Event in Progress:
Discover the latest content that has just been published on Research Tree
Strong results and above consensus with adj. EBIT of €5.2bn (+36% qoq) with Exploration & Production up by 21% qoq (€4.38bn) and the Global Gas & LNG portfolio division up 74% qoq (€931m). These numbers were supported by higher oil & gas prices (overall realization price for hydrocarbons up 16% at $75.5/boe), and partly offset by lower production (-5% qoq at 1.65mbd).
Companies: Eni (ENI:BIT)Eni S.p.A. (ENI:MIL)
ADX Energy (ADX AU)C; Target price of A$0.060 per share: Flow rate at the top end of expectations at important appraisal well - The Anshof-3 well flowed ~75 bbl/d of light oil (and no water) on test from the Eocene reservoir. This has positive implications for production, reserves and the upside case. The flow rate was at the upper end of expectations (40-80 bbl/d). The well has not been acidized yet which could boost production rate b
Companies: TAL SNM XOM XOM TTE SEPL SHEL REP REP PAT OMV OMV HUR FAR ENI ENI EME EDR DELT DEC CEG AKRBP AKERBP ADX CE1 PEN PEN TETY TETY EGY VLE
Looking at E&P Free Cash Flow - While companies still carry hedges contracted at lower prices, we estimate our producer universe will generate ~25% FCF yield (defined as FCF/EV) in 2022 at ~US$100/bbl. At just US$70/bbl, the overall FCF yield is estimated at 15% for 2023 and >20% for 2024. Assuming US$110/bbl, this increases further to ~40% for each of 2023 and 2024. At YE24, balance sheet net cash, after paying shareholder distributio
Companies: SOU OMV OMV VOG TGL SNM CASP BLOK SHEL REP REP IGAS ENI ENI ECHO I3E CNE ALV ALV SDX GPRK GPRK LBE ADX AXL CE1 PEN PEN TAL PHAR TETY TETY EGY WEN
Arrow Exploration (AXL LN)C; Target price of £0.30 per share: The Independent NPV estimate of the YE21 2P reserves represents ~2x the current EV – The YE21 1P, 2P and 3P reserves have increased (compared to YE20) by respectively 4.1% to 3 mmboe, 5.5% to 7.4 mmboe and 10.1% to 11.5 mmboe. The after tax NPV10 of the 1P reserves stands at ~US$25 mm in line with the current EV of the company. The after tax NPV10 of the 2P reserves has been
Companies: XOM XOM IOG TETY TETY TXP TCFF TCF SAVE AXL CE1 XOP CHAR ENI ENI VLE 88E GPRK GPRK
ADX Energy (ADX AU)C; Target price of A$0.040 per share: Subsidy from the Australian government – ADX has received a A$1.15 mm subsidy to cover a proportion of fixed costs incurred between September 2020 and February 2021. This amount will boost ADX balance sheet and be allocated to the appraisal and development of the Anshof discovery as well as the Vienna Basin Hydrogen Production and Storage Project. This is a material cash injectio
Companies: ADX CHAR ENQ FEC GPRK GPRK LBE SHEL TLW DNORD DNORD DEC PHAR SDX SENX 88E BP/ CEG ENOG ENI ENI IHC PMG
We view this CMD as confirmation of the distribution to shareholders, yet updated with the higher oil price environment. With oil above $90/bbl, the company will use 30% of the excess free cash flow in share buy-backs. During the call, management confirmed that the payout would equal €1.2 per share at $100/bbl, or a 9.15% yield at the current share price.
