How Eni’s Full Takeover of Petrel and Tern Gas Fields Will Impact Eni (BIT:ENI) Investors

• Eni has recently completed the acquisition of Santos’ interests in the Petrel and Tern gas fields in Australia’s Bonaparte Basin, giving Eni Australia full control of these offshore gas assets and associated infrastructure.
• This move consolidates Eni’s gas footprint in northern Australia, supporting sensitive domestic supply obligations while preserving options for future LNG and carbon capture-linked developments in the wider Asia-Pacific portfolio.
• We’ll now examine how taking full control of the Petrel and Tern gas fields could influence Eni’s investment narrative and risk profile.

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Eni Investment Narrative Recap

To own Eni, you need to believe in its ability to turn a global gas and LNG expansion, plus transition businesses like Plenitude, into steadily growing cash flows, while managing capital-intensive projects and balance sheet risk. Full control of the Petrel and Tern fields looks incremental rather than a game changer for near term catalysts such as LNG project progress and buybacks, but it does modestly increase exposure to execution and decommissioning risks in Australia.

The most relevant recent announcement here is Eni’s ongoing share buyback program, including the purchase of more than 5.5 million treasury shares. While Petrel and Tern reshape the long term gas portfolio, buybacks and dividends remain central to the short term equity story, especially given Eni’s relatively low return on equity and the need to keep investor confidence high as capital is redeployed across LNG, CCS and renewables.

However, investors should also be aware that Eni’s reliance on large LNG and gas projects could become a problem if global capacity growth leads to...

Read the full narrative on Eni (it's free!)

Eni's narrative projects €88.8 billion revenue and €5.1 billion earnings by 2028.

Uncover how Eni's forecasts yield a €16.54 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Eni span roughly €15.95 to €22.08, highlighting how far apart individual views on upside can be. You should weigh this spread against Eni’s dependence on large LNG and gas projects, which ties the company’s future cash generation to project execution, regulatory approvals and long dated energy transition policies.

Explore 3 other fair value estimates on Eni - why the stock might be worth just €15.95!

Build Your Own Eni Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eni research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Eni research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eni's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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