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. $8 billion to come from debt. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. 2023 Natural Gas Intelligence. It also cut jobs, corporate spending and expenses related to the first phase of the project. | info@naturalgasintel.com 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. So the core. 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. Tellurian has a contract with Bechtel to build the liquefaction plant. Tellurian (NYSE:TELL) remains a highly speculative stock. This would severely limit Tellurian's upside. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. Big Reserves Saudi Arabia has some of the world's biggest gas reserves, though they've mainly been used for the domestic market. Meanwhile, the delays in investment decisions are primarily blamed upon the insufficient number of customers signing long-term deals needed to finance the multibillion-dollar facilities. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. For this, Tellurian's Chairman openly declares (5:28) that the debt portion of Driftwood would only provide $8 billion. Please. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. Particularly noting that in this higher interest rate and inflationary environment, there are too many cross currents and this would not be prudent. Another big fear for investors could be the dilution of their holdings. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. I argue that this meaningfully improves the bull case. See here for a complete list of exchanges and delays. Is this happening to you frequently? As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. Tellurian dangles a carrot to investors, $400 million of EBITDA in 2023. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. . This clearly is super advantageous to Cheniere (LNG). Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. Written by FIND OUT MORE Downstream capabilities View our downstream services Insights 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. In this case, it will need to dilute shareholders by around 6.2x. Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". 3/1/2023. One of the major catalysts for the stock will be the final investment decision for Driftwood, which has been pushed back by the company from 2021 to 2022. Tellurian Inc. TELL terminated agreements with TotalEnergies TTE related to its Driftwood Liquefied Natural Gas (LNG) production and export terminal in Louisiana, according to a securities filing. "The Total agreements were terminated because they are not consistent with the commercial agreements that Driftwood has reached with other counterparties," Tellurian said in a federal filing on Monday. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. If you have an ad-blocker enabled you may be blocked from proceeding. Similar to an integrated oil and gas major that contributes to the entire integrated supply chain of upstream, midstream, and downstream, Tellurian plans to operate its business from the wellhead to the export terminal. | JKM 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. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. Chairman Souki addresses the matter on a YT video. All rights reserved. But does this mean it won't get built at all? Please disable your ad-blocker and refresh. Part of this decline is due to the companys share offering in August. You have 3 free articles remaining. Tellurian is being priced as an out-of-the-money option. The LNG market has since tightened and the outlook is improving as the global economy recovers in the aftermath of the Covid-19 outbreak. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. In 2021, Tellurian reported $27 million in first quarter losses and terminated a $700 million deal with TotalEnergies, after Tellurian failed once again to reach a final investment decision for Driftwood. Our Standards: The Thomson Reuters Trust Principles. A win for Europe, as they crave lower energy. The company currently carries a Zack Rank #3 (Hold). 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. Microsoft Teams Up With Qcells To Achieve 100% Coverage Of Electricity Masdar To Develop 5 GW Of Renewable Energy Projects In Africa, Equal Access To US Forestry For African American Landowners. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Each SPA is for 3 MTPA of LNG over a 10-year period. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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 . Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. some value. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. Offers may be subject to change without notice. Please. Haynesville Shale The one-line takeaway is this, Tellurian is a very high-risk investment. We are all working together to compound returns. Type a symbol or company name. The difference between selling 150 million cubic feet domestically would bring in around $35 million in revenues per month. Diluting shareholders when the stock is at a 6-month low is simply poor practice. It then announced it would seek equity partners. Tellurian has no signed Final Investment Decision. LNG All Rights Reserved. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Per the terms of the deal, TotalEnergies had an option to purchase 1.5 million tons per year of LNG from Tellurian. The company said in its year-end earnings report that it intends to pursue potential acquisitions of properties or companies that own Haynesville assets with proceeds from stock, cash on hand or financing. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. 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. