TotalEnergies EP Gabon: A Golden Opportunity in the Energy Transition Crossroads

The energy sector is at a historic inflection point. As the world accelerates its shift toward renewables, companies like TotalEnergies EP Gabon are navigating a dual challenge: maintaining profitability in hydrocarbons while preparing for the low-carbon future. After its 2025 Annual Shareholders’ Meeting, here’s why investors should take note of this under-the-radar energy giant.

The Financial Fortitude to Pivot

Let’s start with the numbers. TotalEnergies EP Gabon just announced a $100 million dividend, reflecting a 346% surge in net income to $91 million in 2024 compared to 2023. Cash flow from operations jumped 38% to $312 million, all while maintaining a debt-free balance sheet. This isn’t just a snapshot of strength—it’s a war chest for future investments.

Crude oil prices are volatile, but TotalEnergies’ stock has historically outperformed when the company demonstrates operational efficiency. Gabon’s subsidiary delivered an 8% rise in crude production to 17 kb/d in 2024, proving its ability to grow even in a maturing oil basin. This resilience positions it well to weather market swings.

The Parent Company’s Renewable Playbook

While Gabon’s subsidiary focuses on oil, its parent, TotalEnergies SE, is leading the renewable charge. In 2024, the parent invested $4 billion in renewables, driving a 23% jump in net electricity production and reducing methane emissions by 55% versus 2020—exceeding its 2025 target by a year.

This isn’t just greenwashing. TotalEnergies has embedded sustainability into its DNA:
- Carbon intensity: Down 16.5% since 2015, surpassing its -14% goal.
- New targets: A -60% methane reduction by 2025 and a -17% drop in lifecycle carbon intensity.

Gabon’s subsidiary may not yet have its own solar farms, but it benefits from the parent’s expertise and capital. The question isn’t if it will pivot, but how soon.

Governance: Ready for the Transition?

The recent shareholder meeting brought key governance changes. Two new directors with energy sector transformation expertise joined the parent’s board, signaling a commitment to ESG-driven leadership. Meanwhile, Gabon’s subsidiary maintains a stable ownership structure (58% TotalEnergies SE, 25% Gabonese state), ensuring political and financial stability.

Critically, the company is addressing regulatory headwinds. The Gabonese tax audit, while ongoing, hasn’t dented its financials—a testament to its compliance rigor.

Why This Stock is Undervalued Now

The market hasn’t yet priced in TotalEnergies EP Gabon’s potential. Here’s why it’s a buy:
1. Cash-rich, debt-free: It can self-fund renewables without diluting shareholders.
2. Parent’s tech transfer: Access to TotalEnergies SE’s methane reduction and low-carbon tech could boost efficiency and ESG credibility.
3. Undiscovered asset: Investors focused on pure-play renewables often overlook hydrocarbon players with transition potential.

With a dividend yield of 2.2% (versus an average of 1.5% in African oil peers), you get income and growth upside.

Risks? Yes—but Manageable

• Oil price drops: A risk, but Gabon’s low-cost production (thanks to operational efficiency) offers a buffer.
• Transition delays: If Gabon lags in renewables, it could face ESG investor backlash. But the parent’s aggressive targets and governance changes suggest this is a priority.

Final Call: Buy Now

TotalEnergies EP Gabon is a rare bird: a profitable oil producer with a clear path to renewables, backed by a financially robust parent and strong governance. The $100 million dividend isn’t just a payout—it’s a signal of confidence.

This is a “buy the dip” opportunity. As the world demands cleaner energy, companies with both cash and a transition roadmap will outperform. TotalEnergies EP Gabon isn’t just surviving—it’s primed to thrive.

Act now—before the market catches up.