Core Insights - TotalEnergies SE (TTE) has signed a production sharing contract for offshore exploration licenses PPL2000 and PPL2001 in Nigeria, holding an 80% stake alongside partner South Atlantic Petroleum, which holds 20% [1][10] - The exploration licenses cover approximately 772 square miles (2,000 square kilometers) and include a work program for drilling one firm exploration well [2][10] - TotalEnergies aims to enhance its exploration portfolio with low-cost and low-emissions offshore opportunities, aligning with its strategy to focus on high-impact prospects [3][10] Exploration Strategy - The acquisition of the Nigerian licenses is part of TotalEnergies' broader strategy to grow its exploration portfolio, which includes recent initiatives in the Republic of the Congo and offshore U.S. [4][5] - The company is also expanding its presence in Southeast Asia by acquiring interests in offshore blocks in Malaysia and Indonesia, focusing on gas and liquefied natural gas [5] Industry Context - Offshore exploration is critical for oil and gas companies, providing access to vast and unexplored resources, which are essential for meeting global energy demand [6] - Competitors like Murphy Oil Corporation and ExxonMobil are also pursuing offshore exploration opportunities, indicating a competitive landscape in this sector [6][9] Stock Performance - In the past month, TotalEnergies' shares have increased by 5.2%, compared to a 6.1% growth in the industry [11]

Core Insights - TotalEnergies SE (TTE) has entered a strategic partnership with XING Mobility to promote advanced immersion cooling battery systems, targeting energy storage solutions, mobility, and backup power for AI data centers, with an initial focus on electrified marine applications [1][9] Partnership Overview - The collaboration combines XING Mobility's innovative immersion cooling battery technology, originally designed for high-performance electric sports cars, with TotalEnergies' expertise in advanced fluids and global energy solutions [2] - The partnership aims to enhance the integration of high-safety, high-power energy storage systems and next-generation battery cooling technologies in marine applications, as well as in critical sectors like sports cars, underground mining equipment, and aviation [3] Technological Advancements - TotalEnergies' capabilities in advanced dielectric fluids, robust R&D, and extensive distribution network will facilitate the scaling of this technology into mainstream sectors, reducing execution risks and creating new revenue opportunities [4] - Ongoing research will focus on developing more cost-effective and environmentally friendly dielectric fluids and improving system designs for various battery chemistries, including next-generation solid-state batteries [6] Market Potential - The immersion battery cooling systems market is projected to reach between $1.5 billion and $2.5 billion by 2025, driven by the growing electric vehicle market and the need for improved thermal management technologies [7] - Leading companies such as Mahle, Tesla, and AVL are significantly contributing to the development and adoption of immersion cooling technologies, enhancing market penetration [7] Stock Performance - TotalEnergies' shares have increased by 5.5% over the past month, compared to a 6.1% growth in the industry [8][9]

Group 1 - TotalEnergies has obtained an exploration license in the Nzombo region of the Republic of Congo, near its existing Moho facilities [1] - TotalEnergies will hold a 50% stake in the asset, with Qatar Energy holding 35% and the Congolese National Oil Company (SNPC) holding the remaining shares [1] - The area covered by the license is 1,000 square kilometers, located 100 kilometers off the coast of Black Point [1] Group 2 - The work plan includes drilling one exploration well, expected to commence by the end of 2025 [1] - TotalEnergies currently produces 65,000 barrels of oil per day in the Republic of Congo, primarily through offshore wells [1] - SNPC also holds a 15% stake in the Moho production facilities [1]

Core Insights - Shell plc, TotalEnergies SE, and Equinor ASA have achieved a significant milestone with the Northern Lights CCS project in Norway, marking the launch of the world's first third-party CO2 transport and storage facility [1] - The project aims to provide a scalable model for carbon capture and storage, contributing to Europe's greenhouse gas emissions reduction efforts [1] Group 1: Project Overview - The Northern Lights project has successfully injected and stored CO2 2,600 meters below the seabed, with the first volumes now secured [1][8] - Phase 1 of the project has a storage capacity of 1.5 million tons of CO2 per year, which is already fully booked [3][8] - An expansion to Phase 2 has been approved, increasing capacity to at least 5 million tons annually, driven by growing demand [3][4] Group 2: Logistics and Operations - CO2 is transported from Heidelberg Materials AG's cement plant in Brevik, Norway, to the Øygarden facility via a 100-kilometer pipeline [2] - Specialized vessels, Northern Pathfinder and Northern Pioneer, designed by Shell engineers, are among the largest liquefied carbon carriers globally [2] Group 3: Strategic Importance - The Northern Lights project exemplifies collaboration among governments, industries, and customers to create new value chains for decarbonization [4] - Equinor, as the technical service provider, aims to develop 30-50 million tons of annual CO2 transport and storage capacity by 2035, indicating a strong commitment to CCS initiatives [9]

