Recent business developments highlight TotalEnergies' strategic focus on LNG expansion, operational restarts, and divestment from certain renewable projects.

• TotalEnergies announced its exit from U.S. offshore wind projects and plans to invest $1 billion in LNG under a U.S. government deal [N1].
• The company expanded its global LNG presence with new production commencing in Angola [N2].
• TotalEnergies restarted production at Libya's Mabruk oil field, resuming operations in a key asset [N5].
• Petrobras invested $28.7 million in the Libra Rocks project to support research in the Mero field, relevant to regional energy development [N6].

TotalEnergies' strategic shift to expand LNG production and export capacity, including new production in Angola and a major LNG export deal from Alaska, reflects a focus on growing segments within the energy transition. The company's exit from U.S. offshore wind projects to reallocate capital to LNG under a U.S. government deal indicates a targeted investment approach. Dividend increases and renewable energy supply agreements demonstrate operational strength and commitment to shareholder returns and sustainability.

The company faces risks from volatile crude oil and natural gas prices, regulatory and environmental policy changes, geopolitical instability in key production regions such as Libya, and currency fluctuations. The current liquidity ratios indicate tight short-term liquidity (current ratio below 1), which may constrain operational flexibility. Market demand shifts and technological disruptions could impact traditional energy segments. Execution risks exist in balancing legacy operations with renewable energy investments.

TotalEnergies benefits from a diversified and integrated energy business model that spans upstream production, LNG, refining, and renewables, providing operational flexibility and resilience to commodity price fluctuations. Its global footprint and long-term contracts, such as the 20-year LNG export agreement from Alaska, support stable cash flows. The company's investments in renewable energy and electric mobility position it to adapt to evolving energy markets and regulatory environments. Its scale and financial resources enable significant capital expenditures and risk management capabilities.

• Commodity Price Volatility: TotalEnergies' earnings and cash flow are sensitive to fluctuations in crude oil and natural gas prices, which can impact revenues and profitability.
• Regulatory and Environmental Risks: Changes in laws and regulations related to the environment and climate can affect operational costs, asset valuations, and investment decisions.
• Geopolitical and Operational Risks: Operations in politically unstable regions such as Libya expose the company to production disruptions and security risks.
• Liquidity Constraints: As of December 31, 2025, the current ratio of 0.97 and cash ratio of 0.28 indicate limited short-term liquidity buffer, which may affect the company's ability to meet short-term obligations.
• Market and Technological Changes: Shifts in consumer preferences, market conditions, and technological innovations may impact demand for traditional energy products and require adaptation.