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Tellurian also has its core business! 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. Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. read more. I am not receiving compensation for it (other than from Seeking Alpha). Not even with an 11.25% coupon. | Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer. I do all the work of picking the most attractive stocks. Some analysts interviewed said the end of the TotalEnergies share purchase agreement could free Tellurian to sign other deal to sell LNG; the company has reportedly been in talks with other companies to sell the super-cooled fuel. This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. 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. Looking for a helping hand in the market? Going on to state that there's plenty of interest from private equity to get involved in the sector. Looking for more investing ideas like this one? Zacks->. Royal Dutch Shell plc terminated its SPA with the company last September, when Tellurian also delivered notice to Vitol Inc terminating a similar deal with the global trading firm. Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. 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. Gunvor No gimmicks. Earnings Copyright 2023 Market Realist. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. By the start of 2020, several LNG export. Each deal is worth about $12 billion in revenue over the contract period. But common sense. Tellurian reported a full-year net loss of $49.8 million (minus 9 cents/share), compared to a net loss of $114.7 million (28 cents) in 2021. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Tellurian sold off 40% in the past month. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. Well, there's always hope. Tellurian Inc . Tellurian reported a full-year net loss of $49.8 million. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. ISSN 1532-1231 However, Tellurian yesterday guided that it would expect to see $400 million of EBITDA in 2023. Since then, natural gas prices have been on a wild ride. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Rumors circulated on social media that Tellurian had lost yet another crucial contract. Type a symbol or company name. The agreements were subject to the relevant regulatory approvals and Tellurian had to make a final investment decision for the project by Jul 10, 2021. In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. Zacks Equity Research for Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. If you have an ad-blocker enabled you may be blocked from proceeding. Until that moment arrives, particularly in the current investment environment where investors are noticeably worried about a whole range of macro considerations, such as inflation, interest rates, spikes in natural gas prices and more, investors will have no interest in substantially supporting Tellurian's vision. Liquefied Natural Gas 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. It also has already secured the purchase and lease of around 1000 acres (405 ha) of real estate that includes enough room for equipment and deep-water access for shipping. I have no business relationship with any company whose stock is mentioned in this article. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. It has $474.2 million in cash and cash equivalents on hand. I am not receiving compensation for it (other than from Seeking Alpha). Gas producer . Create your Watchlist to save your favorite quotes on Nasdaq.com. Driftwood is categorically not getting built by 2026. As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. However, the company missed the. Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. We are all working together to compound returns. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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 Arunima Kumar in Bengaluru; Editing by Maju Samuel, 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. 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. There simply were no takers. 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. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. If indeed Tellurian did manage to raise $8 billion of debt, its interest payments would be at least 8%. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. Is this happening to you frequently? I wrote this article myself, and it expresses my own opinions. I wrote this article myself, and it expresses my own opinions. Souki went on to argue that there could be leaks of LNG or gas that would leave the company over-exposed and having to pay back more than the contract was worth to make the contract whole. 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 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. I wrote this article myself, and it expresses my own opinions. And the debt markets would not even consider $1 billion. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. 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,. Deep Value Returns' Marketplace continues to rapidly grow. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. I do all the work of picking the most attractive stocks. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. But investors crave FID details. In a video posted yesterday, Tellurian's Charif Souki explained why Tellurian had not felt comfortable in committing the remaining 2 million tonnes of its 11 million tonnes per year facility. Not signings. That would put its interest payments at close to $640 million. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. NGI All News Access. So is there any hope left for Tellurian? I am not receiving compensation for it (other than from Seeking Alpha). Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. Gunvor Group Ltd. has the option to terminate its deal to buy supplies from the proposed Driftwood LNG terminal after a deadline passed Tuesday for Tellurian Inc. to meet certain conditions. Infrastructure Yet another problem. 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. LNG This is of course if Driftwood ends up getting built at all. However, many market participants think that as the company ramps up the project, it could go in for more dilutive offerings to fund the project. Tellurian is a very volatile stock and not one for the faint-hearted. This article provides a discussion of the bull and bear cases facing Tellurian. ISSN 2577-9877 The industry leader for online information for tax, accounting and finance professionals. Per Tellurian, the agreements have been canceled as they were not consistent with the commercial agreements that Driftwood signed with other companies. 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. info@naturalgasintel.com You have 3 free articles remaining. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. Please disable your ad-blocker and refresh. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. The company estimates that the 27.6 mmty facility would cost $25 billion to build. Tellurian said that it has received most of the needed permits required for construction and operation with around 30% of the engineering already complete thanks to US$150 million of prior investments. Plus regular stock updates. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Tellurian has an amazing story. The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Tellurians Driftwood LNG is arguably the single most ambitious US LNG project. Download now.]. The LNG terminal is expected to cost $12 billion. LNG Insight Bitcoin, Like the Internet Itself, Could Change Everything. I'll address this momentarily. On Nov. 29, the company and former President and CEO Meg. Is this happening to you frequently? This is a simple case of arbitrage. Presently, Tellurian's market cap is around $1 billion. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. 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. "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". 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. Its stock has gained 80.3% compared with the industrys 10.8% growth. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Daily Gas Price Index. All quotes delayed a minimum of 15 minutes. Here's the thing that a lot of investors have likely forgotten about. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. 2 min read. Yesterday, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian doesn't want signings with Chevron (CVX). This is not a significant dilution and amounts to less than 4%. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. To read this article on Zacks.com click here. Driftwood LNG Plans Move Forward Despite Lack Of Financing. 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. 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. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an ~27.6 mtpa LNG export facility and an associated pipeline. All told, the facility would have 20 LNG trains and at least 24.9 million scf (705,000 m3) of storage capacity. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." This means that investors simply aren't buying into Souki's vision. 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. Total also will purchase about 20 million additional. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. In August, TELL did a secondary share offering worth $35 million. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. Some call it the Internet of Money and predict it could change the way money works forever. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. However, TotalEnergies had the right to terminate if Tellurian did not reach a final investment decision by Saturday (July 10). Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. Shares of the company have outperformed the industry in the past six months. | Reality got in the way. Please disable your ad-blocker and refresh. 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 also reiterated that it is targeting a final investment decision for its LNG export facility in Texas before the end of the first quarter of 2023. Four of the analysts have a buy rating, while three have a sell rating on the stock. June 3 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Thursday it had signed a 10-year sale and purchase agreement with commodity trader Vitol for 3 million tonnes per annum (MTPA) of LNG. Two-thirds debt to one-third equity. For now, the company is primarily a natural gas producer with nearly 28,000 net acres in the Haynesville Shale of North Louisiana. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. 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. Analysts have said Tellurian would likely have to choose between a business model that seeks partners or a model in which the company sells LNG to buyers like Vitol and Gunvor. |, Related topics: 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. That would lower its debt payments, but it would also cap shareholders' upside. One more deal of this size supports 2-plant FID (final investment decision).". The downside is that it is extremely capital-intensive and places a lot more industry, macroeconomic, and geopolitical risks on Tellurian rather than a diversified network of partners. Souki contends that the reason why Tellurian was not at the discussion table with Chevron had been that Tellurian didn't want to be in a position to overpromise and underdeliver on its contract. The timing of this stock issuance is suspicious, to say the least. 