Eni In Cooperation Deal With China's State Petroleum Company

Italian oil giant Eni SpA (NYSE:E) has inked a cooperation agreement with Chinese giant, China National Petroleum Corporation (“CNPC”).

Per an analyst, the agreement pertains to cooperation in oil & gas exploration and production, gas and LNG value chain opportunities, trading and logistics opportunities as well as refining and petrochemicals.

Per the deal, Eni will gain access to Chinese resources, while CNPC can utilize Eni’s expertise to develop properties worldwide. The agreement would consider activities both in China as well as abroad.

The deal fortifies the bond between the two companies, and provides prospects about joint projects in progress and opportunities between CNPC and Eni across the energy value chain.

The recent agreement is in sync with Eni’s long-term growth strategy as it plans to expand its liquefied natural gas business in Asia to meet the rising demand in that region. The company’s expansion in the area would also help it to market its increasing gas portfolio.

Eni with its consolidated subsidiaries is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments are Exploration and Production (E&P), Gas and Power and Refining and Marketing. The company conducts its major exploration and production activities for hydrocarbons.

The company operates these activities from Italy, Croatia, North Africa, West Africa, the North Sea, the Gulf of Mexico, the Middle and Far East, the Caspian Sea, Australia and Latin America. Other segments are Chemicals, Services & Engineering, Other & Corporate and Corporate & Financials. In addition, Eni is involved in offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies.

Price Movement

The company’s shares have increased 5.3% compared with the industry’s gain of 3.8%, over the past three months.

Zacks Rank & Key Picks

Currently, Eni carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include TransCanada Corp. (TO:TRP) , Transmontaigne Partners LP (NYSE:TLP) and Range Resources Corp. (NYSE:RRC) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company delivered an average positive earnings surprise of 4.06% over the last four quarters.

Transmontaigne, headquartered in Denver, CO, involves in transporting and storing refined petroleum products. The firm delivered an average positive earnings surprise of 6.60% over the last four quarters.

Based in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of U.S. oil and gas resources. The company’s 2017 earnings are estimated to grow 1587.17%.

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