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TTE Totalenergies Se

65.95
0.20 (0.30%)
24 May 2024 - Closed
Delayed by 15 minutes
Totalenergies Investors - TTE

Totalenergies Investors - TTE

Share Name Share Symbol Market Stock Type
Totalenergies Se TTE London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.20 0.30% 65.95 16:35:12
Open Price Low Price High Price Close Price Previous Close
65.95 65.75
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Industry Sector
HEALTH CARE EQUIPMENT & SERVICES

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Posted at 24/10/2023 07:37 by adrian j boris
TOTALENERGIES SE: United States: TotalEnergies Starts Up in Texas a 380 MW Utility-Scale Solar Power Plant with Battery Storage


24/10/2023 7:30am

UK Regulatory (RNS & others)

Totalenergies (LSE:TTE)



Tuesday 24 October 2023


TIDMTTE



TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has started commercial operations of Myrtle Solar, its utility-scale operated solar farm in the United States.



Located south of Houston, Texas, Myrtle has a capacity of 380 megawatts peak (MWp) of solar production and 225 MWh of co-located batteries. With 705,000 ground-mounted photovoltaic panels installed over an area equivalent to 1,800 American football fields, Myrtle produces enough green electricity to cover the equivalent consumption of 70,000 homes.



70% of Myrtle's capacity will supply green electricity to the Company's industrial plants in the U.S. Gulf Coast region. It is part of the Company's "Go Green" Project, which will enable the Company to cover, by 2025, the power needs and curtail the Scope 1+2 emissions of its industrial sites in Port Arthur and La Porte in Texas, and Carville in Louisiana.



The remaining 30% of Myrtle's capacity will supply green electricity to Kilroy Realty, a publicly traded real estate company, under a 15-year corporate power purchase agreement (CPPA) indexed on merchant prices.



In addition to the photovoltaic installations, the solar power plant also features battery energy storage equipment to meet the need for grid stabilization. With a total capacity of 225 MWh, this storage is made of 114 high-tech Energy Storage Systems (ESS) containers designed and assembled by TotalEnergies' affiliate Saft, which develops cutting-edge industrial batteries.



The Myrtle project, which benefits from the IRA (Inflation Reduction Act) Tax Credit mechanisms, will positively contribute to TotalEnergies' Integrated Power's profitability target of 12%.



"We are very proud to start up Myrtle, TotalEnergies' largest-to-date operated utility-scale solar farm with storage in the United States. This startup is another milestone in achieving our goal to build an integrated and profitable position in Texas, where ERCOT is the main electrical grid operator. Besides, the project will enable the Company to cover the power needs of some of its biggest U.S. industrial sites with electricity from a renewable source," said Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies. "Given the advantages that IRA tax exemptions are generating, we will continue to actively develop our 25 GW portfolio of projects in operation or development in the United States, to contribute to the Company's global power generation target of more than 100 TWh by 2030."



*Myrtle was initially developed by SunChase Power and Eolian

TotalEnergies in the U.S



Operating in the United States since 1957, TotalEnergies is focused on identifying opportunities to meet growing energy needs while reducing carbon emissions. With a presence in more than 30 U.S. states, the Company is developing an integrated portfolio combining 25 GW of operated and non-operated solar and wind projects, storage, and trading. It is also the number one U.S. exporter of LNG, a critical partner for intermittent renewable energies.

TotalEnergies and electricity



As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. In 2022, TotalEnergies generated more than 33 TWh of electricity, and had a gross renewable electricity generation installed capacity of 17 GW. TotalEnergies will continue to expand this business to grow its power generation to more than 100 TWh by 2030, with the objective of being among the world's top 5 producers of electricity from wind and solar energy.

About TotalEnergies



TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

TotalEnergies Contacts

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR



Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
Posted at 27/9/2023 08:01 by the grumpy old men
September/27/2023 Investor Day
Posted at 04/8/2023 06:40 by ariane
THISDAY
Nigeria | 4 hours ago


TotalEnergies Seeks Attractive Fiscal Environment to Encourage Investments in Big Gas Devt Projects


Multinational oil firm, TotalEnergies, has stressed the need for the Nigerian government to put in place adequate fiscal framework that would attract more investors in the development of big gas fields in the country.


The company explained that a favourable investment climate was urgently needed for oil and gas companies willing to embark on projects that would enable Nigeria explore and produce more of the abundant gas resources existing in the country and move away from just Associated Gas (AG) to Non-Associated Gas (NAG).


The Deputy Managing Director (Deepwater), TotalEnergies EP Nigeria Limited, Mr. Victor Bandele, made the call in Lagos, during a panel session at the just-concluded Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE), with the theme: “Balancing Energy Accessibility, Affordability, and Sustainability: Strategic Options for Africa”.


He said TotalEmergies was contributing efficiently in natural gas sustainability in Nigeria.
Speaking on the topic: “Role of Foreign Direct Investment (FDI) in the Efficient Development of Natural Gas Reserves to Meet Africa’s Energy Security Demands,” Bandele stressed that gas needed to be developed not only as a by-product of oil, but as a standalone product of high value.


He said: “There is no way we will develop energy today based on the same terms and conditions that we are using for associated gas.
“When we look at the fiscal terms that we have today, honestly, we will spend a lot of time discussing and discussing. I don’t think that people will come in.
“When I want to develop associated gas, I can run my economics on oil, and gas will just be bonus, we have past that era.


“I don’t think that people will come in to do NAG development on a large scale if the fiscal terms are not convenient and not appropriate.”
Acknowledging steps being taken by the government on energy transition, Bandele, however, stressed the need to take bold steps in finding the right environment to carry out energy development in Nigeria similar to what other countries were doing.
“In Nigeria today, we have more than 200 trillion cubic feet of proven gas reverse. In 2022, the total production of gas was about 1.4tcf. Of this 1.4tcf, less than 1tcf was for Nigeria Liquefied Natural Gas (NLNG).


“If you are looking at the statistics, you will ask whether what we did in 2022 is where we are supposed to be.
“If our proven reserves is in excess of 200tcf, and we are monetising in the neighbourhood of about 1tcf in a year, we are really not playing the game. So, this is the first instance that we have to bear in mind. We talk about this reserve – 200tcf, where is the 200tcf, where are they locked,” Bandele asked.


Maintaining that about 50 per cent of the gas in Nigeria was associated gas, he stated that what it meant was that they were produced as oil was produced.
According to him, there are available infrastructure producing oil to some extent but there is also need to achieve the clean energy transition as fast as possible.
“Let’s assume we have a means of producing some of our associated gas, about 50 per cent of the 200tcf is non-associated, meaning that we need to find infrastructure that will be suiting for gas development, find environment that will suit people to bring money to develop gas as a single item, are we doing that,” he asked.


He disclosed that for the past 10 years, TotalEnergies had ensured that all its new projects were non-routine flaring compliant.

“TotalEnergies supports Alaoji gas plant for gas, supports the Indorama for gas,” he added.

Bandele however, stated that TotalEnergies was desperate to remain relevant in Nigeria, adding the company has presence in the upstream, midstream, in the downstream, as well as in the renewables.

He said the company was optimistic about Nigeria and sees the human resource in the country as enormous.
Posted at 30/5/2023 07:09 by ariane
TotalEnergies Receives 20-Year License Renewal for Nigerian Block
by Jov Onsat
|
Rigzone Staff
|
Tuesday, May 30, 2023


TotalEnergies SE said Monday it has secured a 20-year extension for the production license for the Oil Mining License (OML) 130 block offshore Nigeria, following the settlement of a payment row with partners.

With an average production of 282,000 oil-equivalent barrels a day last year, the Niger Delta project is seen by the French global energy giant as a contributor to energy security not only in Africa’s biggest economy but also in Europe. Nearly 30 percent of last year’s output “was gas sent to the Nigeria LNG plant, notably contributing to Europe’s energy security”, TotalEnergies said in a press release announcing the renewal.

The extension allows TotalEnergies, which operates the block with a 24 percent stake, and its partners to proceed with pre-development studies on a new discovery that would add to the Akpo and Egina fields, put into production 2009 and 2018 respectively.

“This 20-year extension will enable us to move forward with the FEED [front-end engineering design] studies on the Preowei tie-back project which aims to valorize a discovery using existing facilities in line with Company’s strategy focusing on low-cost and low-emission assets”, Henri-Max Ndong-Nzue, TotalEnergies senior vice-president of exploration and production for Africa, said in the announcement.

