Topic: How To Invest

Pat: What are your thoughts on ENI SpA? Thank you.

Article Excerpt

ENI SpA (ADR), $46.10, symbol E on New York (ADRs outstanding: 1.8 billion; Market cap: $83.3 billion; www.eni.com), is an Italy-based integrated energy company. ENI is involved in a wide range of businesses: it produces and explores for oil and gas; ships and markets gas; generates power; operates refineries; and services oil and gas wells. In addition, it transports, distributes and stores gas in Italy through 20.22%-held Snam SpA. The company now produces 1.7 million barrels of oil a day. It aims to increase its output by 4% a year until 2016. ENI’s production outlook is positive, but the ADRs entail above-average political risk, with significant exposure to Africa and the Middle East. The company produces oil and gas in Nigeria, Libya, Egypt, Angola, Kenya, Vietnam, Indonesia and Pakistan. The company’s African interests also include a big gas find off the coast of Mozambique. Together with partner Anadarko (symbol APC on New York), ENI is developing the world’s second-largest liquefied natural gas…