Totalenergies Investors - TTE

Totalenergies Investors - TTE

Buy
Sell
Best deals to access real time data!
Level 2 Basic
Monthly Subscription
for only
£62.08
Silver
Monthly Subscription
for only
£17.37
UK/US Silver
Monthly Subscription
for only
£30.59
VAT not included
Stock Name Stock Symbol Market Stock Type
Totalenergies Se TTE London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-0.3275 -0.65% 50.1725 16:35:28
Open Price Low Price High Price Close Price Previous Close
50.1725 50.50
more quote information »
Industry Sector
INDUSTRIAL METALS

Top Investor Posts

DateSubject
14/6/2022
17:36		waldron: Pouyanne blames policy makers for the energy crisis Jun. 14, 2022 12:09 PM ETOIH, XLE, USO, SHEL, BP, FSLR, TTEBy: Nathan Allen, SA News Editor "Oil and gas companies that have listened to policymakers' calls for less investment in fossil fuels is one of the reasons for current globally tight energy supplies" TotalEnergies (TTE) CEO Patrick Pouyanne said Tuesday. Total (TTE) has committed to investing ~$3.6b per year in renewables and power through 2025, more than 3x the current investment run-rate of low-carbon leaders like First Solar (FSLR); however, unlike BP (BP) and Shell (SHEL), Total (TTE) has also committed to growing oil production (USO) through 2025. With the White House scouring the world for energy supplies, from Venezuela to Iran and Saudi Arabia, while companies in the UK and US face policy headwinds at every turn, the statement appears well founded. However, Mr. Pouyanne's comment may mark a shift in the industry - after reducing investment in fossil fuels for nearly a decade in hopes of winning favor with policy makers and ESG investors, energy companies may finally be preparing to increase investment in oil and gas production. In the US, shale producers (XLE) have almost uniformly shied away from accelerating production growth in 2022, as supply chain challenges have led costs higher and production lower in the near term. However, sustained high prices, a meager supply response from OPEC and the prospect of a failed Iran deal could result in a strategy shift from industry later this year; one that would likely benefit service providers (OIH), create a headwind to upstream free cash flow generation, and eventually balance oil markets.
Read Full Thread
Follow
Reply
13/5/2022
13:42		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.
Read Full Thread
Follow
Reply
26/4/2022
10:51		sarkasm: Https://seekingalpha.com/article/4503492-totalenergies-stock-russia-uncertainty-upcoming-earnings?mailingid=27491161&;messageid=2800&serial=27491161.2711&utm_campaign=rta-stock-article&utm_medium=email&;utm_source=seeking_alpha&utm_term=27491161.2711 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.
Read Full Thread
Follow
Reply
28/3/2022
12:12		sarkasm: TOTALENERGIES SE: Annual Financial Report 28/03/2022 7:00am UK Regulatory (RNS & others) TIDMTTE The Document d'enregistrement universel of TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE) for the year 2021 was filed with the French Financial Markets Authority (Autorité des marchés financiers) on March 25, 2022. It can be consulted and downloaded from the Company's website (totalenergies.com, under the heading Investors / Publications and regulated information / Reports and Publications). The English translation of the Document d'enregistrement universel (Universal Registration Document) is also available on the Company's website under the same heading. The following documents are included in the Document d'enregistrement universel: -- the 2021 annual financial report, -- the Board of Directors' report on corporate governance required under Article L. 225-37 of the French Commercial Code, -- the description of the share buy-back program, -- the report on the payments made to governments required under Article L. 22-10-37 of the French Commercial Code, -- the reports from the statutory auditors. TotalEnergies SE's Form 20-F for the year ended December 31, 2021 was filed with the United States Securities and Exchange Commission (SEC) on March 25, 2022. It can be consulted and downloaded from the Company's website (totalenergies.com, under the heading Investors / Publications and regulated information / Reports and Publications) or from the SEC's website (sec.gov). Printed copies of the Document d'enregistrement universel, Universal Registration Document and Form 20-F are available free of charge at the Company's registered office at 2, place Jean Millier, La Défense 6, 92400 Courbevoie, France. 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 105,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 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.
