TotalEnergies Bets Big On Expansion: LNG, Renewables, And Billions In Buybacks

TotalEnergies SE TTE shares are trading higher today after the company presented Strategy & Outlook in New York and announced a disciplined investment policy.

TotalEnergies expects Oil & Gas production growth of about 3% annually through 2030, driven by LNG, with six major projects launching in 2024 across Brazil, Suriname, Angola, Oman, and Nigeria.

The company expects growth to exceed 3% in 2025 and 2026 due to high-margin projects in the U.S. Gulf of Mexico, Brazil, Iraq, Uganda, Argentina, Malaysia, and Qatar, enhancing net income and cash flow per barrel.

The company aims to increase global energy production (oil, gas, electricity, bioenergy) by 4% annually through 2030 while cutting Scope 1 and 2 net emissions by 40% and methane emissions by 80% compared to 2015 and 2020 levels, respectively.

Consequently, the average carbon content of TotalEnergies’ energy sales is expected to be 25% lower in 2030 than in 2015.

TotalEnergies targets 50% LNG growth from 2024 to 2030 and integrating gas-to-power with renewable energy.

The company plans to generate over 100 TWh of electricity by 2030, with 70% from renewables and 30% flexible generation, representing nearly 20% of its global energy output.

It plans annual net investments of $16 billion – $18 billion from 2025 to 2030, with around $5 billion for low-carbon energies, allowing for a $2 billion reduction in case of significant price declines.

Share Repurchase: For 2024, the company executes $8 billion in share buybacks, equating to about 5% of its capital, with an expected shareholder return of over 45% of 2024 cash flow.

For 2025, it aims to continue share buybacks at $2 billion per quarter and raise the dividend per share by at least 5% based on the 2024 buybacks.

Investors can gain exposure to the stock via Advisor Managed Portfolios Miller Value Partners Appreciation ETF MVPA and Octane All-Cap Value Energy ETF OCTA.

Price Action: TTE shares are up 1.99% at $66.99 at the last check Wednesday.

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