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TD Cowen analyst Jason Gabelman identified the integrated oil companies with the strongest outlooks for third-quarter results, with TotalEnergies leading the group as excess cash generation increases across the sector.
TotalEnergies remains TD Cowen's top pick, with performance expected to benefit from its Sept. 28 Investor Day. The analyst estimates a $0.35-per-share trading upside and a roughly equivalent improvement in free cash flow. TotalEnergies is also among the companies most likely to increase share buybacks in the near term given its distribution targets.
TD Cowen is also positive on Equinor ahead of earnings, citing strong gas prices and delayed tax payments that should support robust cash flow. The company is expected to deliver the largest EPS beat versus consensus among peers, while delayed tax payments could reduce net debt-to-capital by more than 5% quarter over quarter.
$TTE $EQNR
