(Boursier.com) — TotalEnergies camped below 60 euros this Friday, while TotalEnergies EP Canada Ltd finalized the sale to ConocoPhillips of a 50% interest in the Surmont oil sands asset, as well as certain associated logistics obligations. The transaction was concluded for a base amount of C$4.03 billion (approximately US$3 billion), plus additional payments of up to C$440 million (approximately US$330 million).
Including price adjustments, TotalEnergies received a cash payment at closing of 3.7 billion Canadian dollars (approximately US$2.75 billion). At the current price level of WCS (Western Canadian Select) and production of the asset, TotalEnergies would receive all of the additional payments within one year.
TotalEnergies also signed a agreement for the sale to Suncor of all the shares of TotalEnergies EP Canada Ltd., including in particular its interest in the Fort Hills oil sands asset as well as certain associated logistics obligations. The transaction amount amounts to 1.47 billion Canadian dollars (approximately US$1.1 billion). The completion of this transaction is expected by the end of 2023.
Serial revision
Among brokers’ opinions, Goldman Sachs proposes an adjusted target of 66 to 69 euros despite the recent correction in oil prices. Among other analyst adjustments, HSBC had already raised its price target to 73 euros and Jefferies remained buyer with a target raised to 70 euros. Bernstein (‘outperform’) had for his part raised the cursor to 78 euros, while Morgan Stanley (‘overweight’) had raised its target to 77 euros. The energy giant recently hit a historic high in the 65 euro zone, following announcements made by management during its recent investor day in New York.
The group plans to increase its hydrocarbon production by 2% to 3% per year over the next 5 years while drastically reducing emissions from its operations… While it also plans to increase its electricity production to more than 100 TWh by 2030 by investing 4 billion dollars per year, management has not forgotten its shareholders. The group is in fact counting on a return to shareholders of around 44% of its cash flow in 2023 and has set itself the objective of maintaining it at more than 40% beyond this year.
©2023 Boursier.com