REG-TotalEnergies SE TotalEnergies: First Quarter 2026: Main Indicators

TotalEnergies SEAnnouncement

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TotalEnergies: First Quarter 2026: Main Indicators

 

The main indicators, estimated financial information and key elements
impacting TotalEnergies’ (Paris:TTE) (LSE:TTE) (NYSE:TTE) first quarter 2026
aggregates are shown below:
 Main indicators                                                                                     
                                                      1Q26      4Q25      3Q25      2Q25      1Q25   
 €/$                                                  1.17      1.16      1.17      1.13      1.05   
 Brent                                      ($/b)     81.1      63.7      69.1      67.9      75.7   
 TTF                                        ($/Mbtu)  13.7      10.3      11.3      11.9      14.4   
 Average liquids price * ((1))              ($/b)     73.7      61.4      66.5      65.6      72.2   
 Average gas price * ((1))                  ($/Mbtu)  5.59      5.11      5.50      5.63      6.60   
 Average LNG price ** ((1))                 ($/Mbtu)  8.48      8.48      8.91      9.10      10.00  
 European Refining Margin Marker (ERM) ***  ($/b)     11.4      11.4      8.4       35.3      29.4   
 * Sales in $ / Sales in volume for consolidated affiliates.                                         
 
** Sales in $ / Sales in volume for consolidated and equity affiliates.                            
 
*** This market indicator for European refining, calculated based on public                        
 market prices ($/b), uses a basket of crudes, petroleum product yields and                          
 variable costs representative of the European refining system of                                    
 TotalEnergies.                                                                                      
 
((1) )Does not include oil, gas and LNG trading activities, respectively.                          


Main elements impacting quarter aggregates


 * Hydrocarbon production for the first quarter 2026 should benefit from an
organic growth above the 3% annual guidance, reflecting notably the start-ups
of Lapa SW and Mabruk over the quarter, but is impacted by the loss of
production in the Middle East (around 100 kboe/d over the quarter in line with
Company’s statement issued on March 10). Oil and gas production for this
first quarter 2026 is expected to be in line with fourth quarter 2025.

 * Considering this level of production, Exploration & Production results are
expected to rise significantly, fully reflecting the sensitivity to the
increase of the average liquids price (+$12.4/b over the quarter, including
the price lag effect in the United Arab Emirates) and the accretive
contribution of the new projects.

 * Integrated LNG results and cash flow are expected to be significantly higher
than fourth quarter 2025, underpinned by a 10% LNG production increase
compared to fourth quarter and strong trading activities benefiting from
market volatility.

 * Integrated Power results and cash flow are expected to be in line with first
quarter 2025, at around $500 and $600 million respectively, with no farm-down
registered this quarter unlike in fourth quarter 2025.

 * Downstream results and cash flow are expected to increase supported by a
refining utilization rate above 90%, as refineries have recovered their full
operational performance, by a strong performance from crude oil and petroleum
products trading activities in March and with a Marketing & Services
business expected broadly in line with the first quarter of 2025, given the
seasonality of this business.

 * An increase of working capital of around $5 billion is anticipated for the
quarter, with $2.5 to $3 billion related to the seasonality of the business
and $2 to $2.5 billion related to the impact of hydrocarbon prices increase at
the end of the quarter on inventories.

 * Gearing ratio is expected to be around 15% at the end of the first quarter
2026, with cash flow growth driven by higher hydrocarbon prices partially
offsetting the increase of working capital related to this price increase.
 2026 Sensitivities*                                                                                                                                                   
                                        Change             Estimated impact on adjusted net operating income     Estimated impact on cash flow from operations         
 Dollar                                 +/- 0.1 $ per €    -/+ 0.1 B$                                            ~0 B$                                                 
 Average liquids price **               +/- 10 $/b         +/- 2.3 B$                                            +/- 2.8 B$                                            
 European gas price – TTF               +/- 2 $/Mbtu       +/- 0.4 B$                                            +/- 0.4 B$                                            
 European Refining Margin Marker (ERM)  +/- 1 $/b          +/- 0.3 B$                                            +/- 0.4 B$                                            
 * Sensitivities are revised once per year upon publication of the previous                                                                                            
 year’s fourth quarter results. Sensitivities are estimates based on                                                                                                   
 assumptions about TotalEnergies’ portfolio in 2026. Actual results could                                                                                              
 vary significantly from estimates based on the application of these                                                                                                   
 sensitivities. The impact of the $-€ sensitivity on adjusted net operating                                                                                            
 income is essentially attributable to Refining & Chemicals.                                                                                                           
 
** In a 70-80 $/b Brent environment.                                                                                                                                 


Disclaimer

Unless otherwise stated, the terms “TotalEnergies”, “TotalEnergies
company” and “Company” in this document are used to designate
TotalEnergies SE and the consolidated entities directly or indirectly
controlled by TotalEnergies SE. Likewise, the words “we”, “us” and
“our” may also be used to refer to these entities or their employees. The
entities in which TotalEnergies SE directly or indirectly owns a shareholding
are separate and independent legal entities. The term “Corporation” as
used in this document exclusively refers to TotalEnergies SE, which is the
parent company of the Company.