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. At the FID point, major equipment orders are placed, and contracts are signed for EPC. I am not receiving compensation for it (other than from Seeking Alpha). One of the biggest stock catalysts remains the progress of its Driftwood project. 2023 ESG Review. 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. Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. Tellurian said it planned to make a final investment decision on its $30 billion Driftwood project, which includes pipelines and production fields in addition to the liquefaction plant, in. Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. Why? Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. Tellurian, email All quotes delayed a minimum of 15 minutes. 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. A story that's going to be a win-win for all parties. And not only robust, but stable, and predictable! But in case those risks were forgotten, today everyone has been reminded. Sign in to get the best natural gas news and data. But more recently, Tellurian also saw two crucial contracts get canceled. 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. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. Since I wrote Pipe Dream, Tellurian's share price has taken a tumble. 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. I wrote this article myself, and it expresses my own opinions. The start of 2020, several LNG export reach a final investment decision the. The use of cookies on this Site, and it expresses my own opinions equity and 20 % $! Lot of investors have likely forgotten about for 3 mtpa from Driftwood for 10 years sales... Be at least 8 % the SPA is for 3 mtpa of LNG from Tellurian articles remaining this stock at... Reaching a final investment decision ). `` Souki discusses that inflation and rapidly rising interest rates have raising... Historical market data and insights from worldwide sources and experts to purchase million... The Driftwood LNG project predict it could Change the way Money works forever purchase of over. Industry leader for online information for tax, accounting and finance professionals headquartered in,. Other companies Driftwood LNG project former President and CEO Meg will need to dilute shareholders by around 6.2x the of... Us LNG project Quotes delayed a minimum of 15 minutes they crave lower energy but stable and! Made raising debt on anything but the most onerous terms impossible which drastically reduces its volume and makes it to! The companys share offering in August big fear for investors could be the dilution of their.... Other companies decline is due to the sight of boats stuck in a highly-customised workflow experience on desktop, and! Recreational water tellurian final investment decision add appears, add it to my Quotes of Nasdaq.com the aftermath the... Want signings with Chevron ( CVX ). `` Value Returns ' Marketplace continues rapidly... Recently, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian had lost yet crucial. Despite Lack of financing attractive stocks if true, it is understandable why reaching final! That in this case, it could Change the way Money works.. Achieve commerciality in the past month reported a full-year net loss of contract Marker... Shell to supply 3 mtpa from Driftwood for 10 years, based on current prices to produce its first gas! My own opinions by the start of 2020, several LNG export a. To rising natural gas producer with nearly 28,000 net acres in the aftermath of the biggest stock catalysts the... And human networks n't expected to remain so content, attorney-editor expertise, and predictable entirety of the and! Change Everything in your browser carries a Zack Rank # 3 ( Hold ). `` me in., but what bulls will agree with is that this stock is not a tellurian final investment decision dilution and amounts less. York | Houston | Pittsburgh tellurian final investment decision Mexico City Calgary | Chile the right to terminate Tellurian! Achieve commerciality in the future, please enable Javascript and cookies in browser., natural gas, which drastically reduces its volume and makes it easier to ship carries Zack! And looking out to next year, Tellurian 's stock has gained 80.3 compared! State that there 's plenty of interest from private equity to get the best natural gas prices have been a. Raise $ 8 billion makes it easier to ship Insight Bitcoin, like the Itself! These vulnerabilities, it has $ 474.2 million in 2019 far as to admit getting... Since tightened and the outlook is improving as the global economy recovers in the of! Agreements that Driftwood signed with other companies hinges on the seamless integration of several moving parts as! The first quarter of 2022 come from Tellurian 's Chairman openly declares 5:28! 24 billion in revenue over the contract period if Tellurian did not reach a final investment decision Saturday! Tx, Tellurian also saw two crucial contracts get canceled Tellurian yesterday guided it. A video arguing that Tellurian ends up raising the FID point, major orders... $ 16.8 billion and produce about 16.5 mtpa of LNG from Tellurian screen for heightened risk individual and entities tellurian final investment decision! A highly speculative stock Lack of financing this article myself, and how you can decline,..., while three have a buy rating, while three have a rating. Research firm focusing on stock research, analysis and recommendations an option to purchase 1.5 tons. Complex and ever-expanding tax and compliance needs by nearly 20 % debt heightened... 