The announcement follows the signing of agreements by TotalEnergies’ upstream unit in Nigeria, the Nigerian National Petroleum Co. Ltd. (NNPC) and their partners securing the continued development of the OML130 block.

“The suite [of deals] included Production Sharing Contracts, Heads of Agreement (HoA) Amendment, Settlement Repayment Agreement, Concession Contracts for 1 PPL [petroleum prospecting license] and 3 PMLs [petroleum mining leases], and Lease & License Instruments”, the state-controlled NNPC announced on Twitter on Thursday, not elaborating on the agreements.

The other partners in the project are China’s state-owned CNOOC Ltd. with a 45 percent interest, local private company South Atlantic Petroleum Ltd. (15 percent) and Netherlands-based Prime Oil & Gas Coöperatief UA (16 percent). Canada’s Africa Oil Corp. holds half of Prime’s stake in OML130 as Prime’s 50 percent owner.

Industry Reform

The new license operates under the terms of the new Petroleum Industry Act (PIA), making the three fields “the first assets to effectively benefit from the PIA fiscal terms”, noted Africa Oil in a separate media statement.

“The renewal of OML 130 is very good news for the Company and its shareholders”, Africa Oil president and chief executive Keith Hill said in the statement. “This license is the core of our Nigerian investment and accounts for most of Prime's production and cashflows.

“It also includes attractive growth opportunities such as the undeveloped Preowei oil discovery, which we can now take forward towards a final investment decision”.

Passed 2021 to replace the Petroleum Act, the new law provides for infrastructure funding support, investment promotion and a simplified hydrocarbon tax. The Midstream and Downstream Gas Infrastructure Fund aims to grow the domestic market for natural gas produced from privately funded projects, as well as enables risk-sharing to encourage private investment. Meanwhile fossil fuel tax collection has been limited to “crude oil as well as field condensates and liquid natural gas liquids derived from associated gas and produced in the field upstream of the measurement points”, as stated in the text of the legislation.

However the Nigerian Content Development and Monitoring Board (NCDMB) has said oil development continues to face regulatory hurdles in addition to financial and security challenges. At the Nigerian Oil and Gas Opportunity Fair held earlier May, NCDMB Executive Secretary Simbi Kesiye Wabote called for the elimination of “policy inconsistencies̶1; and urged the government to pass supplementary laws to the PIA “to give investors the necessary confidence to move ahead”, as stated in an NCDMB statement.

At the gathering over $50 billion worth of oil development projects were presented for potential launch in the next five years, according to the NCDMB statement.

Oil is a key contributor to Nigeria’s economy. Petroleum and natural gas comprised 6.21 percent of the nation’s gross domestic product in the first quarter, making this sector the fourth-largest component of the economy behind crop production, trade, and telecommunication and information services, the National Bureau of Statistics reported May 24.

To contact the author, email jov.onsat@rigzone.com
Posted at 28/5/2023 06:31 by misca2
KUWAIT TIMES


TotalEnergies shareholders back climate strategy despite protests

AFP

PARIS: TotalEnergies shareholders have backed the French oil giant’s climate strategy as it faces pressure from both environment activists and the government to speed up its switch to renewable energy.

Protesters tried to prevent investors from attending the group’s annual general assembly in Paris, but police early in the morning used tear gas to disperse those who had managed to sit in front of the concert hall where it was being held.

The demonstration was one of the latest in a series of tumultuous shareholder meetings at major corporations in Europe as activists step up pressure on companies to reduce their carbon footprints.

After three hours of debate, TotalEnergies investors attending the gathering online or in person backed the group’s climate strategy with more than 88 percent of votes.


Nearly a third of shareholders supported a motion from a minority of investors for the oil giant to reduce its greenhouse gas emissions to help meet the 2015 Paris accord’s goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.

That motion was put forward by Follow This, a group of 17 investors who together hold almost 1.5 percent of shares, but had been rejected by the oil giant.

Follow This representative Tarek Bouhouch had urged investors to support the motion to avoid “a climate collapse”. TotalEnergies chief executive Patrick Pouyanne earlier defended the company’s climate strategy in front of a few hundred people in the French capital’s Salle Pleyel. “The climate is at the heart of our concerns,” he said. He said his group has done more than others to invest in renewables. But world oil demand is growing and “if TotalEnergies doesn’t respond to this demand, others will do it for us”, he said.



