TotalEnergies boosts buybacks, pledges 5%+ annual dividend growth through 2030

Shares in TotalEnergies SE rose on Monday following the announcement of plans to boost its dividend and reduce leverage while increasing production through 2035. The French oil major intends to increase its annual dividend by more than 5% through 2030, while maintaining oil and gas production at around 3 million barrels of oil equivalent per day until 2035.

The board also authorized a $2.5 billion share buyback in the fourth quarter of 2026 and another $2 billion to $2.5 billion buyback in the first quarter of 2027. This move is part of TotalEnergies' strategy to reduce leverage while funding production and power investments. The company expects to keep its oil and gas production at approximately 3 million barrels per day through 2035, backed by projects in various countries, including Namibia, Nigeria, Libya, Malaysia, Mozambique, and Papua New Guinea.

A reserves life index of over 12 years supports this production level. For 2025-2030, oil and gas production is projected to grow by more than 3% annually, driven by ongoing projects. Beyond 2030, the company targets net power generation growth of 10-12 TWh per year through 2035, with electricity accounting for about 25% of its energy mix.

TotalEnergies aims to make its Integrated Power business free-cash-flow positive in 2027, after reaching balance in 2026, with a 12% return on average capital employed by 2030. Higher production is expected to increase free cash flow by about $10 billion between 2025 and 2030, resulting in an increase of more than $4 per share. The company also plans to invest $14-17 billion annually between 2027 and 2032 to support its production and power expansion initiatives.