*

Kretinsky's EPH receives $5.1 billion in TotalEnergies

shares

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TotalEnergies acquires 50% of more than 14 GW portfolio

*

Gas, biomass plants in UK, Italy, Netherlands, France,

Ireland

*

TotalEnergies lowers capex guidance

(Adds EPH as third-largest shareholder paragraph 3; adds CEO

quote paragraph 5; analyst comments in paragraphs 9, 13)

By America Hernandez and Alban Kacher

PARIS, Nov 17 (Reuters) - TotalEnergies said

on Monday it would more than double its net gas generation

capacity by acquiring 50% of Czech energy company EPH's Western

European flexible power generation portfolio in a 5.1 billion

euro ($5.9 billion) all-stock deal.

The French oil major wants to become a leading global

integrated electricity player, combining renewables and

gas-fired generation to meet rising demand from sectors such as

data centres while increasing power trading profits.

EPH, which is majority-owned by Czech billionaire Daniel

Kretinsky, will get 5.1 billion euros in newly issued

TotalEngergies shares, making it the French company's

third-largest investor with about 4.1% of its capital.

This would put it behind Total's employees with 8.9% and

Blackrock ( BLK ) at 6.7%, LSEG and company data show.

"This positions us as one of the largest electricity players in

Europe, boosts our clean power sales ... and gives a new

dimension to our trading business," TotalEnergies CEO Patrick

Pouyanne told investors on a call.

TotalEnergies shares were up 0.6% to 56.57 euros at 1241GMT.

'REASONABLE PRICE'

TotalEnergies has been under investor pressure to accelerate

disposals and lower its debt after more than $3 billion in

acquisitions this year.

But it has also been hunting for opportunities to buy more

gas-fired power plants, which are paid handsomely to produce

when renewable energy stops.

Bernstein analyst Irene Himona called the price "reasonable" and

said it would take TotalEnergies five to six quarters to buy

back the shares, assuming an oil price at $65 per barrel.

The deal creates a 50-50 joint venture managing a more than

14 gigawatt portfolio of gas-fired and biomass plants and

battery systems across Italy, Britain, Ireland, the Netherlands

and France.

TotalEnergies will contribute about 2 million tons of liquefied

natural gas annually to produce power at the plants, generating

15 Terawatt-hours (TWh) that it can market to consumers or

trade.

It said the assets would help its Integrated Power unit

generate cash flow from 2027, rather than 2028.

RBC analyst Biraj Borkhataria said that given Total's target of

boosting electricity production to 100-120 TWh by 2030, the deal

"effectively derisks a significant portion of the growth ..

front-loading the spending, with the acquisition price

effectively offset by $1 billion lower capex over 2026-2030".

KNOWN PARTNER

Kretinsky, one of Europe's mostprominent energy and media

investors, has built one of the continent's largest energy

holdings over the past two decades by snapping up coal, then

gas-fired assets that utilities were selling to improve their

green credentials.

TotalEnergies has previously done gas plant deals with EPH in

Britain and France.

Pouyanne said Kretinsky requested payment in shares, expressing

a desire to become a long-term shareholder, notably due to

Total's green investments, which outpace other majors.

"Through the shareholding ... we are implementing our strategic

ambition to diversify our geographic exposure, currently

concentrated in the EU and UK," Kretinsky said in a statement.

Completion of the deal is expected by mid-2026, subject to

regulatory approvals.

($1 = 0.8613 euros)