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TTE Q3 Earnings Miss Estimates, Middle East Crisis Impacts Production
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Key Takeaways
TTE's Q3 earnings of $4.03 per share miss estimates by 1.95%, despite rising 127.7% year over year.
TTE's revenues surge 37.2% to $66.82 billion, driven by strong refining margins and higher gas prices.
TTE's total production down year-over-year by 1.3% to 2,474 thousand barrels of oil equivalent.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2026 operating earnings of $4.03 (€3.50) per share, which lagged the Zacks Consensus Estimate of $4.11 by 1.95%. The bottom line improved 127.7% from the year-ago figure of $1.77 (€1.50).
Total Revenues
Total revenues were $66.82 billion, up 37.2% year over year, surpassing the Zacks Consensus Estimate of $53.72 billion by 24.39%. Strong refining margins and higher gas prices supported results.
TTE's Q3 Production Details
In the third quarter, hydrocarbon production averaged 2,474 thousand barrels of oil equivalent (kboe) per day, down 1.3% from 2,508 kboe in the year-ago quarter. The decrease primarily reflected disruptions caused by the Middle East conflict and the natural decline of producing fields.
Production benefited from project start-ups and ramp-ups in Brazil, the United States, Angola, Libya and Iraq, along with improved plant availability. Excluding the impact of the Middle East conflict, production increased more than 4% year over year.
Liquid production averaged 1,510 thousand barrels per day, down 2.8% year over year. Quarterly gas production was 5,209 million cubic feet per day, up 0.5% from the prior-year quarter.
TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise
The quarterly average Brent crude price increased 40.4% to $97 per barrel from $69.1 in the year-earlier period. The average realized liquid price was $87.1 per barrel, up 31% year over year.
Realized gas prices increased 27.3% to $7 per million British thermal units (Btu). Realized LNG prices rose 37.8% year over year to $12.28 per million Btu, benefiting from stronger global gas markets.
The European Refining Margin Marker increased to $33.2 per barrel from $8.4 a year ago. Elevated refining margins helped offset production-related headwinds.
TTE's Q3 Operational Highlights
Net power production reached 17.9 terawatt hours, up 42.1% year over year. Renewable sources contributed 9.6 terawatt hours, while gas-fired generation accounted for 8.3 terawatt hours.
Adjusted net operating income from business segments increased to $9.71 billion from $4.66 billion in the year-ago quarter. Adjusted EBITDA reached $17.81 billion, compared with $10.30 billion a year earlier.
Financial interest on debt was $821 million, up from $808 million in the prior-year quarter. TotalEnergies also benefited from higher refining throughput, which increased 5.2% year over year to 1,555 thousand barrels per day.
TotalEnergies' Segmental Performance
Refining & Chemicals generated external sales of $30.78 billion, compared with $21.21 billion a year ago. The segment’s operating income surged to $3.60 billion from $687 million, supported by exceptional refining margins. Marketing & Services recorded external sales of $26.69 billion, up from $20.14 billion. The segment’s operating income increased 22.9% to $467 million from $380 million.
Exploration & Production generated external sales of $1.66 billion, up from $1.39 billion in the year-ago quarter. The segment’s adjusted net operating income increased 45.6% to $3.16 billion from $2.17 billion in the year-ago quarter. Higher gas prices and contributions from new projects supported the segment.
Integrated LNG generated external sales of $3.47 billion, up from $1.99 billion in the year-ago quarter. The segment’s adjusted operating income increased to $1.89 billion from $852 million, reflecting higher LNG prices and strong gas trading activities. LNG sales volumes, however, declined to 9.8 million tons from 10.4 million tons.
Integrated Power generated external sales of $4.22 billion, up from $3.95 billion in the year-ago quarter. The segment’s adjusted operating income increased 5.4% to $602 million from $571 million.
TTE's Financial Update
Cash and cash equivalents as of Sept. 30, 2026, were $34.21 billion, compared with $26.20 billion as of Dec. 31, 2025. Gearing declined to 9.1% from 17.3% at the end of third-quarter 2025.