‘Go faster’

Despite police blocking off the road outside the venue, a couple of hundred protesters had remained outside the concert hall as the meeting kicked off. “All we want is to knock down Total,” protesters chanted. In reference to rising global temperatures, they also bellowed: “One, two and three degrees, we have Total to thank”. Some poured a black liquid over their heads.

The company wanted to avoid the chaos of last year when activists prevented some shareholders from attending the annual meeting. This year, the firm placed two-meter high plexiglass screens to separate off speakers on stage from members of the public at the concert hall. It also forbade attendees and journalists from using their smartphones inside the venue. Climate campaigners are growing impatient with oil majors and other companies over their impact on the planet. Energy giants posted record profits last year as Russia’s war in Ukraine sent oil and gas prices soaring.

In Switzerland on Friday, shareholders of Swiss commodities giant Glencore sought to hold the company accountable over its coal strategy. During the annual shareholders’ meeting of British group Shell on Tuesday, activists sang “Go to hell Shell!” TotalEnergies plans to allocate a third of its investments in low-carbon sources of energy and reach 100 gigawatts of renewable electricity capacity by 2030. But France’s energy transition minister, Agnes Pannier-Runacher, urged the company to speed things up on Friday. “Total invests in renewable energies, but the challenge is to go faster, stronger and above all faster,” she told FranceInfo radio.



‘The worst’

Marie Cohuet, spokeswoman for climate campaigners Alternatiba, said TotalEnergies “embodies the worst of what is done in terms of the exploitation of people and the planet”. One shareholder, who gave his name as Jean-Paul, defended himself as he made his way in to the Paris meeting. “We are all concerned by climate issues, but there are also economic aspects, employment,” he said.

TotalEnergies operations include liquefied natural gas and oil projects in the United Arab Emirates, Iraq, Papua New Guinea and Uganda, where it has come under fire for a pipeline project activists say threatens a fragile ecosystem and livelihoods. The French giant has also sparked controversy over posting a record net profit of $20.5 billion for last year, how much taxes it pays in France, and how much it pays Pouyanne. A 10-percent hike to his salary was approved at Friday’s meeting. — AFP
Posted at 01/5/2023 14:15 by waldron
Total’s CEO Blames Stock Discount On European Listing

By Tsvetana Paraskova - May 01, 2023, 7:16 AM CDT

The primary listing on a stock market in Europe is the main reason for the discount at which TotalEnergies’ stock trades relative to the market value fundamentals of its U.S. competitors, TotalEnergies’ chief executive Patrick Pouyanné has said at meetings with investors in recent months.

However, TotalEnergies does not consider moving its primary listing to the United States, Pouyanné has said during recent meetings with investors, the Financial Times reports, citing sources familiar with the discussions.

“Culturally it was too difficult” to move TotalEnergies to the U.S., one of the largest shareholders in the French energy firm told FT.

CEO Pouyanné has said that “if Total was US-listed it would be much better but, of course, it is impossible for Total to move its listing so it’s not on the cards,” another shareholder told FT.

According to analysts, the U.S. supermajors, ExxonMobil and Chevron, are valued on the market at around six times their cash flows, while TotalEnergies is valued at around 4x the cash flow, with UK-based BP and Shell valued even lower, at around 3 times their cash flows.

Two years ago, Shell’s executive leadership discussed relocating to the U.S. in order to boost the company’s valuation, FT reported earlier this year.

According to the FT’s sources, the supermajor’s new chief executive, Wael Sawan, was part of a team of top executives that two years ago considered moving Shell’s headquarters to the U.S. and listing the company there, too.

The relocation idea was ultimately dropped, but the FT notes that Shell’s chief executive remains worried about the difference in valuation between Shell and its U.S. peers.

Indeed, there has been a stark difference in the valuations of European and U.S. Big Oil majors. According to analysts, there are two primary reasons for this: the first is the greater clout that ESG investing has in Europe, and the other is that neither ESG-focused nor traditional investors seem to be particularly convinced of European Big Oil’s transition plans.

By Tsvetana Paraskova for Oilprice.com
Posted at 24/4/2023 05:03 by grupo guitarlumber
$1.1bn Deal: Elumelu's Firm Buys Shell, Total, ENI Stakes In Oil Block
January 16, 2021
Sahara Reporters, New York
News

The company said it was committed to transferring OML 17 in an orderly and responsible manner to the new owner, which would help provide a sustainable long-term plan

Three international oil companies operating in Nigeria have sold their combined 45 per cent interest in Oil Mining Lease 17 and related assets in the Eastern Niger Delta to TNOG Oil and Gas Limited, an integrated energy company founded by Mr Tony Elumelu.

Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited assigned their interests of 30 per cent, 10 per cent, and five per cent respectively in the lease to TNOG Oil and Gas.


SPDC announced in a statement on Friday the completion of the sale of its 30 per cent interest in OML 17 and associated infrastructure to TNOG Oil and Gas for a consideration of $533m.

The oil major said the completion followed the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.

TNOG Oil and Gas is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, both of which have Elumelu as their chairman.

"A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area," the SPDC said.

The company said it was committed to transferring OML 17 in an orderly and responsible manner to the new owner, which would help provide a sustainable long-term plan to unlock its full potential.

"As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for over 60 years and remains committed to a long-term presence here," said the Managing Director of SPDC and Country Chairman of Shell companies in Nigeria, Mr Osagie Okunbor.

Heirs Holdings said in a statement that TNOG Oil and Gas would have sole operatorship of the asset.

It described the transaction as one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1bn provided by a consortium of global and regional banks and investor.

It said the deal also involved Schlumberger as a technical partner and the trading arm of Shell as an off-taker.

OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential, according to the statement.
Posted at 09/3/2023 08:02 by the grumpy old men
Tullow submits new plan for Turkana oil fields


Thursday, March 09, 2023


Tullow Oil and its joint venture partners Total Energies and Africa Oil last week submitted a revised field development plan (FDP) to the government for approval, as the venture steps up its search for a strategic investor.


By
Brian Ambani

Nation Media Group

Tullow Oil and its joint venture partners Total Energies and Africa Oil last week submitted a revised field development plan (FDP) to the government for approval, as the venture steps up its search for a strategic investor.

The approval of the FDP—which will need to be ratified by Parliament —will enable the venture to get a government license to commence commercial drilling of crude oil in the 10BB and 13T oil blocks in Turkana County.

“Since January 1, 2022, there have been ongoing discussions with the government of Kenya on approval of the FDP and securing government deliverables. An updated FDP was submitted on March 3, 2023, and is being reviewed by the government of Kenya before ratification by the Kenyan Parliament,” said Tullow.


The country first announced the discovery of oil in March 2012.

The venture had been issued with a 15-month license extension from September 2020 to December 2021 on the condition that they would submit to the government an FDP that is technically and commercially viable for approval.

While the initial FDP was submitted in December 2021, the revised plan follows the revelation that the commercially recoverable oil from the reserves is significantly larger than previously estimated.
Revise production capacity

An audit by British petroleum consulting firm Gaffney, Cline & Associates led the firms to revise the production capacity of the oilfields to 120,000 barrels of oil per day (bpd), up from previous estimates of 70,000 bpd.

This saw the revision of the FDP that has increased the size of the crude oil processing facility in Turkana and the size of the pipeline to evacuate the oil to Lamu, increasing the projected cost of the project from Sh319 billion to Sh377 billion.

The revised FDP also increased the diameter size of the planned Lokichar-Lamu crude oil pipeline from 18 inches to 20 inches to handle a higher product volume and drilling of additional exploration wells.

“The Group expects a production license to be granted once due government process has been completed,” said Tullow.

The Kenya oil project has faced long delays owing to uncertainty over access by the venture to land and water critical for oil drilling and laying of the oil pipeline. The firms have also been having cold feet over the project owing to uncertainties in the global crude oil market that could lead to low prices of the commodity, rendering it less commercially viable.

Media reports last year indicated that the Indian Oil Corporation is considering buying a stake in the venture, which would pump in significant cash that will give a new lease of life into the project.

The company is India’s largest oil refiner.

Tullow has previously attributed production delays to several factors, including unfavourable global oil prices, approval delays for land and water rights, a tax dispute and the Covid-19 pandemic.

bambani@ke.nationmedia.com
Posted at 13/5/2022 13:42 by waldron
motely fool


TotalEnergies Furthers Its LNG and Clean Energy Ambitions

By Reuben Gregg Brewer - May 13, 2022 at 6:01AM

Key Points


In 2020, TotalEnergies announced its plans to move further in the clean energy direction.

