TotalEnergies SE (TTE) (FR:TTE) gained 2.4% in yesterday’s regular trading session. The positive market reaction was driven by TTE’s announcement of an increased oil and gas production target and a reaffirmed commitment to enhancing shareholder returns.
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TTE is an energy company that produces and supplies oil, natural gas, and renewable energy solutions.
TTE Raised Oil and Gas Production Target
During its investor day presentation on Wednesday, TotalEnergies revised its oil and gas production target to a 3% annual increase until 2030, compared to its previous target of 2-3% growth until 2028. Additionally, during the same period, TTE aims for a 4% annual growth in overall energy output, including electricity, bioenergy, and hydrocarbons.
Importantly, the company expects production growth to be driven by its liquefied natural gas (LNG) output and a focus on low-cost, low-emission upstream projects.
This aligns with the increasing demand for LNG in Asia and Europe, particularly as countries seek alternatives to Russian gas supplies disrupted by the Ukraine war. Also, TTE has recently launched six major projects, including a $10 billion investment in an offshore field in Suriname, to support this growth trajectory.
TotalEnergies Remains Committed to Shareholder Returns
In addition to the production outlook, TotalEnergies disclosed a 5% increase in dividends for 2025. The company is also committed to spending $8 billion on share buybacks in 2024. Moreover, TTE plans to continue its share buyback program, investing $2 billion each quarter through 2025, assuming favorable market conditions.
Interestingly, TotalEnergies’ strong financial position allows it to maintain shareholder returns. The company’s low debt-to-equity ratio and high credit rating make these share buybacks sustainable even in the event of lower oil prices.
Is TTE a Good Stock to Buy?
Turning to Wall Street, TTE stock has a Moderate Buy consensus rating based on three Buys and three Holds assigned in the last three months. At $80.67, the average TotalEnergies price target implies 19.9% upside potential. Shares of the company have declined 3.84% in the past three months.
