TotalEnergies Considers $5B Neptune Purchase

TotalEnergies (NYSE: TTE) is looking at a possible takeover of independent Neptune Energy Group Ltd, anonymous sources familiar with the matter told Bloomberg on Thursday.

TotalEnergies is said to have conducted early-stage talks with Neptune about a potential takeover, Bloomberg sources revealed.

Neptune Energy Group is a gas-weighted company (76%) backed by private equity investor Carlyle Group Inc. and CVC Capital Partners, boasting 552 mmboe in proven and probable (2P) reserves and an average daily production of 135,000 boepd.

Neptune has assets in Norway, the Netherlands, the UK, Germany, Egypt, Algeria, Indonesia, and Australia, according to the company’s website, with its Cygnus field supplying 6% of the UK’s total gas demand.

Neptune could be valued at as much as $5-$6 billion in a sale. TotalEnergies was trading up 0.69% by Thursday afternoon at $64.50 per share.

Talks are still ongoing, and no deal has yet been reached.

Eni had expressed interest in November in acquiring Neptune Energy as well, but talks fizzled out over differing valuations. Neptune said in late March that it would forge ahead with new talks after the Eni deal fell through, and was said to be working with advisers as it talked to potential buyers.

While TotalEnergies could be looking to get its hands on Neptune Energy, it reached a deal last month to sell off 2,200 retail gas stations in Europe to Canadian convenience store operator Alimentation Couche-Tard Inc for $3.3 billion, citing “the transformation of mobility” that changes the way customers use service stations.

TotalEnergies has an existing plan to reduce its crude oil product sales by 30 percent by 2030 as it attempts to reduce carbon emissions.

By Julianne Geiger for Oilprice.com

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