eni.

com

FACT SHEET

FTMIB: ENI US ADR: E

WHO WE ARE
Eni is one of the largest integrated energy companies in the world, operating in the sectors of
oil and gas exploration & production, international gas
transportation and marketing, power generation, refining and marketing, chemicals and oilfield services.
Eni is active in 85 countries with 82,300
employees.
Our commitment to sustainable development means
that we grow and retain our people, contribute to
the development and wellbeing of the communities in
which we operate, protect the environment, and invest in technological innovation and energy efficiency,
mitigating the risks of climate change.

30 % Italian Gov

70 % Market

Major equity
holdings

Exploration & Production

Snam
Galp

8%
8%

Gas & Power

& Construction
43 % Engineering
(Saipem)

100 % Chemicals (Versalis)

INVESTMENT CASE
Unbeatable exploration success
Between 2008 and 2013, Eni has discovered over 9.5 billion boe, equivalent to 2.5 times its production over the same period. The average exploration cost was 1.2$/boe. In the next four years, Enis target is to discover an additional 3.2 billion boe at a unit cost of 2.2 dollars. In the first half
of 2014, Eni discovered more than 400 million boe. These discoveries will fuel future growth and accelerate cash generation through the dilution
of shares in the discoveries in which Eni holds a large working interest.
Production growth resulting in strong cash generation
The E&P portfolio is mainly composed of conventional assets with low costs and high profitability. Cash flow per barrel was 30 dollars in 2013
and will rise in the coming years thanks to the growing contribution of oil vs gas in our production mix (from 52% in 2013 to 57% in 2017). Eni
is targeting a 3% CAGR in the 2014-17 period. Over the plan period, 26 start-ups will contribute over 500 kboe per day, with an additional 200
kboe per day will come from ramp-ups currently underway. The portfolio of new projects has a breakeven of 45 $/bbl, and an average IRR of over
20% at 90 $/boe.
Return to profitability of the G&P, R&M and Chemicals businesses
Eni holds a leading position in the European gas sector, where it sells over 80 billion cubic metres a year, and it has begun a transformation
process of its midstream activities, with supply contract renegotiations, transport capacity reductions and a focus on high value segments (LNG,
trading and retail). These actions will bring the G&P sector to breakeven already in 2014. Capacity cuts are ongoing also in the refining business,
with a target of a more than 50% reduction in capacity compared to 2012. This optimization will contribute to bringing the R&M sector to breakeven by end of 2015, even in the current weak scenario. Versalis is reconverting the Porto Torres and Porto Marghera sites into green chemical
plants and is expanding its international footprint with joint ventures in Asia.
Portofolio flexibility and additional cash generation
In 2012-13, Eni has completed divestments totaling 13 billion euro and has deconsolidated over 12 billion euro related to Snams debt. The sales
did not meaningfully impact long term production prospects and helped reduce exposure to exploration assets or non-core holdings. Over the
course of the plan, Eni will complete 11 billion euro in divestments (more than 3 billion of which already achieved in the first half of 2014), with
the sale of the residual shares in Snam and Galp, divestment of certain assets in the mid/downstream, as well as the dilution of large stakes
in exploration successes. In addition, Enis results will benefit from over 1.7 billion euro related to the incisive cost saving program recently
launched. In 2014-2015, operating cash flow generation will increase by more than 40% versus 2013 and free cash flow generation, also thanks
to a policy of flat capex, by 20%.
Progessive dividends and buyback
Eni has a generous distribution policy. For 2014, a dividend of 1.12 euro per share (6.1% expected yield) will be proposed, representing an almost
2% increase versus the previous year. In addition, Eni has launched a buy back program: a flexible tool that will support the remuneration policy
over the coming years, with the target or repurchasing up to 10% of outstanding shares.
Leader in sustainability
Eni is a leader in the FTSE4Good and Dow Jones sustainability indices.

