Yahoo Finance Eni (E) Announces Ambitious Share Repurchase Program for 2024
Eni SPA E has announced the finalization of its expansive share repurchase program for 2024, setting aside a substantial €1.6 billion ($1.7 billion) with a potential expansion of up to €3.5 billion ($3.8 billion).
The initiative is planned to be completed by April 2025, illustrating Eni's commitment to enhancing shareholder value.
As part of the initial phase of the buyback, Eni will acquire up to 6.4 million of its shares, representing 0.2% of its share capital. This first tranche, valued at a maximum of €150 million ($162.7 million), is designated for the 2024-2026 Employee Stock Ownership Plan. The company has announced that this tranche will commence before the end of this month.
The share purchases will be conducted on the Euronext Milan, with an authorized agent managing the transactions independently, ensuring compliance with existing laws and regulations. This follows the successful completion of its 2023 buyback program in March, wherein Eni repurchased 153.5 million units for €2.2 billion ($2.4 billion).
In addition to the buyback, Eni had declared a 6% increase in its annual dividend, setting it at €1 ($1.08) per share, payable in four equal installments. This move is part of a broader strategy to boost shareholder returns, increasing the payout ratio to 30-35% of cash flow from operations (CFFO) from the previously mentioned 25-30% for the period 2024-2027. Eni estimates distributions over the next four years to amount to 40% of its current market capitalization.
Financially, Eni anticipates generating €13.5 billion ($14.6 billion) in CFFO before working capital in 2024, with projections reaching €62 billion ($67.3 billion) over the four-year plan period, indicating growth of 30%. Furthermore, Eni expects its upstream production to increase, seeing a CAGR of 3-4% over the next four years, signaling robust operational momentum and strategic growth initiatives.
Zacks Rank & Other Key Picks
E currently has a Zack Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like SM Energy Company SM, Marathon Petroleum Corporation MPC and Ecopetrol S.A. EC. SM Energy and Marathon Petroleum sport a Zacks Rank #1 (Strong Buy), and Eni carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments can create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 and 2025 earnings per share (EPS) is pegged at $6.63 and $7.46. The company has a Zacks Style Score of A for Value, and B for Growth and Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Marathon Petroleum's acquisition of Andeavor has expanded its foothold in the Permian Basin, creating an enviable retail and marketing portfolio. MPC’s emphasis on operational excellence, safety and environmental responsibility, coupled with investments in low-carbon initiatives, positions it well for sustainable growth and continued value creation for shareholders.
The Zacks Consensus Estimate for MPC’s 2024 and 2025 EPS is pegged at $19.28 and $16.78. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Ecopetrol operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days. The company has a Zacks Style Score of B for Value and Growth. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.55 and $2.63, respectively.
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