Total Share Discussion Threads

[waldron] 01/10/2019 13:44

worldoil



Major Brazil offshore auction attracts global producer interest
By Sabrina Valle on 10/1/2019

RIO DE JANEIRO (Bloomberg) - The auction of drilling rights off the coast of Brazil planned for November, potentially offering more oil than all the proven reserves in Mexico, has attracted interest from some of the world’s largest producers.

Chevron, Exxon Mobil and Royal Dutch Shell are among 14 companies registered, the government said Monday. Brazil expects to raise as much as 106 billion reais ($25 billion) in licensing fees from selling the leases.

“This is an auction for big players given the volume of oil involved,” oil regulator Decio Oddone said in an interview.

The blocks up for grabs on Nov. 6 -- Buzios, Atapu, Itapu and Sepia -- are located in an area where state-controlled Petroleo Brasileiro SA obtained rights to 5 Bbbl of oil from the government in 2010. As Petrobras explored the region, it found much more crude than it was entitled to in the deal, leaving the government with a surplus.

Since then, the sale of the so-called Transfer of Rights oil has been hotly anticipated in the oil industry. The past five years has seen contract reviews and regulation changes. A milestone was reached last week when Congress eliminated a legal hurdle for the offering and cleared the way for a compensation payment of $9 billion to Petrobras, as the company is also known.

“The legal uncertainties around the round are over,” House speaker Rodrigo Maia said Friday.

The 11 companies registered for the auction as potential operators include not only Chevron, Exxon and Shell but also BP, CNODC, CNOOC, Equinor, Galp Energia SGPS’s Petrogal, Petrobras, Petroliam Nasional Bhd, and Total. Ecopetrol, Wintershall and QPI have signed up as prospective non-operators.

Unlike regular auctions where companies pay for the right to drill unexplored areas but also risk finding no crude, next month’s sale offers a large amount of discovered oil. Petrobras is already producing in the same deep-water region of the Atlantic Ocean.

Another difference with the November auction is a change to the rules set by Brazil’s National Petroleum Agency, in order to stimulate competition. Participating companies must simultaneously present to the regulator an envelope, even if doesn’t contain an actual bid.

In other auctions, bidders submit two or more envelopes: One has a floor price, in case there are no bids from competitors, while another contains a higher bid in case there’s interest from rivals.

A consulting firm hired by the regulator has said there are at least 6 billion surplus barrels and possibly as many as 15 billion in the blocks headed to auction. That compares to 7 Bbbl of proven reserves in Mexico. Petrobras’s own estimates of the oil the area haven’t been disclosed to the government or potential bidders.

[waldron] 01/10/2019 12:33

KAMPALA Uganda--Continuing lengthy negotiations with investors may push back Uganda's oil production but Kampala remains committed to ensure that it gets "optimal value and benefit from the commercialization of East Africa's largest undeveloped crude assets," Uganda's energy and minerals ministry said Tuesday.

A $900 million failed deal by the U.K.'s Tullow Oil PLC (TLW.LN) to sell its stake in the assets to France's Total SA (FP.FR) and China's Cnooc Ltd. (0883.HK) has stalled some operations, including work on a 900-mile export pipeline, but the government wants to ensure that investors undertake projects that give "a reasonable return on investment," it said.

"The projects that are to be sanctioned for close to three decades and their impact should last beyond their lifecycle for current and future generations," said Robert Kasande, permanent secretary at the ministry.

Tullow announced last month that it would begin a new process to reduce its stake in the 230,000 barrels of oil-a-day project after failing to reach a tax deal with authorities. The standoff has since forced investors to pause some development activities and lay off workers but the government insists that any sale must fulfill Uganda's tax obligations.

Mr. Kasande said that the spat will inevitably affect the final investment decisions for the projects, which were expected in the course of this year. Although the most recent government estimate had hoped that oil production would start by 2022, it is now unlikely. This is the latest hurdle for the future oil producer, which has already pushed back the production timetable multiple times.

"The government will continue to engage and support the oil companies to resume and continue with activities on all the projects together with all stakeholders to find optimal and lasting solutions, "Mr. Kasande said.

Company officials could not offer an immediate comment.



Write to Nicholas Bariyo at [e-mail]



(END) Dow Jones Newswires

October 01, 2019 07:14 ET (11:14 GMT)

[florenceorbis] 01/10/2019 09:05

Upstream


Total exiting Irish block, Providence quashes Apec deal

French supermajor to relinquish operating stake in offshore tract, while Irish player tells Chinese partner deal is off

1 October 2019 7:01 GMT Updated 1 October 2019 7:27 GMT
by Eoin O'Cinneide

Total is pulling out of a block off Ireland where it partners Providence Resources, which has told Chinese would-be partner Apec Energy that its......................