Pharos Energy (PHAR LN)C; Target price of £0.50 per share: Deep value and large free cash flow – The FY21 actuals were in line with previous indications. The FY21 operating cashflow (post tax) adjusted for US$30 mm hedging losses and a ~US$9 mm change in working capital is ~US$50 mm. The farm out transaction with IPR is expected to complete imminently as the only outstanding CP is the signature of the Ministry of Petroleum. This will t
Companies: TGL TCFF TCF SOU OMV OMV IOG ENI ENI EOG HUR PHAR GENL AKRBP AKERBP ALV ALV BP/ CNE
GeoPark (GPRK US)C; Target price of US$27.00 per share: Reiterating guidance. Doubling dividend. ~US$270 mm free cash flow in 2022 at US$90/bbl – While the YE21 cash and 4Q21 production had previously been reported, 4Q21 operating cashflow of US$88 mm (US$82 mm excluding working capital movement) was higher than we expected (US$72 mm). While this was offset by higher capex than we carried, we view the strong cash flow as a good indicat
Companies: TXP TLW TGL SDX LUPE FEC ENI ENI CNE CNE CNE ALV ALV GPRK GPRK IHC LBE EGY
Vaalco Energy (EGY LN/CN)C; Target price increased from £4.80 per share to £5.30 per share: Very large reserves increase – YE21 SEC proved reserves were 11.2 mmbbl, up 250% compared to YE20 (3.2 mmbbl). This large increase reflects (1) a 5 mmbbl addition associated with improved well performance, field-life extension related to cost savings from the replacement Floating, Storage and Offloading vessel, and the addition of proved undevel
Companies: SEPL KOS LEK SOU PGR MAHAA FEC PXT I3E IGAS EOG ENI ENI SQZ TTE SHEL SAVE AOI XOM XOM OMV OMV TAL CHAR BP/ EGY CE1
The results are slightly above consensus with an adjusted operating profit up by 53% qoq, whereas TotalEnergies, for comparison, reported an EBIT up by 30% qoq. The results were driven, of course, by the higher oil and gas prices, but also higher production (+3% qoq at 1.7mbd), with the E&P division accounting for 96% of the group’s results. Unfortunately, there is no update on the distribution policy and we will have to wait another month for the capital markets day (18/03/21).
Arrow Exploration (AXL LN/CN)C; Target price of £0.30 per share: Production on track. Drilling to start in Colombia in March. Potential additional well in Canada – Overall net production of 1,320 boe/d (as at 01/01/2022) is in line with our expectations of ~1,110 boe/d in 1Q22 (our forecasts exclude any contribution of the Capella field that is currently producing 191 bbl/d and that we anticipate will be sold). Overall net production
Companies: NOG WPL TTE TRIN TLW TGL SAVE CASP CNE CNE JSE IOG AXL ENI ENI GTE AKRBP AKERBP BLOK CEG GPRK GPRK PEN PEN WEN
ADX Energy (ADX AU) C; Target price of A$0.040 per share: Farm-out of a small portion of drilling prospect in Upper Austria showcases the acreage’s quality – ADX is farming out 20% of the Anshof prospect in Upper Austria to ASX listed Xstate Resources. In return Xstate will fund 40% of the cost of the Anshof exploration well with a cap of EUR0.72 mm net to Xstate (corresponding to a gross well cost of EUR1.8 mm). Xstate could also fund
Companies: ADX AXL ENI ENI GTE IOG JSE LBE MAHAA PEN PEN TAL PHAR PPC REP REP
Eni presented its retail & renewables company, Plenitude, which will be listed next year. Both divisions are set for growth, but the retail side of the business will partly help in funding the strong expansion in renewables. While expectations on returns in renewables have been set lower, they are now in line with utilities companies. The project pipeline in renewables is visible, and within reach, mainly where Eni has customers (Italy, Spain, France), which could bring some synergies.
Strong results in Upstream, leading to a cash flow from operations before working capital of €3.3bn (+19% qoq). While Brent was up by 7% qoq, natural gas realised prices were up by 40% qoq, which appears higher than expected given the company’s gas portfolio. All in all, a solid set of results.
ADX Energy (ADX AU) C; Target price of A$0.040 per share: 3Q21 results – 3Q21 production in Austria was 275 boe/d, below our forecasts of ~315 boe/d due to well downtime. A well workover programme has started in October to add 100-150 boe/d. The Anshof-1 exploration well is expected to be spudded in December. An updated reserves report is expected in the coming weeks. The green Energy project is on track and engineering, planning and p
Companies: SOU PPC AXL CHAR DME DEC EQNR IHC LUPE NOG OMV OMV REP REP SHEL TETY TETY I3E ADX AKRBP AKERBP CE1 ENI ENI SEPL
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eni S.p.A. Sponsored ADR.
We currently have 168 research reports from 6
Companies: Sylvania Platinum Ltd.
