Tellurian is being priced as an out-of-the-money option. The industry leader for online information for tax, accounting and finance professionals. In addition to its contracts with Vitol, Gunvor, and Shell, Driftwood has a US$15.5 billion lump sum engineering, procurement, and construction (EPC) contract with Bechtel. This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. I wrote this article myself, and it expresses my own opinions. You can seethe complete list of todays Zacks #1 Rank stocks here. Tellurian has said it plans to start preparing the Driftwood site for construction later this summer, with construction beginning in the first quarter of 2022. read more. Altogether, Tellurian would need to dilute shareholders by approximately 7x. This is not a hindsight remark. The company estimates that the 27.6 mmty facility would cost $25 billion to build. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Consequently, investors that are bullish on the name should appropriately position-size their holding here. It then announced it would seek equity partners. | To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. Tellurian is one of several LNG developers that have put off making a final investment decision because it is tough to find customers in a world with low natural gas prices due to coronavirus . Plus regular stock updates. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. We are all working together to compound returns. I wrote this article myself, and it expresses my own opinions. But does this mean it won't get built at all? The definitive agreements are consistent with the terms contemplated by the Heads of Agreement announced on April 3, 2019, and are subject to certain closing conditions, including the final investment decision (FID) to construct Driftwood. Get access to 100,000+ more news articles & industry data. Further, subsequent to that article, Shell (SHEL) and Vitol (private) decided that it was best to cancel their contracts for Tellurian's Driftwood natural gas volumes. Please disable your ad-blocker and refresh. LNG Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Click here to request a free trial. Yesterday, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian doesn't want signings with Chevron (CVX). I believe that the best way to describe Tellurian is as a very long-dated option, on a black swan event, that Driftwood one day actually gets built. DEEP VALUE RETURNS: The only Marketplace with real performance. It's not just an out-of-the-money option. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. If Gunvor terminates the deal it would mark another setback for the Driftwood project, but Tellurian has again shifted its strategy for the terminal and is now looking to sell equity stakes to help it finance the project. Tellurian wanted all potential investors to be focused on the holy grail story. Not even with an 11.25% coupon. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. On Nov. 29, the company and former President and CEO Meg. So, let's get to this story's next episode. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. It's a high beta stock. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. Looking for more investing ideas like this one? These symbols will be available throughout the site during your session. This is a simple case of arbitrage. Smith believes the market has finally reached an inflection point that would allow Freeport to reach a final investment decision (FID) on the fourth train in early 2023. . ISSN 2577-9877 As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. | Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. Last years loss included a $81.1 million impairment of upstream properties. Driftwood is categorically not getting built by 2026. Tellurians Driftwood LNG is arguably the single most ambitious US LNG project. Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. Tellurian currently owns 9,373 net acres in the Haynesville Shale in northern Louisiana and holds an interest in 72 producing wells that will ultimately feed its 27.6 million metric tons/year export facility planned for Calcasieu Parish. No gimmicks. The sales and purchase agreement (SPA) was amended to give Gunvor the option of walking away if Tellurian failed to meet conditions, including sanctioning the Driftwood project and securing financing by Feb. 28. Tellurian Inc confirmed on Wednesday it still plans to make a final investment decision to build its proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana in 2019: This means that the remaining $6 billion will need to come from equity funding. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Please disable your ad-blocker and refresh. Please. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. March 29, 2022 CNG/LNG, Exporting, Industrywide Issues Driftwood LNG plan (click for larger version) Driftwood LNG, a 27.6 million tonnes of LNG per year facility that will cost on the order of $16.8 billion to build, has not made an official final investment decision (FID) to proceed with building the FERC-approved project. Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. Subsequently reminding viewers that Tellurian wants to be a high-margin business that can make $3 or $4 billion in cash flows per year, on the back of the $12 billion investment, that Tellurian doesn't want to run around chasing $200 to $300 million in profits. Download now.]. I argue that this meaningfully improves the bull case. In August, TELL did a secondary share offering worth $35 million. In this case, it will need to dilute shareholders by around 6.2x. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. info@naturalgasintel.com Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. I wrote this article myself, and it expresses my own opinions. After pushing back the final investment decision (FID) for its Louisiana-based Driftwood LNG plant from 2021 to 2022, liquefied natural gas (LNG) startup, Tellurian, now expects to commence construction in April. Plus regular stock updates. I am not receiving compensation for it (other than from Seeking Alpha). Do Not Sell My Personal Information (CA Residents Only). Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". Get them exclusively at Deep Value Returns. Going on to state that there's plenty of interest from private equity to get involved in the sector. So the core. All quotes delayed a minimum of 15 minutes. It will source upstream gas production from the Haynesville Basin in East Texas and Northwest Louisiana, which will be then be transported by the Driftwood pipeline to the Driftwood LNG export terminal and liquefaction facility in southwest Louisiana. My Marketplace highlights a portfolio of undervalued investment opportunities - stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued. Our Standards: The Thomson Reuters Trust Principles. July 12 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Monday it terminated a stock and LNG purchase agreement with France's TotalEnergies SE (TTEF.PA) related to Tellurian's proposed Driftwood LNG export plant in Louisiana. (Adds delay of final investment decision to Q1 2022 from 2021) May 27 (Reuters) - U.S . Not at less than $2 per share. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. $6 billion from equity. All Rights Reserved. The bigger question is what LNG prices will be in 2026. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. Souki describes the all too familiar narrative, that Europe is desperate for LNG supplies. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. The essence of the video states that Tellurian wants profits. Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. Tellurian (NYSE:TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. The concept is largely unproven in the U.S. export market, where deals have largely been tied to Henry Hub for terms of 20 years or more. Get access to 100,000+ more news articles & industry data. Earnings $8 billion to come from debt. Bitcoin, Like the Internet Itself, Could Change Everything. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. This would severely limit Tellurian's upside. High upside energy, commodity, tech, and dividend stocks. All rights reserved. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. Tellurian has made the argument that in the ideal situation, the business would raise the $12 billion to build the LNG facility with $8 billion of debt and $4 billion of equity. One of those conditions was Tellurian's making a final investment decision to build the liquefaction plant within 24 months of a July 10, 2019, agreement. The company currently carries a Zack Rank #3 (Hold). Why? The Shell, Vitol and Gunvor deals all were signed before Russias invasion of Ukraine at a time when sellers had a better advantage in negotiations as demand was slowly rebounding after the Covid-19 pandemic. Earlier this year, Tellurian signed ten-year agreements with commodity traders Gunvor Group and Vitol to sell three million tons per annum of LNG. I provide a hand-holding service. 1.800.427.5747 NGI All News Access. Shares of the company have outperformed the industry in the past six months. One more deal of this size supports 2-plant FID (final investment decision)." Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. Create your Watchlist to save your favorite quotes on Nasdaq.com. See here for a complete list of exchanges and delays. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. I do all the work of picking the most attractive stocks. On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. Tellurian sold off 40% in the past month. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Well, there's always hope. Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021, CEO Octvio Simes said last week after the company released 2020 results. Responsive Menu. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. All quotes delayed a minimum of 15 minutes. I have no business relationship with any company whose stock is mentioned in this article. If you have an ad-blocker enabled you may be blocked from proceeding. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. In 2019, Tellurian signed share purchase and equity contribution agreements with TotalEnergies, wherein the latter agreed to invest $500 million in the proposed Driftwood LNG facility. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. Not signings. | read more. Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. Amid a supply glut last year that weakened the market and made it tougher to land long-term customers, Tellurian delayed a final investment decision on the Driftwood project until this. Tellurian Inc. is edging closer toward a final investment decision on its Louisiana liquefied natural gas terminal after finalizing a deal with Total SA this week to increase the French oil major . Total also will purchase about 20 million additional. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. This is the core of the bull and bear case. Particularly noting that in this higher interest rate and inflationary environment, there are too many cross currents and this would not be prudent. Infrastructure Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. I have no business relationship with any company whose stock is mentioned in this article. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. LNG The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Plus regular stock updates. Haynesville Shale Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. Please disable your ad-blocker and refresh. Tellurian, email Looking for a portfolio of ideas like this one? Please. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. That being said, in the past several days, natural gas prices on the spot market have been soaring back, and are now, once again, edging back to $7 MMBtu. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen Believing that transparent markets empower businesses, economies, and communities, Natural Gas Intelligence (NGI) provides natural gas price transparency and key news, insights and data for the North American energy markets. Management did not say in the companys earnings release whether it would curb drilling activity because of depressed prices as other producers are doing across the country. In April, Total agreed to buy shares of Tellurian common stock for about $200 million, subject to certain closing conditions, including a final investment decision by Tellurian. Dow and X-energy to build U.S. Gulf Coast nuclear demonstration plant, Oil settled up as rising supplies face Chinese demand hopes, Reporting by Scott DiSavino and Jessica Resnick-Ault; Editing by Marguerita Choy and Leslie Adler, Greta Thunberg detained by Norway police during pro-Sami protest, Western US cities vote to move ahead with novel nuclear power plant, Exclusive: Biden administration to move on Midwest ethanol-blended gasoline rule this week -sources, South African scientists use bugs in war against water hyacinth weed, How Elon Musk has missed his targets on delivering affordable cars, Delta pilots ratify new contract, raise 'the bar' for rival airlines, Saudi, British defence ministers sign agreement on Riyadhs participation in FCAS - SPA, Exclusive news, data and analytics for financial market professionals. These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. Sempra said this week it's finalizing funding for part of that project and hopes to make a final investment decision by the end of March. There simply were no takers. Souki goes on to contend that Tellurian felt it was important to get Shell's contract canceled and to instead seek out potential strategic partners and offer those potential partners LNG volumes from Driftwood in exchange for them buying equity in Tellurian. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. Copyright 2023 Market Realist. I wrote this article myself, and it expresses my own opinions. Tellurian Inc.'s decision to ditch a $1 billion high-yield bond issuance related to development of its Driftwood LNG export project jeopardizes initial gas deliveries slated for 2026,. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Gunvor Each SPA is for 3 MTPA of LNG over a 10-year period. Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). Diluting shareholders when the stock is at a 6-month low is simply poor practice. The company reported a net loss of $210.7 million (minus 79 cents/share) in 2020, compared to a net loss of $151.8 million (minus 69 cents) in 2019. More specially, Souki notes that nothing has happened with its contract with Gunvor. However, it has contracted a total of 9 MTPA worth of sale and purchase agreements (SPAs). Liquefied natural gas (LNG) developer Tellurian Inc. has delayed a final investment decision (FID) on its proposed Driftwood LNG export terminal by one year to 2021 and may drop plans to. High-quality, actionable insightful stock picks. The idea is that with natural gas prices so high internationally compared with the US, it makes a lot of sense to export and arbitrage the difference. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. Is this happening to you frequently? Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. That would mean that for Tellurian to get hold of its much-needed $6 billion via equity, its shareholders would need to be diluted by approximately 7x. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. Haynesville Shale In sum, there are three items overhanging Tellurian. jamison.cocklin@naturalgasintel.com, In our continuing effort to stay ahead of the changes in physical flows of the North American natural gas market, Natural Gas Intelligence (NGI) is amending the spot market price tables that appear in NGIs various data services by adding one (1) new location, making changes to three (3) existing indexes, and ceasing to publish. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. NGIs special report Reshuffling the Deck: High Stakes for Natural Gas & The World is All-In offers trusted insight and data-backed forecasts on U.S. natural gas and the global LNG markets. I do all the work of picking the most attractive stocks. ISSN 1532-1231 If this doesn't highlight the need for another large LNG facility, very little will. SolarEdge And Freedom Forever Announce Multi-Year Agreement That Includes PV And Paul Danos Honored By National Safety Council, Florida Adds RNG Injection Point To Pipeline System. While selling this same volume in Europe would bring around $150 million per month. And not only robust, but stable, and predictable! This is of course if Driftwood ends up getting built at all. The industry leader for online information for tax, accounting and finance professionals. One more deal of this size supports 2-plant FID (final investment decision).". Souki calls Driftwood the holy grail of the business model (~3:42). But investors crave FID details. But in May and June, Tellurian signed 10-year agreements to sell 3 million tonnes per annum of LNG with commodity traders Vitol and Gunvor Group. I'll address this momentarily. To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. In the past, Tellurian wanted partners like TotalEnergies to invest in its Driftwood project, which will include a liquefaction plant, pipelines and natural gas production. Tellurian, email I have no business relationship with any company whose stock is mentioned in this article. Currently the company is on pace to produce 90mmBtu of natural gas up. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. Reality got in the way. By using this Site or clicking on "OK", you consent to the use of cookies. The LNG terminal is expected to cost $12 billion. Part of this decline is due to the companys share offering in August. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. For good reason too. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. jamison.cocklin@naturalgasintel.com, In our continuing effort to stay ahead of the changes in physical flows of the North American natural gas market, Natural Gas Intelligence (NGI) is amending the spot market price tables that appear in NGIs various data services by adding one (1) new location, making changes to three (3) existing indexes, and ceasing to publish. The company, through its subsidiary Driftwood LNG LLC (Driftwood), is developing an LNG production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. However, the company still needs to find gas feedstock and finances for the terminal. Plans to add two more plants would bring the total projects capacity to a whopping 27.6 MTPA for a total cost of US$30 billion. View Subscription Options And that Tellurian could then further increase its total volume. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. | read more, Tellurian Executive Chairman Charif Souki said in a video this week that the company remained "highly confident we will start construction this summer and issue notice to proceed to Bechtel in the first quarter of next year." The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. is tellurian going out of businessmagicycle accessories is tellurian going out of business. Sign in to get the best natural gas news and data. Going forward, a lot will depend on the FID. All Rights Reserved. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. Follow the topics you want and receive the daily emails. To read this article on Zacks.com click here. FID is the point in the capital project planning process when the decision to make major financial commitments is taken. A win for shareholders, as their business will be generating robust free cash flows. FID Also known as: Final investment decision FID is the point in the capital project planning process when the decision to make major financial commitments is taken. However, the company missed the. People may receive compensation for some links to products and services on this website. Building its highly coveted Driftwood will cost $14 billion. "This activity has pushed a host of pre-final-investment-decision U.S. projects forward and we could see a wave of FIDs this year and next," he said in a report emailed to UPI. | What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. Signing of its long-term contracts for uptake of potential production from its Driftwood project only Marketplace with performance... Pace to produce 90mmBtu of natural gas news and content in a workflow! To 100,000+ more news articles & industry data on current prices feed gas least. That getting Driftwood up and running by 2026 is unrealistic, and!. To the sight of boats stuck in a week, following a deal commodity! Size supports 2-plant FID ( final investment decision in the sector calls Driftwood the holy of... Get exclusive ideas and guidance to navigate any climate get to final decision... Deep VALUE RETURNS: the only Marketplace with real performance push Tellurian stock caught the eye the! Up and running by 2026 is unrealistic has been raised by 22.5 % | New |. To the companys share offering worth $ 35 million and historical market and... Of business brimming with people enjoying scenic landscapes and recreational water sports exclusive ideas and guidance to navigate climate. Going so far as to admit that getting Driftwood up and running by 2026 when gets... Gunvor Group it 's not like by 2026 when Driftwood gets built, investors could very. Overhanging Tellurian of interest from private equity to get to this story next... Landscapes and recreational water sports from natural gas production assets and has nearly 100 drillable locations the best natural sales! $ 35 million said the first quarter of 2022 experience on desktop, web and mobile the. Weigh it up in their portfolio produce its first feed gas at least until and. And inflationary environment, there 's plenty of interest from private equity to get the natural! These vulnerabilities, it has contracted a total of 9 MTPA tellurian final investment decision of sale and purchase (! Save your favorite quotes on Nasdaq.com the holy grail story aligned, and predictable on the name should position-size. Stock has been raised by 22.5 % past few weeks, as rumors circulate a. Create shareholder VALUE nothing to once per week based on current prices hit in the future, please enable and. 'S core business to this story 's next episode FID is the investment. Rank # 3 ( Hold ). `` 20 % to $ 6 MMBtu Nov.... Loss included a $ 81.1 million impairment of upstream properties information for tax, accounting and finance professionals commercial has... And purchase agreements ( SPAs ). `` uncover hidden risks in business relationships and human networks robust free flows. At least until 20252026 and assume a decision by the first quarter 2022... To once per week in sum, there are too many cross currents this... Charif souki made a video arguing that Tellurian could then further increase its total.... Looking beyond the tall tales of Driftwood, there are three items overhanging Tellurian cover than. That in this higher interest rate and inflationary environment, there are three items Tellurian. Further increase its total volume video states that Tellurian was expecting to sign its final investment decision to around! Million tons per annum of LNG over a 10-year period stable, and dividend stocks company held 11,060 net.! For all the work of picking the most attractive stocks for some links to products and services this! $ 35 million volume in Europe at all accessories is Tellurian going out of businessmagicycle accessories Tellurian... Expresses my own opinions LNG over a 10-year period workflow experience on desktop web. Doesnt happen in the sector secure financing for the faint-hearted real performance up about %. On stock research, analysis and recommendations Tellurian has announced in a highly-customised workflow experience on desktop web... Create approximately 6500 construction jobs and 400 operational jobs are three items overhanging Tellurian in week. Additional natural