[waldron] 30/9/2019 17:00

Brent Crude Oil NYMEX 60.17 -1.43%
Gasoline NYMEX 1.59 -1.04%
Natural Gas NYMEX 2.34 -2.75%
(WTI) 55.05 USD -1.78%


FTSE 100
7,408.21 -0.24%
Dow Jones
26,955.52 +0.50%
CAC 40
5,677.79 +0.66%
SBF 120
4,474.16 +0.58%
Euro STOXX 50
3,568.2 +0.73%
DAX
12,428.08 +0.38%
Ftse Mib
22,127.52 +0.50%



Eni
14.034 -0.14%



Total
47.885 +0.62%


Engie
14.98 +2.43%

Orange
14.395 +0.00%

IAG
Price (GBX) 475.00 +0.17% (Up +0.80)


Bp
515.8 -0.67%

Vodafone
162 -0.12%

Royal Dutch Shell A
2,384 -1.02%


Royal Dutch Shell B
2,396 -0.58%

[maywillow] 30/9/2019 15:25

sputnik


Total
France's Total Completes Purchase of US Energy Firm's Assets in Mozambique LNG Project
© AFP 2019 / PHILIPPE HUGUEN
Business
16:18 30.09.2019Get short URL
0 11
Subscribe

MOSCOW (Sputnik) - The purchase has secured Total's place as the world's second-largest private global LNG player. The firm is currently in negotiations with Algeria, Ghana and South Africa for the purchase of Anadarko's assets in those African countries.

French oil giant Total has completed its $3.9 billion purchase of the US Anadarko Petroleum Corp's assets in the Mozambique LNG, the African country's first onshore liquefied natural gas (LNG) development project, the French firm said on Monday.

The sale is part of Total's deal that was struck with the US Occidental Petroleum energy giant, which bought out Anadarko for $55 billion in August.

"Total announces the closing of the acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project for a purchase price of $3.9 billion," the company said in a press release.

The French firm added that it viewed Mozambique LNG as an important asset that fits in with its strategy and expansion efforts, and would work to bring its human, technical and marketing capacities to strengthen the project's position on the LNG market.

The Mozambique LNG gas development project is expected to boost the east African country's economy significantly, creating more than 5,000 direct and 45,000 indirect jobs, the government said in July. LNG production is expected to start in 2024.

[ariane] 30/9/2019 13:01

LNG | Natural Gas 30 Sep 2019 | 11:21 UTC London

Total closes acquisition of 26.5% operating stake in Mozambique LNG

Author Stuart Elliott Editor Jonathan Dart Commodity LNG, Natural Gas

Highlights

Final $3.9 bil purchase price for 26.5% stake

Mozambique LNG is 'one of a kind' asset: CEO

First LNG from project scheduled for 2024

London — Total has closed the $3.9-billion acquisition of a 26.5% operating stake in the Mozambique LNG project, the French major said Monday, as it continues the rapid expansion of its LNG business.
Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.
Register Now

Total agreed in May to buy the African assets of US-based Anadarko Petroleum for $8.8 billion once the latter's takeover by Occidental Petroleum was completed, with the purchase of the Mozambique LNG stake the first part of the deal toconclude.

Closing operations are still ongoing in relation to Anadarko's assets in the other countries -- Algeria, Ghana and South Africa, Total said.

"Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in LNG," Total CEO Patrick Pouyanne said in a statement.

The project -- expected to come online in 2024 -- includes the development of the Golfinho and Atum fields in Mozambique's Offshore Area 1 and the construction of a two-train liquefaction plant with a capacity of 12.9 million mt a year.

Total said Mozambique LNG was "largely derisked" after almost 90% of the production was sold through long-term contracts with key LNG buyers in Asia and in Europe.

The partners in Offshore Area 1 are Total (26.5%), Japan's Mitsui (20%), Empresa Nacional de Hidrocarbonetos (15%), India's ONGC Videsh (10%), Beas Rovuma Energy Mozambique Limited (10%), India's BPRL Ventures Mozambique (10%) and Thailand's PTTEP (8.5%).

Event

Platts Global Energy Outlook Forum | December 11, 2019 | New York

Join us to discuss the energy transition the increasing demand for energy, and investing in the future while navigating a diverse energy landscape.
Purchase seats
LNG EXPANSION

Total has been building its LNG portfolio quickly in recent years, through participation in big-ticket LNG projects and through acquisitions, notably the $1.5-billion purchase of Engie's portfolio of upstream LNG assets in July last year.

Pouyanne, speaking in July after Total released its second-quarter results, said the global LNG market was moving quickly, and that the best way to handle the volatile market environment was by having a large portfolio.

He said that by 2025 there would be around 50 million mt/year of LNG in its portfolio, expanding on a previous aim ofhaving an LNG portfolio -- including its own production and LNG bought from other parties -- of 40 million mt/year by 2020.

Its own LNG production is increasing rapidly, and is set to reach 20 million mt in 2020.

Pouyanne in July defended the purchase price of the stake in Mozambique LNG, which works out at around $150 million per percentage of working interest.

This, he said, is cheaper than a range of other acquisitions that took place between 2012 and 2014 for stakes in Offshore Area 1, which contains the gas for the project, which were valued at $200 million-$260 million per percentage of working interest.

He also said he would not rule out sharing more infrastructure in Mozambique with a second LNG project being developed in Mozambique by ExxonMobil, Italy's Eni and China's CNPC.

-- Stuart Elliott, [e-mail]

-- Edited by Jonathan Dart, [e-mail]

[ariane] 30/9/2019 09:47

30/09/2019 7:20am
UK Regulatory (RNS & others)

Total (LSE:TTA)
Intraday Stock Chart

Today : Monday 30 September 2019
Click Here for more Total Charts.


