Eni(E) ZACKS·2025-02-18 14:26Core Insights - The energy sector is under significant pressure due to a sharp decline in oil and natural gas prices, impacting profitability and earnings growth for many companies [1][3][5] Group 1: Earnings Performance - Half of the energy companies in the S&P 500 have reported earnings, with an average profit drop of 33% year over year and revenue growth of only 0.8% [4] - S&P 500 energy companies are expected to report a 24.8% decline in earnings compared to the previous year [3] - If energy companies are excluded, S&P 500 earnings would rise by 16%, indicating the sector's negative impact on overall market performance [5] Group 2: Price Trends - In Q4 2024, West Texas Intermediate crude oil averaged 78.41 the previous year, driven by increased global production and slower demand growth [2] - Natural gas prices also fell, with the Henry Hub spot price averaging 2.74 in the prior-year quarter [2] Group 3: Sector Challenges - Exploration and production companies are expected to see reduced profits despite steady production levels due to supply-demand imbalances [6] - Integrated oil and gas companies will likely face pressure, particularly in their upstream divisions, while equipment and services companies may experience weaker demand due to reduced exploration and production activity [6] Group 4: Company-Specific Insights - Oceaneering International, Inc. (OII) is expected to report strong earnings with an Earnings ESP of +10.11% and a Zacks Rank 3, suggesting a high chance of an earnings beat [9] - ProPetro Holding Corp. (PUMP) has low prospects for an earnings beat with an Earnings ESP of 0.00% and a Zacks Rank 5, indicating a strong sell [11] - Eni S.p.A. (E) is also expected to struggle, with an Earnings ESP of 0.00% and a Zacks Rank 3, suggesting low chances of an earnings beat [12] - Northern Oil and Gas, Inc. (NOG) has an Earnings ESP of -0.59% and a Zacks Rank 3, indicating low chances of delivering an earnings beat [13]