The data presented in this document is based on TotalEnergies’ internal
preliminary reporting and is not audited. This data is not intended to be a
comprehensive summary of all items that will affect TotalEnergies SE’s
results or to provide an estimate of 2026 quarterly results. Actual results
may vary. To the extent permitted by law, TotalEnergies SE disclaims all
liability from the use of this data.

This document may contain forward-looking statements (including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995), notably with respect to the financial
condition, results of operations, business activities and strategy of
TotalEnergies and expectations regarding returns to stockholders, including
with respect to future dividends and share buybacks. This document may also
contain statements regarding the perspectives, objectives, areas of
improvement and goals of TotalEnergies SE, including with respect to climate
change and carbon neutrality. An ambition expresses an outcome desired by
TotalEnergies, it being specified that the means to be deployed do not depend
solely on TotalEnergies.

These forward-looking statements may generally be identified by the use of the
future or conditional tense or forward-looking words such as “will”,
“should”, “could”, “would”, “may”, “likely”, “might”,
“envisions”, “intends”, “anticipates”, “believes”,
“considers”, “plans”, “expects”, “thinks”, “targets”,
“commits”, “aims” or similar terminology. Such forward-looking
statements included in this document are based on economic data, estimates and
assumptions prepared in a given economic, competitive and regulatory
environment and considered to be reasonable by TotalEnergies as of the date of
this document.

These forward-looking statements are not historical data and should not be
interpreted as assurances that the perspectives, objectives or goals announced
will be achieved. They are uncertain and may evolve or be modified with a
significant difference between the actual results and those initially
estimated, due to the uncertainties notably related to the economic,
financial, competitive and regulatory environment, or due to the occurrence of
risk factors, such as, notably, the price fluctuations in crude oil and
natural gas, the evolution of the demand and price of petroleum products, the
changes in production results and reserves estimates, the ability to achieve
cost reductions and operating efficiencies without unduly disrupting business
operations, changes in laws and regulations including those related to the
environment and climate, currency fluctuations, technological innovations,
meteorological conditions and events, as well as socio-demographic, economic
and political developments, changes in market conditions, loss of market share
and changes in consumer preferences, pandemics, and other risk factors
described from time to time in the Company’s regulatory filings, including
its Universal Registration Document filed with the French Autorité des
Marchés Financiers, its Annual Report on Form 20 F filed with the United
States Securities and Exchange Commission (“SEC”) and its other reports
filed or furnished with the SEC.

Readers are cautioned not to consider forward-looking statements as certain,
but as an expression of the Corporation’s views only as of the date this
document is published.

TotalEnergies SE and its subsidiaries have no obligation, make no commitment
and expressly disclaim any responsibility to investors or any stakeholder to
update or revise, particularly as a result of new information or future
events, any forward-looking information or statement, objectives or trends
contained in this document. In addition, the Corporation has not verified, and
is under no obligation to verify any third-party data contained in this
document or used in the estimates and assumptions or, more generally,
forward-looking statements published in this document. The information on risk
factors that could have a significant adverse effect on TotalEnergies’
business, financial condition, including its operating income and cash flow,
reputation, outlook or the value of financial instruments issued by
TotalEnergies is provided in the most recent version of the Universal
Registration Document which is filed by TotalEnergies SE with the French
Autorité des Marchés Financiers and the annual report on Form 20-F filed
with the SEC.

Additionally, the developments of climate change and other environmental or
social-related issues in this document are based on various frameworks and the
interests of various stakeholders which are subject to evolve independently of
our will. Moreover, our disclosures on such issues, including disclosures on
climate change and other environmental or social-related issues, may include
information that is not necessarily “material” under US securities laws
for SEC reporting purposes or under applicable securities law.

In addition to IFRS measures, certain alternative performance indicators are
presented, such as performance indicators excluding the adjustment items
described below (adjusted net operating income, adjusted net income), net cash
flow, free cash flow after organic investments, normalized gearing, return on
equity (ROE), return on average capital employed (ROACE), gearing ratio, cash
flow from operations excluding working capital, debt adjusted cash flow, and
the payout ratio. These indicators are meant to facilitate the analysis of the
financial performance of TotalEnergies and the comparison of income between
periods. They allow investors to track the measures used internally to manage
and measure the performance of TotalEnergies.

Financial information by business segment is reported in accordance with the
internal reporting system and shows internal segment information that is used
to manage and measure the performance of TotalEnergies. TotalEnergies measures
performance at the segment level on the basis of adjusted net operating
income.

The adjusted results (adjusted net operating income, adjusted net income) are
defined as replacement cost results, adjusted for special items, excluding the
effect of changes in fair value. For further details on the adjustment items,
please refer to the last published earnings statement and notes to the
consolidated financial statements.

Euro amounts presented for the fully adjusted-diluted earnings per share
represent dollar amounts converted at the average euro-dollar (€-$) exchange
rate for the applicable period and are not the result of financial statements
prepared in euros.

Cautionary Note to U.S. Investors – U.S. investors are urged to consider
closely the disclosure in the Form 20-F of TotalEnergies SE, File N° 1-10888,
available from us at 2, place Jean Millier – Arche Nord Coupole/Regnault –
92078 Paris-La Défense Cedex, France, or at the Corporation website
totalenergies.com. You can also obtain this form from the SEC by calling
1-800-SEC-0330 or on the SEC’s website sec.gov.



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