TIDMTTA



Total (Paris:FP) (LSE:TTA) (NYSE:TOT) announces the closing of the acquisition of Anadarko's 26.5% operated interest in the Mozambique LNG project for a purchase price of $ 3.9 billion.



This closing comes after Total reached a binding agreement with Occidental on May 3, 2019, to acquire Anadarko's assets in Africa (Mozambique, Algeria, Ghana and South Africa) and signed the subsequent Purchase and Sale Agreement on August 3, 2019. This first transaction follows receipt of all requisite approvals by the relevant authorities and partners.



"Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas", said Patrick Pouyanné, Chairman & CEO of Total. "As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution. Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique."



Mozambique LNG is the country's first onshore LNG development. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tonnes per year (Mt/y). The Area 1 contains more than 60 Tcf of gas resources, of which 18 Tcf will be developed with the first two trains. The Final Investment Decision (FID) on Mozambique LNG was announced on June 18, 2019, and the project is expected to come into production by 2024.



The Mozambique LNG project is largely derisked since almost 90% of the production is already sold through long-term contracts with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.



Total operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).



Closing operations are still ongoing in relation to Anadarko's assets in the other countries (Algeria, Ghana, South Africa).



Total, 2nd Largest Private Global LNG Player



Total is the second-largest private global LNG player, with an overall portfolio of around 40 Mt/y by 2020 and a worldwide market share of 10%. With 22 Mt of LNG sold in 2018, the Group has solid and diversified positions across the LNG value chain. Through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia or Angola, the Group sells LNG in all markets.

[ariane] 30/9/2019 09:46

Total acquires Anadarko’s shareholding in Mozambique LNG

Published by David Rowlands, Editor


LNG Industry,

Monday, 30 September 2019 09:00

Total has released a statement announcing the closing of the acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project for a purchase price of US$3.9 billion.

This closing comes after Total signed a binding agreement with Occidental on 3 May 2019 to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa), and signed the subsequent purchase and sale agreement on 3 August 2019. According to the statement, this first transaction follows receipt of all requisite approvals by the relevant authorities and partners.

Patrick Pouyanné, Chairman & CEO of Total, said: “Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in LNG.

“As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution. Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique.”

Mozambique LNG is the country’s first onshore LNG development. It includes the development of the Golfinho and Atum fields located within Offshore Area 1, as well as the construction of a two-train liquefaction plant with a capacity of 12.9 million tpy. Area 1 contains over 60 trillion ft3 of gas resources, of which 18 trillion ft3 will be developed with the first two trains. The project’s final investment decision (FID) was announced on 18 June 2019, and it is expected to come into production by 2024.

According to the statement, the Mozambique LNG project is largely de-risked, as nearly 90% of the production has already been sold through long-term contracts with key LNG buyers in both Asia and Europe. In addition to this, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.

Closing operations are still continuing in relation to Anadarko’s assets in the other countries (Algeria, Ghana, South Africa).

[adrian j boris] 27/9/2019 22:43

Total Petrochemicals & Refining USA reported an electricity outage that caused above-normal emissions and flaring Friday at its refinery in Port Arthur, Texas.

"A power loss experienced at the refinery led to a loss of steam that resulted in emissions of acid gas from the tail gas thermal oxidizers and flaring to occur," the refinery said in a statement to the Texas Commission on Environmental Quality.

Total said the emissions, including sulfur dioxide, began Thursday and ended Friday, lasting 21 hours total.

The 225,000-barrel-a-day Total Port Arthur refinery is 95 miles east of Houston.

Write to Dan Molinski at [e-mail]



(END) Dow Jones Newswires

September 27, 2019 16:17 ET (20:17 GMT)

[adrian j boris] 27/9/2019 21:24

Natural Gas | Oil 27 Sep 2019 | 18:59 UTC Buenos Aires

Total eyes shale oil for growth in Argentina on concern of low gas prices

Author Charles Newbery Editor Richard Rubin Commodity Natural Gas, Oil

Highlights

Development of offshore gas project slowed

Associated gas production could make dry gas unprofitable

Total to focus on shale oil, but cautiously because of crude price freeze

Buenos Aires — Total, the second-largest producer of natural gas in Argentina, plans to focus on its oil assets there on concerns that an oversupply of gas could drive down prices to unprofitable levels.
Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.
Register Now

The French company has slowed its development of Fenix, an offshore block in the far south with capacity to produce 10 million cu m/d, and is holding off on developing blocks in the dry gas window of Vaca Muerta, the country's biggest shale play, Dominique Marion, director general of Total's upstream unit in Argentina, said late Thursday.

"We have a portfolio of oil projects, and today we are focusing on that," Marion told S&P Global Platts on the sidelines of the Argentina Oil and Gas Expo in Buenos Aires. "We certainly see less risk today going into oil development than going into gas."

Argentina's gas production surged 27% to a record 144 million cu m/d in July from a 16-year low of 113.7 million cu m/d in 2014, according to data from the Energy Secretariat. The growth, which the secretariat said this week notched up another 7.7% year-on-year increase in August, without providing the raw data, has returned the country to a surplus. Argentina's average gas consumption was 123 million cu m/d in 2018, fluctuating between 100 million cu m/d in summer and 150 million cu m/d in winter, according to data from the Enargas, the federal gas regulator.