DIVIDEND (/SHARE) AND DIVIDEND YIELD(1) (%)

SHARE PERFORMANCE Q3 2014 ()

1.4

8%

1.2

7%
6%

1.0

5%

0.8

4%

0.6

3%

0.4

2%

0.2

1%

0.0

0%

2006 2007 2008 2009 2010 2011 2012 2013 2014

Dividend

2014 Proposal

Dividend Yeld

120%
120%
115%
115%

110%
110%

105%
105%

100%
100%
95%

95%
90%
31-12-13
90%

30-01-14

Dec-13

01-03-14

31-03-14

30-04-14

Eni

Peer group(2)

30-05-14

29-06-14

29-07-14

28-08-14

Peer group
May-14

ENI

27-09-14

Sept-14

FTMIB

FTMIB

(1) calculated on Eni avg share price in Dec 2013

(2) Peer Group: BP, Chevron, Repsol, Exxon, Shell, Total
Last update October 2014

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eni.com

FACT SHEET

FTMIB: ENI US ADR: E

EXPLORATION AND PRODUCTION

E&P is our main division. It is currently present in 42 countries and is focused on finding and producing oil and gas.
Enis strategy is to deliver organic production growth with
increasing returns over the medium to long term, leveraging
on a high-quality portfolio of assets, exposure to competitive giant projects and long-standing relationships with host
countries. Our strategy combines geographical diversification with scale benefits and project synergies. More than 75%
of our production will come from either onshore or shallow
water, with a positive impact in terms of risks and operating costs.

Main projects start up

Goliat
Asgard Mikkel
Eldfisk II Ph.1
West Franklin Ph. 2

Bonaccia NW

Heidelberg
Wafa
compression

CAFC oil

Hadrian South
Longhorn Ph.3
Lucius
Perla FF

Jangkrik
Litchendjili gas

Perla EP
Junin 5 EP

15/06 East Hub

2013 HIGHLIGHTS

Mafumeira Sul
15/06 West Hub
Kizomba Sat. Ph.2

2014-2015

1.62 Mboe/d of production

6.5 mmboe proved reserves with a life index of 11.1 y
105% organic reserve replacement ratio
14.6 B adj operating profit
10.5 B capex

2016-2017

GAS & POWER

REFINING & MARKETING

G&P is engaged in all phases of the

gas value chain: supply, trading and
marketing of gas and electricity, gas
infrastructures, and LNG supply and
marketing. Eni sells more than 60%
of its gas outside Italy and its
leading position in the European gas
market is supported by competitive
advantages, including its multicountry
approach, long-term gas availability,
access to infrastructure, market
knowledge, wide product range and
strong customer base.

2013 HIGHLIGHTS
-0.66 B adj operating profit
0.23 B capex

93 bcm gas sold worldwide

35 Twh electricity sold

10 million customers in
Europe, of which 8 in Italy

ENI IN NUMBERS

R&M refines and markets fuels and

other oil products primarily in Italy
and Central-Eastern European countries.
Our R&M division is relatively small
compared to the R&M segment of
our peers. Eni is the largest refiner
in Italy and the leading operator in
retail marketing of fuels with a market
share of around 30%.
Enis strategy in R&M is to cut costs
and enhance margins to return to
profitability.

2010

Production of oil and natural gas (kboe/d)

1,815

2011
1,581

2012 (1)
1,701

2013 HIGHLIGHTS
-0.48 B adj operating profit
0.62 B capex

787 kbbl/d capacity

27.4 Mtonnes throughput

6,400 fuel stations

2013
1,619

1,576

4,433

3,243

Eni adj. operating profit ( million)

17,304

17,974

19,010

12,620

Capital expenditure ( million)

13,870

13,438

12,761

12,750

Net debt ( million)

26,119

28,032

15,511

15,428

Eni adj. net profit ( million)

Net cash flow from operations ( million)

6,869

14,694
0.47

Leverage

6,969

14,382
0.46

7,130

12,356
0.25

9M 2014

10,969
0.25

9,251
8,607
9,724

15,837

0.25

(1) Following the announcement of Snam divestment, figures are represented as continuing operations

LATEST ANNOUNCEMENTS AND ACCOMPLISHMENTS

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October
October
October
October
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October
September
September
September
August

CONTACTS

2014
2014
2014
2014
2014
2014
2014
2014
2014
2014

Eni: third quarter and nine months of 2014 results

Eni: New Significant Oil discovery in the Offshore of Congo
Eni: significant gas finding Offshore Indonesia
Eni signs a cooperation agreement with Kogas on upstream and LNG activities
Eni signs two new production sharing contracts for offshore exploration in Vietnam
Eni continues its share buyback programme
Eni has been awarded 3 new exploration licenses in Egypt
Eni: significant oil discovery in Ecuador
Eni: new oil discovery offshore Angola
Eni starts production at DEKA Project in Egypt

Eni spa Investor Relations - Piazza Vanoni, 1 - 20097 San Donato Milanese (MI) Italy
Telephone: +39 02 52 05 16 51 Fax: +39 02 52 03 19 29 Email: investor.relations@eni.com

Website: www.eni.com
Last update October 2014

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