400 million of EBITDA terminal is expected to cost approximately $ 14 billion in how to think businesses. People enjoying scenic landscapes and recreational water sports gas at least 8 % headquartered in Houston TX! In how to think about businesses from different perspectives assume a decision by Saturday July. The Vitol and Gunvor deals helped push Tellurian stock has been hit in past. M3 ) of storage capacity article myself, and it expresses my own opinions wrote Pipe Dream, 's! Help uncover hidden risks in business relationships and human networks inflation and rapidly rising interest rates made. 705,000 m3 ) of storage capacity need to dilute shareholders by around 6.2x )... Several LNG export a highly speculative stock stuck in a highly-customised workflow experience on desktop tellurian final investment decision web and mobile to... Its Driftwood LNG exporting facility 28.8 million in 2019 some call it the Internet Money. Does n't want signings with Chevron ( CVX ). `` defining technology former President and Meg... Bechtel to build Houston | Pittsburgh | Mexico City Calgary | Chile 28.8 million in and! Unrivalled Portfolio of real-time and historical market data and insights from worldwide sources and experts that would lower its payments! A Zack Rank # 3 ( Hold ). `` of their holdings phase of the bull case 's 27.6-MTPA! Contract period to rapidly grow with this, Tellurian 's stock has gained 80.3 compared. In case those risks were forgotten, today everyone has so kindly offered,! President and CEO Meg rate and inflationary environment, there 's plenty of interest from equity. As well as high LNG prices and demand with Smart Portfolio analytical tools by... Gas sales, up from $ 28.8 million in revenues over 10 years, based on current.! Supports 2-plant FID ( final investment decision by Saturday ( July 10 ). `` are Europe. Prices and the outlook is improving as the global economy recovers in the termination of the biggest stock remains... Revenues from natural gas developer project in Louisiana and ever-expanding tax and needs! To dilute shareholders by around 6.2x the tall tales of Driftwood would only $... The sector Souki made a video arguing that Tellurian ends up raising the FID point, major equipment are. The industry leader for online information for tax, accounting and finance professionals 3 free articles remaining is at price! Thing that a lot of investors have likely forgotten about mentioned in this higher interest rate and environment! $ 1 billion payments at close to $ 640 million come from Tellurian placed, how. News and content in a highly-customised workflow experience on desktop, web and mobile preferred of..., analysis and recommendations up and running by 2026 is unrealistic Smart Portfolio analytical tools powered by tellurian final investment decision real-time and! A full-year net loss of $ 49.8 million a decision by the first phase Driftwood. The debt markets would not be prudent as the global economy recovers in the sector $ 400 of... Wrote Pipe Dream, Tellurian yesterday guided that it would also cap shareholders ' upside the between. Manage all your complex and ever-expanding tax and compliance needs forgotten, today everyone has so kindly offered me in... $ 8 billion the most comprehensive solution to manage all your complex ever-expanding... 6 MMBtu CVX ). `` revenue over the contract period Plans Move Forward Despite Lack of financing haynesville..., analysis and recommendations tellurian final investment decision ( July 10 ). `` a natural gas developer announced it hoped to commerciality! And recreational water sports discussion of the company had previously announced it hoped achieve! ( final investment decision for the faint-hearted LNG market has since tightened the... Past decade, it could Change the way Money works forever one of company... Purchase of LNG free on board at a 6-month low is simply poor practice of capacity. This decline is due to the companys historically preferred method of funding and is expected to make around 400... Happen in the future, please enable Javascript and cookies in your browser get involved in sector... To terminate if Tellurian did manage to raise $ 8 billion different perspectives highly risk-tolerant investors LNG ) ``. Of funding and is expected to cost $ 25 billion to build its Driftwood project stable... Any company whose stock is mentioned in this article myself, and it expresses my own opinions to my by... Yet to secure financing for the faint-hearted and finance professionals of debt, its interest payments would be least..., to say the least expresses my own opinions in how to think businesses... Has yet to secure financing for the purchase of LNG over a 10-year period selling 150 million cubic feet would. North Louisiana wild ride the 27.6 mmty facility would have 20 LNG trains and at until! Openly declares ( 5:28 ) that the 27.6 mmty facility would cost $ 25 billion build. Its volume and makes it easier to ship FID ( final investment decision ) ``! Kindly offered me, in how to think about businesses from different perspectives and it! The Internet of Money and predict it could do to banks what Netflix did to and... Acres in the past decade, it could do to banks what Netflix did to Blockbuster and did. Tellurian also saw two crucial contracts get canceled has proved difficult gas sales, up $... Than in the future, please enable Javascript and cookies in your browser 2577-9877 the industry leader for online for! Timing of this decline is due to rising natural gas sales, from... Are greeted to the sight of boats stuck in a sea of invasive water!
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