The oversupply has forced producers to shut wells during the summer, while a transport bottleneck out of Vaca Muerta is starting to slow production growth. While producers have increased exports to a combined 7 million cu m/d this year to Chile from less than 1 million cu m/d in 2018 and started selling small amounts of LNG as well as building underground storage, the huge production potential of Vaca Muerta is raising concerns about future prices.

"We want to see at what level the price will stabilize," Marion said. "We have seen in the United States that gas can go to a negative price. We want to wait to see what the price of gas will be in Argentina because it could fall to negative prices."

Argentina's gas prices have been running between $2.77/MMBtu and $4.66/MMBtu so far this year, according to the Energy Secretariat. The breakeven price for shale gas is above $3/MMBtu, most companies have said.
FOCUS ON OIL

With the tight margins and the pipeline bottlenecks, there has been a shift in development to the oil window from the gas windows.

Still, Total's pace of drilling in the oil window may be subdued for two reasons, Marion said.

The first is that a government-imposed freeze on crude, diesel and gasoline prices for 90 days from mid-August to November 14 has driven down the local price of crude to around Brent ICE minus $20/b, according to most private estimates. That has taken Vaca Muerta light crude to around $45/b, which is only a few dollars above the breakeven price that is averaging $40/b.

Marion said it is "a bit early" to say when Total could enter into the full-development stage on any of the three blocks -- La Escalonada, San Roque and Rincon La Ceniza -- that it operates in Vaca Muerta that are prone to oil.

"The freeze of the oil price is certainly not a favorable condition to launch an oil development," he said.
ASSOCIATED GAS

The second factor holding back its oil investment is the uncertainty of how much associated gas will be produced by companies in the Vaca Muerta oil window, such as BP-backed Pan American Energy, Shell and YPF.

"If there is a lot of associated gas, it will be good for consumers because the gas will be very cheap," Marion said. "But it will not be good for the investors in gas."

Total is not alone. On Tuesday, Daniel Gonzalez, CEO of state-backed YPF, Argentina's biggest gas producer, said his company is focusing on its shale oil projects for the same reasons. "Until the future of the gas market in Argentina is clearer, our investments in shale are going to be more focused on oil than gas," he said at the same energy conference.

Gonzalez added that he expects the company's gas production to rise nonetheless because of the output associated with oil. The associated gas proportion of total output is 10% in the company's three core oil blocks, he added.

Marion said that the production of associated gas varies across the oil window, and so it will wait for more information on production levels before it increases investment.

"We are looking at how the market will evolve and how much associated gas there will be," he said.

Even so, he said the benefit of associated gas is that it can be sustained by profits on sales of oil and natural gas liquids even if the gas price drops below breakeven.

"The economy will come from the liquids and the gas will be a byproduct," he said.

Total produces about 36 million cu m/d of gas in Argentina, or a quarter of the national total, and 10,000 b/d of crude, or less than 2% of the 500,000 b/d national total, according to data from the Argentina Oil and Gas Institute, an industry group.

-- Charles Newbery, [e-mail]

-- Edited by Richard Rubin, [e-mail]

[waldron] 27/9/2019 17:17

Brent Crude Oil NYMEX 61.05 -1.12%
Gasoline NYMEX 1.61 -0.60%
Natural Gas NYMEX 2.41 -1.19%
(WTI) 56.07 USD -0.32%


FTSE 100
7,426.21 +1.02%
Dow Jones
26,932.36 +0.15%
CAC 40
5,640.58 +0.36%
SBF 120
4,448.21 +0.39%
Euro STOXX 50
3,545.88 +0.38%
DAX
12,380.94 +0.75%
Ftse Mib
21,987.88 +0.18%



Eni
14.054 +0.86%

Total
47.59 +0.44% EX DIVI DAY


Engie
14.625 -0.98%

Orange
14.395 +0.70%

IAG
Price (GBX) 474.20+2.86% (Up +13.20)


Bp
519.3 +0.97%

Vodafone
162.2 -0.41%

Royal Dutch Shell A
2,408.5 +1.93%


Royal Dutch Shell B
2,410 +2.21%

[waldron] 27/9/2019 16:08

SEEKINH ALPHA

Most Investors Underestimate The Edge Of Total On The Other Oil Majors
Sep. 27, 2019 9:09 AM ET|
5 comments
|
About: TOTAL S.A. (TOT)
Aristofanis Papadatos
Aristofanis Papadatos
Oil & gas, portfolio strategy, value, bonds
Aristofanis Papadatos
(5,282 followers)
Summary

Total is the most resilient oil major to downturns.

This is the most important feature investors should look for before purchasing an energy stock.

Total also offers a higher dividend yield than Exxon Mobil and Chevron.

In addition, the company just announced that it will raise its dividend by 5-6% per year instead of 3% in the upcoming years.

