7. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 18
TotalEnergies SE (NYSE:TTE), a conglomerate in the energy sector, is involved in producing and distributing oil, biofuels, and natural gas. The Integrated LNG division covers the entire natural gas supply chain, including the exploration and production of liquefied natural gas (LNG) and biogas, hydrogen, and gas trading activities.
Early in the year, the company signed a 16-year sale and purchase agreement to supply up to 0.8 million tons of LNG in Singapore starting in 2023. This contract highlights TotalEnergies SE (NYSE:TTE)’s dedication to backing Singapore’s energy safety and green initiatives while boosting its status as a leading international LNG supplier.
TotalEnergies SE (NYSE:TTE) is committed to becoming a company that does not release any carbon emissions into the atmosphere by the year 2050 and has already begun the necessary actions to reach this goal. It intends to increase its use of renewable energy sources. The company anticipates spending between $17 and $18 billion in the year 2024, with $5 billion allocated specifically to the Integrated Power sector.
The leadership team also focuses on growing the company’s LNG (Liquefied Natural Gas) business worldwide. In 2023, the company solidified its presence in Europe by launching two floating regasification terminals. Moreover, extending the agreements with Oman LNG for another 10 years and with Dalhart LNG for 5 years will enhance the company’s global LNG business.
The company delivered solid financial results for its fiscal 2023 amid an uncertain environment as adjusted net income rose to $23.2 billion and cash flow reached $35.9 billion. It also increased its dividend payments by 7.1% and completed 4$9 billion in buybacks.
TotalEnergies SE (NYSE:TTE) is one of the most financially stable LNG Companies, and it has a trailing 12-month cash flow from operations of $40.68 billion, which is notably greater than the sector’s average of $679.52 million. Likewise, its trailing 12-month cash flow per share is $11.59, which is notably greater than the sector’s average of $1.01.
Similarly, the company returns value to shareholders through dividends. It distributes a yearly dividend of $3.20 per share, equating to a dividend yield of 5.12% based on its current share value. Over the last four years, its average dividend yield has been 6.60%. Over the last five years, TotalEnergies SE (NYSE:TTE) ‘s dividend payments have increased at a 2% compound annual growth rate.
Insider Monkey reports that the number of hedge funds with stakes in the company remained steady at 18 in Q2 2024, unchanged from the previous quarter.
Here is what Aristotle Capital Management, LLC, an investment management company, said about TotalEnergies SE (NYSE:TTE) in its first quarter 2024 investor letter:
“During the quarter, we sold our positions in Phillips 66 and Sysco and invested in two new positions: Lowe’s Companies and TotalEnergies SE (NYSE:TTE).
Headquartered in Paris, France, TotalEnergies was founded in 1924 and is one of the world’s largest energy companies. The company operates in more than 130 countries and spans the entire energy value chain, producing and marketing oil and biofuels, liquid natural gas (LNG), renewables and electricity.
To meet the challenge of the energy transition and still ensure reliable energy in the short term, TotalEnergies has implemented a two-pillar strategy: on one end, the company continues to develop low-cost exploration and production projects, with LNG playing a vital role in the transition; on the other, it has been building its Integrated Power segment through investments in renewable power. As such, management plans to invest over 30% of total spending in low-carbon businesses and rank among the world’s top five providers of solar and wind energy by 2030. To emphasize this ambition, the company changed its name from Total to TotalEnergies in 2021…” (Click here to read the full text)
