INTERNATIONAL FIRST TO MARKET

Research evidence excerpt

INTERNATIONAL FIRST TO MARKET

North America Equity Research AC Global Equity Research

(1-212) 270-6000 18 June 2026 J P M O R G A N

morganwise@jpmorgan.com

downside). For further color on our UW thesis please refer to our detailed work Carrefour: Between a Rock and a Hard Place -

Equity & Credit Perspectives.

ENI (Matthew Lofting, CFA) (ENI IM, OW, PT €28.00), Italy

Management Feedback - Upstream value differentiators increasingly durable; Stay OW

We met Eni upstream management in Milan last week during JPM’s Italy Energy Tour. Discussions reinforced our OW

conviction by underlining durability to positively trending upstream O&G metrics. We took away that exploration expertise and

superior speed to market of a deepened O&G resource base (proven reserve life 11 years, 3Y organic RRR >100%) are

supported by: 1) Integration. Of the exploration and development functions, which helps mobilise key workstreams earlier (eg:

engineering) and reduce investment lead-times; 2) Insourcing. Of critical path exploration and engineering capabilities. This is

arguably in contrast to broader EU industry trends and acts as an integration enabler by facilitating a dynamic approach to

development solutions (as E&A learnings evolve); 3) Technology leadership. Including but not limited to supercomputing

capacity (HPC-6) which ranks sixth globally and first for industrial use. High-graded portfolio, growth and execution metrics

mean Eni’s historical discount to EU Oils is no longer representative of the future. We view a competitive 10.3% 2027e FCF

yield ($75/bbl) as attractive, particularly set against sustained top-line growth potential and rising resilience to a dividend

stream which yields near 5%.

TSMC (Gokul Hariharan) (2330 TT, OW, PT NT$2500.0), Taiwan