Eni S.p.A. E is an integrated energy giant with a resilient business model that covers the entire energy value chain, from exploration and production of hydrocarbons to refining, chemicals, liquified natural gas ('LNG') and Enilive, and Plenitude. Headquartered in Rome, Italy, the integrated giant spans operations across 62 countries. Eni derives a significant portion of its revenues from upstream activities, leaving its business model heavily exposed to crude price fluctuations.
Geopolitical tensions in the Middle East, involving Iran, Israel and the United States, have pushed crude prices higher. Rising West Texas Intermediate ("WTI") and Brent crude prices have created a favorable business environment for Eni. With WTI prices continuously trading at more than $90 per barrel, according to Oilprice.com, the integrated energy giant is well-positioned to benefit from stronger realizations across its global upstream portfolio.
Forecasts from the U.S. Energy Information Administration ("EIA") suggest WTI and Brent crude oil spot prices will remain elevated in 2026 compared with 2025, signaling a continued favorable environment for Eni in the near term. Higher crude prices are likely to boost cash flow generation, enabling E to fund exploration activities and expand production capacity. Higher earnings will support the energy giant in strengthening its balance sheet while continuing disciplined capital spending.
Will EQNR & XOM Benefit From the Elevated Crude Price?
Similar to Eni,Equinor ASA EQNR and Exxon Mobil Corporation XOM have a substantial presence in upstream operations, exposing their business models to crude price volatility. Both energy giants possess high-quality, geographically diversified asset portfolios, with Equinor maintaining a stronghold on the Norwegian Continental Shelf and ExxonMobil having advantaged assets in the Permian Basin and offshore Guyana. Supported by these premium assets, both Equinor and ExxonMobil are well-positioned to benefit from a strong commodity price environment.
E’s Price Performance, Valuation & Estimates
E shares have gained 97.3% over the past year compared with 50.3% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, E trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 6.59X. This is below the broader industry average of 6.68X.
The Zacks Consensus Estimate for E's 2026 earnings has remained unchanged over the past seven days.
Image Source: Zacks Investment Research
E currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>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
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Eni SpA (E): Free Stock Analysis Report
Equinor ASA (EQNR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).