Cash flow from operating activities reached $15.39 billion, up 84.3% year over year. Net investments amounted to $3.28 billion in the third quarter and $11.20 billion during the first nine months of 2026.
The company confirmed a third interim dividend of €0.90 per share, representing a 5.9% increase from 2025. Its board also authorized share repurchases of $2.5 billion each for the fourth quarter of 2026 and the first quarter of 2027.
TotalEnergies' Guidance
TotalEnergies anticipates average LNG selling prices exceeding $14 per million Btu in the fourth quarter of 2026, supported by stronger gas markets and the delayed impact of pricing formulas.
Excluding disruptions related to the Middle East conflict, fourth-quarter hydrocarbon production is expected to grow more than 3% year over year, consistent with the company's annual production growth guidance.
TTE expects refinery throughput to remain broadly comparable to third-quarter levels, supported by normalized operations at the SATORP facility despite planned maintenance at the Normandy platform.
The company reaffirmed its 2026 net investment guidance of approximately $15 billion.
Devon Energy Corporation (DVN - Free Report) is slated to report third-quarter 2026 results on Nov. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.24 per share, which indicates a year-over-year increase of 19.23%. Devon’s earnings surpassed estimates in each of the trailing four quarters, resulting in an average surprise of 9.46%.
Murphy Oil Corporation (MUR - Free Report) is slated to report third-quarter 2026 results on Nov. 4, after market close. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share, which indicates a year-over-year rise of 119.5%. Murphy Oil’s earnings surpassed estimates in each of the trailing four quarters, resulting in an average surprise of 111.06%.
Occidental Petroleum Corporation (OXY - Free Report) is slated to report third-quarter 2026 results on Nov. 9, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.42 per share, which indicates year-over-year growth of 121.88%. Occidental’s earnings surpassed estimates in each of the trailing four quarters, resulting in an average surprise of 46.14%.
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TTE Q3 Earnings Miss Estimates, Middle East Crisis Impacts Production
Key Takeaways
TotalEnergies SE (TTE - Free Report) reported third-quarter 2026 operating earnings of $4.03 (€3.50) per share, which lagged the Zacks Consensus Estimate of $4.11 by 1.95%. The bottom line improved 127.7% from the year-ago figure of $1.77 (€1.50).
Total Revenues
Total revenues were $66.82 billion, up 37.2% year over year, surpassing the Zacks Consensus Estimate of $53.72 billion by 24.39%. Strong refining margins and higher gas prices supported results.
TTE's Q3 Production Details
In the third quarter, hydrocarbon production averaged 2,474 thousand barrels of oil equivalent (kboe) per day, down 1.3% from 2,508 kboe in the year-ago quarter. The decrease primarily reflected disruptions caused by the Middle East conflict and the natural decline of producing fields.
Production benefited from project start-ups and ramp-ups in Brazil, the United States, Angola, Libya and Iraq, along with improved plant availability. Excluding the impact of the Middle East conflict, production increased more than 4% year over year.
Liquid production averaged 1,510 thousand barrels per day, down 2.8% year over year. Quarterly gas production was 5,209 million cubic feet per day, up 0.5% from the prior-year quarter.
TotalEnergies SE Sponsored ADR Price, Consensus and EPS Surprise
TotalEnergies SE Sponsored ADR price-consensus-eps-surprise-chart | TotalEnergies SE Sponsored ADR Quote
TotalEnergies' Realized Prices
The quarterly average Brent crude price increased 40.4% to $97 per barrel from $69.1 in the year-earlier period. The average realized liquid price was $87.1 per barrel, up 31% year over year.
Realized gas prices increased 27.3% to $7 per million British thermal units (Btu). Realized LNG prices rose 37.8% year over year to $12.28 per million Btu, benefiting from stronger global gas markets.
The European Refining Margin Marker increased to $33.2 per barrel from $8.4 a year ago. Elevated refining margins helped offset production-related headwinds.
