Headquartered in Italy, Eni SpA is a large oil and gas company that operates under seven segments: (1) refining and marketing focuses on refining and marketing of petroleum products; (2) trading covers group services in commodity trading, shipping, and derivatives; (3) petrochemicals covers the production and sale of petrochemical products; (4) engineering and construction includes the services for the oil and gas industry; (5) exploration and production focuses on exploration, development and production of oil and natural gas; (6) gas and power covers the supply, regasification, transport, storage, distribution, and marketing of natural gas, power generation, and electricity sales; (7) other activities handles the corporate, financial, and service components. Eni sells oil and gas in 85 countries and operates numerous subsidiaries and affiliates in Nigeria, Poland, and Germany, among others.
Eni has a market value of $90 billion and trades at a P/E ratio of slightly greater than 9 with a dividend yield of about 4.5 percent. Eni’s stock price recently rebounded to a 52-week high of $50 per share, after plunging to $37 during the summer of 2012. For the first nine months of 2012, Eni’s operating profit was up nearly 14 percent versus the same period in 2011, and its oil and natural gas production was up 8 percent. Eni’s new licenses in Liberia and its expanded presence in Asia is spurring growth.
Headquartered in Houston, Texas, Conoco explores for, produces, transports, and markets crude oil, natural gas, natural gas liquids, liquefied natural gas, and bitumen on a worldwide basis. In May 2012, the company separated into two stand-alone, publicly traded corporations, (1) Upstream and (2) Downstream. All the firm’s midstream, downstream, marketing, and chemical operations were separated into a new company named Phillips 66. As a result, ConocoPhillips continued its operations as an exploration and production company.
In April 2012, ConocoPhillips sold its Trainer Refinery to Monroe Energy LLC. As of January 1, 2012, Conoco conducted exploration activities in 19 countries and produced hydro-carbons in 13 countries, with proved reserves located in 15 countries. The company’s production averaged 1.57 million billion barrels of oil equivalent (BOE) per day for the nine months ending on September 30, 2012, and proved reserves were 8.4 BOE. In August 2012, Conoco closed a transaction with LUKOIL for the sale of ConocoPhillips’s indirect 30 percent interest in NaryanMarNefteGaz (NMNG).