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Eni (E) Signs Deal With CIP to Develop Offshore Wind in Poland

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Eni SPA E, through its subsidiary, Eni gas e luce, signed an agreement with Copenhagen Infrastructure Partners (“CIP”) for offshore wind development in Poland.

Eni and CIP already work together to develop offshore wind energy in France. With the agreement, the companies have extended their existing offshore wind partnership to the Polish seas.

Poland has established conditions to develop offshore wind of more than 10 gigawatts (GW) by 2030, owing to the implementation of the offshore wind act. Eni and CIP aim to seek seabed permits in Poland’s Baltic Sea to participate in an upcoming auction. The contract-for-difference auctions are expected to take place in 2025 and 2027.

The companies along with their subsidiaries intend to be active partners in achieving Poland’s clean energy goals. The companies will develop an offshore wind industry in Poland by creating a manufacturing system and upskilling the existing workers to boost local employment in the new industry.

Eni is planning to set up its wind and solar power business in an effort to transit away from fossil fuel. The company decided to list a minority stake in its new retail and renewable business next year to help fund the transition. Eni aims to achieve more than 6 GW of renewable capacity by 2025 and more than 15 GW by 2030.

With its significant growth potential in renewables, Poland offers an ideal environment to generate value. The development of the offshore wind industry represents a key component of Eni’s growth policies. Then again, it enables CIP to build on its service record of delivering low-cost fuel, while facilitating extensive involvement of the local economy.

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 11.4% compared with the industry’s 5.6% 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.

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.

Marathon Oil Corporation MRO, based in Houston, TX, is a leading oil and natural gas exploration and production company. MRO’s operations are mainly concentrated in the United States (including Oklahoma, Eagle Ford, Bakken and Northern Delaware) and Equatorial Guinea. As of 2020 end, MRO had approximately 972 million oil-equivalent barrels in net proved reserves (52% crude oil/condensate and 69% proved developed) and 86% was located in the United States.

Marathon’s 2021 earnings are expected to surge 212.1% year over year. MRO currently has a Zacks Style Score of B for Growth and A for Momentum. Marathon has achieved its initial $500 million gross debt reduction target for 2021, largely funded by the free cash flow of $443 million in the first quarter. It is now aiming to more than double it to $1.4 billion.

Canadian Natural Resources Limited CNQ is one of the largest independent energy companies in Canada. CNQ has a broad portfolio of low-risk exploration and development projects with a strong international exposure that yields long-term volume growth at above-average rates. As of the end of 2020, CNQ had 12.106 billion oil-equivalent barrels (BOE) in its total proved reserves.

Canadian Natural Resources’ earnings for 2021 are expected to surge 1,085.4% year over year. CNQ currently has a Zacks Style Score of B for both Growth and Momentum. The company raised its dividend by 25% in November, reflecting strength in its cash flows. CNQ is counted as a ‘Canadian Dividend Aristocrat’ with an attractive yield. Furthermore, Canadian Natural Resources has a solid track record of dividend hikes, increasing its payout for 22 consecutive years.


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