TotalEnergies expects Q2 production of nearly 2.4 mboe/d

TotalEnergies said its hydrocarbon production is expected to reach nearly 2.4 million barrels of oil equivalent per day (mboe/d) in the second quarter of 2026.

The company said production reflects 4% organic growth, according to a press release. The impact of the Middle East conflict on second-quarter output was approximately 210,000 barrels of oil equivalent per day, significantly below the previously guided 360,000 boe/d.

The lower-than-expected impact was driven by increased offshore production in the United Arab Emirates and the resumption of output in other countries across the region during June. Part of this production could not be lifted during the quarter and will be recognised in the Exploration & Production results based on crude prices at the end of June, when oil was trading below $70 per barrel.

The average realised liquids price reached $91.6 per barrel during the quarter, up $17.9 per barrel from the first quarter. Brent crude averaged $103.8 per barrel in the second quarter, compared with $81.1 per barrel in the previous quarter.

TotalEnergies expects cash flow from its Exploration & Production segment to increase by around $1 billion compared with the first quarter.

By contrast, cash flow and earnings from its Integrated LNG business are expected to decline significantly, reflecting weaker performance in gas trading activities.

The company also expects earnings and cash flow from its Downstream segment to improve from the first quarter, supported by stronger refining and petrochemical margins. Its European Refining Margin Indicator (ERMI) rose to $13.5 per barrel in the second quarter from $11.4 per barrel in the first quarter.

Working capital is expected to decrease by $1 billion to $1.5 billion during the quarter, primarily due to lower hydrocarbon prices at the end of the reporting period. As a result, the company expects its gearing ratio to improve by 2 percentage points by the end of the second quarter.

Net investments are expected to remain in line with the company's full-year guidance of $15 billion.