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TotalEnergies Expands U.S. Offshore Footprint by Acquiring New Stake
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Key Takeaways
TotalEnergies acquired a 25% stake in 40 U.S. offshore leases from Chevron to expand exploration acreage.
The deal adds East Breaks, Mississippi Canyon, and Walker Ridge blocks to TTE's U.S. offshore portfolio.
It is in sync with TTE's strategy of filling Exploration portfolio with low-cost and low-emission options.
TotalEnergies SE (TTE - Free Report) announced the acquisition of a 25% working interest in a portfolio of exploration leases Offshore U.S. from Chevron Corporation (CVX - Free Report) .
This deal would increase TotalEnergies' offshore U.S. exploration acreage, combining a variety of geological features and prospectivity, and is consistent with the ongoing objective of expanding its exploration portfolio with low-cost and low-emission choices.
Additionally, TotalEnergies is increasing its presence in Southeast Asia by acquiring interests in blocks offshore Malaysia and Indonesia from PETRONAS, with a focus on gas and liquefied natural gas (“LNG”).
TotalEnergies is deploying its integrated energy model across the United States, where it has been active since 1957. Since 2022, TotalEnergies has invested nearly $11 billion in the United States to accelerate development in oil, LNG and low-carbon electricity.
Key Details of TTE’s Deal
The 40 federal leases on the Outer Continental Shelf, which cover an area of about 386 square miles (1,000 square kilometers) and are situated between109 and 205 miles (175 and 330 km) offshore, consist of 18 blocks in the East Breaks area, nine in the Mississippi Canyon area, and 13 in the Walker Ridge area.
In addition to the current partnerships in Ballymore (40% TotalEnergies), which achieved first production this year, Anchor (37.14%), where production began last year, and the Jack (25%) and Tahiti (17%) producing assets, the transaction gives access to multiple offshore exploration plays and prospects, bolstering the successful U.S. collaboration with Chevron.
TotalEnergies expects to mature exploration drill decisions on these blocks utilizing advanced 3D imaging technology to unlock large remaining U.S. Offshore production potential.
Other Companies Focus on Offshore Exploration Opportunities
The offshore assets of oil and gas companies provide several benefits, primarily through access to vast and untapped resources under the ocean floor. The offshore fields play a crucial role in meeting the growing global demand for energy and ensuring a steady, reliable supply of oil and gas for both domestic and international markets. Along with TTE and Chevron, some companies like Petrobras (PBR - Free Report) and ExxonMobil Corporation (XOM - Free Report) are also focused on offshore exploration opportunities.
Chevron is actively pursuing offshore exploration, particularly in the Gulf of Mexico and the Eastern Mediterranean. Its renewed interest effectively doubles the area available for exploration, expanding the offshore blocks to a vast 47,000 square kilometers (18,146 square miles). This not only increases the possibility of finding commercially viable energy reserves but also opens up opportunities for both CVX and Greece’s energy future.
CVX’s long-term (three to five years) earnings growth rate is 8.29%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year decrease of 6.2%.
Petrobras is actively evaluating opportunities in India’s upcoming oil block auction, signaling a strategic interest in expanding its offshore exploration portfolio beyond South America. The auction, set to take place later this year, features deep and ultra-deepwater blocks, which align with Petrobras’ operational strengths and technical expertise. Petrobras confirmed that it has already acquired seismic and geological data for blocks being offered in India’s hydrocarbon licensing round.
The Zacks Consensus Estimate for PBR’s 2025 sales indicates a year-over-year decrease of 8.9%. It delivered an average earnings surprise of 3.3% in the last four quarters.
ExxonMobil is actively involved in offshore oil and gas exploration, with a particular focus on deepwater projects globally. The company has significant acreage positions and ongoing exploration activities in areas like Guyana, Brazil and the Eastern Mediterranean. Additionally, ExxonMobil is pursuing exploration opportunities offshore India.
XOM’s long-term earnings growth rate is 8.19%. It delivered an average earnings surprise of 3.6% in the last four quarters.