Most investors who want to gain exposure to the oil majors tend to purchase Exxon Mobil (XOM), Chevron (CVX) or BP (BP). However, Total (TOT) has some striking advantages when compared to its peers. It is much more resilient during downturns, enjoys some competitive advantages, and offers a superior dividend. In this article, I will analyze why Total has the edge on the other oil majors.
Resilience to downturns

Due to the dramatic swings of the price of oil, the energy sector is infamous for its high cyclicality, which can cause devastating losses to investors during a downturn. In the fierce downturn of the energy sector between 2014 and 2017, some oil companies went out of business, while others, such as ConocoPhillips (COP), decimated their dividend. Consequently, the resilience of energy stocks to downturns is the most important feature that investors should examine before purchasing stocks of this sector.

While all the oil majors avoided cutting their dividend in the above downturn, Total proved by far the most resilient oil major. Its earnings per share fell only 55% whereas those of Exxon Mobil plunged 75%. Moreover, Chevron and BP saw all their earnings evaporate, as they both posted losses in 2016.

The main reason behind the superior performance of Total is its more integrated and diversified structure. Before the downturn, the upstream segment of all the oil majors used to generate approximately 90% of their total earnings. As a result, the other oil majors sold many of their refineries, failing to realize that those refineries were their hedges against a collapse of the oil price. Total maintained almost all its refineries and thus proved much more resilient than its peers when the price of oil collapsed, from $100 in 2014 to $30 in 2016. Whenever the next downturn in the sector shows up, Total will be the safest harbor in the sector thanks to its diversified asset portfolio.
Growth prospects

Like most oil majors, Total failed to grow its production during 2010-2014. However, thanks to a long series of investment projects, the company has returned to strong growth mode in recent years. To be sure, the oil major grew its production by 8% last year and is on track to grow its output by 9% this year. In addition, Total expects to grow its output by another 5% per year for at least the next three years.

A few months ago, Total agreed to acquire the assets of Anadarko in Africa for $8.8 billion. This is the biggest acquisition of the company throughout the tenure of its current CEO. Thanks to these assets, Total will leverage its expertise in LNG in Mozambique as well as its expertise in deep-water offshore drilling in Ghana.

Moreover, Total has greatly improved its asset portfolio since the onset of the downturn of the energy sector, about five years ago. The company has added about 7.0 billion barrels of reserves at a cost below $2.5 per barrel and expects free cash flows above $4.0 billion from these assets, at a Brent price around $60. These assets are thus expected to boost the free cash flows of Total by approximately one-third. Overall, Total has among the most exciting growth prospects in its peer group.
Competitive advantages

Total produces only a minor portion (less than 10%) of its natural gas in the U.S. and thus enjoys much higher selling prices than the price of Henry Hub. To provide a perspective, in 2018, the average realized gas price of Total was $4.78, which was 51% higher than the average Henry Hub price of $3.17.

Moreover, Total has achieved a much lower production cost of oil than its peers. While all the oil majors have drastically reduced their operating expenses in the last five years, Total has cut its expenses to a greater extent. As a result, its current production cost of $5.7 per barrel is about half of the production cost of its peers.

Total oil production cost

Source: Investor Presentation
Dividend

Exxon Mobil and Chevron are the only two dividend aristocrats in the energy sector. However, Total offers a more attractive dividend than its peers. The stock currently offers a 5.6% dividend yield, which is higher than the 4.9% yield of Exxon Mobil and the 3.8% yield of Chevron. BP currently offers a 6.4% dividend yield, but it is much more leveraged than Total, primarily due to the excessive liabilities that resulted from its disastrous accident in 2010. BP has paid more than $65 billion (more than half of its current market cap of $129 billion) for its liabilities and will continue paying about $1.0-2.0 billion per year for several more years. Moreover, BP has paid the same dividend for five consecutive quarters, and hence, it is unknown if and when the company will raise its dividend.

Moreover, Total just announced that it will accelerate its dividend growth in the upcoming years. The company had guided for 3% annual dividend growth, but it just raised the bar to 5-6% annual dividend growth, thanks to its strong free cash flows. The pre-dividend breakeven point of Total remains below $25 per barrel while its post-dividend breakeven point remains below $50 per barrel. Therefore, the dividend of Total seems absolutely safe for the foreseeable future.

Overall, Total currently offers the most attractive dividend in its peer group. It has a higher yield than most of its peers and has committed to an attractive dividend growth rate for the years ahead.
Valuation

Total is trading at a forward price-to-earnings ratio of 11.0, which is lower than its 10-year average of 11.9. The stock is thus attractively valued. It is also worth noting that the stock has not fallen below the support of $40 in the last 15 years. This period includes two fierce downturns, namely the Great Recession and the recent downturn of the energy sector. It is thus evident that Total has very limited downside from its current stock price (23%) even in the most unfavorable business scenario. Even in that case, the dividend is likely to remain safe thanks to the resilient asset portfolio and the strong balance sheet of the company.
Final thoughts

While most income-oriented investors focus on Exxon and Chevron, Total has significant competitive advantages when compared to its peers. Total is by far the most resilient oil major during downturns; this is a key feature for this highly cyclical sector. Total also offers the most attractive dividend yield while it is also cheaply valued. Only the investors who have strong conviction for higher oil prices in the upcoming years should prefer other oil majors, such as Chevron and BP, as these companies are more leveraged to the oil price than Total.

