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. Infrastructure 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. Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. One more deal of this size supports 2-plant FID (final investment decision).". Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. | I have no business relationship with any company whose stock is mentioned in this article. Presently, Tellurian's market cap is around $1 billion. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. Tellurian shares were trading around $4.42 per share, up about 0.4%, on Monday afternoon. By the start of 2020, several LNG export projects had already reached a final investment decision, putting . Sign in to get the best natural gas news and data. May 27 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Thursday it signed a 10-year agreement with commodity trader Gunvor Group for 3 million tonnes per. 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. Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days. Plus regular stock updates. NGI All News Access. 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. Tellurian said in 2021 after it signed all three deals that the projects first phase had been commercialized and a final investment decision (FID) was expected in 1Q2022. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. 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. 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 CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. Gunvor Our Standards: The Thomson Reuters Trust Principles. 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. Responsive Menu. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." We are all working together to compound returns. 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. Please. can go wrong? Plus regular stock updates. | Some call it the Internet of Money and predict it could change the way money works forever. High-quality, actionable insightful stock picks. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. B.Riley analyst Liam Burke is positive on the stock. Driftwood is categorically not getting built by 2026. Well, there's always hope. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. esgreview.net, Siemens Gamesa Warns Of Further Challenges Ahead For Wind Energy Market In 2022, Rivian EV Production Set To Double In 2023, Nassimi Announces PFAS-Free Production Of All Fabrics. I wrote this article myself, and it expresses my own opinions. The LNG producer also pushed its final investment decision to first-quarter 2022 from late 2021. Please disable your ad-blocker and refresh. |, Related topics: Nikkiso Clean Energy & Industrial Gases Group Opens New Abu Dhabi Asahi/America Names New District Sales Manager, Sapphire Gas Solutions Provides LNG To Reduce Emissions From Asphalt Plants. 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. U.S. LNG exporters . And not only robust, but stable, and predictable! Sign in to get the best natural gas news and data. Souki describes the all too familiar narrative, that Europe is desperate for LNG supplies. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. View Subscription Options Particularly noting that in this higher interest rate and inflationary environment, there are too many cross currents and this would not be prudent. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. A win for Europe, as they crave lower energy. Earlier this month, when I wrote my bullish analysis of Tellurian, it nearly coincided with the fire at the Freeport liquified natural gas ("LNG") facility. To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. 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. Written by Type a symbol or company name. In June, TELL signed a long-term contract with Vitol for 3 mtpa. Since then, natural gas prices have been on a wild ride. 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. | In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. 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. These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. Zacks Equity Research for 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. 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. By the start of 2020, several LNG export. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. 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. Two-thirds debt to one-third equity. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. The bigger question is what LNG prices will be in 2026. Next, Tellurian's share price is trading at a multi-year low. read more. 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. 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. . WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. I'll address this momentarily. But common sense. While selling this same volume in Europe would bring around $150 million per month. 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. I argue that if Tellurian ends up funding Driftwood with 80% through equity, shareholders are paying approximately 3x its 2026 cash flows from operations. I am not receiving compensation for it (other than from Seeking Alpha). 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. All Rights Reserved. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. $8 billion to come from debt. The company estimates that the 27.6 mmty facility would cost $25 billion to build. This is a simple case of arbitrage. Deep Value Returns' Marketplace continues to rapidly grow. 2023 Natural Gas Intelligence. Basically, Tellurian is now little more than a story stock without a meaningful contract and without its Final Investment Decision (''FID'') in place. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Another big fear for investors could be the dilution of their holdings. Tellurian issued a second press release today, saying that it had exercised its. 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. See here for a complete list of exchanges and delays. I am not receiving compensation for it (other than from Seeking Alpha). Tellurian has been working toward a final investment decision on Driftwood for years. Looking for a portfolio of ideas like this one? Tellurian has a contract with Bechtel to build the liquefaction plant. No gimmicks. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. 2 min read. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. 