TotalEnergies

2021 Strategy & Outlook presentation

Regulatory News:

Patrick Pouyanné, Chairman and CEO, and members of the Executive Committee will present TotalEnergies’ (Paris:TTE) (LSE:TTE) (NYSE:TTE) Strategy & Outlook in Paris today. The webcast of the presentation in English is available on totalenergies.com.

Key messages of the presentation include:

TotalEnergies, a multi-energy company

TotalEnergies affirms its strategy as a multi-energy company active in oil, natural gas, renewables & electricity, biomass and hydrogen, benefitting all its stakeholders.

More energy, less emissions, always more sustainable

To satisfy growing global energy demand linked to worldwide population growth, TotalEnergies will increase its energy production by 30% from now to 2030, with growth coming half from electricity, essentially from renewables, and half from LNG. Its sales mix will evolve to 30% oil, 50% gas, 15% electricity and 5% biomass and hydrogen by 2030. Petroleum product sales will decrease by at least 30% over the period 2020-30.

TotalEnergies will maintain discipline on its investment program, which will be $13-15 billion per year for 2022-25 and will allocate 50% of these investments to growing its activities and 50% to maintaining the base of its activities. 50% of the growth investments will be dedicated to the development of new energies, mainly renewables and electricity, and the other 50% to natural gas, essentially LNG.

TotalEnergies is fully engaged toward its ambition to get to Net Zero by 2050 together with society. Scope 1+2 net operated oil & gas emissions worldwide will decrease by 40% between 2015 and 2030 and worldwide absolute Scope 3 emissions will be lower in 2030 compared to 2015. For that purpose, the carbon intensity of energy products used by its customers worldwide will decrease by at least 20% over same period. In addition, to accompany the Green Deal in Europe, TotalEnergies, a European company, has committed to reducing its Scope 1+2+3 emissions by 30% by 2030 vs 2015.

Hydrocarbons continue to generate strong cash flow to fund the transition and return to shareholders

Upstream production should grow by about 3% per year by 2026, driven by LNG which should grow by 6% per year. TotalEnergies’ oil production will reach its peak during the decade before declining. Over 2022-26, E&P will generate more than $5 billion per year of free cash flow at $50/b, with additional cash flow of $3.2 billion for a $10/b increase in Brent and $0.6 billion for a $1/Mbtu increase in European and Asian gas indexes.