TotalEnergies SE: Disclosure of Transactions in Own Shares

Rhea-AI Summary

TotalEnergies SE (TTE) announces share repurchase transactions totaling 2,798,275 shares at an average price of 59.95 EUR, amounting to 167,765,858.77 EUR, from February 12 to February 16, 2024.

Insights

Financial Analyst

A share repurchase program can be a significant indicator of a company's financial health and management's confidence in the business. TotalEnergies SE's recent buyback transaction, involving the repurchase of 2,798,275 shares at an average price of approximately 59.95 EUR per share, represents a substantial investment back into the company. This action suggests that the management believes the shares are undervalued and that investing in their own stock is a good use of capital.

From a financial perspective, these buybacks can be accretive to earnings per share (EPS) by reducing the number of shares outstanding, which in turn can increase the stock price if the market perceives the buyback as a positive signal. It also reflects a return of capital to shareholders, as it may indicate that the company did not find more attractive investment opportunities to grow the business or that it is generating more cash than needed for operations and growth.

However, the timing and price of the buyback are crucial. If the company repurchases shares at a price higher than their intrinsic value, it could result in a destruction of shareholder value. Additionally, investors should consider the opportunity cost of the buyback, as the funds used could have been allocated to other value-creating opportunities.

Market Research Analyst

Share repurchase programs are often well-received in the market as they can indicate a bullish outlook by the company's management. In the case of TotalEnergies SE, the repurchase of shares from various markets (XPAR, CEUX, TQEX, AQEU) could be interpreted as a strong signal of confidence to the market. The repurchase activity spread over multiple days and across different exchanges demonstrates a strategic approach to the buyback, possibly aimed at minimizing the impact on the share price.

It is important to analyze the broader industry context to understand the potential impact of such a buyback. In the energy sector, where TotalEnergies operates, factors such as oil prices, regulatory changes and shifts towards renewable energy sources can significantly impact company valuations. The repurchase might be a move to capitalize on temporary market mispricings due to these external factors.

Investors and stakeholders should monitor the company's subsequent financial statements to assess the impact of the buyback on key financial metrics and to understand how the reduction in equity affects the company's leverage and overall financial stability.

Economist

Share buybacks can have broader economic implications, particularly for a company the size of TotalEnergies SE. When a company of this magnitude engages in repurchasing its own shares, it can influence market liquidity and capital allocation within the economy. By reducing the number of shares available in the market, the company can potentially increase the stock's demand and price, which may have a positive feedback effect on market sentiment.

However, it is essential to consider the economic context in which these buybacks occur. For instance, in a low-interest-rate environment, companies might be more inclined to finance share repurchases through debt, which could increase their financial risk. Conversely, in a high-interest-rate environment, the opportunity cost of not investing in yield-generating assets becomes more significant.

The effect of such buybacks on the company's financial flexibility should also be considered. While buybacks can signal strength, they can also reduce the cash reserves that might be necessary for navigating economic downturns or for seizing strategic investment opportunities that may arise.

PARIS--(BUSINESS WIRE)-- Regulatory News:

In accordance with the authorization given by the ordinary shareholders’ general meeting on May 26, 2023, to trade on its shares and pursuant to applicable law on share repurchase, TotalEnergies SE (LEI: 529900S21EQ1BO4ESM68) (Paris:TTE) (LSE:TTE) (NYSE:TTE) declares the following purchases of its own shares (FR0000120271) from February 12 to February 16, 2024:

Transaction Date	Total daily volume (number of shares)	Daily weighted average purchase price of shares (EUR/share)	Amount of transactions (EUR)	Market (MIC Code)
12/02/2024	352,890	59.848778	21,120,035.27	XPAR
12/02/2024	144,870	59.847035	8,670,039.96	CEUX
12/02/2024	28,080	59.846908	1,680,501.18	TQEX
12/02/2024	24,000	59.846419	1,436,314.06	AQEU
13/02/2024	349,867	60.283606	21,091,244.38	XPAR
13/02/2024	144,842	60.283218	8,731,541.86	CEUX
13/02/2024	27,976	60.284350	1,686,514.98	TQEX
13/02/2024	23,670	60.284767	1,426,940.43	AQEU
14/02/2024	349,419	60.383027	21,098,976.91	XPAR
14/02/2024	144,087	60.383452	8,700,470.45	CEUX
14/02/2024	28,633	60.383746	1,728,967.80	TQEX
14/02/2024	23,813	60.384632	1,437,939.24	AQEU
15/02/2024	366,159	59.364623	21,736,890.99	XPAR
15/02/2024	150,833	59.363176	8,953,925.93	CEUX
15/02/2024	30,272	59.362574	1,797,023.84	TQEX
15/02/2024	25,074	59.366310	1,488,550.86	AQEU
16/02/2024	376,488	59.918167	22,558,470.86	XPAR
16/02/2024	152,714	59.920267	9,150,663.65	CEUX
16/02/2024	29,652	59.917625	1,776,677.42	TQEX
16/02/2024	24,936	59.920144	1,494,168.71	AQEU
Total	2,798,275	59.953314	167,765,858.77

Transaction details

In accordance with Article 5(1)(b) of Regulation (EU) No 596/2014 (the Market Abuse Regulation) a full breakdown of the individual trades are disclosed on the TotalEnergies website: https://totalenergies.com/investors/shares-and-dividends/total-shares/info/company-share-transactions

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, more sustainable, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

@TotalEnergies TotalEnergies TotalEnergies TotalEnergies

Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240219423123/en/

TotalEnergies

Media Relations:+33 (0)1 47 44 46 99l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations:+33 (0)1 47 44 46 46 l ir@totalenergies.com

Source: TotalEnergies SE

FAQ

How many shares did TotalEnergies SE (TTE) repurchase?

TotalEnergies SE repurchased 2,798,275 shares.

What was the average purchase price per share during the repurchase?

The average purchase price per share during the repurchase was 59.95 EUR.

How much was the total amount spent on share repurchases?

TotalEnergies SE spent 167,765,858.77 EUR on share repurchases.

Where can the full breakdown of individual trades be found?

The full breakdown of individual trades can be found on the TotalEnergies website: https://totalenergies.com/investors/shares-and-dividends/total-shares/info/company-share-transactions