TTE's Q3 Operational Highlights
Net power production reached 17.9 terawatt hours, up 42.1% year over year. Renewable sources contributed 9.6 terawatt hours, while gas-fired generation accounted for 8.3 terawatt hours.
Adjusted net operating income from business segments increased to $9.71 billion from $4.66 billion in the year-ago quarter. Adjusted EBITDA reached $17.81 billion, compared with $10.30 billion a year earlier.
Financial interest on debt was $821 million, up from $808 million in the prior-year quarter. TotalEnergies also benefited from higher refining throughput, which increased 5.2% year over year to 1,555 thousand barrels per day.
TotalEnergies' Segmental Performance
Refining & Chemicals generated external sales of $30.78 billion, compared with $21.21 billion a year ago. The segment’s operating income surged to $3.60 billion from $687 million, supported by exceptional refining margins.
Marketing & Services recorded external sales of $26.69 billion, up from $20.14 billion. The segment’s operating income increased 22.9% to $467 million from $380 million.
Exploration & Production generated external sales of $1.66 billion, up from $1.39 billion in the year-ago quarter. The segment’s adjusted net operating income increased 45.6% to $3.16 billion from $2.17 billion in the year-ago quarter. Higher gas prices and contributions from new projects supported the segment.
Integrated LNG generated external sales of $3.47 billion, up from $1.99 billion in the year-ago quarter. The segment’s adjusted operating income increased to $1.89 billion from $852 million, reflecting higher LNG prices and strong gas trading activities. LNG sales volumes, however, declined to 9.8 million tons from 10.4 million tons.
Integrated Power generated external sales of $4.22 billion, up from $3.95 billion in the year-ago quarter. The segment’s adjusted operating income increased 5.4% to $602 million from $571 million.
TTE's Financial Update
Cash and cash equivalents as of Sept. 30, 2026, were $34.21 billion, compared with $26.20 billion as of Dec. 31, 2025. Gearing declined to 9.1% from 17.3% at the end of third-quarter 2025.
Cash flow from operating activities reached $15.39 billion, up 84.3% year over year. Net investments amounted to $3.28 billion in the third quarter and $11.20 billion during the first nine months of 2026.
The company confirmed a third interim dividend of €0.90 per share, representing a 5.9% increase from 2025. Its board also authorized share repurchases of $2.5 billion each for the fourth quarter of 2026 and the first quarter of 2027.
TotalEnergies' Guidance
TotalEnergies anticipates average LNG selling prices exceeding $14 per million Btu in the fourth quarter of 2026, supported by stronger gas markets and the delayed impact of pricing formulas.
Excluding disruptions related to the Middle East conflict, fourth-quarter hydrocarbon production is expected to grow more than 3% year over year, consistent with the company's annual production growth guidance.
TTE expects refinery throughput to remain broadly comparable to third-quarter levels, supported by normalized operations at the SATORP facility despite planned maintenance at the Normandy platform.
The company reaffirmed its 2026 net investment guidance of approximately $15 billion.
TTE’s Zacks Rank
TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Releases
Devon Energy Corporation (DVN - Free Report) is slated to report third-quarter 2026 results on Nov. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.24 per share, which indicates a year-over-year increase of 19.23%. Devon’s earnings surpassed estimates in each of the trailing four quarters, resulting in an average surprise of 9.46%.
Murphy Oil Corporation (MUR - Free Report) is slated to report third-quarter 2026 results on Nov. 4, after market close. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share, which indicates a year-over-year rise of 119.5%. Murphy Oil’s earnings surpassed estimates in each of the trailing four quarters, resulting in an average surprise of 111.06%.
Occidental Petroleum Corporation (OXY - Free Report) is slated to report third-quarter 2026 results on Nov. 9, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.42 per share, which indicates year-over-year growth of 121.88%. Occidental’s earnings surpassed estimates in each of the trailing four quarters, resulting in an average surprise of 46.14%.