Very few energy companies can claim to be more successful at finding oil in 2013 thanEni SpA(NYSE:E). The Italian energy giant, which is 30% ownedby the government, has made some of the biggest oil and gas discoveries this year in Africa, Europe and Asia but in the last 52 weeks, due to its own inefficiencies and the problems with its oilfield services subsidiarySaipem SpA, its ADR has been up just 4.28%. Several analysts have identified (such ashere), that Eni is undervalued as compared to its peers likeTotal(NYSE:TOT) andRoyal Dutch Shell (NYSE:RDS.A). I believe that its undervaluation is justified and the company will continue to underperform in the coming quarters.
In 2013 alone, Eni has confirmed 11 discoveries representing a total of nearly a billion barrels of oil equivalents. Some of the bigger ones have been in Ghana, Pakistan, Egypt and Mozambique. More recently, Eni hit .... Read More