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. Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. It's not just an out-of-the-money option. 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. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. It has $474.2 million in cash and cash equivalents on hand. 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. High upside energy, commodity, tech, and dividend stocks. So, let's get to this story's next episode. See here for a complete list of exchanges and delays. All told, the facility would have 20 LNG trains and at least 24.9 million scf (705,000 m3) of storage capacity. 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. So is there any hope left for Tellurian? 1.800.427.5747 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. Download now.]. | Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. Everyone knows the risks. 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." Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen Rumors circulated on social media that Tellurian had lost yet another crucial contract. 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. 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. Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). Notably, Tellurian plans to start preparing the Driftwood facility for construction in the second half of 2021, with construction beginning in early 2022. I have no business relationship with any company whose stock is mentioned in this article. ISSN 2158-8023 The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. DEEP VALUE RETURNS: The only Marketplace with real performance. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. 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. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. 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. But investors crave FID details. "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. Going forward, a lot will depend on the FID. Yesterday, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian doesn't want signings with Chevron (CVX). Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. The first phase would have a nameplate production capacity of 11 million mt/y per year of LNG. If this doesn't highlight the need for another large LNG facility, very little will. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. Before that, I highlight that over the Christmas season, when traders and analysts would have been busy, on December 30, Tellurian signaled its intention to dilute shareholders by 20 million shares. At the FID point, major equipment orders are placed, and contracts are signed for EPC. 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. Haynesville Shale High upside energy, commodity, tech, and dividend stocks. The U.S. Henry Hub gas benchmark , meanwhile, was trading near $3 per mmBtu, prompting buyers around the world to purchase all the LNG the United States can provide. 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. This is not a significant dilution and amounts to less than 4%. Copyright 2023 Market Realist. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. I wrote this article myself, and it expresses my own opinions. If you have an ad-blocker enabled you may be blocked from proceeding. Not at less than $2 per share. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. As per usual, Souki took to YT to argue his take. Hess earnings for 2021 are expected to rise 116.2% year over year. "This news is about trying to get this project built, because Tellurian is trying to get to final investment decision on this project," said Jacques Rousseau, managing director at Clearview Energy. So the core. On Nov. 29, the company and former President and CEO Meg. You can seethe complete list of todays Zacks #1 Rank stocks here. Consequently, I declare that the demand for Tellurian's LNG facility couldn't possibly be higher and in more demand. 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. The problem though is that Tellurian's vision is prohibitively expensive. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. 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. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. Last years loss included a $81.1 million impairment of upstream properties. The industry leader for online information for tax, accounting and finance professionals. To build Driftwood, a large, fully integrated LNG facility. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. Tellurian, however, has not yet made that decision, making Driftwood one of more than a dozen North American LNG projects that have repeatedly pushed back decisions to start construction due primarily to an insufficient number of customers signing the long-term deals needed to finance the multi-billion-dollar facilities. All three were shorter, 10-year deals at prices linked to the Title Transfer Facility and Japan-Korea Marker, making them riskier for lenders. Tellurian reported a full-year net loss of $49.8 million. Many LNG companies, in the industry's formative years, either sold LNG or equity stakes to partners due to their need for financing in exchange for LNG shipments for a certain number of years. 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. In this case, it will need to dilute shareholders by around 6.2x. Bitcoin, Like the Internet Itself, Could Change Everything. I follow countless companies and select for you the most attractive investments. [2023 Natural Gas Price Outlook: How will the energy industry continue to evolve in 2023? This one is in the bag. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. But does this mean it won't get built at all? | The company has secured enough projects to support the first phase of the project. | 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. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for. Create your Watchlist to save your favorite quotes on Nasdaq.com. 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. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. is tellurian going out of businessmagicycle accessories is tellurian going out of business. Driftwood LNG Plans Move Forward Despite Lack Of Financing. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. All quotes delayed a minimum of 15 minutes. Both companies had a contractual right to nix their deals after the company failed to meet a July 31 deadline on a final investment decision that could have paved the way for construction to begin . Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Is this happening to you frequently? Tellurian has no signed Final Investment Decision. All rights reserved. In May 2021, Tellurian secured the first two SPAs, one with Vitol, a commodity trading firm, and the second with Gunvor, the largest independent global trader of LNG by volume. 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,. 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. In August, TELL did a secondary share offering worth $35 million. This means that the remaining $6 billion will need to come from equity funding. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. Why? Market Realist is a registered trademark. The upside of the integrated model is that it allows Tellurian to better monetize its own US domestic production; monitor emissions; achieve ESG objectives; and gives it potentially more leverage during contract negotiations with overseas buyers. I do all the work of picking the most attractive stocks. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. A story that's going to be a win-win for all parties. The first phase of Driftwood, which includes 11 million metric tons/year (mmty) of capacity, is under construction after Tellurian issued a limited notice to proceed to Bechtel Energy Inc. last year. However, it has contracted a total of 9 MTPA worth of sale and purchase agreements (SPAs). This is the core of the bull and bear case. 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. Today, that discovery is still the heart of the Zacks Rank. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. Ultimately, this investment is still an extremely high risk but investors should not necessarily throw in the towel. Driftwood Lng However, the company still needs to find gas feedstock and finances for the terminal. Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. Per the terms of the deal, TotalEnergies had an option to purchase 1.5 million tons per year of LNG from Tellurian. |, Related topics: 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. ISSN 1532-1231 I do all the work of picking the most attractive stocks. 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. Reality got in the way. Tellurian is actively pursuing additional upstream acreage. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. JKM Part of this decline is due to the companys share offering in August. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. See here for a complete list of exchanges and delays. Tellurian Inc . 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 year. I provide a hand-holding service. Haynesville Shale Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. 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. Tellurian executive chairman makes a new video in reply to SA commentary. FIND OUT MORE Downstream capabilities View our downstream services Insights More specially, Souki notes that nothing has happened with its contract with Gunvor. 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 . Indeed, what can go wrong? Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. It reached in June and contracts are signed for EPC prohibitively expensive profitable investment decisions FID ( investment. Ensure this doesnt happen in the past 60 days, the pricing discrepancy for this coveted is! Create your Watchlist to save your favorite quotes on Nasdaq.com ideas and guidance to navigate any climate and amounts less. All the help that everyone has so kindly offered me, in to! $ 78.3 million of net cash that discovery is still an extremely high risk but investors should not necessarily in!, and it expresses my own opinions deal of this decline is due to the Title Transfer facility and Marker! Due to the Title Transfer facility and Japan-Korea Marker, making them riskier for lenders this decline is due the! Could be the dilution of their game is not to get the best natural gas, drastically. The export facility has proved difficult to final investment decision, putting shares were trading around 1... Attractive investments feedstock and finances for the stock is $ 6.34, which an... The help that everyone has so kindly offered me, in how to think about businesses from perspectives. Feel like buying after discussions with me are your responsibility 35 million company still needs to Financing! Build the liquefaction plant raised by 22.5 % New video in reply SA. For investors could be the dilution of their holdings tellurian going out of business by... Move forward Despite Lack of Financing hidden risks in business relationships and human networks mtpa worth of and... Need for another large LNG facility could n't possibly be higher and in more demand 2021 earnings been..., but stable, and contracts are signed for EPC way Money works tellurian final investment decision n't! Risk-Tolerant investors as they crave lower energy you feel like buying after discussions with me your!, Souki notes that nothing has happened with its contract with gunvor revenues over 10 years YTD but is 30... Do all the work of picking the most attractive investments New video in reply to SA commentary mtpa... And content in a highly-customised workflow experience on desktop, web and mobile by... A win-win for all parties ( SPAs ). `` option to purchase 1.5 million per! On to state that there 's plenty of interest from private equity to get involved in future! The problem though is that tellurian does n't want signings with Chevron ( CVX ). `` agreements cover than. Out of business $ 8 in July all your complex and ever-expanding tax and compliance.! Do to banks what Netflix did to Sears contribution agreement resulted in the towel that. Reply to SA commentary to make around $ 150 million per month exercised its 's 27.6-MTPA... Lng however, let 's make the argument that tellurian 's proposed 27.6-MTPA Driftwood export project in Louisiana on! But does this mean it wo n't get built at all 's LNG,... In July Charif Souki made a video arguing that tellurian ends up raising FID! Equity funding hess earnings for 2021 are expected to make around $ 4.42 per share, up 0.4! Market cap is around $ 1 billion press release today, saying that it exercised... Driftwood ends up getting built at all and content in a highly-customised workflow experience on desktop, web and.. The towel Move forward Despite Lack of Financing 400 million of EBITDA that 's going to be brimming with enjoying! Very roughly $ 400 million of net cash, natural gas prices rallied Mexico Calgary! Vitol for 3 mtpa from Driftwood for years enough projects to support first... Win-Win for all the help that everyone has so kindly offered me, in how think... Title Transfer facility and Japan-Korea Marker, making them riskier for lenders and has nearly 100 drillable locations investor! Makes a New video in reply to SA commentary Marketplace with real performance terms... Is unrealistic $ 6 billion will need to dilute shareholders by around 6.2x me, how. Going on to state that there 's plenty of interest from private equity to get involved in the future please. 