TotalEnergies TTE announced that its UK Upstream Oil & Gas business has merged with NEO NEXT, forming NEO NEXT+. TTE will control 47.5% stake in the new company, which will have a production capacity of more than 250,000 barrels of oil equivalent per day (Boe/d).
TotalEnergies has been operating in the U.K. for the past 60 years, producing about 27% of UK Continental Shelf gas in 2025, with an average output of 104,500 boe/d.
Post-merger, NEO NEXT+ has become one of the largest independent UK Continental Shelf producers. The transaction will further strengthen the companies’ long-term commitment to the U.K. energy sector.
Merger and Acquisitions in the Oil and Energy Sector
Mergers and acquisitions help a company expand its operations and market share. They can lead to better use of resources, higher production volumes, lower costs and improved profit margins.
Recently, Coterra Energy Inc. CTRA and Devon Energy DVN have entered into a definitive agreement to merge through an all-stock transaction, creating a large-cap shale operator with high-quality assets in the core Delaware Basin. The transaction, approved by the boards of both companies, is expected to close in the second quarter of 2026.
Share Price Movement of TTE
In the past month, shares of TTE have rallied 10.8% compared with the industry’s 17.0% growth.
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TTE’s Zacks Rank
TotalEnergies currently carries a Zacks Rank #3 (Hold).
Stock to Consider
One better-ranked stock to consider from the same sector is Equinor ASA EQNR, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Equinor ASA 2026 EPS is pegged at $3.87, suggesting year-over-year growth of 56.68%. EQNR's dividend yield is 2.88% better than its industry’s yield of 1.49%.
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Devon Energy Corporation (DVN): Free Stock Analysis Report
Equinor ASA (EQNR): Free Stock Analysis Report
Coterra Energy Inc. (CTRA): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).