TotalEnergies isn't thinking short term as it builds for a future where cleaner is better.

Every small investment moves TotalEnergies further along the path it has laid out.

The French energy giant is pushing toward a cleaner future, one investment at a time.

Like its European peers BP and Shell, TotalEnergies (TTE -1.67%) announced big plans to green up its portfolio in 2020.

What set TotalEnergies apart from these two competitors, however, was that it made a bold commitment to a cleaner future without cutting its dividend.

For investors looking to benefit from the continued demand for carbon fuels while increasing exposure to cleaner alternatives, TotalEnergies could be a great option.

Some of its recent portfolio moves explain why.

The big goal

In 2020, TotalEnergies announced it wanted to grow its electricity division from 5% of its business to 15% by 2030.

At first, that may not sound like such a big deal, but step back and look at the difference between 5% and 15%, which is a full 10 percentage points.

In a decade, the company wants to triple the size of this division!

Notably, at the same time, it wants to expand the absolute size of its carbon-related energy businesses.

Under that top-level view, the goal is to increase the natural gas division from 40% of the total to 50%.

Oil will be the smaller business, shrinking from 55% of TotalEnergies' operations to 30%, with five percentage points of that dedicated to biofuels.


An oil well with wind turbines in the background.



These are not idle changes; they are fairly big moves.

More important, however, is that the company is planning to adjust along with the world around it.

That means investors can own an energy name, benefiting from the rebounding energy sector today, and get increasing exposure over time to newer and cleaner energy businesses.

Those new investments, meanwhile, will be funded by the cash-cow carbon business.

It's kind of a win-win situation for long-term investors who believe the energy transition taking shape today will likely be a decades-long affair.

And all the while, investors can collect a hefty 5.6% dividend yield.

TotalEnergies is a French company, so there are foreign taxes to contend with come tax time (you can get credit for foreign taxes when you file).

Still, its yield is at the top end of its closest peer group.

Not a bad deal at all.


Proof is in the pudding

That said, long before its 2020 clean energy pivot, BP tried to claim a new nickname -- "Beyond Petroleum" -- as it worked to embrace clean energy.

That effort basically failed, and it went back to its carbon roots.

So, it makes sense that investors might take a leery approach to any energy major that's shifting gears this time around, including TotalEnergies.

Only, TotalEnergies had been investing in clean energy for years before it made the effort more official.

Since the 2020 announcement, meanwhile, it has been doing exactly what it said it would. Just in 2022 alone, it has made a raft of announcements that should help it shift toward cleaner-burning natural gas and "clean" growth in the electrons business. For example, TotalEnergies:

Acquired Core Solar and its portfolio of more than 4 gigawatts (GW) of utility-scale solar and energy storage projects, expanding its U.S. portfolio to more than 10 GW gross capacity.


Joined forces with ENEOS in a 50-50 joint venture to develop 2 GW of decentralized solar capacity in Asia over the next five years.


Expanded its relationship with Sempra through two memorandums of understanding, one for a liquified natural gas (LNG) export project in Mexico and the other for the co-development of several onshore and offshore renewables projects.


Participated with companies, including ArcelorMittal, in a French carbon-capture demonstration project.

Started production of renewable aviation fuel in France, adding a new facility to two others it has producing biojet fuel.

Won leases to develop up to 3 GW of offshore wind power off the coasts of New York and New Jersey.

Won rights to develop 2 GW of offshore wind power in Scotland in a joint venture with Macquarie's Green Investment Group (GIG) (46.75%) and RIDG (15%), with TotalEnergies accounting for the remainder.

And that's just a sampling of the moves TotalEnergies has made in 2022, which isn't even half over yet. Big capital investments tend to be lumpy in nature, so it would be a mistake to use early 2022 as some sort of run rate for the company's plans.

However, directionally, it clearly shows that TotalEnergies is serious about shifting toward cleaner alternatives.

The big moves in oil are making headlines today, but TotalEnergies is clearly making sure it keeps its eye on the long-term.

Worth a closer look

If you have been avoiding energy stocks because of their ties to dirty carbon fuels, TotalEnergies could offer you a decent compromise.

It is definitely benefiting today from its carbon-heavy energy business, but it is also very clearly using the cash it generates from these divisions to shift in a cleaner direction (natural gas) and build a new division focused on cleaner alternatives (the electricity division).

