REG-TotalEnergies SE TotalEnergies: Strategy & Outlook Presentation 2023

TotalEnergies SEAnnouncement

27/09/2023 14:15

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TotalEnergies: Strategy & Outlook Presentation 2023

“More energy, less emissions, growing cash-flow”

TotalEnergies increases shareholder distribution guidance to more than 40% of
CFFO from 2023

Payout expected around 44% in 2023

 

Patrick Pouyanné, Chairman and CEO, and the members of the Executive
Committee will present TotalEnergies’ (Paris:TTE) (LSE:TTE) (NYSE:TTE)
Strategy & Outlook in New York today. The webcast of the presentation in
English is available on totalenergies.com.

TotalEnergies stays the course of its balanced multi-energy strategy…

TotalEnergies reaffirms the relevance of its balanced multi-energy strategy
considering the developments in the oil, gas and electricity markets. Anchored
on two pillars, Oil & Gas, notably LNG, and Integrated Power, the energy
at the heart of the energy transition, the Company is in a very favorable
position to take advantage of changing energy prices.

Thanks to refocusing the oil and gas portfolio on assets and projects with low
breakeven and low greenhouse gas emissions, and to the diversification into
electricity, notably renewable, through an integrated strategy from production
to customer, the Company is implementing its transition strategy while
offering an attractive shareholder return.

…responsibly producing low cost, low emission Oil & Gas from a rich
portfolio

While drastically lowering the emissions from its operations, TotalEnergies
plans to grow Oil & Gas production by 2-3 % per year over the next five
years, predominantly from LNG, thanks to its rich low cost, low emission
upstream portfolio.

The Company will notably develop a top-tier pipeline of LNG projects (Qatar
North Field Expansion, Papua LNG, ECA LNG and Rio Grande in US, Mozambique
LNG) while leveraging its competitive advantage with leading positions in
Europe regasification and in US exports. TotalEnergies will also concentrate
efforts to develop its portfolio of high-return oil projects (Brazil, Gulf of
Mexico, Iraq, Uganda) recently enriched with exploration successes in Suriname
and Namibia.

The Oil & Gas business is expected to generate more than $3 billion of
additional underlying cash flow in 2028 compared to 2023 at constant prices.

…and developing a profitable and differentiated Integrated Power model to
create a future cash engine of the Company

TotalEnergies is replicating its integrated Oil & Gas business model into
electricity to achieve a ROACE of ~12%, equivalent to upstream Oil & Gas
ROACE at 60 $/b, above the “utility” model traditional returns.

The Company is building a world class cost-competitive portfolio combining
renewable (solar, onshore wind, offshore wind) and flexible assets (CCGT,
storage) to deliver clean firm power to its customers. TotalEnergies is
leveraging its purchasing power to optimize its investment costs and
industrialize its renewable assets through digital to lower operating costs.
By utilizing its fortress balance sheet, TotalEnergies will capture additional
value from price volatility through merchant exposure.

The Company aims to grow its power generation to more than 100 TWh by 2030,
investing $4 billion per year and increase cash flow from ~$2 billion in 2023
to more than $4 billion by 2028, becoming net cash-flow positive.

TotalEnergies expects to distribute about 44% of its CFFO in 2023 and
increases shareholder distribution guidance to more than 40% of CFFO beyond
2023.

Given the strong fundamentals of the Company, the clear and disciplined
investment policy, and the solid potential for cash generation growth in the
coming years, the Board of directors has taken the following decisions:


 * In 2023, allocate $1.5 billion of the Canadian assets’ divestment proceeds
to share buybacks, to reach $9 billion. The Company expects to return about
44% of CFFO to shareholders in 2023.

 * Increase the shareholder distribution guidance to more than 40% of CFFO
through the cycles keeping net investments between $16-18 billion per year
over 2024-28 to implement the transition of the Company.

* * *

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, cleaner, more reliable and accessible to as many people
as possible. Active in nearly 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

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Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
to these entities or to their employees. The entities in which TotalEnergies
SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are
based on a number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. Information concerning risk factors, that may affect
TotalEnergies’ financial results or activities is provided in the most
recent Universal Registration Document, the French-language version of which
is filed by TotalEnergies SE with the French securities regulator Autorité
des Marchés Financiers (AMF), and in the Form 20-F filed with the United
States Securities and Exchange Commission (SEC).

TotalEnergies

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com
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Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)



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