[waldron] 27/9/2019 14:15

Agefi-Dow Jones


PARIS (Agefi-Dow Jones) - The climate summit this week at the United Nations headquarters in New York was widely regarded as a failure. The business community, however, took this opportunity to highlight their progress and present new environmental commitments.


Oil majors in the Oil and Gas Climate Initiative (OGCI), for their part, said they wanted to reduce their "greenhouse gas emissions and support the objectives of the Paris agreement."


These majors - including Total, BP, Chevron, ExxonMobil, Petrobras, Saudi Aramco and Shell - are working on a goal to reduce their collective carbon footprint by 2025. This effort will focus specifically on upstream activities. oil and gas, particularly polluting.


For the time being, beyond communication operations aimed at responding to the pressures of the public and of certain shareholders, few oil tankers are concretely committed. "Of the big five majors, only Total and Shell really act," says an analyst.


The day dedicated to investors of Total which took place Tuesday in New York was the occasion for the group to put forward its own ambitions.


Total intends to spend between $ 1.5 and $ 2 billion a year on low-carbon electricity investments, about 10% of a total investment expenditure envelope of $ 16 to $ 18 billion a year over the 2019 period. -2023. In the first half of 2019, Total's liquefied natural gas (LNG) and renewables business accounted for 14.6% of its adjusted net operating income, compared to 13.8% a year earlier.


With its Anglo-Dutch rival Shell, Total is the group best placed to reduce its own intensity of emissions, finance new energies, while gaining market share and "offering a competitive return," analysts say JPMorgan Cazenove.


Overall, analysts following the sector have little or no environmental commitments in their financial forecasts. More and more investors, particularly pension funds, are moving towards ESG-compliant assets (environment, social and governance). The diversification operated by Total responds to this evolution, which is still in its infancy.


The financial markets recognize that "sustainable investment is the new horizon that can offer huge opportunities", especially in the energy transition, said Bank of England Governor Mark Carney at the UN Summit in Paris. on Monday.


Total has made efforts to prepare the ground for the energy transition and has thus taken a step ahead of its competitors, estimates Ahmed Ben Salem, an analyst at Oddo BHF. Moody's expects Total to significantly increase its investments in low carbon energy.


Ultimately, this strategy should allow the tricolor group to stand out from its competitors in the eyes of investors. In mid-September, JPMorgan put forward this argument by raising its opinion on the title of "neutral" to "overweight". Other market operators could follow.


-Alice Doré, Agefi-Dow Jones; [phone]; [e-mail] ed: ECH


Agefi-Dow Jones The financial newswire


(END) Dow Jones Newswires


September 27, 2019 03:10 ET (07:10 GMT)

[waldron] 26/9/2019 16:53

Brent Crude Oil NYMEX 60.81 -1.01%
Gasoline NYMEX 1.60 -0.26%
Natural Gas NYMEX 2.42 -3.97%
(WTI) 55.64 USD -1.89%

FTSE 100
7,351.08 +0.84%
Dow Jones
26,830.23 -0.52%
CAC 40
5,620.57 +0.66%
SBF 120
4,431.12 +0.64%
Euro STOXX 50
3,532.36 +0.67%
DAX
12,288.54 +0.44%
Ftse Mib
21,982.19 +0.89%


Eni
13.934 +0.52%

Total
47.38 +0.40%

Engie
14.77 +1.86%

Orange
14.295 +0.85%

IAG
Price (GBX) 461.00 -3.98% (Down -19.10)


Bp
514.3 +1.10%

Vodafone
162.86 +1.45%

Royal Dutch Shell A
2,363 +1.05%

Royal Dutch Shell B
2,358 +1.27%

[waldron] 25/9/2019 17:13

Brent Crude Oil NYMEX 61.11 -1.63%
Gasoline NYMEX 1.59 -2.27%
Natural Gas NYMEX 2.52 -0.32%
(WTI) 56.33 USD -0.86%

FTSE 100
7,289.99 -0.02%
Dow Jones
26,934.21 +0.47%
CAC 40
5,583.8 -0.79%
SBF 120
4,403.05 -0.75%
Euro STOXX 50
3,513.03 -0.59%
DAX
12,234.18 -0.59%
Ftse Mib
21,754.98 -0.67%



Eni
13.862 -0.96%



Total
47.19 -1.16%


Engie
14.5 -0.48%

Orange
14.175 -0.53%

IAG
Price (GBX) 480.10+0.48% (Up +2.30)



Bp
508.7 -0.47%

Vodafone
160.54 +0.30%

Royal Dutch Shell A
2,338.5 +0.30%

Royal Dutch Shell B
2,328.5 +0.19%

[waldron] 25/9/2019 11:13

The chairman of Total, Patrick Pouyanné, said at an investor meeting that his group could conduct share buybacks if the price of oil was $ 70.

[florenceorbis] 25/9/2019 09:23

Oddo remains with BUY. The target is adjusted to 58 E.

[florenceorbis] 25/9/2019 09:01

25/09/2019 | 9:30
The consulting firm Jefferies yesterday confirmed its buy with target 57 euros.

[florenceorbis] 25/9/2019 06:42

Total S.A. Total: 2019 Strategy & Outlook Presentation
24/09/2019 3:45pm
UK Regulatory (RNS & others)

Total (LSE:TTA)
Intraday Stock Chart

Today : Wednesday 25 September 2019
Click Here for more Total Charts.


