ENI S.p.A. EnerCom Denver – The Energy Investment Conference

Thank you. Good morning, everyone. As mentioned, I'm Dave Donnelly. I'm the head of North American Investor Relations for Eni, and I'm going to spend the next 20 minutes or so going over some of the highlights of our company. Safe harbor, we're good to go there. Before we get into some of the more strategic elements of our company, I just thought I'd provide a bit of background for those of you that may not be as familiar with Eni. We were founded in 1953, listed in 1955. We are the Italian integrated energy company. We have over 33,000 employees. As mentioned, we operate in over 60 countries, and firm-wide, we have close to 10,000 patents. In terms of our stock, our ticker is ENI, listed on the Borsa Italiana in Milan, and the ticker's also E on the NYSE, thanks to our sponsored ADR program.

Market cap is roughly $82 billion. Enterprise value is roughly $100 billion. Trading-wise, it is somewhat seasonal, but we generally trade over $300 million of market cap on a combined basis across the two exchanges. In terms of our business model within our global natural resources portfolio, we're adding higher margin, lower emission barrels and growing our global gas portfolio. We're also increasing our CCS footprint on a global basis. On the energy transition front, in addition to our CCS efforts, we're also increasing our renewable energy footprint, as well as growing our already established 11 million customer retail base. We're also expanding our global biorefining capacity. We're using our proprietary Ecofining process to augment this growth, and we're also sleeving that into our proprietary agri-feedstock sourcing front that we can take right to end consumption.

That's kind of underwritten by a very well-established and entrenched European retail network of over 5,300 outlets, and we're growing that as well. We're also transforming our conventional chemicals business into a more sustainable, profitable entity. Lastly, thanks to Eni Next, which is really our private equity efforts, we are the largest investor in Commonwealth Fusion Systems or CFS. This is a company that essentially spun out of MIT, and they plan to be the first entity to be commercially dispatching grid-connected fusion-generated energy and power early in the next decade. In terms of our corporate structure, we have a very unique satellite model. This allows us to unlock value in a very timely manner as we can attract strategic partners at implied multiples that are materially above our corporate currency.

We have the most fortified balance sheet on a pro forma basis that we've ever had in the history of the company. We are growing and diversifying our operating cash flow. We're maintaining capital discipline, and we're enhancing our return of capital proposition through the process as our strategy continues to progress. Next, I'm going to take a quick look at three of the core businesses within our company. I'm going to spend a little more time on our global upstream business just because there is an awful lot going on within that business. I think just in light of the current global macro backdrop, it warrants some incremental time just to allow you to better understand the process that we have that we feel is a real key differentiator for us in the industry. Okay. Let's see if we're on track here.

First business I want to talk about is our global upstream business. As I mentioned, this is the real engine of the company. It is a key relative differentiator, as I mentioned. It is the dominant piece of our business mix, if you will. It represents well over 70% of our capital employed base, and it will contribute a proportionate share of 2026 operating profit. We currently produce roughly 1.8 million BOE a day. We are guiding to a 3%-4% growth CAGR from the 2026 through to 2030 timeframe. We just recently upgraded our 2026 production profile expectations to imply a 5% year-over-year growth. As mentioned, we are intentionally getting incrementally gassy. We are lowering our carbon footprint, and we are also increasing cash flow per BOE.

On the exploration front, we have been named the industry's most admired explorer, a record-tying five times by Wood Mackenzie in their annual exploration survey. From 2015 through the end of last year, we added on average 900 million BOE of resource per year, and that was at roughly EUR 1 a BOE. I think importantly, this trend will continue through 2026 at a minimum because we have already discovered in excess of 1 billion BOE year to date. In terms of our process, Eni's global exploration team relies on our HPC7 computer. This is currently, this probably changes by the end of the week, but this is currently the world's sixth most powerful supercomputer, and that is across all industries, including government and defense. We use this compute power to augment our efforts on the seismic reprocessing, subsurface imaging, and reservoir simulation fronts.

We can now process data with our proprietary algorithms at over an exaflop a second, so that is over a billion billion operations a second. This combination is proving extremely valuable to the overall global portfolio, but it is actually incrementally value in some of the more mature basins like Indonesia and Côte d'Ivoire. In terms of development, we lever our dual exploration model to accretively decrease our FDC obligation. We usually do this around project FID or even a little later. Then we lean on what we call is our infrastructure led exploration or ILX. This just allows us to drive peer group leading cycle time and cash flow generation. On that point, we are the quickest in industry from initial discovery to first cash flow and production, and that is not by a couple percentage points.

