So, here's a story about an energy company deciding where to put its money. TotalEnergies SE (TTE) announced on Monday that it's done with offshore wind in the United States. It signed settlement agreements with the U.S. Department of the Interior (DOI) to give up its leases. Just like that, no more plans to build wind farms off the coasts of the Carolinas or New York.
The agreements cover the Carolina Long Bay lease (Lease OCS-A 0545) and the New York Bight lease (Lease OCS-A 0538), which the company picked up back in 2022. It's a clean exit. And the terms are pretty interesting.
The Deal: Get Your Money Back, Then Spend It Differently
Under this settlement, TotalEnergies gets its lease fees back. But it's not just taking the cash and running. The company has agreed to invest an equal amount of money right back into U.S. energy—specifically, gas and power production and export capacity.
Why the change of heart? The company says its studies showed that building offshore wind projects in the U.S. is more expensive than doing it in Europe. It also argued that these projects could make power less affordable for American consumers. With other technologies available to meet rising electricity demand at a lower cost, TotalEnergies decided there was no good reason to keep throwing capital at U.S. offshore wind.
The Big Pivot: From Wind to Gas and LNG
"TotalEnergies is pleased to sign these settlement agreements with the DOI and to support the Administration's Energy Policy," said Patrick Pouyanné, the company's Chairman and CEO. "Considering that the development of offshore wind projects is not in the country's interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees."
He didn't stop there. "Furthermore, these agreements, under which we will reinvest the refunded lease fees to finance the construction of the 29 Mt Rio Grande LNG plant and the development of our oil and gas activities, allows us to support the development of U.S. gas production and export. These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development. We believe this is a more efficient use of capital in the United States."
So, the refund isn't going into a bank account; it's going straight into building an LNG plant and boosting oil and gas work. It's a strategic shift, framed as a more efficient allocation of resources.
Meanwhile, in Alaska...
In a related move, TotalEnergies recently signed a letter of intent with Glenfarne, the lead developer of the Alaska LNG project. The deal is for the long-term offtake of 2 million tons per year of liquefied natural gas over 20 years. Of course, this is still subject to a final investment decision, but it shows where the company's focus is leaning—toward gas.
What's the Stock Doing?
Let's talk about the stock, because it's been on a run. TotalEnergies was trading about 8.8% above its 20-day simple moving average ($81.98) and roughly 27.0% above its 100-day simple moving average ($70.24). That longer-term trend is firmly pointed higher. Over the past 12 months, shares have gained 41.60%, and they're sitting much closer to the 52-week high ($91.38) than the low ($52.78).
The technical picture is a bit mixed, though. The Relative Strength Index (RSI) was at 77.33, which is in overbought territory. That often signals the stock might need to cool off or consolidate, even if the overall trend stays intact. On the other hand, the Moving Average Convergence Divergence (MACD) remained bullish. The MACD line was at 3.5379, above the signal line at 2.8524 (histogram 0.6854). A golden cross back in July continues to support the broader uptrend.
So, you've got overbought conditions suggesting a potential pause, but bullish momentum indicators saying the trend is still your friend. Traders often watch key levels in these situations:
- Key Resistance: $91.50
- Key Support: $82.00
Earnings and What the Analysts Think
Looking ahead, the next major catalyst for the stock is expected to be the earnings report estimated for April 29, 2026. Here's what the market is anticipating:
- EPS Estimate: $1.92 (Up from $1.83 year-over-year)
- Revenue Estimate: $43.67 Billion (Down from $52.25 Billion year-over-year)
- Valuation: A P/E of 15.4x, which suggests a fair valuation relative to its peers
The analyst consensus currently sits at a Hold rating, with an average price target of $70.40. There have been some recent moves:
- Piper Sandler: Neutral (Raises Target to $92.00) on March 12
- JP Morgan: Upgraded to Overweight on March 2
- TD Cowen: Hold (Raises Target to $70.00) on January 22
ETF Exposure: Who Else Owns This Stock?
Because TotalEnergies is a major company, it shows up in a bunch of exchange-traded funds (ETFs). That means flows in and out of these funds can create automatic buying or selling pressure on the stock. Some of the top ETFs with exposure include:
So, if money pours into or out of these funds, it can move the needle for TotalEnergies shares, regardless of company-specific news.
As for the immediate price action, TotalEnergies shares were down 0.43% at $88.76 during premarket trading on Tuesday. The stock is knocking on the door of its 52-week high of $91.38.
