Trending: Eni Expands Natural Gas Business With Neptune Energy Deal
June 23 2023 - 7:14AM
Dow Jones News
Eni is one of the most mentioned companies across news items
over the past six hours, according to Factiva data, after reaching
a $4.9 billion deal to buy Neptune Energy. The Italian oil-and-gas
major and Var Energi have agreed to acquire Neptune's entire
portfolio, aside from its business in Germany that will be carved
out prior to the transaction, confirming a deal that had been
rumored for some time. Var Energi is a company listed on the Oslo
Stock Exchange and is 63% owned by Eni. According to Jefferies'
Giacomo Romeo and Alexatrini Tsiknia, the acquisition should result
in a net price paid by Eni at closure of $2.1 billion-$2.2 billion.
"This is consistent with Eni's plan to spend net $1 billion on
inorganic investments between 2023 and 2026 and the 3%-4%
production CAGR [compound annual growth rate] guidance," they say
in a note. The deal is in line with Eni's strategy to expand the
reach of its gas business, aiming to increase the share of
natural-gas production to 60% by 2030, the company says. Neptune
Energy's business operates in the U.K., the Netherlands, Algeria,
Egypt, Indonesia and Australia. Dow Jones & Co. owns Factiva.
(giulia.petroni@wsj.com)
(END) Dow Jones Newswires
June 23, 2023 06:59 ET (10:59 GMT)
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