Core Viewpoint - TotalEnergies is actively transforming from a traditional oil company to a comprehensive energy supplier, with a significant focus on expanding its electricity business, which has already surpassed 10% of its total revenue and aims to reach 20% by 2030 [2][3][8]. Revenue and Profitability - In 2024, TotalEnergies' electricity segment generated $24.475 billion in revenue, with an adjusted net profit of $2.173 billion, while the company's total revenue was $195.61 billion, with an adjusted net profit of $18.3 billion [3]. - The electricity segment's adjusted net profit grew by 17.3% year-on-year, contrasting with declines in other business segments [3]. Growth in Electricity Business - TotalEnergies' net electricity generation increased by 23% year-on-year in the first half of 2025, reaching 22.9 billion kilowatt-hours, with total installed electricity capacity growing by 26% to 30.2 GW [2][4]. - The electricity business's share of TotalEnergies' total revenue rose from 1% in 2020 to 12.5% by the end of 2024, with a target to increase this to 20% by 2030 [2][8]. Strategic Investments and Future Plans - TotalEnergies plans to invest $4.5 billion in low-carbon energy in 2025, representing 26.5% of its total investment plan, which is significantly higher than other international oil and gas companies [8]. - The company aims to achieve a total installed electricity capacity of 100 GW by 2030, positioning itself among the top five renewable electricity producers globally, excluding China [8][9]. Regional Distribution and Project Development - TotalEnergies has established a diverse portfolio of electricity projects globally, with significant capacities in North America and India, each exceeding 9 GW [6][8]. - The company is also developing various joint ventures in China, focusing on solar and wind energy projects, with plans to operate 1.5 GW of distributed solar assets [11][12]. Transition and Market Position - The transition to a low-carbon energy model is driven by the recognition of increasing electricity demand and the importance of low-carbon power in future energy systems [5][13]. - TotalEnergies is leveraging its extensive experience in the oil and gas sector to enhance its electricity business, aiming for a capital return rate of 12% by 2030 [15][17].

Core Insights - TotalEnergies SE (TTE) is solarizing its lubricant plant in Go Dau, Vietnam, as part of its commitment to energy transition in the region [1][11] - The project marks the first initiative for TotalEnergies ENEOS in Vietnam, a joint venture focused on B2B solar distributed generation across Asia [1] Project Details - The project includes a 220-kWh battery energy storage system and a 310 kWp solar photovoltaic system, which will cover up to 60% of the plant's electrical needs [2] - It is expected to generate approximately 460 MWh of electricity annually, avoiding around 300 tons of CO₂ emissions each year [2][11] Financial and Operational Benefits - TotalEnergies aims to achieve financial efficiency through energy cost relief by generating its own electricity, reducing dependence on variable grid power [3] - The battery storage component allows for better energy management, storing solar power for peak periods or outages, enhancing sustainability and improving ESG benchmarks [4] Long-term Goals - TotalEnergies plans for low-carbon businesses to represent 15-20% of its sales by 2040 and aims to expand its renewable energy generation capacity significantly [5][11] - The company targets 35 GW of installed gross renewable electricity generation capacity by the end of 2025 and over 100 terawatt-hours of net electricity production by 2030 [7] Industry Context - The global market for solar PV and battery storage is expanding, benefiting companies like SolarEdge Technologies and First Solar [9] - SolarEdge Technologies enhances solar energy systems' efficiency and performance, while First Solar specializes in thin-film PV technology, offering advantages over traditional panels [10][12] Stock Performance - Over the past six months, TotalEnergies' shares have increased by 2.7%, outperforming the industry's growth of 2% [14]

