TotalEnergies, the French energy giant, has planned to allocate up to $17 billion annually for capital projects until 2032. These investments will contribute to the growth of oil, gas, and electricity portfolios and will improve free cash flow by 2030.
Production Goals and Greenhouse Gas Emission Reductions
In presenting its new strategy to investors in New York, TotalEnergies confirmed its main production targets for this decade. The company emphasized that it plans to achieve an annual growth of 4% in total energy production, including oil, gas, and electricity, by the end of this decade. This trend is linked to the goal of reducing greenhouse gas emissions from oil and gas operations by 50% by 2030 compared to 2015 levels, as well as an 80% reduction in methane emissions.
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According to the company, oil and gas production is expected to increase by more than 3% per year on average between 2025 and 2030. This increase will be driven by low-cost and low-emission projects currently underway. Additionally, TotalEnergies has forecasted that net electricity production in the power sector will increase by more than 20% per year on average, reaching about 100 to 120 terawatt-hours per year by 2030, which will constitute approximately 20% of the company's energy mix.
Dividend Distribution and Share Buybacks
These production developments are expected to generate an additional $10 billion in free cash flow between 2025 and 2030 under fixed price conditions, which translates to an increase of more than $4 per share. TotalEnergies has committed to increasing its dividend by more than 5% per year until 2030, which depends on strong cash growth expectations.
This French energy giant aims to return at least 40% of cash flow to its shareholders while strengthening its financial balance. The company has projected that the profitability ratio will be less than 10% by the end of 2026. In this regard, the company's board has authorized a share buyback worth $2.5 billion for the fourth quarter of 2026, and $2 to $2.5 billion has been allocated for the first quarter of 2027.
Looking towards 2035, TotalEnergies has outlined its vision for maintaining its production framework. The company, supported by a reserve life index of over 12 years and organic projects in Namibia, Nigeria, Libya, Malaysia, Mozambique, and Papua New Guinea, expects to maintain a production level of nearly 3 million barrels of oil equivalent per day by 2035.
This will serve as a basis for forecasting an annual growth rate of 2 to 3% during the 2030 to 2035 period, leveraging proven records in exploration and access to discovered resources. In the electricity sector, the company intends to maintain an annual growth rate of 10 to 12 terawatt-hours in unregulated markets in the United States and Europe after 2030, while also expanding renewable energy pipelines and flexible assets like batteries and gas-to-power conversion.
By 2035, electricity is expected to account for 25% of TotalEnergies' overall energy mix. Considering all its plans, this French giant has announced net investment plans worth $14 to $17 billion from 2027 to 2032.
Recently, the company announced a new discovery in Block 17 off the coast of Angola, which will increase production from Block 17 by 6,000 barrels per day, and the first oil will be produced quickly using the existing capacities of the FPSO Pazflor.
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