TotalEnergies Merges with NEO NEXT to Form UK's Largest Independent Oil and Gas Producer
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 2 day ago0mins
- Merger Strategy: TotalEnergies merges with NEO NEXT to create NEO NEXT+, where TotalEnergies holds a 47.5% stake, positioning it as the largest independent oil and gas producer in the UK with a projected production of over 250,000 barrels of oil equivalent per day by 2026, significantly enhancing market competitiveness.
- Asset Portfolio Optimization: The new entity will integrate TotalEnergies' upstream assets with those of NEO Energy and Repsol UK, creating a diverse asset portfolio that enhances cash flow and promotes stability in energy supply, thereby supporting the UK's energy security.
- Operational Efficiency Improvement: TotalEnergies' focus on low-cost and low-emission operations is expected to deliver economies of scale for NEO NEXT+, enhancing the company's cash flow generation capabilities and ensuring long-term sustainability.
- Market Commitment: This transaction demonstrates TotalEnergies' long-term commitment to the UK oil and gas sector, with completion expected in the first half of 2026, further solidifying its leadership position in the North Sea.
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Analyst Views on TOT
Wall Street analysts forecast TOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TOT is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 21.336
Low
Averages
High
Current: 21.336
Low
Averages
High
JPMorgan
Matthew Lofting
Overweight -> Neutral
downgrade
2025-12-05
Reason
JPMorgan
Matthew Lofting
Price Target
2025-12-05
downgrade
Overweight -> Neutral
Reason
JPMorgan analyst Matthew Lofting downgraded TotalEnergies to Neutral from Overweight with a price target of EUR 55, down from EUR 58.50. The firm cites greater conviction in Shell's free cash flow profile and limited valuation differentiation for the downgrade of TotalEnergies.
BofA
Buy
maintain
2025-12-05
Reason
BofA
Price Target
2025-12-05
maintain
Buy
Reason
BofA raised the firm's price target on TotalEnergies to EUR 66 from EUR 65 and keeps a Buy rating on the shares. Lower oil and gas prices and deflating refining margins will "leave the sector grappling for more FCF cushions than it is already sitting on" and the firm sees "fewer inorganic cushions available that are not already discounted in elevated share prices," the analyst tells investors in a European oil and gas look ahead note for 2026.
Scotiabank
Paul Cheng
Hold
Maintains
$65 → $60
2025-04-11
Reason
Scotiabank
Paul Cheng
Price Target
$65 → $60
2025-04-11
Maintains
Hold
Reason
Citigroup
Alastair Syme
Hold
to
Strong Buy
Upgrades
n/a
2025-03-26
Reason
Citigroup
Alastair Syme
Price Target
n/a
2025-03-26
Upgrades
Hold
to
Strong Buy
Reason
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About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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