TotalEnergies SE Stock: Strategic Asset Sale Amid Profit Slump

TotalEnergies SE has secured a $500 million deal by selling its 45% stake in two oil and gas fields in Argentina’s Vaca Muerta region to local partner YPF SA. The divestment, part of a portfolio optimization strategy, covers 51,000 net acres while retaining 183,000 net acres in the prolific Neuquén Basin. The company continues to produce 50,000 barrels of oil equivalent per day from operational blocks, reinforcing its strong position in Argentina, where it accounts for 25% of national gas production. Despite the sale, TotalEnergies maintains a diversified footprint, including offshore operations and renewable energy projects totaling 300 MW.

Financial Pressures Mount

The asset sale coincides with a challenging quarter, as TotalEnergies reported a 23% drop in adjusted net income to $3.6 billion—its weakest performance in four years. Plummeting oil prices, with Brent crude averaging $67.9 per barrel, and a 39% decline in refining profits exacerbated the downturn. Net debt surged 89% to $25.9 billion, raising concerns among analysts. While the integrated power segment saw a 14% gain, it failed to offset broader losses. The company plans additional asset sales, targeting $3.5 billion, to stabilize its balance sheet amid volatile market conditions.