TTE Stock’s Price Performance
In the past six months, shares of TotalEnergies have risen 18.3% compared with the industry’s 17.2% growth.
Image: Shutterstock
TotalEnergies Expands U.S. Offshore Footprint by Acquiring New Stake
Key Takeaways
TotalEnergies SE (TTE - Free Report) announced the acquisition of a 25% working interest in a portfolio of exploration leases Offshore U.S. from Chevron Corporation (CVX - Free Report) .
This deal would increase TotalEnergies' offshore U.S. exploration acreage, combining a variety of geological features and prospectivity, and is consistent with the ongoing objective of expanding its exploration portfolio with low-cost and low-emission choices.
Additionally, TotalEnergies is increasing its presence in Southeast Asia by acquiring interests in blocks offshore Malaysia and Indonesia from PETRONAS, with a focus on gas and liquefied natural gas (“LNG”).
TotalEnergies is deploying its integrated energy model across the United States, where it has been active since 1957. Since 2022, TotalEnergies has invested nearly $11 billion in the United States to accelerate development in oil, LNG and low-carbon electricity.
Key Details of TTE’s Deal
The 40 federal leases on the Outer Continental Shelf, which cover an area of about 386 square miles (1,000 square kilometers) and are situated between109 and 205 miles (175 and 330 km) offshore, consist of 18 blocks in the East Breaks area, nine in the Mississippi Canyon area, and 13 in the Walker Ridge area.
In addition to the current partnerships in Ballymore (40% TotalEnergies), which achieved first production this year, Anchor (37.14%), where production began last year, and the Jack (25%) and Tahiti (17%) producing assets, the transaction gives access to multiple offshore exploration plays and prospects, bolstering the successful U.S. collaboration with Chevron.
TotalEnergies expects to mature exploration drill decisions on these blocks utilizing advanced 3D imaging technology to unlock large remaining U.S. Offshore production potential.
Other Companies Focus on Offshore Exploration Opportunities
The offshore assets of oil and gas companies provide several benefits, primarily through access to vast and untapped resources under the ocean floor. The offshore fields play a crucial role in meeting the growing global demand for energy and ensuring a steady, reliable supply of oil and gas for both domestic and international markets. Along with TTE and Chevron, some companies like Petrobras (PBR - Free Report) and ExxonMobil Corporation (XOM - Free Report) are also focused on offshore exploration opportunities.
Chevron is actively pursuing offshore exploration, particularly in the Gulf of Mexico and the Eastern Mediterranean. Its renewed interest effectively doubles the area available for exploration, expanding the offshore blocks to a vast 47,000 square kilometers (18,146 square miles). This not only increases the possibility of finding commercially viable energy reserves but also opens up opportunities for both CVX and Greece’s energy future.
CVX’s long-term (three to five years) earnings growth rate is 8.29%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year decrease of 6.2%.
Petrobras is actively evaluating opportunities in India’s upcoming oil block auction, signaling a strategic interest in expanding its offshore exploration portfolio beyond South America. The auction, set to take place later this year, features deep and ultra-deepwater blocks, which align with Petrobras’ operational strengths and technical expertise. Petrobras confirmed that it has already acquired seismic and geological data for blocks being offered in India’s hydrocarbon licensing round.
The Zacks Consensus Estimate for PBR’s 2025 sales indicates a year-over-year decrease of 8.9%. It delivered an average earnings surprise of 3.3% in the last four quarters.
ExxonMobil is actively involved in offshore oil and gas exploration, with a particular focus on deepwater projects globally. The company has significant acreage positions and ongoing exploration activities in areas like Guyana, Brazil and the Eastern Mediterranean. Additionally, ExxonMobil is pursuing exploration opportunities offshore India.
XOM’s long-term earnings growth rate is 8.19%. It delivered an average earnings surprise of 3.6% in the last four quarters.
TTE Stock’s Price Performance
In the past six months, shares of TotalEnergies have risen 18.3% compared with the industry’s 17.2% growth.
Image Source: Zacks Investment Research
TTE’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.