We are actually close to 30% faster than the peer group average on that front. In terms of how this is all reflected in our results and our future expectations, as this slide illustrates, 2025 organic reserve replacement was 167%. The slide also illustrates that this is clearly better than the peer group average. I think given the current market focus on resource quality, security, and diversity, this is just another clear competitive advantage for us. As importantly, given the visibility that we have across our global portfolio well into the 2030s, we are actually able to guide to our reserve replacement ratio expectations over the 2026 to 2030 timeframe, and we are expecting over 140% in that capacity. This is really just a reflection of lining up our production profile as well as anticipated FIDs and basically doing the math.

This slide just gives you a feel for how global our portfolio is and how rich our project pipeline is, again, well into the next decade. You can see in green, this also indicates progress we have made post our capital market day update in March of 2026. What is also important to note is that three of these projects or thereabouts have already entered into the 2027, 2030 startup lineup, just as a further reflection of our cycle time advantage. Before we move on from E&P, I thought a quick asset level update on three of our key assets made some sense. This is both from the perspective of importance to us as a company as well as relative to the global macro backdrop that we are all living through. The first one is our Searah JV with Petronas.

This basically expanded our existing Indonesian footprint into a true regional hub for the company. It also provides us tremendous platform for material, intermediate term production growth, and then tremendous resource-driven upside beyond that, if you will. A couple key takeaways here. It is a 50/50 JV. It closed in June of 2026. We were producing roughly 90,000 BOE a day standalone prior to the JV closing. With the JV now closed, the combined entity is producing well over 300,000 BOE a day. Just by developing our Geng North discovery that we made in late 2023, combined gross volumes will grow to over 500,000 BOE a day by 2028. Subsequently by developing our recent Geliga discovery, the JV volumes will grow to well over 800,000 BOE a day by the end of the decade.

Also consistent with our ILX model that I referred to earlier, most of the development as the JV grows from 300,000-ish today to 800,000-ish by the end of the decade can be viewed as brownfield development. This is driven by the amount of white space that currently exists within the Bontang liquefaction facility that some of you may remember from days gone by on Turin, Indonesia. Lastly, there is material unrisked upside to these numbers. This is important to note that this is largely underwritten by structures that have a similar seismic signature that have been reprocessed through our process and our super compute power that are similar to both Geng North and Geliga. We are two for two on that front. I would say there is a lot more to come, but until we get well control, I do not expect you to discount that in your models.

The second asset, Argentina LNG. As of our fairly recent foray into the upstream, this is now a fully integrated project for Eni. The resource base here is roughly 25 TCF. Our commitment within the JV structure is to provide two 6 million ton a year floating LNG vessels. There is material potential upside to this if you back into it off of the reservoir size and quality. Gross production potential is in the 500,000 BOE a day range, and that includes about 200,000 of liquids. Most of that liquid leg is going to be high quality C5+ or condensate. FID is expected by year-end, and we own roughly one-third of the project with YPF and ADNOC. The last upstream asset level highlight I want to make is on Venezuela. This is very topical. The key takeaway for us here, the two most important assets to Eni are Perla and Junin 5.

Perla is 50/50 with Repsol. This is a massive gas reservoir located offshore in the Gulf of Venezuela. The existing gas volumes are used domestically. Plans are in place under existing fiscal terms, which is extremely important to note, to double production to roughly 1.2 BCF a day gross. There is a 3.5 million ton a year floating LNG gas export project that basically underwrites the growth that we are expecting from the reservoir. Junin 5 is currently 40/60 Eni PDVSA. This is part of the once extremely prolific Orinoco Heavy Belt onshore Venezuela. Current production is roughly in the 12,000 barrel a day range. Importantly, the new hydrocarbon law allows incremental development of this asset. This is a huge license.

Total recoverable reserves net to the license is in the 3 billion barrel range. Potential development sees plateau production in the 200,000 barrel a day range, and there is material blue sky upside to these numbers. This is all contingent upon acceptable fiscal terms and suffice to say that discussions on fiscal terms continue as we and other industry participants would concur with. Okay. I have two more upstream slides for you. I think as the last three asset level slides indicated, both LNG and floating LNG are extremely important growth drivers for us within our global upstream portfolio. This slide just indicates how long we have been involved in floating LNG, how core competency floating LNG is to us. We feel that we have helped de-risk this from an industry perspective, and we intend to lever this expertise materially going forward as well. Okay. The second slide, this just broadens things out a little bit and I think in light of the pendulum swinging back in favor of global offshore exploration and development across oil and gas reservoirs, I think it is important to note just how core competency this has been for us in the past and will continue to be in the future.