While it does all that, you can collect a generous income stream and rest comfortably, knowing the energy company you own is changing over time with the world around it.
Posted at 26/4/2022 10:51 by sarkasm
TotalEnergies: The Russia Uncertainty In Upcoming Earnings
Apr. 26, 2022 3:29 AM ETTotalEnergies SE (TTE)2 Comments4 Likes
Summary

TotalEnergies is an oil and gas company with some Russian exposure. With Russian sanctions, there are some moving pieces that offer investors uncertainty.
TotalEnergies is about to report its Q1 earnings this Thursday. This is a discussion of what investors should think about going in.
As a value investor, given that TotalEnergies is one of only a very small handful of E&P companies that is in negative territory, this makes this investment interesting.
Investors should look beyond the politics and make a rational decision on whether the capital return program is enough to buy more of this company now?
Looking for more investing ideas like this one? Get them exclusively at Deep Value Returns. Learn More »

Exterior view of the headquarters of the oil company TotalEnergies, formerly known as Total

HJBC/iStock Editorial via Getty Images
Investment Thesis

TotalEnergies (NYSE:TTE) is an oil and gas company. Investors have become fearful of sanctions against Russia and the impact of Total's LNG assets in Yamal, northern Russia.

However, I argue that insight has now been thoroughly discounted in the share price already.

Consequently, besides Total's Russian exposure, which is now a known known, I estimate that Total's capital return program could reach around 9% to 12% in 2022.

This is not the best oil and gas stock to buy, but far from being a bad pick altogether.
Why TotalEnergies? Why Now?

TotalEnergies is a global multi-energy company. It's a large energy company with 4 segments highlighted in the chart below:
TotalEnergies Q4 2021 operating margins percentage

TotalEnergies Q4 2021 operating margins percentage

As you can see above, for Q4 2021, 70% of its operating profits came from its exploration and production segment. There is equity from affiliates that change the percentage makeup below its operating profit line. But I believe this provides more of a distraction in the analysis than it contributes.

The key takeaway here is just how meaningful its Exploration & Production segment is to its overall health and near-term prosperity.

And although oil and gas prices have been very volatile in the last several days, any guidance that TotalEnergies provides shareholders this Thursday on its dividend policy will be extremely insightful to investors.

What should investors be on the lookout for? Before answering that, clearly, we need to know how big an impact the Russian sanctions have had on Total's operations.

Presently, there's no denying that investors are being really nervous here.
Chart
Data by YCharts

As you can see above, since the Russian sanctions were enacted, Total's shares are down 14%.

This clearly seems to be an overreaction when you consider that Total's exposure to Russia accounts for approximately 5% of its cash flows.

However, one has to counter that with the fact that TotalEnergies is meaningfully levered which, when taken together with its Russian impact, brings into question Total's ability to increase its capital return program further.
Room For Increasing Its Dividend?

Before discussing Total's dividend, let's take a moment to appraise Total's balance sheet.
TotalEnergies Q4 2021 earnings

TotalEnergies Q4 2021 earnings

Even though there's been a massive improvement in leverage from last year, the fact remains that Total still carries $21 billion of net debt.

One may counter that this isn't that meaningful given that Total's net cash flows in 2021 were $15.8 billion and are expected to be meaningfully higher in 2022.

Could this mean that Total's dividend in 2022 could increase to $10 billion? A 22% increase compared with 2021? Perhaps. But I would contend that this is probably the best-case scenario given its Russian exposure.

On yet the other hand, Total will probably look to increase its share buyback program. But will that amount to more than $5 billion in 2022? Again, I believe that would be the best-case scenario.

Thus, altogether, investors could perhaps get 12% return via dividends and buybacks, if we were to make the generous assumption that Total would look to aggressively put a floor on its share price.

But I am inclined to believe that a more reasoned return of capital program would probably settle around 9%, which is still very much reasonable.
The Bottom Line

With oil prices remaining high, this company will continue to improve its balance sheet and pay out a dividend. That's the good news. But at the same time, while I'm super bullish on oil and gas, I'm uncertain of whether shares of TotalEnergies are that compelling.

You have a hit to profitability expected as TotalEnergies winds down its Russia exposure; you are also clearly exposed to WTI prices, which are far from guaranteed to remain high, particularly given China's COVID lockdown policies.

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