TIDMTTA



Patrick Pouyanné, Chairman and CEO, Jean-Pierre Sbraire, CFO, and Helle Kristoffersen, President, Strategy - Innovation, will present Total's (Paris:FP) (LSE:TTA) (NYSE:TOT) Strategy & Outlook in New York today. The webcast of the presentation in English is available on total.com.



The presentation confirms Total's implementation of its strategy for profitable and sustainable growth for the benefit of all of its stakeholders, taking into account the evolution of energy markets. It also provide strong visibility on the Group's roadmap to 2025.



Key messages of the presentation include:



Coping with volatile and changing energy markets



Total is adapting to changing energy markets to ensure a sustainable future. Energy demand growth will benefit mainly gas and electricity, and, within these markets, LNG and renewables will grow the fastest.



Maintaining the Group's breakeven below 30 $/b and strong financial position to ensure a sustainable future



In face of volatile energy markets, Total focuses on operational excellence and financial discipline to maintain a low breakeven and strong balance sheet. In recent years, Total has successfully reduced its organic pre-dividend breakeven to less than 30 $/b and confirms its key objective to maintain it below this level to be resilient in any price environment. Discipline on costs will be maintained, illustrated by the additional $1 billion cost reduction program until 2023 notably supported by a strong digital ambition. A strong balance sheet with a gearing maintained below 20% further strengthens the resilience of the Group.



Oil & Gas: building on our strengths for sustainable and profitable growth



Total benefits from a large portfolio of profitable projects to fuel its future growth post 2023 and is sanctioning more than 800 kboe/d of new production, leveraging a favorable oil service cost environment. Renewing reserves is based on two engines: exploration with recent discoveries in North Sea, South Africa and Guyana and access to discovered resources.Total has also demonstrated its agility by making counter-cyclical acquisitions that have significantly high-graded the portfolio. Over 2015-2020, more than 11 Bboe of resources will have been added at less than 2.5 $/boe. The acquisition of Anadarko's African assets fits perfectly into the strategy and improves visibility on the Group's future. Downstream will make significant additional contributions to cash flow. Refining-Chemicals is focusing on growing petrochemicals using low cost feedstock on integrated platforms and Marketing & Services is expanding in large fast growing markets. Both segments also invest in new businesses linked to the development of low carbon economy (biofuels, bioplastics, plastic recycling, EV charging points, natural gas for trucks and shipping...).



Investing in growing energy markets for sustainable long term.



The energy transition leads to a growing role for both natural gas (mainly LNG) and electricity in the energy mix. Total will increase its LNG sales to 50 Mt per year by 2025, supporting CFFO growth in integrated LNG of 2.5 times between 2018 and 2025. In low carbon electricity, Total will invest $1.5-2 billion per year, notably in Europe, as a power producer from renewables and natural gas and distributor, targeting 8 million customers by 2025. Beyond Europe, Total is leveraging strong electricity demand by investing in renewables generation using a capital light model to ensure more than 15% equity IRR. This strategy for LNG and electricity contributes to the Group's ambition to reduce the carbon intensity of the energy products used by our customers by 15% between 2015 and 2030.



Outlook 2025 & Shareholder return



Total will generate production growth of more than 5% per year growth between 2018 and 2021, then after a stable period between 2022-23, growth will resume at more than 3% per year driven mainly by LNG project start-ups. Such growth will be delivered while capital discipline will be maintained with $16-18 billion per year capital investment over 2019 to 2023. The Group's cash flow will increase by more than $5 billion by 2025 in a 60 $/b environment, an average increase of around $1 billion per year. Total targets a ROE of 12%.



As a result of this strong outlook, the Board of Directors decided to accelerate dividend growth for the coming years with a guidance of increasing the dividend by 5 to 6% per year. As a result, the proposed amount for the third interim dividend for 2019 will be 0.68EUR per share, an increase of 6% compared to the third interim dividend for 2018.



These decisions reflect the Board's confidence in the ability of the Group to deliver sustainable and profitable growth for the coming years.

[florenceorbis] 25/9/2019 06:39

French energy giant Total SA (FP.FR) said Tuesday it is targeting cost savings of $4.7 billion this year, which will increase to $5 billion in 2020, with an additional $1 billion by 2023.

The oil and gas company said production will grow at a rate of over 5% per year between 2018 and 2021, and that after 2023 it will continue to generate growth of more 3% per year mainly driven by liquefied natural gas, or LNG, projects. Total forecasts its cash flow to increase by more than $5 billion by 2025, an average increase of around $1 billion per year. Return on equity is expected to be 12%.

Capital investment for 2019-2023 will be maintained at $16 billion to $18 billion per year, with more than $1.5 billion invested in low-carbon electricity across Europe.



