TTE's Q2 Earnings Lag, Sales Beat Estimates, Share Buyback Continues

Core Insights - TotalEnergies SE (TTE) reported second-quarter 2025 operating earnings of $1.57 per share, missing the Zacks Consensus Estimate of $1.62 by 3.08% and declining 20.7% from the previous year's figure of $1.98 [1][9] - Total revenues for the second quarter were $49.62 billion, a 7.7% decline from $53.74 billion year-over-year, but exceeded the Zacks Consensus Estimate of $36.2 billion by 37.2% [2][9] Production and Operational Performance - Hydrocarbon production averaged 2,503 thousand barrels of oil equivalent per day, up 2.5% year-over-year, driven by start-ups and ramp-up from existing assets [3] - Liquid production averaged 1,506 thousand barrels per day, an increase of nearly 2% year-over-year [3] - Quarterly gas production was 5,655 thousand cubic feet per day, up 4.2% year-over-year [4] Pricing and Revenue Details - The realized price for Brent decreased by 20.1% to $67.9 per barrel from $85 in the previous year [5] - Average realized liquid price was $65.6 per barrel, down 19% year-over-year [5] - Realized gas prices increased by 11.5% year-over-year to $5.63 per thousand British thermal units [5] Financial Highlights - Net power production was 11.6 terawatt hours, up 27.5% year-over-year, with 72.4% generated from renewable sources [6][9] - Net operating income was $4.39 billion, down 17.8% year-over-year due to lower realized oil prices and refining margins [6] - Cash and cash equivalents as of June 30, 2025, were $20.42 billion, down from $25.84 billion at the end of 2024 [12] Strategic Moves - TotalEnergies acquired assets worth $2.1 billion and sold assets worth $293 million in the second quarter [7] - The company repurchased 62 million shares worth $3.7 billion in the first half of 2025, with 28.5 million shares worth $1.7 billion repurchased in the second quarter [7] Segment Performance - Exploration & Production's operating earnings were $1.97 billion, down 25.9% from $2.67 billion year-over-year [10] - Integrated LNG's operating income was $1.04 billion, down 9.6% from the previous year [10] - Integrated Power's operating income increased by 114.3% to $574 million from $502 million year-over-year [10] - Refining & Chemicals' operating income declined by 39.1% to $389 million from $639 million in the prior-year quarter [10] - Marketing & Services' operating income increased by 8.7% to $412 million from $379 million in the second quarter of 2024 [11] Future Outlook - TotalEnergies expects third-quarter 2025 production volumes to improve by approximately 3% year-over-year [13] - The company anticipates investing between $17 billion and $17.5 billion in 2025, with $4.5 billion allocated to low-carbon energies [13] - Plans to buy back shares worth up to $2 billion in the third quarter are also in place [13]