TotalEnergies launches plan to cut capex while boosting production

[Exterior view of the headquarters of the oil company TotalEnergies, formerly known as Total]
HJBC/iStock Editorial via Getty Images

TotalEnergies (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) -1.5% in Monday's trading after saying it plans to cut annual capital spending by $1 billion [https://seekingalpha.com/pr/20247238-totalenergies-se-2025-strategy-and-outlook-presentation] next year as part of cost-savings program which is forecast to deliver $7.5 billion by the end of the decade, as the company tries to ease investor concerns over slow rising debt at a meeting with investors in New York.

In a widely expected move, TotalEnergies (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) also lowered its capital expenditure guidance to between $15 billion to $17 billion annually during 2027-30, after saying last week [https://seekingalpha.com/news/4498653-totalenergies-to-consider-smaller-stock-buybacks-in-2026] it may reduce its quarterly stock buybacks to reflect weaker oil prices and challenging market conditions.

"We can do the same growth but with less capex and opex," CEO Patrick Pouyanne told investors, saying the company expects to raise oil and gas production by 3% annually and total energy production including electricity by 4% annually.

The company said it expects free cash flow to grow by $10 billion by 2030 compared to 2024, at comparable price levels, and committed to returning 40% of annual cash flow to shareholders regardless of energy prices.

TotalEnergies' (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) updated strategy does not change its fundamental investment case, RBC analysts Biraj Borkhataria and Adnan Dhanani wrote, noting the updated plans look broadly in line with what the company has presented previously and appear to be preparing for a weakening oil price environment.

The company said earlier Monday [https://seekingalpha.com/news/4499722-totalenergies-to-sell-50-stake-in-north-american-solar-portfolio] that it agreed to sell a stake in its U.S. solar portfolio for $950 million and last week sold an oilfield stake to Shell for $510 million - steps described by the RBC analysts as modest [https://www.reuters.com/business/energy/totalenergies-sell-50-solar-portfolio-north-america-2025-09-29/], adding that the company may find it a challenge to keep gearing below 20% unless commodity prices stay near current levels.

TotalEnergies' (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) shares have been under pressure over the past 12 months, dropping 9% as investors priced in the potential for rising debt and slower returns.

Separately, TotalEnergies (TTE [https://seekingalpha.com/symbol/TTE]) and its partners are poised to restart construction [https://www.bloomberg.com/news/articles/2025-09-29/totalenergies-ceo-says-mozambique-lng-project-ready-to-restart] of the giant Mozambique liquefied natural gas project, as the security situation in the region has improved, CEO Patrick Pouyanne told investors.

MORE ON TOTALENERGIES

* TotalEnergies Analyst/Investor Day - Slideshow [https://seekingalpha.com/article/4826631-totalenergies-se-tte-analyst-investor-day-slideshow]
* TotalEnergies Presents At Barclays 39th Annual CEO Energy-Power Conference 2025 (Transcript) [https://seekingalpha.com/article/4819576-totalenergies-se-tte-presents-at-barclays-39th-annual-ceo-energy-power-conference-2025]
* TotalEnergies: A Company In Transition Towards A Green Agenda [https://seekingalpha.com/article/4816438-totalenergies-a-company-in-transition-towards-a-green-agenda]