Eni (E) to Build Kazakhstan's First Hybrid Renewable Gas Plant
Eni SPA E signed an agreement with the oil and gas company KazMunayGas (KMG) to develop a hybrid renewable and gas power facility in Kazakhstan.
The 250-megawatt (MW) facility will be the first of its kind in Kazakhstan. The project will involve solar power, wind power and gas power facilities to produce and supply low-carbon electricity.
The hybrid model will help diversify and decarbonize the energy supply for oil and gas assets in the Mangystau region. It will contribute to human capital development in the renewable energy sector.
Eni is committed to bolstering its position in Kazakhstan's energy transition. The project marks a step toward expanding the Italian oil giant’s renewable generation capacity, while supporting Kazakhstan’s decarbonization plans.
Eni has been contributing to Kazakhstan’s growth since 1992 as a joint operator in the Karachaganak field. The company is also an equity partner in various projects in the Northern Caspian Sea, including the Kashagan giant field.
Eni and KMG are operators at the exploration block Abay in the northern part of the Kazakh sector of the Caspian Sea. In the Kazakh renewables sector, Eni operates Arm Wind with a combined installed and under-construction capacity of 150 MW.
The latest agreement expands the scope of Eni’s operations in Kazakhstan and strengthens its presence in the country. It consolidates the company’s strategic alliance with key partners like KMG in the upstream sector.
The deal was made as part of Eni’s projects and decarbonization initiatives in the central Asia country. Eni's strategy to reduce routine gas flaring during operations in Karachaganak and Kashagan will help meet domestic gas demand and boost energy transition investments in renewables and bio-feedstocks.
Price Performance
Shares of Eni have outperformed the industry in the past three months. The stock has gained 1.5% against the industry’s 0.3% decline.
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Zacks Rank & Other Stocks to Consider
Eni currently carries a Zack Rank #2 (Buy).
Some other top-ranked players in the energy space are Seadrill Limited SDRL, currently sporting a Zacks Rank #1 (Strong Buy), and PHX Minerals Inc. PHX and Enterprise Products Partners LP EPD, each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 and $4.01 per share, respectively.
PHX Minerals is an oil and natural gas mineral company.PHX Minerals posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of 7 cents per share.
PHX Minerals has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for PHX’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Enterprise Products reported first-quarter 2023 adjusted earnings per limited partner unit of 64 cents, which beat the Zacks Consensus Estimate of 62 cents. This was primarily due to higher contributions from the Natural Gas Pipelines & Services business.
In the first quarter, Enterprise Products generated an adjusted free cash flow of $1,347 million against a negative free cash flow of $1,618 million in the year-ago quarter. EPD recorded a distributable cash flow of $863 million in the same time frame.
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