TotalEnergies Expands U.S. Offshore Footprint by Acquiring New Stake

TotalEnergies SE TTE announced the acquisition of a 25% working interest in a portfolio of exploration leases Offshore U.S. from Chevron Corporation CVX. This deal would increase TotalEnergies' offshore U.S. exploration acreage, combining a variety of geological features and prospectivity, and is consistent with the ongoing objective of expanding its exploration portfolio with low-cost and low-emission choices.Additionally, TotalEnergies is increasing its presence in Southeast Asia by acquiring interests in blocks offshore Malaysia and Indonesia from PETRONAS, with a focus on gas and liquefied natural gas (“LNG”).TotalEnergies is deploying its integrated energy model across the United States, where it has been active since 1957. Since 2022, TotalEnergies has invested nearly $11 billion in the United States to accelerate development in oil, LNG and low-carbon electricity.Key Details of TTE’s DealThe 40 federal leases on the Outer Continental Shelf, which cover an area of about 386 square miles (1,000 square kilometers) and are situated between109 and 205 miles (175 and 330 km) offshore, consist of 18 blocks in the East Breaks area, nine in the Mississippi Canyon area, and 13 in the Walker Ridge area.In addition to the current partnerships in Ballymore (40% TotalEnergies), which achieved first production this year, Anchor (37.14%), where production began last year, and the Jack (25%) and Tahiti (17%) producing assets, the transaction gives access to multiple offshore exploration plays and prospects, bolstering the successful U.S. collaboration with Chevron.TotalEnergies expects to mature exploration drill decisions on these blocks utilizing advanced 3D imaging technology to unlock large remaining U.S. Offshore production potential.Other Companies Focus on Offshore Exploration OpportunitiesThe offshore assets of oil and gas companies provide several benefits, primarily through access to vast and untapped resources under the ocean floor. The offshore fields play a crucial role in meeting the growing global demand for energy and ensuring a steady, reliable supply of oil and gas for both domestic and international markets. Along with TTE and Chevron, some companies like Petrobras PBR and ExxonMobil Corporation XOM are also focused on offshore exploration opportunities. Chevron is actively pursuing offshore exploration, particularly in the Gulf of Mexico and the Eastern Mediterranean. Its renewed interest effectively doubles the area available for exploration, expanding the offshore blocks to a vast 47,000 square kilometers (18,146 square miles). This not only increases the possibility of finding commercially viable energy reserves but also opens up opportunities for both CVX and Greece’s energy future.CVX’s long-term (three to five years) earnings growth rate is 8.29%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year decrease of 6.2%.Petrobras is actively evaluating opportunities in India’s upcoming oil block auction, signaling a strategic interest in expanding its offshore exploration portfolio beyond South America. The auction, set to take place later this year, features deep and ultra-deepwater blocks, which align with Petrobras’ operational strengths and technical expertise. Petrobras confirmed that it has already acquired seismic and geological data for blocks being offered in India’s hydrocarbon licensing round.The Zacks Consensus Estimate for PBR’s 2025 sales indicates a year-over-year decrease of 8.9%. It delivered an average earnings surprise of 3.3% in the last four quarters. ExxonMobil is actively involved in offshore oil and gas exploration, with a particular focus on deepwater projects globally. The company has significant acreage positions and ongoing exploration activities in areas like Guyana, Brazil and the Eastern Mediterranean. Additionally, ExxonMobil is pursuing exploration opportunities offshore India. XOM’s long-term earnings growth rate is 8.19%. It delivered an average earnings surprise of 3.6% in the last four quarters.TTE Stock’s Price PerformanceIn the past six months, shares of TotalEnergies have risen 18.3% compared with the industry’s 17.2% growth.     Image Source: Zacks Investment ResearchTTE’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks