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1. Company Snapshot

1.a. Company Description

TotalEnergies SE operates as an integrated oil and gas company worldwide.The company operates through four segments: Integrated Gas, Renewables & Power; Exploration & Production; Refining & Chemicals; and Marketing & Services.The Integrated Gas, Renewables & Power segment engages in the liquefied natural gas production, shipping, trading, and regasification activities; trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas, and electricity; transportation of natural gas; electricity production from natural gas, wind, solar, hydroelectric, and biogas sources; energy storage activities; and development and operation of biomethane production units, as well as provides energy efficiency services.


The Exploration & Production segment is involved in the oil and natural gas exploration and production activities.The Refining & Chemicals segment engages in refining petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins, as well as biomass conversion and elastomer processing.This segment is also involved in trading and shipping crude oil and petroleum products.


The Marketing & Services segment produces and sells lubricants; supplies and markets petroleum products, including bulk fuel, aviation and marine fuel, special fluids, compressed natural gas, LPG, and bitumen; and provides fuel payment solutions.It operates approximately 16,000 service stations and 25,000 EV charge points.As of December 31, 2021, the company had 12,062 Mboe of combined proved reserves of oil and gas.


TotalEnergies SE has strategic partnerships with PureCycle Technologies, Plastic Energy, Freepoint Eco-Systems, and Plastic Omnium for various development projects.The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021.TotalEnergies SE was incorporated in 1924 and is headquartered in Courbevoie, France.

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1.b. Last Insights on TTE

Negative drivers behind TotalEnergies SE's recent performance include the company's decision to sell stakes in its European biogas units, which may indicate a shift in its strategic focus. Additionally, the company's plans to streamline its petrochemical operations at the Antwerp platform may lead to job losses and disruption to local communities. Furthermore, TotalEnergies' high capital expenditures and investments in new projects, such as the Northern Lights project and the Grandpuits refinery conversion, may weigh on its financial performance in the short term.

1.c. Company Highlights

2. TotalEnergies' Resilient Growth Model Shines in Q3 2025

TotalEnergies reported a robust financial performance in Q3 2025, with cash flow from operations reaching $6.6 billion, up 7% quarter-over-quarter, and adjusted net income of $5.1 billion, up 11% quarter-over-quarter. The company's earnings per share (EPS) came in at $1.52, slightly below analyst estimates of $1.54. Despite a $10 per barrel year-on-year drop in oil prices, the company's hydrocarbon production growth drove a 4% increase in cash flow, with new project barrels coming online, such as Mero Fields in Brazil and deepwater projects in the U.S. offshore, contributing 170,000 barrels per day during the first nine months of 2025.

Publication Date: Nov -01

📋 Highlights
  • Cash Flow Resilience:: Despite a $10/barrel oil price drop, cash flow increased by 4% YoY to $6.6 billion in Q3 2025.
  • Shareholder Returns:: TotalEnergies returned $4.5 billion to shareholders via dividends and buybacks in Q3, with a $1.5 billion buyback authorized for Q4 2025.
  • Production Growth Drivers:: New projects like Mero Fields and U.S. deepwater assets added 170,000 barrels/day and $400 million in extra cash flow YoY in 2025.
  • Upstream Margin Improvement:: Iraqi barrels boosted upstream margins by $30–40/barrel, while Q3 adjusted net income rose 11% QoQ to $5.1 billion.
  • 5-Year Free Cash Flow Target:: The company aims to generate $10 billion in additional free cash flow by 2028, driven by 2026 production growth from Brazilian projects.

Segment Performance

The Exploration and Production segment generated an adjusted net income of $2.2 billion, up 10% quarter-over-quarter, driven by the company's growing production. Integrated LNGs reported cash flow of $1.1 billion, in line with the second quarter. Downstream adjusted net operating income was $1.1 billion, up more than 30% quarter-over-quarter, driven by better margins.

Dividend and Share Buyback

The Board of Directors decided to increase the first interim dividend by close to 8% in euros and more than 10% in dollars compared to 2024. A share buyback of up to $1.5 billion is authorized for the fourth quarter of 2025, demonstrating the company's commitment to returning value to shareholders.

Outlook and Valuation

TotalEnergies expects to maintain a strong momentum for the fourth quarter, with upstream production anticipated to grow more than 4% year-on-year. The company's valuation metrics, including a P/E Ratio of 11.14 and a Dividend Yield of 6.08%, suggest a reasonable valuation. With a ROE of 10.92% and a ROIC of 5.55%, the company is generating returns above its cost of capital.

Growth Prospects

The company expects growth to continue in 2026, with production anticipated to grow by over 3%. The company's focus on digitalization, including partnerships with Emerson and Cognite to deploy AI, is expected to drive cost savings and improve operational efficiency. As Patrick Pouyanné, CEO of TotalEnergies, noted, the company is committed to investing in petrochemicals where it has a competitive advantage, such as in the US and Middle East.

