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Eni (E) Forms Joint Venture to Develop CCS Project in Italy

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Eni SPA (E - Free Report) formed a joint venture with energy infrastructure company Snam to develop and operate Italy’s first carbon capture and storage (“CCS”) project, Ravenna.

The first phase of the Ravenna CCS project will capture 25,000 tons of carbon dioxide (CO2) released from Eni’s Casalborsetti natural gas treatment facility. The captured CO2 will be transported to the Porto Corsini Mare Ovest platform and injected into the homonymous depleted gas field in offshore Ravenna.

Phase 1 will help reduce emissions from the Casalborsetti power plant, a project based on a mature technological process crucial to achieving the company’s climate goals. The first phase is also expected to create 500 employment opportunities for the local economies.

Oil and gas companies are getting actively involved in CCS projects, as it offers a transition pathway for the rapid and effective reduction of CO2 emissions beyond what can be achieved by alternative methods like electrification and renewable fuels. Thus, the use of CCS in reducing industrial emissions offers an excellent opportunity.

CCS is vital to avoiding CO2 emissions from hard-to-abate sectors, which currently have no technological alternatives for decarbonization. The joint venture will contribute to the decarbonization of carbon-intensive sectors such as steel mills, cement, ceramics and chemicals.

CCS projects are being developed globally and are currently in advanced stages both in Europe — especially in the U.K., the Netherlands and the Nordic countries — and the United States. The project marks a major step toward the decarbonization needs of highly carbon-intensive sectors, and other Italian regions and countries bordering the Mediterranean Basin.

Price Performance

Shares of Eni have outperformed the industry in the past three months. The stock has gained 25.8% compared with the industry’s 10.8% growth.

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Zacks Rank & Key Picks

Eni currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Liberty Energy Inc. (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.

Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.

MPLX LP (MPLX - Free Report) is a master limited partnership that provides a wide range of midstream energy services, including fuel distribution solutions. MPLX’s third-quarter earnings of 96 cents per unit beat the Zacks Consensus Estimate of 81 cents.

MPLX is expected to see an earnings rise of 29.7% in 2022. MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents.

Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s third-quarter 2022 adjusted profit of 23 cents per share beat the Zacks Consensus Estimate of 13 cents.

OII is expected to see an earnings rise of 82.4% in 2022. For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.


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