TotalEnergies SE (NYSE:TTE) stock rose nearly 1% in Thursday’s premarket trading after the energy company announced the sale of a minority stake in a Malaysian gas project as it continues to streamline its upstream portfolio.
Malaysia Asset Sale Supports Portfolio Strategy
TotalEnergies said it will sell an 85% interest in Block 2E offshore Malaysia to INPEX, representing an 8.5% net interest in the Marjoram gas field under development, for $350 million.
The company said the transaction “crystallizes” the value of a minority, non-operated asset while allowing it to focus on operated projects and other growth opportunities in Malaysia.
Management also highlighted the recent startup of the Jerun gas field and reaffirmed Malaysia’s role as a strategic hub for “low-cost, low-emission” growth across Southeast Asia.
The announcement follows last week’s acquisition of a 10% interest in the Bab Gas Cap Concession in Abu Dhabi. Operated by ADNOC Onshore, the project targets production capacity of 1.5 billion cubic feet of gas per day.
Technical Picture Remains Weak
Despite Thursday’s gain, TotalEnergies remains under pressure from a technical standpoint.
The stock trades about 9.3% below its 20-day simple moving average and 13.8% below its 50-day moving average. However, it sits just above its 200-day moving average, a level that could provide long-term support.
The relative strength index stands at 19.92, indicating the shares are deeply oversold. That may increase the likelihood of a short-term rebound, although the broader trend remains negative.
Immediate resistance sits near $82, close to the 20-day exponential moving average. Support is around $63.50.
Earnings Due Later This Month
TotalEnergies is scheduled to report second-quarter results on July 23.
Analysts expect earnings of $2.91 per share, up from $1.57 a year earlier, on revenue of $53.77 billion versus $49.63 billion last year.
The stock trades at about 11.1 times earnings and carries a consensus Hold rating with an average analyst price forecast of $83.
TotalEnergies Price Action
TTE Stock Price Activity: TotalEnergies shares were up 0.91% at $75.48 during premarket trading on Thursday, according to Benzinga Pro data.
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