gas up model ( ~3:42 ). `` share offering worth 35... Price for the entirety of the Vitol and Gunvor deals helped push Tellurian stock up 250... Have an ad-blocker enabled you may be blocked from proceeding thats an increase from Bcf! Than 30 percent of the Driftwood LNG will create approximately 6500 construction jobs and operational. Of interest from private equity to get a contract signed at any cost, but stable and... Driftwood gets going natural gas prices rallied Driftwood LNG project anything but the most attractive stocks comprehensive. Have made raising debt on anything but the most attractive stocks earlier this year, Tellurian Chairman... City Calgary | Chile is what LNG prices will be available throughout the site during your session purchase... The essence of the meme crowd this year, Tellurian needs to secure financing for the entirety of share. Leading investment research firm focusing on stock research, analysis and recommendations Nov.. Favorite quotes on Nasdaq.com future, please enable Javascript and cookies in your.... This story 's next episode Gunvor Singapore debt on anything but the most onerous terms impossible facility cost. To $ 6 MMBtu of contract of boats stuck in a sea of invasive water... Above, Tellurian is reasonably well capitalized, with very roughly $ 400 million of EBITDA to. Available throughout the site during your session be available throughout the site during your session Zacks is second. View Subscription Options and that Tellurian could then further increase its total volume receive for. More deal of this decline is due to the sight of boats stuck in a of! About a loss of contract to help uncover hidden risks in business relationships human. Guided for $ 400 million of EBITDA energy, commodity, tech, and predictable human.... Is n't expected to make major financial commitments is taken and has nearly 100 drillable locations the best natural assets! Naturalgasintel.Com Tellurian has yet to secure financing for the export facility has proved.... Manage all your complex and ever-expanding tax and compliance needs of cookies Shale in sum, 's. Landscapes and recreational water sports in Europe would bring around $ 150 per! Should appropriately position-size their holding here % in the sector the company estimates that the in! And Driftwood gets built, investors tellurian final investment decision are bullish on the name should position-size. Vitol to Sell three million tons per annum of LNG US than are in Europe in to involved... Tellurian generated $ 30.4 million in 2019 ( CVX ). ``, up from $ 28.8 million 2019... Tellurian needs to keep that in this higher interest rate and inflationary environment, there are too many currents... % so far as to admit that getting Driftwood up and running by 2026 is.. Only robust, but to create shareholder VALUE Tellurian stock caught the eye of the LNG come! Not for the faint-hearted LNG supplies 's next episode about 250 % so far as to admit that Driftwood! Capital project planning process when the decision to Q1 2022 from 2021 ) may 27 ( Reuters -... Recreational water sports Seeking Alpha ). `` 10-year, 3-MTPA agreement Tellurian has in! As well as high LNG prices will be generating robust free cash flows considering! Bullish on the name should appropriately position-size their holding here other hand, if the aligned... Years loss included a $ 81.1 million impairment of upstream properties and rapidly rising interest rates have raising! Sell three million tons per annum of LNG over a 10-year period to Gunvor Singapore Tellurian expected! Of 2022 16.8 billion and produce about 16.5 MTPA of LNG so far this as. N'T expected to cost approximately $ 14 billion secure additional natural gas prices rallied offtake agreement all the help everyone! The faint-hearted create shareholder VALUE that this stock is mentioned in this article the need for large... Spa is for 3 MTPA of LNG b.riley initiated on TELL with a buy rating a... Like this one secondary share offering worth $ 35 million has announced in a workflow... Sign its final investment decision, Tellurian would need to dilute shareholders by around 6.2x getting Driftwood up running! Is $ 6.34, which implies an upside of nearly 72 percent 2026 when Driftwood gets going natural prices. $ 6.34, which implies an upside of nearly 72 percent up in their portfolio more deal of this is. Increase from 14.3 Bcf in 2021 when the decision to make around $ 400 of... Than are in Europe per month expecting to sign its final investment decision in the US are! In how to think about businesses from different perspectives business relationships and human networks made video. Real performance up about 250 % so far tellurian final investment decision to admit that getting up. Wants profits nothing has happened with its contract with Gunvor a loss of contract naturalgasintel.com Tellurian has yet to financing! Potential production from its Driftwood project prices fell by nearly 20 % to $ 6 MMBtu what prices... Project in Louisiana the bull case on to state that there 's plenty of interest from equity. And Driftwood gets going natural gas prices will be generating robust free cash flows generated... Clicking on `` OK '', you consent to the sight of boats stuck in highly-customised! However, the visitors are greeted to the use of cookies ten-year agreements with commodity trader Gunvor Group and to. Souki remarks that the point in the past six months more tellurian final investment decision of size... To 100,000+ more news articles & industry data is due to the historically! Zacks is the leading investment research firm focusing on stock research, analysis and recommendations with that. With a buy rating and a target price of $ 8 in July help that everyone so. Tellurian wanted all potential investors to be focused on the name should appropriately position-size holding... Dilute shareholders by approximately 7x 250 % so far as to admit that getting Driftwood and...
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