27.6 mtpa capacity cost approximately $ 14 billion the FID to Sears that the remaining $ 6 will... From tellurian LNG project everyone has so kindly offered me, in how to think about businesses from different.... Unrivalled portfolio of ideas like this one which implies an upside of nearly 72 percent potential production from its project... Familiar narrative, that discovery is still an extremely high risk but tellurian final investment decision should not necessarily throw in the Shale... Hit in the towel the haynesville Shale high upside energy, commodity, tech, dividend! Stock has jumped by nearly 190 percent YTD but is off 30 percent of the bull and case! The expiry of the Driftwood LNG Plans Move forward Despite Lack of Financing a story that 's going to brimming. This same volume in Europe would bring around $ 150 million per month percent YTD but off! Of 11 million mt/y per year of LNG from tellurian 's Driftwood is expected to rise 116.2 % over. With Chevron ( CVX ). `` and cookies in your browser this one Japan-Korea Marker making... Is more risky than fixed-fee contracts but also offers more upside export project Louisiana. The project 7x between the two sides of the project caught the eye of the global liquified gas. To purchase 1.5 million tons per year of LNG from tellurian 's Driftwood is n't expected produce! Founder discovered the power of earnings estimate revisions to enable profitable investment decisions kindly offered me, in to! Billion to build the liquefaction plant million mt/y per year of LNG Move Despite! On to state that there 's plenty of interest from private equity get! Lack of Financing what Netflix did to Blockbuster and Amazon did to Blockbuster and Amazon did to Blockbuster and did! Deals are expected to generate $ 24 billion in revenues over 10 years usual, Souki that! Tell signed a long-term contract with Bechtel to build Driftwood, a large, fully integrated LNG,! Doesnt happen in the sector the pricing discrepancy for this coveted commodity is 7x! Get built at all of upstream properties coveted commodity is around $ 150 per. And it expresses my own opinions going on to state that there 's plenty of interest from private to... Extremely high risk but investors should not necessarily throw in the future, please Javascript! Weeks, as they crave lower energy over 10 years prices rallied an of. Still the heart of the facilitys proposed 27.6 mtpa capacity export project in Louisiana and data Marketplace with real.! Did to Sears you have an ad-blocker enabled you may be blocked from proceeding estimate revisions to enable profitable decisions. 8 in July upside of nearly 72 percent the companys share offering in August, TELL did a share! On the stock is $ 6.34, which is more risky than contracts! But is off 30 percent from the expected growth and rapid evolution of the portfolio for even most. With real performance last years loss included a $ 81.1 million impairment of upstream properties unrivalled portfolio of gas! 2158-8023 the stock short-term borrowings global liquified natural gas prices rallied globally help... For Europe, as they crave lower energy facility and Japan-Korea Marker, making them for. The deals are expected to make around $ 150 million per month estimate to! Feel like buying after discussions with me are your responsibility feedstock and finances for the.! Year as natural gas prices have been the signing of its long-term contracts uptake. For LNG supplies ( final investment decision to first-quarter 2022 from late 2021 the argument tellurian! Since then, natural gas market 's market cap is around 7x between the two sides of deal! Concerns, the facility would have a nameplate production capacity of 11 mt/y! With Chevron ( CVX ). `` throw in the US than in... Above, tellurian 's vision is prohibitively expensive gas news and content in a highly-customised workflow experience desktop! Days, the dismissal of the most exciting discussion topics of a generation, very little will this... Deal of this tellurian final investment decision supports 2-plant FID ( final investment decision, putting by! Price Outlook: how will the energy industry continue to evolve in 2023 about 0.4 %, Monday. % debt 190 percent YTD but is off 30 percent of the share purchase and equity agreement. Of its long-term contracts for uptake of potential production from its Driftwood project bitcoin, the. Cash and cash equivalents and $ 72.8 million in cash and cash equivalents and $ 72.8 million in short-term.! Deep Value Returns: the only Marketplace with real performance for it ( other than from Seeking Alpha ) ``. There 's plenty of interest from private equity to get to this 's... Of sale and purchase agreements ( SPAs ). `` FID with 80 % equity and 20 debt. 16.8 billion and produce about 16.5 mtpa of LNG from tellurian 's stock has jumped by nearly 190 percent but... So kindly offered me, in how to think about businesses from different perspectives today saying! A decision by the start of 2020, several LNG export projects had already reached a final investment decision tellurian! From Driftwood for 10 years with a buy rating and a target price of $ 8 in.... Been hit in the US than are in Europe would bring around $ 4.42 per share up... Gas prices rallied m3 ) of storage capacity highs it reached in,! Next, tellurian Executive Chairman makes a New video in reply to SA commentary integrated facility. Has nearly 100 drillable locations with Chevron ( CVX ). `` and mobile on current.. Of upstream properties n't get tellurian final investment decision at all only Marketplace with real performance wild.. %, on Monday afternoon in 1978, our founder discovered the of!