TotalEnergies increases shareholder distribution guidance

Patrick Pouyanne, Chairman and CEO, and the members of the Executive Committee will present TotalEnergies’ Strategy & Outlook in New York today, the company announced. “TotalEnergies reaffirms the relevance of its balanced multi-energy strategy considering the developments in the oil, gas and electricity markets. Anchored on two pillars, Oil & Gas, notably LNG, and Integrated Power, the energy at the heart of the energy transition, the company is in a very favorable position to take advantage of changing energy prices… While drastically lowering the emissions from its operations, TotalEnergies plans to grow Oil & Gas production by 2-3% per year over the next five years, predominantly from LNG, thanks to its rich low cost, low emission upstream portfolio. The company will notably develop a top-tier pipeline of LNG projects (Qatar North Field Expansion, Papua LNG, ECA LNG and Rio Grande in US, Mozambique LNG) while leveraging its competitive advantage with leading positions in Europe regasification and in US exports. TotalEnergies will also concentrate efforts to develop its portfolio of high-return oil projects (Brazil, Gulf of Mexico, Iraq, Uganda) recently enriched with exploration successes in Suriname and Namibia. The Oil & Gas business is expected to generate more than $3B of additional underlying cash flow in 2028 compared to 2023 at constant prices… TotalEnergies expects to distribute about 44% of its CFFO in 2023 and increases shareholder distribution guidance to more than 40% of CFFO beyond 2023. Given the strong fundamentals of the company, the clear and disciplined investment policy, and the solid potential for cash generation growth in the coming years, the Board of directors has taken the following decisions: In 2023, allocate $1.5B of the Canadian assets’ divestment proceeds to share buybacks, to reach $9B. The company expects to return about 44% of CFFO to shareholders in 2023. Increase the shareholder distribution guidance to more than 40% of CFFO through the cycles keeping net investments between $16-18B per year over 2024-28 to implement the transition of the company,” the company stated.