TotalEnergies Strategy Update: Extends Multi-Energy Strategy; Retains Highest Payout Target

As its annual strategic update, Total Energies maintained its prior strategy of growing total energy production through the two pillars of oil and gas and integrated power. Oil and gas production is expected to grow 2%-3% per year on average through 2028, driven by LNG volumes, leading to over $3 billion in cash flow growth. In integrated power, Total plans to deliver $2 billion in cash flow growth through 2028, at which point it will be free cash flow positive and deliver returns on capital employed of 12%. Combined with a $1 billion increase from downstream assets, it will add $6 billion in total cash flow from 2023 levels by 2028, assuming a flat nominal price deck. It maintained its capital spending guidance of $16 billion-$18 billion per year, while retaining the flexibility to further reduce it by $2 billion if conditions warrant.