups and new renewable power generation capacity [17][18] - The company is focused on maintaining a strong balance sheet and leveraging new partnerships to enhance operational efficiency and cash flow [63][66] - Management acknowledged the challenges in the chemical sector but expects slight improvements in margins and performance [84] Other Important Information - The company has signed a significant contract with Venture Global for U.S. LNG, which is expected to complement its portfolio of contracted volumes [23][27] - The company is pursuing a binding offer for Atea Energia, which aligns with its strategy to increase its customer base in the power sector [73] - The company is not interested in the Galp process in Namibia, focusing instead on its existing resources and exploration wells [76] Q&A Session Summary Question: Can you elaborate on the terms of the contract with Venture Global? - The company cannot comment on third-party contracts but finds the project competitive and complementary to its portfolio [26][27] Question: What is the status of the asset sale to Vitol? - The closing will consider production cash and investment ramp-up, with adjustments made at the time of closing [33][34] Question: What is the outlook for the tax rate? - The tax rate is expected to be closer to 50%, driven by the conversion of loss-making businesses into profitable ones [41][42] Question: Can you provide an update on the YPF Argentina project? - The plan is to have an FID by Q1 2026, with necessary agreements to be finalized by the end of the year [54][97] Question: What are the expectations for the buyback program? - The company is considering an increase in the buyback program, depending on the positive trend in financial performance [56][92]