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Eni (E) to Develop Innovative Technology for Biogas Production

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Eni SPA E, through its chemical subsidiary, Versalis, entered an agreement with BTS Biogas to develop and commercialize a new technology to produce biogas and advanced biomethane from residual lignocellulosic biomass.

The innovative technology will combine Versalis' proprietary technology to process biomass with Italy-based BTS Biogas' technology for the fermentation production of biogas and biomethane.

BTS Biogas is specialized in producing these renewable fuels from different biomass sources. The company also has convenient research and development infrastructures to determine their processing capacity and outputs on an experimental basis.

Based on Eni's extensive decarbonization strategy, Versalis initiated a transformation plan designed to diversify its operations and products. Versalis also improved its contribution in the advancement of technology for increasingly sustainable industrial solutions.

With the agreement, the companies will be able to produce biogas and advanced biomethane with higher returns. The partnership will support the development of advanced biomethane production with lower greenhouse gas emissions and no agronomic impact. The significant progress made in the generation of renewable fuels from lignocellulosic biomass allows for the possibility of a low-carbon economy.

Eni has pledged to reach the full decarbonization of all products and operations by 2050. With global biogas demand expected to rise in the coming days, as the drive for lower emissions and greener fuels strengthen, the latest deal is likely to be extremely profitable.

Company Profile & Price Performance

Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.

Shares of Eni have outperformed the industry in the past six months. The stock has gained 11.3% compared with the industry's 4.8% 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.

Sunoco LP SUN is a master limited partnership that engages in the distribution of motor fuel to roughly 10,000 customers, including independent dealers, commercial customers, convenience stores and distributors. In the United States, Sunoco is among the largest motor fuel distributors in the wholesale market by volume. In 2020, the partnership sold 7.1 billion gallons of motor fuel.

SUN's earnings for 2021 are expected to surge 743.4% year over year. Sunoco currently has a Zacks Style Score of A for both Value and Growth. For 2021, SUN expects fuel volumes of 7.25-7.75 billion gallons, indicating a rise from the 2020 reported level of 7.09 billion gallons.

APA Corporation APA is one of the world's leading independent energy companies that engage in the exploration, development and production of natural gas, crude oil and natural gas liquids. One of the largest oil producers in Permian, APA has more than 2.9 million gross acres in the region, with exposure to the Midland Basin, Delaware Basin, and Central Basin Platform/ Northwestern Shelf. As of 2020 end, APA had a proved reserve base of 874 million oil-equivalent barrels.

APA's earnings for 2021 are expected to surge 477% year over year. APA currently has a Zacks Style Score of B for Value, and A for both Growth and Momentum. Recently, the company got approval from the board of directors to double the quarterly dividend to 12.5 cents per share. APA management sees the dividend hike as the beginning of its path to return 'a higher percentage of cash flow' to its investors.

Continental Resources, Inc. CLR is an explorer and producer of oil and natural gas. CLR operates resources across the East, South and North areas in the United States. Moreover, Continental Resources' strategic water assets add huge value to its operations in Bakken and Oklahoma. As of Dec 31, 2020, CLR's estimated proved reserves were 1,103.8 MMBoe.

Continental Resources' earnings for 2021 are expected to surge 485.5% year over year. CLR currently has a Zacks Style Score of A for Growth and B for Value. CLR's board of directors increased its quarterly dividend payment to 20 cents per share from 15 cents in the previous quarter. Continental Resources also resumed its existing stock repurchase program. It already executed $65 million of share repurchases in the September-end quarter, while $618 million of the share repurchase capacity remains available.


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