Write to Giulia Petroni at [e-mail]



(END) Dow Jones Newswires

September 24, 2019 13:10 ET (17:10 GMT)

[grupo guitarlumber] 24/9/2019 20:52

24 Sep 2019 | 17:59 UTC London

Total ups investment as oil and gas output growth set to slow

Author Nick Coleman Robert Perkins Editor Andy Critchlow Commodity LNG, Natural Gas, Oil Topic LNG Market Evolution

Highlights

Targets 50 million mt LNG sales by 2025

Output increases set to level off

Cash-flow target assumes $60/b oil price

London — Total said Tuesday it would increase its annual investments to $16 billion-$18 billion in 2019-23, mainly to grow its LNG business, as recent sky-high oil and gas production increases look set to slow.
Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.
Register Now

In a strategy update delivered in New York, Total underlined that much of its future production growth would support its burgeoning LNG output, in line with its demand expectations. The company said it aimed to have annual LNG sales of 50 million mt by 2025, derived from both its own and third-party production, compared with a previous target of 40 million mt by 2020.

It expects overall upstream production to grow by more than 5% annually between 2018 and 2021 on average, but to remain unchanged in 2022-23, and then increase by more than 3% annually, "driven mainly by LNG project startups," it said. Total's production increased by 8.1% last year, ahead of its guidance, to 2.8 million b/d of oil equivalent, due to newly producing projects in West Africa and Russia, concession agreements in the UAE, and its purchase of Maersk Oil. It has forecast output growth of at least 9% this year, suggesting growth may soon taper off, at least for a while.

"Energy demand growth will benefit mainly gas and electricity, and, within these markets, LNG and renewables will grow the fastest," it said in Tuesday's strategy update, adding it expected to increase cash flow from its LNG business by 2.5 times in the period 2018-2025.

Total's LNG and renewables strategy "contributes to the group's ambition to reduce the carbon intensity of the energy products used by our customers by 15% between 2015 and 2030," it said.

In terms of the next wave of production growth from 2023, Total said it was in the process of sanctioning new production that would yield total output of 800,000 boe/d, taking advantage of "favorable" supply chain conditions.

However, Total also said it had was delaying a final investment decision it had expected to take this year to develop Uganda's maiden oil project, Lake Albert, according to a slide in the strategy presentation. It follows snags in a plan for Total and China's CNOOC to buy part of the stake in the project owned by the UK's Tullow Oil.

Total said its next reserve additions would come from recent discoveries in the North Sea and offshore South Africa and Guyana, and acquisitions such as the African assets of Anadarko, which it is buying from Occidental Petroleum following the latter's purchase of Anadarko.

"Over 2015-2020 more than 11 billion boe of resources will have been added at less than $2.5/boe," Total said.
SPENDING INCREASE

The new investment framework compares with guidance earlier in the year that the major's organic capital expenditure, plus net acquisitions, would total $15 billion-17 billion this year and next.

Its investment plans include $1.5 billion-2 billion/year in low-carbon electricity, primarily in Europe and including generation from both gas and renewables, it said.

Total said Tuesday it expected cash flows to increase by $1 billion annually on average up to 2025, or by more than $5 billion overall, assuming average oil prices of $60/barrel of oil equivalent. This would result in a return on equity of 12%, it said.

It also underlined it aims to maintain its pre-dividend breakeven price at under $30/b, supported by a $1 billion cost reduction program and and digitization of operations. The company's gearing would be maintained below 20%, it added. The company also announced it was increasing its dividend by 6%.

-- Nick Coleman, [e-mail]

-- Robert Perkins, [e-mail]

-- Edited by Andy Critchlow, [e-mail]

[waldron] 24/9/2019 16:52

Brent Crude Oil NYMEX 62.72 -0.76%
Gasoline NYMEX 1.63 -1.61%
Natural Gas NYMEX 2.54 -0.47%
(WTI) 57.77 USD -0.93%


FTSE 100
7,291.43 -0.47%
Dow Jones
26,966.34 +0.06%
CAC 40
5,628.33 -0.04%
SBF 120
4,436.46 -0.02%
Euro STOXX 50
3,533.95 -0.15%
DAX
12,307.15 -0.29%
Ftse Mib
21,931.21 +0.14%


Eni
13.996 -1.02%


Total
47.745 -1.89%


Engie
14.57 +1.60%

Orange
14.25 -0.35%

IAG
Price (GBX) 477.80+1.38% (Up +6.50)



Bp
511.1 -1.50%

Vodafone
160.06 +0.06%

Royal Dutch Shell A
2,331.5 -0.93%

Royal Dutch Shell B
2,324 -1.42%

[ariane] 24/9/2019 08:39

Total to Accelerate Dividend Growth

Francois de Beaupuy, Bloomberg News









(Bloomberg) -- French oil major Total SA will accelerate dividend growth in a sign of confidence that investment in fast-growing gas and electricity markets will steadily increase cash flow.

Total plans to boost its payout by 5% to 6% annually in the coming years, up from a previous plan for 3% growth, the company based near Paris said Tuesday. Like peers, Total has been under pressure from investors to boost shareholder returns and prioritize the most profitable projects amid slowing global economic growth and mounting concern about climate change.

Growth in oil, gas and power businesses will increase cash flow by more than $5 billion by 2025 with oil at $60 a barrel, according to Total. The interim dividend for the third quarter will rise by 6% year on year, it said.

To contact the reporter on this story: Francois de Beaupuy in Paris at [e-mail]

To contact the editors responsible for this story: James Herron at [e-mail], Amanda Jordan