Read Full Thread
Follow
Reply
24/3/2022
15:27		waldron: Total Vows to Slash Methane as Investors Demand Big Oil Do More Francois de Beaupuy, Bloomberg News (Bloomberg) -- TotalEnergies SE announced plans for a steep cut in methane emissions as energy majors come under increasing pressure to eliminate leaks of one of the most harmful greenhouse gases. The French energy giant aims to reduce its release of methane -- the primary component of natural gas -- by 80% this decade, it said Thursday in a report. Curbing intentional emissions and accidental leaks from the oil and gas industry is seen by scientists as essential in the fight against global warming. Climate change looms large for Europe’s big oil companies, with governments and shareholders increasingly demanding more stringent targets to reduce pollution as the region seeks to reach carbon-neutrality by 2050. TotalEnergies also said it will cut so-called Scope 3 emissions -- specifically relating to those of its oil customers -- by more than 30% by 2030 versus 2015. The company has said before that it plans to reduce the sale of its oil products by at least that proportion by then, while it expands gas and power output. Thursday’s climate report, which will be put to a vote at the annual general meeting on May 25, was immediately rejected by Dutch activist group Follow This, which said Total’s plan “still falls short” of Paris Agreement goals. The energy transition has increasingly dominated the AGMs of the oil majors. Last year, Chevron Corp. investors voted for a proposal to compel the firm to curb pollution by its customers, while Exxon Mobil Corp.’s shareholders ousted two directors seen as ill-attuned to the threat of global warming. In Europe, climate resolutions filed by Follow This at BP plc, Shell Plc and Equinor ASA received their highest support ever. Total defended its climate stance on Thursday, pointing to an analysis from the Transition Pathway Initiative investor group that showed the company was one of just three oil and gas majors with strategies ambitious enough to keep global warming to 1.5 degrees Celsius.
Read Full Thread
Follow
Reply
15/3/2022
13:22		sarkasm: Http://www.total.com/en/investors/institutional-investors/calendar March/22 2022 Ex-Dividend date for the 3rd 2021 interim Dividend
Read Full Thread
Follow
Reply
05/3/2022
08:14		waldron: artictoday.com Major oil companies and investors pull back from Russian Arctic oil and gas Several major oil companies and investment firms are exiting partnerships with Russian energy interests. By Melody Schreiber - March 5, 2022 1 Several major oil companies and investors have announced in recent days they are withdrawing from Russian resource development or not pursuing new projects with Russia, including in the Arctic, after Russia’s invasion of Ukraine. BP was the first to announce such plans. On Sunday, the company said that it was exiting its 19.75 percent shareholding in Russia’s Rosneft and requiring its directors to resign from the Rosneft board. Chair Helge Lund said the company’s “involvement with Rosneft, a state-owned enterprise, simply cannot continue.” The move will likely affect the massive Vostok oil project in the Russian Arctic. BP has deep knowledge of offshore development, and their financing has been an important part of Rosneft’s plans for Arctic extraction. Norway’s Equinor, which has worked in Russia for three decades and established a cooperation agreement with Rosneft in 2012, said Monday that it will stop new investments in Russia and begin exiting joint ventures. Equinor President and CEO Anders Opedal said “we regard our position as untenable” in Russia. Also on Monday, Shell terminated its 27.5 percent stake in the Sakhalin LNG 2 facility, a key link to Asian markets. ExxonMobil said on Tuesday it was taking steps to exit the Sakhalin-1 project it operates on behalf of an international consortium that includes Japanese, Indian and Russian companies. The oil major also announced won’t invest in any new Russian projects. India’s state-owned oil company, which had expressed interest in investing in Vostok through a consortium and in Novatek’s Arctic LNG 2 project, now says it has no immediate plans to invest in Russia. [Russia’s new Arctic LNG project will be built with western technology] Norges Bank Investment Management, the part of the Norwegian central bank that operates the $1.3 trillion sovereign wealth fund and holds stock in gas producer Gazprom and oil major Lukoil, announced on Sunday it was freezing investments in Russia. And the commodities trader Trafigura has said it won’t make any new investments and is reviewing its role in Vostok Oil, while the trader Vitol hasn’t made a statement. TotalEnergies