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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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Eni (E) Decides to Divest 49% Stake in Power Generation Unit
Eni SpA (E - Free Report) has decided to divest a 49% stake in the Enipower power generation unit, per Reuters. The divestment will be made to Sixth Street Partners — an investment firm in the United States.
Per the source, Eni will control the operation of the unit. Also, the integrated energy player has a plan of continuing business consolidation. Although no financial details of the transaction have been provided yet by Eni, the value of the stake could be more than $548 million, the source added.
In Italy, Enipower, with its six gas plants, is a leading producer of electricity. The total power generation capacity of the plants is roughly 5 gigawatts.
The divestment primarily reflects Eni’s strong focus on allocating capital toward cleaner energy. In its activities, Eni is increasingly involving solar, wind and wave energies, thereby achieving carbon neutrality in the long term.
Eni SpA Price
Eni SpA price | Eni SpA Quote
Eni currently carries a Zacks Rank #3 (Hold). Other prospective players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , EOG Resources (EOG - Free Report) and Chevron Corporation (CVX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is banking on key upstream projects centered around Permian — the most prolific basin in the United States — and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past 30 days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cash flow at a West Texas Intermediate crude price of $80 per barrel. EOG Resources has also committed $1.7 billion in regular dividend payments.
With the employment of premium drilling, EOG Resources is reducing cash operating costs per barrel of oil equivalent, thereby aiding the bottom line.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cash flows for the company in the long run.
In the past seven days, Chevron has witnessed upward earnings estimate revisions for 2022.