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Eni (E) to Ensure Continuous Gas Supply to Switzerland & Italy

Eni SpA E entered an agreement with the Swiss company Open Energy Platform AG (Open EP) to ensure uninterrupted gas supplies to Switzerland and Italy, even when there are interruptions or notable decreases in gas supplies from Germany.

The deal facilitates the optimal utilization of the Swiss Transitgas transport infrastructure to direct gas flows from France to Italy via Switzerland, thereby contributing to the enhancement of Swiss supply security.

The agreement will come into effect from Dec 2, 2023, and will remain in force until Sep 30, 2024. During this timeframe, Swiss authorities committed to refraining from implementing any restrictive measures on Eni’s rights to gas transportation through Switzerland.

Eni continues to advance its strategy to consolidate gas supplies, a response to the energy crisis stemming from the challenging and ongoing international situation. This reaffirms the significance of gas as the most dependable source to underpin the energy transition.

Italy, which was dependent on imports for 95% of its gas, including 40% from Russia, has witnessed a significant reduction. The percentage dropped to less than 5% this year. This decline is attributed to the unfolding developments following the conflict in Ukraine.

The latest partnership marks a milestone for Italy and Switzerland, serving as a robust signal to Europe and the global community about the imperative to bolster alliances and cooperation in addressing present and future energy challenges.

The deal between Eni and Open EP is an effective initiative in response to the world's energy problems. It ensures that gas keeps flowing even during notable disruptions, demonstrating the significance of collaborating worldwide and utilizing various energy sources. The partnership can provide a blueprint for other countries aiming to safeguard their energy supply in a world full of uncertainties.

Zacks Rank & Stocks to Consider

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

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

Murphy Oil Corporation MUR possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and independent E&P group.

The company has a long history of increasing the value of its shareholders, courtesy of steady cash flows. Its board of directors approved a 10% increase in the quarterly dividend rate beginning in the first quarter of 2023, taking the total annualized figure to $1.10 per share. The company's current dividend yield is 2.57%, better than the Zacks S&P 500 composite's average of 1.7%.

Suncor Energy, Inc. SU is Canada’s premier integrated energy company. Suncor boasts an impressive supply-chain network, owning significant oil sands and conventional production platforms.

Suncor's robust liquidity position will allow it to sustain its dividend even if oil prices stay lower for longer. Notably, the company recently hiked its dividend by 5% to 54.5 Canadian cents per share (over the prior quarter) and increased the buyback authorization to roughly 10% of its public float.

Liberty Energy LBRT reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.

Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.

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Eni SpA (E) : Free Stock Analysis Report

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