Group 1 - TotalEnergies is one of the seven supermajor oil companies with a valuation of $140 billion [2] - The company has a strong portfolio in long-term fuels, particularly in LNG, where it ranks among the largest [2] Group 2 - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy that includes extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Investment Rating - The report maintains an "Overweight" rating for the oil and gas sector [5] Core Viewpoints - The performance of major international oil companies declined in H1 2025 due to falling oil prices and low refining margins, with net profits for ExxonMobil, Chevron, Shell, Total, and BP showing year-on-year decreases of -15.3%, -39.7%, -22.9%, -31.2%, and -31.8% respectively [1][9][10] - The IEA has revised down its global oil demand growth forecast for 2025 and 2026, primarily due to weaker-than-expected demand from emerging markets like China, India, and Brazil [3][24] - Despite the oversupply pressure on oil prices, geopolitical risks from sanctions on Russia and Iran add uncertainty to the market [3][24] Summary by Sections Section 1: Performance of Major Oil Companies - In H1 2025, the average Brent crude oil price was $70.81 per barrel, a decrease of 15.1% year-on-year, with Q2 averaging $66.71 per barrel, down 21.5% [1][10] - Refining margins for Shell, Total, and BP fell by 24.4%, 44.4%, and 26.2% respectively, indicating a challenging refining market [1][10] - Natural gas prices increased, with Henry Hub and TTF averages rising by 66.8% and 38.9% year-on-year, but major companies like Shell and BP did not achieve year-on-year growth in their gas business due to lagging contract prices and production declines [1][10] Section 2: Oil and Gas Production Growth - The total oil and gas equivalent production of the five major international oil companies grew by 2.96% year-on-year in H1 2025, with ExxonMobil achieving a 15.5% increase in crude oil production due to rapid output from the Guyana block [2][18] - Cost control measures helped mitigate some performance volatility, with ExxonMobil's upstream profit only declining by 4.5% due to effective cost management [2][21] Section 3: IEA Oil Demand Forecast - The IEA has lowered its oil demand growth forecast for 2025 by 20,000 barrels per day, now expecting an increase of 680,000 barrels per day [3][24] - The IEA anticipates that OPEC+ will increase production by 1.2 million barrels per day in 2025, contributing to a total supply increase of 2.5 million barrels per day [3][24] Section 4: Investment Recommendations - The report suggests a continued positive outlook for major Chinese oil companies and oil service sectors, as well as for chemical products in the long term [4] - Specific companies to watch include China National Petroleum Corporation, Sinopec, CNOOC, and various oil service engineering firms [4]

Regulatory Landscape - A South African court overturned TotalEnergies' environmental authorization for offshore oil exploration [1] Company Impact - TotalEnergies' oil exploration block offshore South Africa's west coast faces regulatory setback [1]

Core Insights - The energy sector is undergoing significant changes, with a clear growth advantage for low- or no-carbon energy sources, positioning companies like NextEra Energy, TotalEnergies, and Enbridge favorably for future investments [2][9] Group 1: NextEra Energy - NextEra Energy operates a regulated utility in Florida, benefiting from in-migration and becoming one of the largest regulated utilities in the U.S. [3] - The company has developed one of the largest wind and solar operations globally, contributing to an average dividend growth of around 10% per year over the past decade, with a current yield of 3.2% [4] - A $1,000 investment in NextEra Energy would yield approximately 14 shares [4] Group 2: TotalEnergies - TotalEnergies is transitioning from oil to cleaner energy sources, focusing on natural gas and expanding its electricity and renewable power business [5][6] - The integrated power business grew by 17% in 2024, contributing about 10% to operating segment income, with a dividend yield of 6.4% [6] - A $1,000 investment in TotalEnergies would result in around 16 shares [6] Group 3: Enbridge - Enbridge operates as a North American pipeline giant, focusing on moving oil and natural gas rather than producing it, providing stable cash flows [7] - The company is shifting towards natural gas and has acquired three regulated natural gas utilities, while also investing in clean energy projects like offshore wind in Europe [8] - Enbridge boasts a dividend yield of 5.8%, with increases over the past 30 years, and a $1,000 investment would yield approximately 21 shares [7][8]