Yahoo Finance Eni (E) Signs Deal to Divest Alaska Offshore Assets to Hilcorp
Eni SpA E signed a binding agreement to divest its Nikaitchuq and Oooguruk upstream offshore assets in Alaska to the United States-based private company Hilcorp.
The strategic move aligns with Eni’s ongoing efforts to rebalance its upstream portfolio and divest non-strategic assets. Per the agreement, Hilcorp will fully acquire Eni’s interests in the Nikaitchuq and Oooguruk fields.
Eni had initially held a 30% interest in the Oooguruk oil field. In 2019, the company acquired the remaining stake and operatorship.
The field, located in the Beaufort Sea, 5 kilometers off Alaska’s North Slope coast, has been in production since 2008. The latest acquisition allowed Eni to significantly enhance its production capabilities in Alaska by 7,000 barrels of oil per day (Bo/d) gross.
In addition, Eni was already the operator with a 100% working interest in the Nikaitchuq oil field, situated 13 kilometers northeast of Oooguruk. Nikaitchuq has been in production since 2011, further strengthening Eni's presence in the Alaska oil sector.
The divestment is part of Eni’s broader strategy to generate a net portfolio inflow of €8 billion over the 2024-2027 period. The company plans to achieve this through high-grading its upstream portfolio, diluting high equity ownership in exploration discoveries, and accessing new pools of capital via its satellite strategy. These funds will support growth of Eni’s transition businesses while confirming progress in value creation.
The company is currently engaged in multiple projects, including a new 2.4-million-ton-per-year floating liquefied natural gas unit. This unit is expected to commence operations in the fourth quarter of 2025 at Eni’s LNG project off the coast of Congo. The company remains committed to advancing its portfolio and supporting the global energy transition through strategic investments and divestments.
The sale of the Alaska assets marks a significant step in Eni’s efforts to streamline its operations and focus on areas with the highest potential for growth and value creation. As the transaction progresses, industry observers will be keen to see how both Eni and Hilcorp leverage their respective positions in the evolving energy landscape.
Although the financial details of the transaction have not been disclosed, Eni has assured that the value will be revealed upon the closing of the deal. The completion of the transaction is subject to regulatory approvals, and other customary terms and conditions.
Zacks Rank & Key Picks
Currently, Eni carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, GeoPark Ltd. GPRK and SM Energy Company SM, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, focusing on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 and 2025 EPS is pegged at $1.07 and $1.23, respectively. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
GeoPark, based in Hamilton, Bermuda, is an explorer, operator and consolidator in the oil and gas sector. The company primarily operates in Chile, Colombia, Brazil and Argentina. It has a Zacks Style Score of A for Value, and B for Growth and Momentum.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $3.23 and $3.98, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
SM Energy is an independent oil and gas business engaged in the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.63 and $7.50, respectively. The company has a Zacks Style Score of A for Value and Momentum, and B for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
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