and Chevron, which holds a 15 percent share in the Caspian Pipeline Consortium, are the last remaining oil majors in Russia. (ConocoPhillips ended Russian operations in 2015.) TotalEnergies holds a 19.4 percent stake in Novatek, Russia’s largest LNG producer, but the French company said it will “no longer provide capital for new projects in Russia.” Total is staying in Russia for the time being because “they cannot do otherwise, really,” Mikaa Mered, lecturer on polar affairs at Sciences Po, told ArcticToday in an email. “Their Arctic projects in Russia — LNG ones in particular — are an absolute critical pillar of TotalEnergies’ decarbonization commitments.” Because of these long-term plans, Total is taking a “low-profile, wait and see approach,” Mered said. Lukoil, the Russian oil giant, called on Thursday for the invasion to halt, one of the first major companies in Russia to do so. Meanwhile, two Republicans in the U.S. House of Representatives, including Alaska’s Don Young, pressed forward on Thursday with legislation to ban imports of Russian oil. Two bills introduced on Tuesday in the U.S. Senate, one from nine Republicans and one from Ed Markey, a Democrat from Massachusetts, would also prevent Russian oil imports. It’s likely Russian President Vladimir Putin will look for increased Chinese investments — but it’s not clear whether China has the interest or will to do so, Sherri Goodman, former U.S. deputy undersecretary of defense in environmental security and a senior fellow at the Wilson Center’s Polar Institute, said in an email to ArcticToday. “Actively rescuing Russia in the current state of the world might not look good — and rightly so — in the eyes of Western Arctic nations, and would probably be seen as crossing a red line,” Goodman. There may be long-term consequences from these moves to disinvest, especially in an increasing shift to renewable energy, Goodman said. “[A]s the Russian Arctic oil and gas reserves increasingly become stranded assets with the EU and U.S. accelerating their green transition, Russia’s both economic power and leverage power will eventually decrease.”
Read Full Thread
Follow
Reply
10/2/2022
10:20		misca2: Oil major TotalEnergies swings to profit thanks to surging commodity prices Published Thu, Feb 10 20222:14 AM ESTUpdated 2 Hours Ago Sam Meredith @smeredith19 Key Points The oil and gas giant said full-year 2021 adjusted net income came in at $18.1 billion, while net income came in at $16 billion. That compared with adjusted net income of $4.1 billion and a net loss of $7.2 billion the previous year. A surge in global gas markets through the final months of 2021, coupled with an oil price rally to seven-year highs, has seen the world’s largest fossil fuel giants rake in bumper revenues. French oil major TotalEnergies on Thursday reported a sharp upswing in full-year profit, boosted by a huge rebound in commodity prices. The oil and gas giant said full-year 2021 adjusted net income came in at $18.1 billion, while net income came in at $16 billion. That compared with adjusted net income of $4.1 billion and a net loss of $7.2 billion the previous year. Analysts polled by Refinitiv had expected full-year 2021 adjusted net profit to come in at $17.1 billion. For the final quarter of 2021, TotalEnergies reported adjusted earnings of $6.8 billion, beating analyst expectations of $6.1 billion. TotalEnergies CEO Patrick Pouyanné said in a statement that the firm’s “multi-energy model demonstrated its ability to take full advantage of the very favorable environment, particularly in the LNG and electricity sectors.” A surge in global gas prices through the final months of 2021, coupled with an oil price rally to seven-year highs, has seen the world’s largest fossil fuel giants rake in bumper revenues. British oil major BP reported Tuesday that profits soared to an eight-year high of almost $13 billion, while rival Shell posted annual revenues of $19.3 billion. U.S. competitors Chevron and Exxon Mobil recorded full-year net profits of $15.6 billion and $23 billion, respectively. It marks a dramatic shift from 2020 when the oil and gas industry endured a dreadful 12 months by virtually every measure. Share buybacks TotalEnergies also announced a final dividend of 0.66 euros ($0.75) per share, taking the total for 2021 to 2.64 euros per share. The company outlined an increase in interim dividends of 5% in 2022 and said it plans $2 billion in share buybacks for the first half of the year. Net debt was reduced to $20.8 billion by the end of 2021, down from $29.3 billion when compared to the end of 2020. Shares of TotalEnergies were little changed during early morning trade in London. The firm’s stock price is up more