Eni (E) and Partners Set to Merge Two Concessions in Egypt
Eni SPA E recently agreed to merge the Meleiha and Meleiha Deep concessions in the Western Desert of Egypt. It has signed a deal with the Egyptian General Petroleum Corporation (“EGPC”) and Lukoil, which renamed the combined concessions as Merged Meleiha.
The deal also extended the Merged Meleiha’s concessions to 2036, with possibilities of stretching the time period further to 2041. This is expected to unlock the true potential of the area’s resources. The company is expected to use high-resolution 3D seismic data for development of the prolific basin of the Egyptian Western Desert.
Furthermore, Eni is likely to build a new gas treatment facility and connect it with Western Desert Gas Complex in Alexandria. This is expected to boost Eni’s hold in Egypt’s gas production market. The company has been working in Egypt since 1954. At present, its daily equity output in the country is estimated at 320 thousand barrels of oil equivalent.
Importantly, Eni intends to use experienced local contractors at the site, who also worked in the Zohr gas field. A joint venture between Eni and EGPC will be the operator at the concession, with a 76% stake. Russian energy company Lukoil owns the remaining 24% interest.
Eni’s constant efforts to expand upstream operations will go a long way in generating growth. The company has recorded massive production growth in the past few years, thanks to ramped-up production from Egypt’s Zohr and Noroos gas fields. Moreover, the start-up of key upstream projects is expected to enable it to achieve a compound annual growth rate of 4% from 2021 through 2024.
Eni’s shares have increased 30% in the past year compared with 28.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
The company currently has a Zacks Rank #4 (Sell). Some better-ranked players in the energy space include Earthstone Energy, Inc. ESTE, Pembina Pipeline Corporation PBA and PHX Minerals Inc. PHX, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earthstone’s sales for 2021 are expected to jump 87.7% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to rise 37.4% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 140% year over year.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Click to get this free report
Eni SpA (E): Free Stock Analysis Report
Pembina Pipeline Corp. (PBA): Free Stock Analysis Report
Earthstone Energy, Inc. (ESTE): Free Stock Analysis Report
PHX Minerals Inc. (PHX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.