TotalEnergies (TTE.US) boosts Q4 buybacks to $2.5 billion, pledges annual dividend growth of over 5% through 2030.

TotalEnergies (TTE.US) pledges to raise its dividend by more than 5% annually through 2030 and is stepping up share buybacks, as the French energy giant benefits from rising oil and gas output and surging prices. Europe's largest refiner said in a statement on Monday that it will buy back $2.5 billion of shares in the fourth quarter of 2026 and $2 billion to $2.5 billion in the first quarter of 2027. That is above the previously planned $1.5 billion buyback for the July-to-September quarter. The company expects its debt-to-equity ratio to fall below 10% by the end of this year. The statement was released ahead of the company's investor day in New York. Although TotalEnergies and some of its peers have been forced to halt oil and gas production around the Persian Gulf since the U.S.-Iran war broke out at the end of February this year, they are benefiting from soaring crude and fuel prices triggered by conflicts in the Middle East and between Russia and Ukraine. The company said that under the same price assumptions, its cash flow will grow by $10 billion from 2025 to 2030, as it plans to increase oil and gas production by more than 3% annually on average over the period. Power output is expected to grow by more than 20% annually on average. These tensions have brought a cash windfall to TotalEnergies, while rising energy prices are exacerbating the cost-of-living crisis, prompting French opposition parties to increasingly call for a tax on the company's profits. So far, the Macron government has refrained from doing so, while providing aid to farmers, fishermen and some low-income earners. At the same time, TotalEnergies has capped gasoline and diesel prices at its French filling stations to appease politicians and motorists. To support long-term growth, TotalEnergies plans net investment of $14 billion to $17 billion between 2027 and 2032. The company had previously planned to spend $14 billion to $16 billion annually between 2026 and 2030.