Eni Partners with KKR for Enilive Stake

TL;DR

Eni selling stake in Enilive to KKR, board approves provision.

AI Summary

Eni S.p.A. announced on October 25, 2024, an agreement for KKR to acquire a stake in its subsidiary, Enilive. The filing also mentions the approval of a second tranche of a provision by Eni's Board of Directors, though specific financial details for this provision are not detailed in this excerpt.

Why It Matters

This partnership with KKR could bring significant investment and strategic expertise to Enilive, potentially accelerating its growth and development in the energy transition sector.

Risk Assessment

Risk Level: medium — The filing mentions a board-approved provision, but lacks specific details on its financial implications or the terms of the KKR deal, creating some uncertainty.

Key Players & Entities

• Eni S.p.A. (company) — Registrant and parent company
• KKR (company) — Potential investor in Enilive
• Enilive (company) — Subsidiary of Eni

FAQ

Key Financial Figures

• $86 — Scenario is: Brent 83 $/bbl (previously $86/bbl); SERM 4.7 $/bbl from 6.8 $/bbl; PS

Filing Documents

• tm2426872d1_6k.htm (6-K) — 1427KB
• tm2426872d1_6kspimg001.jpg (GRAPHIC) — 8KB
• tm2426872d1_6kspimg002.jpg (GRAPHIC) — 2KB
• 0001104659-24-112945.txt ( ) — 1442KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised. Eni S.p.A. ____________________ /s/ Paola Mariani Name: Paola Mariani Title: Head of Corporate Secretary’s Staff Office Date: October 25, 2024 Eni signs agreement for KKR to enter Enilive’s share capital San Donato Milanese (MI), 24 October 2024 – Eni and KKR have signed an agreement under which KKR will take a 25% stake in Enilive’s share capital, for a total agreed consideration of €2.938 billion. The transaction will be funded through: 1) the subscription of a capital increase in Enilive reserved to KKR amounting to €500 million; 2) the purchase of Enilive’s shares from Eni for a value of €2.438 billion, corresponding to a post-money valuation of € 11.75 billion of Equity Value for 100% of Enilive's share capital. Furthermore, according to the agreement, Eni will undertake a capital increase in Enilive of €500 million prior to the completion of the transaction to set a debt-free company. The transaction brings together Eni’s proven ability to develop high-growth energy businesses and KKR’s expertise as a long-term investor with a strong track record in the energy and infrastructure sectors, further contributing to the growth of Enilive. Moreover, the investment enhances Eni’s capital structure, reducing its net financial position while ensuring that Eni retains consolidation and control of Enilive. The transaction represents a significant development of Eni’s satellite model, aimed at creating the conditions for independent growth of high potential businesses, granting the access to new pools of aligned capital and providing visibility into their fair market value. The transaction also confirms the effectiveness of Enilive’s distinctive integrated model and stren

Business

Business segments: operating and financial results Exploration & Production Production and prices Q2 Q3 Nine months 2024 2024 2023 % Ch. 2024 2023 % Ch. 84.94 Brent dated $/bbl 80.18 86.76 (8) 82.79 82.14 1 1.077 Average EUR/USD exchange rate 1.098 1.088 1 1.087 1.083 1,712 Hydrocarbons production kboe/d 1,661 1,635 2 1,704 1,637 4 777 Liquids kbbl/d 775 758 2 783 765 2 4,888 Natural gas mmcf/d 4,638 4,590 1 4,821 4,563 6 57.03 Average realizations (a) $/boe 55.95 57.20 (2) 55.74 55.79 77.25 Liquids $/bbl 73.88 79.13 (7) 75.27 73.91 2 7.26 Natural gas $/kcf 7.34 6.79 8 7.21 7.30 (1) (a) Prices related to consolidated subsidiaries. In Q3 ’24, hydrocarbon production averaged 1.66 mln boe/d (1.7 mln boe/d in the nine months ’24), up 2% compared to Q3 ’23 (up 4% vs. the nine months ’23). The increase was driven by the Neptune acquisition (about 120 kboe/d) and continuing production ramp-ups at the Baleine project in Côte d'Ivoire and the Coral project in Mozambique as well as higher volumes in Indonesia and Libya. Those additions were partly offset by mature fields decline and divestments. Liquids production was 775 kbbl/d in Q3 ’24 up 2% compared to Q3 ’23 (783 kbbl/d in the nine months ’24, up 2% vs. the nine months ’23), mainly due to the Neptune acquisition and growth in Côte d'Ivoire. These increases were partly offset by mature fields decline and divestments. Natural gas production was 4,638 mmcf/d in Q3 ’24, up 1% compared to Q3 ’23 (4,821 mmcf/d in the nine months ’24, up 6% vs. the nine months ’23), mainly due to the Neptune acquisition, the ramp-up of the Coral Floating LNG project, as well as higher contribution from Libya and Indonesia, offset by mature fields decline and divestments. Liquids price realizations trended broadly in line with benchmarks. Natural gas price r

View Full Filing

View this 6-K filing on SEC EDGAR