TotalEnergies Outlines Plan for Higher Dividends, Buybacks, and Stable Oil Output Through 2035

TotalEnergies SE (EPA:TTEF) on Monday detailed a long-term strategic plan focused on boosting shareholder returns through increased dividends and share buybacks, while maintaining current oil and gas production levels for the next decade. The French energy company's board approved a new dividend policy and authorized substantial buybacks, signaling confidence in its future cash flow generation.

Enhanced Shareholder Returns

TotalEnergies announced a new dividend policy for 2026-2030, targeting annual dividend growth of more than 5%. The company also confirmed its commitment to return at least 40% of its cash flow to shareholders. This policy is supported by a strengthening balance sheet, with the company aiming for a gearing ratio below 10%.

With its leverage target expected to be met by the end of 2026, the board has authorized significant share repurchases. The company plans $2.5 billion in buybacks for the fourth quarter of 2026, followed by $2 billion to $2.5 billion in the first quarter of 2027.

Long-Term Production and Power Strategy

The company plans to maintain its oil and gas production at approximately 3 million barrels of oil equivalent per day (boepd) through 2035. It projects that oil and gas output will grow by an average of more than 3% per year between 2025 and 2030, driven by new projects in locations including Namibia, Nigeria, and Mozambique.

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In parallel, TotalEnergies is accelerating its expansion into electricity, which it expects to comprise about 25% of its energy mix by 2035. Key targets for its Integrated Power business include:

• Electricity generation growth of more than 20% per year to reach 100-120 terawatt hours (TWh) by 2030.
• The division is expected to become free-cash-flow positive in 2027.
• A target of a 12% return on average capital employed by 2030.

Financial Outlook and Investments

TotalEnergies projects that its production growth will increase free cash flow by approximately $10 billion between 2025 and 2030, based on current commodity price assumptions. To support its expansion in both hydrocarbons and power, the company plans for net investments of $14-17 billion per year between 2027 and 2032.

Alongside its production goals, the company reaffirmed its commitment to emissions reduction targets. These include cutting Scope 1 and 2 emissions from its oil and gas operations by 50% by 2030 from 2015 levels and reducing methane emissions by 80% from 2020 levels.