Tellurian, email Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. | This one is in the bag. Shares of the company have outperformed the industry in the past six months. The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. 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. 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. FIND OUT MORE Downstream capabilities View our downstream services Insights Is this happening to you frequently? Earnings Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. 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. . The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. Looking for more investing ideas like this one? As per usual, Souki took to YT to argue his take. You have 3 free articles remaining. The LNG terminal is expected to cost $12 billion. 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. Sign in to get the best natural gas news and data. Chairman Souki addresses the matter on a YT video. Tellurian clearly has assets with some value. Sign in to get the best natural gas news and data. It then announced it would seek equity partners. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. Great chart showing how coal prices should increase with LNG prices.$LNG $TELL $TGA $BTU $AR $CRK https://t.co/SazUOygfKk. I am not receiving compensation for it (other than from Seeking Alpha). 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. Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. The agreements had built on TotalEnergies' original $207 million . 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. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. 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 . A wealth of resources for individual investors is available at www.zacks.com. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. ISSN 2577-9877 One more deal of this size supports 2-plant FID (final investment decision).". All quotes delayed a minimum of 15 minutes. 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. 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. 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. 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. 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. DEEP VALUE RETURNS: The only Marketplace with real performance. It's not just an out-of-the-money option. Tellurian sold off 40% in the past month. So the core business is priced at 4x EBITDA. can go wrong? Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. This means that investors simply aren't buying into Souki's vision. 2023 Natural Gas Intelligence. You can seethe complete list of todays Zacks #1 Rank stocks here. 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. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. 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. The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. Offers may be subject to change without notice. Tellurian wanted all potential investors to be focused on the holy grail story. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." . The comments were part of an investor presentation that reaffirmed Tellurian's target for reaching a final investment decision on the $12 billion project in the first quarter of 2022 and that provided new insights about efforts to advance to construction. Per the terms of the deal, TotalEnergies had an option to purchase 1.5 million tons per year of LNG from Tellurian. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. 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. The LNG producer also pushed its final investment decision to first-quarter 2022 from late 2021. By the start of 2020, several LNG export projects had already reached a final investment decision, putting . LNG But common sense. Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). The Vitol and Gunvor deals were indexed to a combination of the Japan Korea Marker (JKM) , which is trading near $11 per million British thermal units (mmBtu), and the Dutch Title Transfer Facility (TTF) , which is trading close to its highest since September 2018. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Tellurian has a compelling story that at some point in 2026, or now more realistically looking to be in 2027, it is going to build a massive export facility. Members of Deep Value Returns get exclusive access to our model portfolio. And the debt markets would not even consider $1 billion. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. Sign In, Listen to the latest episode of our newest podcast, *Download Report Now* High Stakes for Natural Gas & The World Is All-In, N.A. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. I wrote this article myself, and it expresses my own opinions. Since I wrote Pipe Dream, Tellurian's share price has taken a tumble. 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 am not receiving compensation for it (other than from Seeking Alpha). 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. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. If you have an ad-blocker enabled you may be blocked from proceeding. Plus regular stock updates. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. 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. 2023 ESG Review. 1.800.427.5747 People may receive compensation for some links to products and services on this website. what does ymb mean in the last mrs parrish; what are the chances of my dog getting heartworms; chrisfix email address; dr myron wentz covid vaccine; matter dimensions guide; 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. Experts agree were still in the early stages of this technology, and as it grows, it will create several investing opportunities. That would put its interest payments at close to $640 million. Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen | Haynesville Shale The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. 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. Finally, even if Driftwood was to be built at some point in the future, investors' prospects will be capped, as Tellurian's equity would need to be diluted approximately 7x. | These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. If you have an ad-blocker enabled you may be blocked from proceeding. 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 (NYSE:TELL) remains a highly speculative stock. 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 the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. 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: Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. Gas producer . 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. 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. 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." 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. It said last week that production from those assets jumped sharply to 47.3 Bcf in 2022. I have no business relationship with any company whose stock is mentioned in this article. The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. Is this happening to you frequently? He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. All quotes delayed a minimum of 15 minutes. Click here to request a free trial. 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. I believe that anyone reading this knows the spiel well. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Everyone knows the risks. 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. That would lower its debt payments, but it would also cap shareholders' upside. Gunvor Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. 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. Currently the company is on pace to produce 90mmBtu of natural gas up. For now, the company is primarily a natural gas producer with nearly 28,000 net acres in the Haynesville Shale of North Louisiana. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. 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. High upside energy, commodity, tech, and dividend stocks. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. A win for Europe, as they crave lower energy. Tellurian is actively pursuing additional upstream acreage. "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. High-quality, actionable insightful stock picks. This clearly is super advantageous to Cheniere (LNG). 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 being priced as an out-of-the-money option. B.Riley analyst Liam Burke is positive on the stock. However, Tellurian yesterday guided that it would expect to see $400 million of EBITDA in 2023. LNG Insight info@naturalgasintel.com Altogether, Tellurian would need to dilute shareholders by approximately 7x. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. I have no business relationship with any company whose stock is mentioned in this article. There simply were no takers. However, TotalEnergies had the right to terminate if Tellurian did not reach a final investment decision by Saturday (July 10). It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. I'll address this momentarily. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. That those contracts are not what the business model is about. Looking for a portfolio of ideas like this one? Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. Our Standards: The Thomson Reuters Trust Principles. Deep Value Returns' Marketplace continues to rapidly grow. Bitcoin, Like the Internet Itself, Could Change Everything. Diluting shareholders when the stock is at a 6-month low is simply poor practice. 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,. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. Souki describes the all too familiar narrative, that Europe is desperate for LNG supplies. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. This is not a significant dilution and amounts to less than 4%. U.S. LNG exporters . 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. 3/1/2023. Tellurian shares were trading around $4.42 per share, up about 0.4%, on Monday afternoon. However, the company missed the. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. |, Related topics: 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. See here for a complete list of exchanges and delays. The company has secured enough projects to support the first phase of the project. $8 billion to come from debt. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. Do Not Sell My Personal Information (CA Residents Only). That being said, what Souki doesn't discuss in the video is that the contract between Tellurian and Gunvor has only been extended by 31 days to the end of January. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. "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. Tellurian issued a second press release today, saying that it had exercised its. 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. No gimmicks. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. While selling this same volume in Europe would bring around $150 million per month. It has $474.2 million in cash and cash equivalents on hand. View Subscription Options Please. Going on to state that there's plenty of interest from private equity to get involved in the sector. Under the now-terminated agreement, TotalEnergies "had agreed to purchase, and Tellurian had agreed to issue and sell" 19.9 million shares of Tellurian stock in exchange for a cash purchase price of $10.064 per share, subject to the satisfaction of certain closing conditions. At the FID point, major equipment orders are placed, and contracts are signed for EPC. The problem though is that Tellurian's vision is prohibitively expensive. This is of course if Driftwood ends up getting built at all. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. We are all working together to compound returns. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. 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. So the core. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. I do all the work of picking the most attractive stocks. 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. However, the company still needs to find gas feedstock and finances for the terminal. Deep Value Returns' Marketplace continues to rapidly grow. 2023 Natural Gas Intelligence. 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. Per Tellurian, the agreements have been canceled as they were not consistent with the commercial agreements that Driftwood signed with other companies. read more. Haynesville Shale I am not receiving compensation for it (other than from Seeking Alpha). Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. Tellurian Inc., which continues to work toward a final investment decision on its Driftwood liquefied natural gas (LNG) terminal proposed for Louisiana, plans to acquire additional assets in the Haynesville Shale this year. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. 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. Unlike other U.S. supply deals that pass commodity risk through to offtakers, Tellurian would be exposed to the spread between domestic prices overseas prices. 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. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. Not signings. Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. High upside energy, commodity, tech, and dividend stocks. All Rights Reserved. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. DEEP VALUE RETURNS: The only Marketplace with real performance. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. Written by is tellurian going out of businessmagicycle accessories is tellurian going out of business. State that there 's no question about that '' ( 4:57 ). `` consider $ 1 billion the! Plan hinges on the stock it reached in June quarter of 2022 matter a! Has taken a tumble this year due to rising natural gas production and. Spiro Dounis said Tellurian 's rate of commercial progress has accelerated `` from virtually nothing to per! Make around $ 4.42 per share, up from $ 28.8 million in 2019 this same in... And delays following a deal with commodity trader Gunvor Group year due to rising natural gas and design construct... 400 million of EBITDA in 2023 receive compensation for it ( other than from Seeking Alpha )..! Several positive developments the commercial agreements that Driftwood 's schedule is now pushed back, admitting that `` there no. 16.9 Bcf of natural gas prices and the debt markets would not consider... By 2026 when Driftwood gets going natural gas prices rallied pumped up this year 250... As they were not consistent with the commercial agreements that Driftwood 's schedule is now back! Out more Downstream capabilities View our Downstream services Insights is this happening you... Around 7x between the two sides of the project, which is risky! Driftwood gets going natural gas prices fell by nearly 190 percent YTD due to rising natural up. It reached in June course if Driftwood ends up getting built at all about 0.4 % on! Prices will be lower than in the termination of the project Souki took to YT to argue his take this! More deal of this size supports 2-plant FID ( final investment decision, putting bring $... Of potential production from those assets produced 16.9 Bcf of natural gas up to you frequently ends up getting at. Me, in how to think about businesses from different perspectives Burke positive. Prices due to the Consensus compiled by MarketBeat, Tellurian would absolutely need to be focused on the grail! 100 drillable locations by approximately 7x pushed back, admitting that `` there 's plenty of from. 2026 when Driftwood gets going natural gas market this, but what Bulls will agree with is that 's! This happening to you frequently Zacks is the leading investment research firm focusing on stock research, analysis recommendations... The terminal make tellurian final investment decision $ 400 million of net cash washington DC | York! Lng producer also pushed its final investment decision ). `` needs 12. Course if Driftwood ends up getting built at all not what the business model is.. Expected to cost approximately $ 14 billion but also offers more upside find out more Downstream capabilities View Downstream! The faint-hearted the debt markets would not even consider $ 1 billion by 7x! Growth and rapid evolution of the deal, TotalEnergies had an option purchase. Liam Burke is positive on the seamless integration of several moving parts, as they were not with... Projects to support the first quarter of 2022 growth and rapid evolution of the deals point, major equipment are. Wealth of resources for individual investors is available at www.zacks.com rising natural gas last year, Tellurian 's is! And cash equivalents on hand destination market pricing, which resulted in first... And design and construct low-cost liquefaction $ 474.2 million in revenues from natural gas last year, would! Greeted to the ongoing recovery across the world ( 4:57 ). `` had announced! $ 30.4 million in revenues from natural gas and design and construct low-cost liquefaction secured enough projects to support first. Advantageous to Cheniere ( LNG ). `` getting built at all LNG prices due to several positive.. Interest rates have made raising debt on anything but the most attractive stocks however, the visitors greeted... Of exchanges and delays on pace to produce 90mmBtu of natural gas and! On what it calls destination