than 16% year-to-date. Energy analysts have warned that investors are likely to harbor a “tremendous degree” of skepticism over the industry’s long-term prospects, however, particularly amid persistent pressure to massively reduce fossil fuel use. To be sure, the burning of fossil fuels such as oil and gas is the chief driver of the climate emergency. Climate scientists have repeatedly stressed that the best weapon to tackle rising global temperatures is to cut greenhouse gas emissions as quickly as possible. The world’s largest oil and gas companies have all sought to strengthen their climate targets in recent years, but so far none have given investors confidence their business model is fully aligned to Paris Agreement targets. The aspirational goal of the landmark Paris accord is to pursue efforts to limit global heating to 1.5 degrees Celsius above pre-industrial levels. To have any chance of achieving this objective, the world needs to almost halve greenhouse gas emissions by 2030 and reach net-zero emissions by 2050. TotalEnergies has outlined plans to become a net-zero carbon emissions company by 2050. However, Climate Action 100+, the influential investor group, has found the firm’s targets only partially align with the Paris Agreement.
Read Full Thread
Follow
Reply
18/11/2021
15:46		adrian j boris: Business Total Energies chairman, Stanislas Mittelman, resignation costs investors N8.14bn Published 13 mins ago on November 18, 2021 By Olalekan Fakoyejo Investors reacted negatively with the change in management of Total Energies Marketing, as the oil and gas company’s market capitalisation crashed by 9.96 percent on Tuesday. The Nigerian subsidiary had disclosed on Wednesday that its chairman, Stanislas Mittelman, had resigned from his position, and also quit his role in the board of TotalEnergies SE. Mittelman resigned with immediate effect, giving way to Rufa’i Sirajo, who will hold the position as Acting Chairman until a new chair is appointed by the Board of Directors in the next meeting. “We write to formally notify the investing public and the Nigerian Exchange Limited that Mr. Stanislas Mittelman has resigned from the Board of TotalEnergies SE with immediate effect, and so he ceases to be the Chairman of the Board of TotalEnergies Marketing Nigeria Plc. “Engr. Rufa’i Sirajo will assume the position of Acting Chairman pending the next meeting of the Board of Directors when a new Chairman will be appointed.” Ripples Nigeria analysis showed that a day before the revelation was made, Total Energies Marketing share value depreciated by 9.96 percent, and traded flat on Wednesday. It declined to N216.8kobo per share, from N240.8kobo, which it has been selling for since October 29 – This caused investors to lose N8.14 billion out of their total investment which crashed from N81.75 billion to N73.60 billion. Join the conversation Ripples Nigeria
Read Full Thread
Follow
Reply
28/8/2021
16:57		waldron: Total Is Still Betting Big On Oil Despite Renewable Push By Leonard Hyman & William Tilles - Aug 28, 2021, 10:00 AM CDT Early this year French oil company, Total, changed its name to TotalEnergies. In the summer, TotalEnergies introduced itself to the world with a slick advertising campaign claiming boldly but not incorrectly that “Energy is life…Energy is reinventing itself… The hydrocarbon producing energy giant Total is transforming itself and has become TotalEnergies” including a stylish new logo. This event made us think both of Shakespeare (“What’s in a name?”) and greenwashing at the same time. Looking at the newly branded TotalEnergies (ticker symbol TTE) from the perspective of financial analysis provides some insight into how long this new corporate transformation might actually take. TTE is a large company with a capitalization, both debt and equity capital, of $185 billion. Consequently, it will take a lot of prospective investment in renewables to transform TTE away from being simply an oil and gas producer. In the past few years, TTE has spent approximately $15-20 billion per year in capital expenditures while claiming annual depreciation and amortization expenses of roughly the same amounts. In other words, TTE has been spending enough money to simply maintain its reserve position, replacing a constantly diminishing reserve base with more, newly discovered reserves. Looking forward the company still projects capital spending of maybe $15 billion per year of which perhaps $3 billion will now be dedicated to investments in renewables and other generation projects. (In comparison, Enel, the Italian utility, with a smaller capital base of about $120 billion, plans to spend $8 billion per year on renewables.) If TTE’s management follows