TotalEnergies to Cut Costs While Boosting Oil, Gas Output Through 2030 — Update

TotalEnergies' updated strategy doesn't change its fundamental investment case, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. The updated plans look broadly in line with what the French energy major has presented in the past, they add. It appears to be preparing for a weakening oil price environment and is looking to preserve cash by cuttings costs, they say. However, the plans outlined on Monday are modest and mean it may find it challenging to keep gearing below 20% unless commodity prices continue to hold closer to current levels, they write. Shares trade down 1.9% at 53.23 euros. (adam.whittaker@wsj.com)

By Steve Goldstein

French oil company is still targeting oil and gas production growth of 3%

TotalEnergies said Monday it was reducing capital expenditures.

French integrated oil company TotalEnergies announced on Monday it was reducing capital expenditures by $1 billion per year, the latest in a series of cutbacks announced by the industry.

As part of a New York investor day, TotalEnergies said it's targeting $16 billion in capital expenditures next year and $15 billion to $17 billion through 2030. In the case of "very low prices," capex could fall to as low as $14 billion a year.

"The Company will remain focused on high margin Upstream projects and stay selective on low-carbon Capex, which will represent $4 billion per year, including $3 to 4 billion per year for the Integrated Power business," the company said in a statement. It's still targeting oil and gas production growth of 3%.

TotalEnergies is not alone in its parsimonious attitude. The Crude Chronicles blog calculated earlier this month that oil and gas expenditures as a percentage of gross domestic product are well below the average since the 1960s.

TotalEnergies' stock (TTE) (FR:TTE) drifted lower on Monday, but its U.S.-listed shares are up 16% in 2025. The Energy Select Sector SPDR exchange-traded fund XLE is up 7% this year.

Brent crude (BRN00), the international benchmark, has fallen 9% this year.

-Steve Goldstein

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By Adam Whittaker

TotalEnergies will grow oil and gas production through 2030 while initiating a $7.5 billion cash savings program, it said a few days after cutting its quarterly buyback guidance to better reflect weak oil prices and challenging market conditions.

At its 2025 investor day in New York, the French energy major said it will grow oil and gas production by 3% a year at a time when integrated oil companies are refocusing their attention toward hydrocarbons.

In move expected by analysts, TotalEnergies also cut its capital expenditure guidance, trimming it by $1 billion a year to around $16 billion in 2026, and to between $15 billion to $17 billion a year from 2027 through 2030.

Its investments will be focused on high-margin upstream projects and it will take a selective approach to low-carbon projects. Low carbon expenditure will be around $4 billion a year, it said.

For TotalEnergies, the investor update follows second-quarter earnings in late July where it kept its $2 billion quarterly buyback despite debt jumping and earnings falling, prompting investors to question the strategy of using its balance sheet to maintain returns.

Write to Adam Whittaker at adam.whittaker@wsj.com

Aiming for 4% annual energy production growth through 2030, the strategy focuses on disciplined investment, robust shareholder returns, and emissions reduction. LNG and Integrated Power are key growth drivers, with free cash flow and dividends set to rise.

Original document: TotalEnergies SE [TTE] Slides Release — Sep. 29 2025

Targets 4% annual energy growth and $7.5 billion in savings through 2030, with a focus on LNG, renewables, and disciplined Capex. Shareholder returns exceed 40% payout, with robust buyback plans and free cash flow growth projected by 2030.

Original document: TotalEnergies SE [TTE] Press release — Sep. 29 2025

0812 GMT - European oil companies fall in morning trade as fears of a supply glut grow. This is driven by reports which indicate OPEC+ might increase production once again. The group has been increasing production in recent months and Reuters reports that it will likely agree to increase oil production by at least 137,000 barrels a day at its meeting next Sunday. Adding to supply concerns is the re-emergence of Iraqi oil produced in the Kurdistan region after a more than two-year stoppage. Brent crude falls 1% to $68.54 a barrel, while WTI is down 1.1% to $64.99 a barrel. BP, TotalEnergies, Galp Energia and Eni fall around 0.6%, Repsol drops 0.4% while Shell slides 0.16%.(adam.whittaker@wsj.com)

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