TotalEnergies announces $7.5 billion cost savings program through 2030, cuts CAPEX guidance

TotalEnergies SE (NYSE: TTE) presented its strategy and outlook in New York, announcing a $7.5 billion savings program covering capital expenditure and operating expenses over 2026-2030, according to a company statement.

The French energy company reduced its net capital expenditure guidance to approximately $16 billion in 2026 and $15-17 billion annually during 2027-2030, representing a $1 billion per year reduction compared to previous guidance. Low-carbon capital expenditure will represent approximately $4 billion per year, including $3-4 billion annually for the Integrated Power business.

TotalEnergies plans to increase energy production by approximately 4% annually through 2030 while targeting a 50% reduction in Oil & Gas Scope 1+2 emissions by 2030 compared to 2015, and an 80% reduction in methane emissions by 2030 compared to 2020.

The company projects oil and gas growth of 3% per year between 2024 and 2030, with 95% of 2030 production either already operating or under development. Growth in 2025 and 2026 is expected to exceed 3% annually, driven by oil projects in the offshore United States, Brazil, Iraq, and Uganda, plus LNG and gas projects including NFE in Qatar and Jerun in Malaysia.

Integrated LNG cash flow is expected to grow more than 70% by 2030 compared to 2024 at $70 per barrel and $8 per million British thermal units. This growth stems from 50% sales growth primarily from LNG projects in the United States and Qatar, including Rio Grande LNG Train 1-4 and NFE and NFS projects.

TotalEnergies plans to increase electricity production by approximately 20% annually through 2030, targeting 100-120 terawatt hours per year of electricity production, with 70% renewable and 30% flexible gas. The Integrated Power segment is expected to achieve positive free cash flow by 2028 and a return on average capital employed of 12% by 2030.

The company anticipates free cash flow growth of around $10 billion by 2030 compared to 2024. The Board of Directors confirmed a shareholder return policy of more than 40% of annual cash flow and authorized $1.5 billion in share buybacks for the fourth quarter 2025, totaling $7.5 billion for the full year.

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