through and only spends enough on new reserves and plan to offset the declining value of old reserves and plants (wells do go dry after a while), there’s not much likelihood that in five years TTE’s existing business will be much larger than today. Maybe somewhat different in its business mix but not substantially larger. (That investment, of course, could be more or less profitable depending on oil prices and product mix.) So unless the management changes directions again the growth story here has to come from non-oil and gas investments, over the long term. However, these new, greener businesses will only add about 2% a year to the investment base. ($3 billion a year of incremental investment doesn’t rapidly move the needle on a $185 billion corporate behemoth.) Management will argue that it can amplify the contributions of the new businesses by selling shares to the public or others once in operation. That is, they may choose to capitalize the new, “green” expected income streams and collect cash upfront as soon as possible. That, of course, brings profits upfront but makes the long term less attractive. Our best guess is that TTE receives no more than 10-20% of its net income from these new businesses within five years unless it sharply ramps up proposed spending for new projects, substantially lowers spending on oil and gas, or maybe both. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. In sum, we are not sure what Shakespeare would have said about the name change, but spending a substantial $3 billion per year does not look like mere greenwashing either. The problem for today’s energy investors is whether TTE’s new policies actually will make much of a difference. An investor worried about the decline of oil and gas will not buy TTE stock, despite the substantial and growing green energy investments because the latter do not amount to the proverbial hill of beans in terms of the overall TTE business. The investor looking for a play on oil and gas will certainly not buy TTE for its still modest renewables operation. Some companies are contemplating hiving off oil, gas, and coal operations, selling them to other companies or giving them to shareholders in order to reduce the corporate carbon footprint. That does not reduce greenhouse gas output but instead simply hands off the problem assets to a frequently less scrupulous owner. But a full corporate separation or spinoff between legacy oil and gas versus green investments would allow management to focus on very different lines of business and may reduce pressure from increasingly vocal shareholder activists who are now pressuring large pension funds and other major investors. We doubt TTE plans to spin off its oil and gas business although maybe renewables will become valuable enough to monetize at some point in the future. So if they remain fairly insignificant from an overall corporate perspective for the foreseeable future what is the purpose of these new ventures? TTE’s management, we believe, would argue that its new corporate direction helps to reduce greenhouse gas emissions. This is literally true although another firm, perhaps one more specifically devoted to these new ventures, would probably have made many of those same investments. As a result, TTE’s involvement here will likely make little difference incrementally to the overall emissions picture. And there is no shortage of investors seeking to put money into renewables. Some people, in fact, have even argued that renewables will become economically even less attractive because of all the relatively recent big oil company money now quickly entering the field to appease investors. TTE might say that renewable investments are part of its strategy to reach zero emissions by 2050. But the real reductions that TTE talks about, from its oil and gas operations do not require specific investment in new energy production by TTE, either. TTE could also argue that renewables will provide a decent and steady return, so why not invest? That’s an okay strategy, better than making bad investments. In the end, we get the feeling that many oil company managers want to give the impression that they are trying to help solve one of the great pollution problems of our era regardless of their initial culpability. Nor do they want to look and sound like troglodytes, either. But at the same time, they don’t appear to want to do anything that requires tough decisions about what remains their principal business, oil, and gas. By Leonard S. Hyman and William I. Tilles More Top Reads From Oilprice.com:
Read Full Thread
Follow
Reply
ADVFN Advertorial
Your Recent History
LSE
TTE
Totalenerg..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220703 14:44:28