TotalEnergies Inks $5.9B Deal for EPH Power Assets
French energy major to acquire 50% stake in flexible power portfolio from Czech billionaire Daniel Křetínský’s EPH, accelerating its integrated power strategy across Europe.
TotalEnergies has agreed to a significant €5.1 billion ($5.9 billion) deal to acquire a 50% stake in the European flexible power generation assets of Energetický a průmyslový holding (EPH), the energy conglomerate controlled by Czech billionaire Daniel Křetínský. The move dramatically expands the French energy giant's footprint in the European electricity market and accelerates its strategy to balance intermittent renewable energy sources with on-demand power.
The transaction, which will be settled through the issuance of approximately 95.4 million new TotalEnergies shares, values the entire EPH portfolio at an enterprise value of €10.6 billion. The deal provides TotalEnergies with access to over 14 gigawatts (GW) of power generation capacity, primarily from gas-fired plants, across key European markets including Italy, the UK, Ireland, the Netherlands, and France.
Shares of TotalEnergies, which trade on the New York Stock Exchange under the ticker TTE, were trading at $65.40 in recent activity. The company commands a market capitalization of over $141 billion.
Strategic Pivot to Integrated Power
The acquisition is a cornerstone of TotalEnergies’ “Integrated Power” strategy, a plan designed to navigate the global shift towards decarbonization. As European grids incorporate more wind and solar power, the need for flexible, dispatchable power sources like natural gas plants and battery storage has become critical to ensure grid stability when renewable output is low. This portfolio of assets provides exactly that capability, offering a crucial backstop for the company's growing renewable energy portfolio.
"This transaction enables us to accelerate our gas-to-power integration strategy in Europe," TotalEnergies stated in a press release announcing the deal. The company emphasized that the flexible generation assets will complement its renewable energy projects, enhance its trading capabilities, and allow it to offer more reliable power to its customers.
For EPH, the partnership unlocks significant value and provides a strategic alliance with one of the world's largest energy companies. The deal structure allows EPH to retain a 50% stake while monetizing a significant portion of its investment.
Financial Implications and Market Outlook
TotalEnergies expects the acquisition to be immediately accretive to its earnings and cash flow. The company projects the deal will boost its cash flow from operations by approximately $750 million per year over the next five years. Reflecting the strategic shift and capital efficiency of the acquisition, TotalEnergies also revised its future spending plans, lowering its annual net capital expenditure guidance by $1 billion to a range of $14-16 billion for the 2026-2030 period.
The deal comes as the European energy landscape continues to face volatility. The transition away from Russian gas has highlighted the strategic importance of reliable domestic power generation. Gas-fired power plants, while still reliant on fossil fuels, are seen by many in the industry as a necessary transitional tool to support the expansion of renewables without compromising energy security.
Wall Street analysts maintain a cautiously optimistic view on TotalEnergies, with an average price target of approximately $70, suggesting potential upside from its current trading level. The company's diversified model, which spans from legacy oil and gas to a rapidly expanding low-carbon energy business, is often cited as a key strength. This acquisition further solidifies its position as a leader in the energy transition among the global oil majors.
The transaction is subject to consultation with employee representative bodies and customary regulatory approvals, with completion expected in mid-2026.