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TotalEnergies (TTE) Completes Sale of Canadian Assets to Suncor
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TotalEnergies SE (TTE - Free Report) announced that it has completed the sale of its shares of TotalEnergies EP Canada Ltd. entirely to Suncor Energy (SU - Free Report) . The deal includes TTE's 31.23% stake in the Fort Hills oil sands mining project, which has given Suncor full ownership of the asset.
Effective Apr 1, 2023, the deal has a consideration of $1.1 billion (C$1.47 billion). At closing, TotalEnergies received a cash payment of about $1.3 billion (C$1.83 billion), including adjustments.
TTE already completed the sale of its 50% stake in Surmont and related midstream obligations to ConocoPhillips (COP - Free Report) on Oct 4, 2023. The company received a cash payment of roughly $2.75 billion (C$3.7 billion), with the possibility of additional contingent payments of up to $330 million (C$440 million).
TotalEnergies is quite active in making acquisitions and divestitures of assets to strengthen its portfolio. The disposal of its Canadian oil sands assets is in sync with its strategy. The company will focus on allocating more capital to Oil & Gas assets with low breakeven.
As a result, TTE made almost $4 billion from these sales in the fourth quarter of 2023. Of this amount (and as previously announced), $1.5 billion will be returned to shareholders in the form of buybacks in 2023, which will increase the value of TotalEnergies’ shareholders.
Focus on Emission Reduction
Cutting down emissions across industries is a primary concern for advanced nations across the globe. Nations are providing incentives to increase the usage of renewable sources of energy to produce electricity and reduce the usage of polluting sources like coal in electricity generation.
The scope in the renewable energy space is massive and the ongoing transition in the energy space is evident, with companies shutting down old coal units and focusing on renewable and other clean sources to generate electricity.
TotalEnergies plans to expand its power generation to more than 100 TWh by 2030, investing $4 billion per year and increasing cash flow from $2 billion in 2023 to more than $4 billion by 2028, becoming net cash-flow positive.
This multi-energy company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040. TTE is making strategic acquisitions to expand its renewable operations.
Along with TotalEnergies, other oil and gas companies like ExxonMobil Corporation (XOM - Free Report) , BP plc and Chevron Corporation are adopting measures to reduce emissions from operations.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to invest billions of dollars in emission-reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets.
XOM’s long-term (three- to five-year) earnings growth rate is 3%. It delivered an average earnings surprise of 0.6% in the last four quarters.
BP has established an ambitious energy transition strategy to take advantage of the growing demand for sustainable energy. The company plans to reduce emissions by 30-35% from its operations by 2030.
BP’s long-term earnings growth rate is 6.51%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.18 per share.
Chevron is making efforts to lower methane emissions. The company has adopted an upstream methane-intensity target of 2.0 kg CO2e/boe by 2028, which represents a 57% reduction from its 2016 baseline. It has reduced its methane intensity by more than 50% and is actively working to end routine flaring by 2030.
The company’s long-term earnings growth rate is 14.27%. The Zacks Consensus Estimate for 2023 earnings is pegged at $13.53 per share.
Price Performance
In the past three months, shares of TotalEnergies have risen 9.5% compared with the industry’s 3.7% growth.
Image: Bigstock
TotalEnergies (TTE) Completes Sale of Canadian Assets to Suncor
TotalEnergies SE (TTE - Free Report) announced that it has completed the sale of its shares of TotalEnergies EP Canada Ltd. entirely to Suncor Energy (SU - Free Report) . The deal includes TTE's 31.23% stake in the Fort Hills oil sands mining project, which has given Suncor full ownership of the asset.
Effective Apr 1, 2023, the deal has a consideration of $1.1 billion (C$1.47 billion). At closing, TotalEnergies received a cash payment of about $1.3 billion (C$1.83 billion), including adjustments.
TTE already completed the sale of its 50% stake in Surmont and related midstream obligations to ConocoPhillips (COP - Free Report) on Oct 4, 2023. The company received a cash payment of roughly $2.75 billion (C$3.7 billion), with the possibility of additional contingent payments of up to $330 million (C$440 million).
TotalEnergies is quite active in making acquisitions and divestitures of assets to strengthen its portfolio. The disposal of its Canadian oil sands assets is in sync with its strategy. The company will focus on allocating more capital to Oil & Gas assets with low breakeven.
As a result, TTE made almost $4 billion from these sales in the fourth quarter of 2023. Of this amount (and as previously announced), $1.5 billion will be returned to shareholders in the form of buybacks in 2023, which will increase the value of TotalEnergies’ shareholders.
Focus on Emission Reduction
Cutting down emissions across industries is a primary concern for advanced nations across the globe. Nations are providing incentives to increase the usage of renewable sources of energy to produce electricity and reduce the usage of polluting sources like coal in electricity generation.
The scope in the renewable energy space is massive and the ongoing transition in the energy space is evident, with companies shutting down old coal units and focusing on renewable and other clean sources to generate electricity.
TotalEnergies plans to expand its power generation to more than 100 TWh by 2030, investing $4 billion per year and increasing cash flow from $2 billion in 2023 to more than $4 billion by 2028, becoming net cash-flow positive.
This multi-energy company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040. TTE is making strategic acquisitions to expand its renewable operations.
Along with TotalEnergies, other oil and gas companies like ExxonMobil Corporation (XOM - Free Report) , BP plc and Chevron Corporation are adopting measures to reduce emissions from operations.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to invest billions of dollars in emission-reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets.
XOM’s long-term (three- to five-year) earnings growth rate is 3%. It delivered an average earnings surprise of 0.6% in the last four quarters.
BP has established an ambitious energy transition strategy to take advantage of the growing demand for sustainable energy. The company plans to reduce emissions by 30-35% from its operations by 2030.
BP’s long-term earnings growth rate is 6.51%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.18 per share.
Chevron is making efforts to lower methane emissions. The company has adopted an upstream methane-intensity target of 2.0 kg CO2e/boe by 2028, which represents a 57% reduction from its 2016 baseline. It has reduced its methane intensity by more than 50% and is actively working to end routine flaring by 2030.
The company’s long-term earnings growth rate is 14.27%. The Zacks Consensus Estimate for 2023 earnings is pegged at $13.53 per share.
Price Performance
In the past three months, shares of TotalEnergies have risen 9.5% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.