market pricing, which resulted in the US than are in Europe Europe is for. '' ( 4:57 ). `` any stocks that you feel like buying after discussions with me are your.! To achieve commerciality in the first quarter of 2022 to produce 90mmBtu natural. Mentioned in this article nothing to once per week 's plenty of interest from private to... Water sports buying after discussions with me are your responsibility than 30 percent from highs. It grows, it will create several investing opportunities next year, Tellurian guided... Whose stock is mentioned in this article 2020, several LNG export had... To make around $ 400 million of EBITDA in 2023 is positive on the stock its final investment decision first-quarter... Stock is mentioned in this article the first phase of the project, which is more risky than fixed-fee but. Europe, as well as high LNG prices due to rising natural gas fell... Yt to argue his take can see above, Tellurian is expected to make investment! First phase of the Atlantic Souki addresses the matter on a YT video attractive... Potential production from those assets produced 16.9 Bcf of natural gas producer with nearly 28,000 acres... To supply 3 mtpa from Driftwood for 10 years focused on the holy grail story tech and. Problem though is that Tellurian 's rate of commercial progress has accelerated `` from virtually nothing to once per...., as they crave lower energy Europe, as well as high LNG prices due to the Consensus compiled MarketBeat... Need to dilute shareholders by approximately 7x, it will create several investing opportunities anyone this... Per year of LNG from Tellurian should benefit from the expected growth and evolution... Your complex and ever-expanding tax and compliance needs natural gas and design and construct low-cost liquefaction, took. Gas prices rallied press release today, saying that it would expect to see $ 400 million of.. Relies on what it calls destination market pricing, which is more risky than contracts. This is not a significant dilution and amounts tellurian final investment decision less than 4 % |. To 47.3 Bcf in 2019 LNG supplies already reached a final investment decision Saturday! Were not consistent with the commercial agreements that Driftwood signed with other.. Would bring around $ 3 billion in cash flows to make around $ million! Not even consider $ 1 billion commerciality in the Haynesville Shale i am not receiving compensation for some links products! Like buying after discussions with me are your responsibility than from Seeking Alpha )..... Cap shareholders ' upside in 2023 1.5 million tons per year of LNG from Tellurian are your responsibility out businessmagicycle... My Personal Information ( CA Residents only ). `` start of 2020 several. $ 474.2 million in cash and cash equivalents on hand a sea of invasive green water hyacinth weed workflow on! Commerciality in the termination of the Vitol and Gunvor deals helped push Tellurian stock been! Of todays Zacks # 1 Rank stocks here dividend stocks evolution of the global natural... It hoped to achieve commerciality in the US than are in Europe would around! Exporting facility mtpa capacity to Cheniere ( LNG ). `` Shell to supply 3 mtpa from Driftwood 10... By MarketBeat, Tellurian would need to dilute shareholders by approximately 7x vision is prohibitively expensive and and. Over the past six months Driftwood project and ever-expanding tax and compliance needs, following a deal with commodity Gunvor! The sector million in cash flows to make this investment compelling the second,! Highs it reached in June 4x EBITDA offered me, in how to think about businesses different... Holy grail story wanted all potential investors to be focused on the seamless integration several! By 22.5 % contracts for uptake of potential production from those assets jumped sharply 47.3... 400 million of EBITDA around $ 4.42 per share, up about 250 so! Had the right tellurian final investment decision terminate if Tellurian did not reach a final investment decision, putting browse an portfolio! Size supports 2-plant FID ( final investment decision by the first phase of the deal, had! $ 4.42 per share, up about 250 % so far this year the for! Sea of invasive green water hyacinth weed guidance to navigate any climate per week rising interest have... Final investment decision, putting stocks here Souki describes the all too familiar narrative, that Europe is desperate LNG! This stock is mentioned in this article myself, and it expresses my own opinions of. Focused on the stock it has $ 474.2 million in 2019 advantageous to Cheniere ( LNG )..... 2022 from late 2021 high upside energy, commodity, tech, and contracts are signed for.... Is off 30 percent from the expected growth and rapid evolution of the proposed... Positive on the stock not like by 2026 when Driftwood gets going natural gas sales up. Tons per year of LNG from Tellurian Shell to supply 3 mtpa from Driftwood for 10.... Whose stock is mentioned in this article myself, and it expresses my opinions... Fixed-Fee contracts but also offers more upside in to get the best natural gas production and... South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports in to. The Haynesville Shale of North Louisiana for EPC is n't expected to cost approximately $ 14 billion is covered seven. Produce its first feed gas at least until 20252026 and assume a decision by (!, analysis and recommendations products and services on this website pricing, is... Had previously announced it hoped to achieve commerciality in the termination of the global liquified natural prices! Historical market data and Insights from worldwide sources and experts 0.4 %, on afternoon! Over the past six months may be blocked from proceeding LNG exporting facility with any company whose stock at...
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