Investment Plans

TotalEnergies is investing $350 million in AI over the next few years, with a focus on digital transformation and cost savings. The company aims to grow its presence in India to tap into digital talent. With a net acquisition expected to be $1.5 billion and an annual budget of $17 billion to $17.5 billion, the company is well-positioned to drive growth.

3. NewsRoom

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Is the Subsea 7-Saipem Combination Too Powerful for Brazil?

Dec -04

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RWE and TotalEnergies to collaborate with ARC marine on OranjeWind wind farm

Dec -04

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TotalEnergies and partners increase equity in Mozambique LNG project

Dec -03

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TotalEnergies Clarifies Financing Shift for Mozambique LNG Project

Dec -03

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Osaka Gas (TSE:9532): Valuation Check After Strategic Stake in Live Oak E-Methane Project

Dec -03

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Is TotalEnergies (ENXTPA:TTE) Still Undervalued After Its Recent Steady Share Price Climb?

Dec -03

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Sector Update: Energy Stocks Decline Tuesday Afternoon

Dec -02

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Chevron & TotalEnergies Deepen Offshore Exploration Ties in Nigeria

Dec -02

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.26%)

6. Segments

Refining & Chemicals

Expected Growth: 3.5%

Growing demand for petrochemicals and fertilizers, driven by population growth and increasing food demand, will drive refining and chemicals operations' segment growth at TotalEnergies SE

Marketing & Services

Expected Growth: 4.1%

Growing demand for energy products and services, increasing adoption of digitalization and e-mobility solutions, and expanding presence in emerging markets drive the growth of TotalEnergies' Marketing & Services.

Exploration & Production

Expected Growth: 5.3%

TotalEnergies SE's Exploration & Production segment is driven by global energy demand, growing LNG markets, and strategic acquisitions, enabling the company to expand its reserve base and increase production capacity.

Integrated LNG

Expected Growth: 7.4%

Growing global demand for cleaner energy sources drives Integrated LNG segment growth, supported by TotalEnergies SE’s strategic expansion into liquefied natural gas production and transportation, ensuring a stable global energy supply.

Integrated Power

Expected Growth: 4.2%

TotalEnergies SE's Integrated Power segment is expected to grow driven by increasing demand for renewable energy sources, declining costs of generation, and supportive government policies.

Corporate

Expected Growth: 5.5%

TotalEnergies SE's corporate segment, including head office and centralized functions, will benefit from increasing investment in digitalization, cost optimization and sustainable energy initiatives, driving growth

Intercompany

Expected Growth: 4.3%

TotalEnergies SE's intercompany segment growth is driven by increasing energy demand, strategic partnerships, and optimized resource allocation across entities, positioning the company for long-term growth.

7. Detailed Products

Refined Products

TotalEnergies SE refines and markets petroleum products, including gasoline, diesel, jet fuel, and lubricants.

Liquefied Petroleum Gas (LPG)

TotalEnergies SE produces and markets LPG, a clean-burning fuel used for cooking, heating, and powering vehicles.

Natural Gas

TotalEnergies SE explores, produces, and markets natural gas, a clean-burning fuel used for power generation, industrial processes, and heating.

Renewable Energy

TotalEnergies SE develops and operates renewable energy sources, including solar, wind, and hydroelectric power.

Petrochemicals

TotalEnergies SE produces and markets petrochemicals, including plastics, fertilizers, and other chemical products.

Lubricants

TotalEnergies SE produces and markets lubricants, including motor oils, transmission fluids, and industrial lubricants.

Aviation Fuels

TotalEnergies SE produces and markets aviation fuels, including jet fuel and avgas.

Marine Fuels

TotalEnergies SE produces and markets marine fuels, including bunker fuel and marine diesel oil.

Bitumen

TotalEnergies SE produces and markets bitumen, a binding agent used in road construction and maintenance.

8. TotalEnergies SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TotalEnergies SE is moderate due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power of individual customers in the energy market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the energy market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the energy market, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large players in the energy market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.36%
Debt Cost 7.28%
Equity Weight 73.64%
Equity Cost 7.78%
WACC 7.64%
Leverage 35.80%

11. Quality Control: TotalEnergies SE passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 6.7/10

Value: 8.7

Growth: 3.3

Quality: 4.6

Yield: 8.1

Momentum: 9.0

Volatility: 6.7

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Quality: 2.5

Yield: 8.8

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Eni

A-Score: 6.4/10

Value: 7.5

Growth: 4.8

Quality: 3.2

Yield: 8.8

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TotalEnergies

A-Score: 6.1/10

Value: 7.3

Growth: 4.7

Quality: 5.1

Yield: 8.8

Momentum: 2.0

Volatility: 9.0

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A-Score: 6.0/10

Value: 6.9

Growth: 4.1

Quality: 4.5

Yield: 6.2

Momentum: 5.5

Volatility: 9.0

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BP

A-Score: 5.7/10

Value: 6.2

Growth: 2.9

Quality: 2.7

Yield: 8.8

Momentum: 6.0

Volatility: 7.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

56.4$

Current Price

56.4$

Potential

-0.00%

Expected Cash-Flows