Forecast and valuation update
Companies: IOG PLC
Arc has recently signed an agreement with Anglo American (LSE:AAL, Market Cap $45bn) on a JV for its highly prospective Zambian licences (subject to final due diligence). The deal sees (3) main staged payments of up to $74m in the ground and $14.5m to Arc (by end of stage 1) and significantly leaving Arc with a 30% stake in the project. On a detailed reflection over the deal we want to reiterate how positive we see this is for Arc: i) Arc could never have raised this sort of capital to bring exp
Companies: ARC Minerals Limited
Jubilee today provides an operational update on the ongoing commissioning at the new Inyoni chrome and PGM plants with Jubilee building up to steady state production for nameplate capacity of 1.2Mt chrome concentrate and 44koz PGM production per year. Remember processing chrome creates the upgraded PGM tailings for Jubilee to recover the PGMs (Jubilee being paid a small margin to preconcentrate its own feed) and with the expanded Inyoni there is no need to share the PGM revenues via a JV struct
Companies: Jubilee Metals Group PLC
Jubilee today confirms the appointment of a new Chairman to take over from Colin Bird (who set up the company) and who will we believe have the experience to take them to the next stage. The stage has been set by the outgoing Chairman with Manuel Lino Silva de Sousa Oliveira (Ollie) appointed as independent non-executive director and Chairman to help realise the next moves. He brings with him a wealth of experience with senior executive positions within the Anglo-American Group and at De Beers
Last week Tamesis visited a number of Tharisa PLC's assets including the Tharisa Mine and Arxo Metals Beneficiation Site (AMBS) in South Africa and the Karo Platinum Project in Zimbabwe. Overall it was an extremely well received trip with evidence of efficiency improvements at the Tharisa mine, unexpected cash generation from the Vulcan Plant, further cash from the Salene Chrome Plant and, it also impressed on us that the Zimbabwe risk to the build out of Karo is lower than the market perhaps th
Companies: Tharisa Plc
Pantheon Resources announced that it has contracted a rig (the Nabors 105AC) to the Alkaid #2 well, which the company indicated is scheduled to spud in July 2022. The company indicated that if the well is successful, Pantheon Resources will commence a long-term production test and truck and sell the produced oil to a nearby North Slope facility.
Companies: Pantheon Resources plc
RCE-2 well flow test result
Companies: Arrow Exploration Corp.
Chariot has conditionally raised gross proceeds of US$25.5m (before costs), providing the Company with sufficient funds to advance the Anchois Gas Development towards a Final Investment Decision (FID) and to progress its renewable power pipeline. The placing was significantly oversubscribed, highlighting the market's confidence in Chariot's business model and its management team. We maintain our price target at 51p, with the recent rise in the European gas price forward curve offsetting the dilu
Companies: Chariot Limited
A pre-feasibility study for the c10 GW green hydrogen project named “Project Nour” has confirmed that Mauritania is exceptionally well-placed for green hydrogen due its world class solar and wind resources, with the project having the potential to produce some of the cheapest green hydrogen in the world. With up to 10GW of electrolysis installed, Project Nour has the potential to become one of the largest green hydrogen projects globally by 2030. Geographically proximal to the European markets,
Cornish Metals Inc (“Cornish”) has announced the closing of a £25m strategic investment by Vision Blue Resources (“VBR”) and £15.5m from a private placing to existing and new UK institutional investors as well as a subscription by existing Canadian investors and eligible private investors. The proceeds will be used to advance South Crofty to Feasibility whilst dewatering the mine over a 30-month period and ultimately, subject to funding, commence mining in two years’ time.
Companies: Cornish Metals Inc.
Diversified has announced the acquisition of a portfolio of East Texas upstream assets and related facilities from a private seller for US$50m – an attractive 1.4x multiple based on the NTM adjusted EBITDA of US$35m and before any potential synergies. At US$50m, the net purchase price approximates a >PV40 valuation at the effective date and represents an attractive discount of c51% to the estimated PV10 using the NYMEX strip as of the 19 April 2022. The assets include PDP reserves of 18mmboe (11
Companies: Diversified Energy Company PLC
ARC has announced it has signed a JV agreement with Anglo American (LSE:AAL, Market Cap $45bn) over its Zambian licences. This has long been in the offing and we view the terms as advantageous to Arc and a validation of the prospectivity that it (and we) see in its licences. The headline JV payments are staged but could ultimately lead to Anglo owning 70% of the licences, by investing $74m in exploration and paying Arc $14.5m. The licences will be held under a JV which will have an initial ow
*A corporate client of Hybridan LLP
Dish of the day
EnSilica (ENSI.L), has join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties - otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help
Companies: YGEN AFRN ALBA ART BLV CCS EPWN FIPP NWT KETL