Eni SpA ( E ) reported first-quarter earnings per ADR of €1.00 ($1.38), compared with 98 euro cents ($1.28) in the year-earlier quarter and the Zacks Consensus Estimate of $1.39. A positive year-over-year comparison was driven by increased production volume and a significant improvement in crude prices. Operational Performance Total production for the quarter was 1,816 Mboe/d (56% liquids), up 2.1% year over year. The increase was driven by new start-ups and continuing production additions in Congo, Nigeria and the USA. However, this was partially offset by lower OPEC restrictions and unplanned production downtime. Liquids production in the quarter was 1,011 Mbbl/d, down slightly year over year. However, natural gas production was up 4.8% to 4,615 MMcf/d. Oil realization increased 68.5% year over year to $70.93 per barrel, while total hydrocarbon realization increased nearly 31% to $54.28 per barrels of oil equivalent. In the reported quarter, net cash generated by operating activities amounted to €4.55 billion ($6.30 billion). Capital expenditure was €2.78 billion ($3.85 billion) for the quarter. Net borrowings at the end of the quarter was €21.05 billion ($29.2 billion), representing a net debt-to-capitalization ratio of 29.6%. Outlook The company continues to pursue its long-term growth strategy through the development of production assets. Eni's strong presence in North Africa and the Middle East is likely to result in growth. With new fields continuously coming online across Eni's footprint - particularly in Italy, Algeria, Norway and Iraq as well as production ramp-up in the existing fields in Nigeria, Angola and the USA - the company hinted that this year's production will be slightly higher than last year. Read the full analyst report on "E" Zacks Investment Research