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Total: 6th on Our List of Integrated Energy Stocks

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Dec. 4 2020, Updated 10:53 a.m. ET

Total stock performance in the current quarter

Total (TOT) stock is sixth in terms of stock price appreciation among the six integrated energy stocks we’re comparing in this series. Suncor Energy (SU) has the top spot among the six. It’s followed by BP (BP), Royal Dutch Shell (RDS.A), ExxonMobil (XOM), and Chevron (CVX). Let’s see how Total stock has been performing.

Total stock has risen 6.8% since April 2, outperforming the SPDR S&P 500 ETF (SPY), which closely follows and tracks the S&P 500 Index. SPY has risen 5.2% in the same period. SU, BP, Shell, XOM, and CVX have risen 17.8%, 14.8%, 11.2%, 11%, and 10.7%, respectively, in the current quarter.

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Total’s moving averages

So far in the second quarter, Total’s 50-day moving average (or DMA) has stayed above its 200-DMA. The rise in TOT stock has led to a rise in its 50-DMA, which was 5.2% above its 200-DMA on April 2. It’s currently 7.3% above its 200-DMA.

What affected Total stock this quarter?

Total stock’s correlation coefficient compared to WTI prices in the current quarter is 0.51, implying a positive correlation. WTI prices have risen 6.7% this quarter.

During the quarter, Total expanded its upstream portfolio and decided not to continue with the South Pars 11 project in Iran. In a press release, the company said, “On 8 May 2018, President Donald Trump announced the United States’ decision to withdraw from the JCPOA [Joint Comprehensive Plan of Action, or the Iran nuclear deal] and to reinstate the US sanctions that were in force before the JCPOA’s implementation, subject to certain wind down periods.” Total said it would wrap up related operations in the project by November 4, except for its specific project waiver. It doesn’t expect the decision to impact its hydrocarbon production target of 5% CAGR (compound annual growth rate) from 2016 to 2020.

Total has also made a final investment decision to undertake the development of deepwater field Zinia 2 in offshore Angola. That could increase the output of its robust Block 17, which already has significant ongoing production. It also extended its association with Novatek by agreeing to acquire 10% in Arctic LNG 2, a mega LNG (liquefied natural gas) project in northern Siberia.

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