Eni Expects Plenitude Valuation to Cross $11B Amid Strong Demand

Eni SpA E, the Italian energy giant, is moving forward with its plan to sell another minority stake in Plenitude, its retail and renewables business. According to a senior executive at E, the company expects the unit to be valued at over €10 billion (~$11 billion), including debt.E Eyes Premium Valuation for Plenitude Amid Investor InterestSpeaking at an energy conference in Ravenna, Eni’s chief transition and financial officer, Francesco Gattei, confirmed that the company has received binding offers from five bidders for a further slice of Plenitude. He expressed confidence that the offers reflect a higher valuation than the previous deal, in which Swiss fund Energy Infrastructure Partners acquired a stake valuing the business at €10 billion. He noted that investor interest remains strong despite recent market turbulence driven by U.S. tariff developments.Eni has not disclosed the exact size of the stake on offer or the identities of the bidders.  It is entering the next phase, where it will negotiate governance terms and contract specifics with potential investors.Plenitude Sale Aligns With E’s Long-term Transition StrategyEni’s move is part of its broader “satellite strategy,” which aims to raise funds to support the energy transition by selling stakes in high-growth units to institutional investors. Last month, the company sold 30% of its biofuels unit Enilive to U.S.-based private equity firm KKR.Gattei noted that over the next four years, Eni expects its satellite operations, including Plenitude and Enilive, to generate about €13 billion in cash flow. These divestments not only help unlock value but also allow Eni to share the investment burden of the energy transition with global capital partners.While reports have suggested that Plenitude’s valuation could rise to as much as €13 billion, Gattei refused to comment on those figures. However, he hinted at a premium over the earlier valuation secured in the initial transaction.With robust interest from global investors and a clear roadmap for capital deployment, Eni appears to be striking the right balance between energy transition ambitions and financial prudence. With the finalization of the next round of offers, all eyes will be on whether the valuation crosses the rumored €13 billion mark, setting a new benchmark for renewables-focused spinoffs in Europe.E’s Zacks Rank & Key PicksE currently has a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Delek Logistics Partners, LP DKL and Kinder Morgan, Inc. KMI. While Archrock and Delek Logistics Partners presently sport a Zacks Rank #1 (Strong Buy) each, Kinder Morgan carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.Delek Logistics Partners manages and owns systems for moving and storing oil and other products. The company operates pipelines that transport crude oil and refined products like gasoline and diesel. DKL also collects crude oil from different areas and stores it in tanks.Delek Logistics Partners’ earnings beat estimates in two of the trailing four quarters, met once and missed on the other, delivering an average surprise of 79.75%.Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030. Kinder Morgan’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 1.85%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks