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TotalEnergies Sees Higher Q2 Upstream, Downstream Results as Oil Prices Rise

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TotalEnergies (TTE) expects Q2 hydrocarbon production to be nearly 2.4 million barrels of oil equivalent per day, supported by about 4% organic growth, the company said Thursday.

Average liquids price is expected to be $91.60 per barrel, compared with $73.70/bbl in Q1 and $65.60/bbl a year ago. Average gas price in Q2 is expected to drop to $5.55 per million British thermal unit from $5.59/MMBtu in Q1 and $5.63/MMBtu a year ago.

The company expects exploration and production cash flow to increase by about $1 billion from Q1 on higher liquids prices, partially affected by production that was not lifted due to Middle East disruptions.

TotalEnergies expects integrated LNG results to decline due to weaker gas trading, while integrated power and downstream cash flow are projected to increase following the EPH transaction, stronger refining margins and resilient oil trading.

The company also expects working capital to decline by $1 billion to $1.5 billion during the quarter and its gearing ratio to improve by about 2 percentage points.

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