TotalEnergies Targets 4% Growth, $7.5B Savings Plan, and 40% Payout Policy

TotalEnergies (TTE) has confirmed its long-term growth strategy, targeting ~4% annual energy production growth through 2030, a $7.5 billion savings program over 2026–2030, and sustained shareholder returns above 40% of cash flow.

At its 2025 Strategy and Outlook presentation in New York, TotalEnergies unveiled plans to grow oil, gas, and electricity output while implementing $7.5 billion in cost reductions and maintaining industry-leading shareholder payouts.

TotalEnergies will pursue balanced growth anchored in LNG and integrated power, aiming to cut operational emissions by 50% and methane emissions by 80% by 2030. Oil and gas production is set to grow 3% annually between 2024 and 2030, fueled by new projects in the U.S., Brazil, Iraq, Uganda, Qatar, and Malaysia. LNG cash flow is projected to grow more than 70% by 2030, supported by large-scale projects such as Rio Grande LNG in the U.S. and Qatar’s NFE/NFS expansions.

The company expects electricity output to expand 20% annually to reach 100–120 TWh by 2030, with 70% from renewables and 30% from flexible gas. Investments will focus on deregulated markets in the U.S., Europe, and Brazil. Its Integrated Power division is forecast to be free cash flow positive by 2028 and generate a 12% ROACE by 2030.

Capex guidance was trimmed to $16 billion in 2026 and $15–17 billion annually from 2027–2030, with low-carbon investments maintained at ~$4 billion per year. This discipline underpins free cash flow growth of ~$10 billion by 2030 compared to 2024 at constant prices.

The Board reaffirmed its priority on dividends and confirmed more than 40% payout through cycles. For 2025, $7.5 billion in buybacks are authorized, with 2026 buybacks guided at $0.75–1.5 billion per quarter, depending on Brent pricing.

This strategy positions TotalEnergies as a leading diversified major balancing fossil fuel growth with renewable investments, distinguishing itself from peers with its integrated LNG-to-power model and resilient payout policy.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

U.S. Government Eyes 10% Share in Lithium Giant Iraq To Restart Kurdistan Oil Exports on September 27 Arbitrage Window Closing for American Crude in Asia

Read this article on OilPrice.com

View Comments