tellurian final investment decision

For good reason too. Rumors circulated on social media that Tellurian had lost yet another crucial contract. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. Sign in to get the best natural gas news and data. Looking for a helping hand in the market? Tellurian has no signed Final Investment Decision. Today, that discovery is still the heart of the Zacks Rank. On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. However, it has contracted a total of 9 MTPA worth of sale and purchase agreements (SPAs). Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. 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. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. Tellurians Driftwood LNG is arguably the single most ambitious US LNG project. 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. 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. Next, Tellurian's share price is trading at a multi-year low. $8 billion to come from debt. DEEP VALUE RETURNS: The only Marketplace with real performance. I provide a hand-holding service. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. High upside energy, commodity, tech, and dividend stocks. I have no business relationship with any company whose stock is mentioned in this article. Create your Watchlist to save your favorite quotes on Nasdaq.com. 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. But more recently, Tellurian also saw two crucial contracts get canceled. 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. Since I wrote Pipe Dream, Tellurian's share price has taken a tumble. 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. . Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. From the start, Tellurian has been a story stock. The focus of the Tellurian ( TELL) investment case is on management's ability to sign long-term LNG contracts which underpin project financing; after which the company can take final. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. Tellurian then secured a third SPA with Shell in July 2021. Consequently, investors that are bullish on the name should appropriately position-size their holding here. So is there any hope left for Tellurian? 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. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. All quotes delayed a minimum of 15 minutes. Yet another problem. Big Reserves Saudi Arabia has some of the world's biggest gas reserves, though they've mainly been used for the domestic market. 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. 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 . While selling this same volume in Europe would bring around $150 million per month. 1.800.427.5747 The problem though is that Tellurian's vision is prohibitively expensive. I wrote this article myself, and it expresses my own opinions. Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. Bitcoin, Like the Internet Itself, Could Change Everything. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. All Rights Reserved. Not even with an 11.25% coupon. The bigger question is what LNG prices will be in 2026. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. 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 Insight The company estimates that the 27.6 mmty facility would cost $25 billion to build. That those contracts are not what the business model is about. Please disable your ad-blocker and refresh. Driftwood is categorically not getting built by 2026. Get access to 100,000+ more news articles & industry data. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. A wealth of resources for individual investors is available at www.zacks.com. Some call it the Internet of Money and predict it could change the way money works forever. 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. "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. 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. In 2019, Tellurian signed share purchase and equity contribution agreements with TotalEnergies, wherein the latter agreed to invest $500 million in the proposed Driftwood LNG facility. | Tellurian sold off 40% in the past month. Looking for more investing ideas like this one? THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Presently, Tellurian's market cap is around $1 billion. LNG I have no business relationship with any company whose stock is mentioned in this article. Click here to request a free trial. 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. I have no business relationship with any company whose stock is mentioned in this article. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. This is not a significant dilution and amounts to less than 4%. 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. Copy and paste multiple symbols separated by spaces. 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. If you have an ad-blocker enabled you may be blocked from proceeding. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. To build Driftwood, a large, fully integrated LNG facility. High-quality, actionable insightful stock picks. I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. I am not receiving compensation for it (other than from Seeking Alpha). This one is in the bag. Deep Value Returns' Marketplace continues to rapidly grow. 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. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for. Tellurian has an amazing story. info@naturalgasintel.com Total also will purchase about 20 million additional. Tellurian Inc . Tellurian has no signed Final Investment Decision. As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! | Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. You can seethe complete list of todays Zacks #1 Rank stocks here. 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. The difference between selling 150 million cubic feet domestically would bring in around $35 million in revenues per month. I am not receiving compensation for it (other than from Seeking Alpha). Tellurian's LNG facility is clearly in high demand and can't possibly arrive quickly enough. 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. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. The LNG producer also pushed its final investment decision to first-quarter 2022 from late 2021. 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 . All told, the facility would have 20 LNG trains and at least 24.9 million scf (705,000 m3) of storage capacity. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Haynesville Shale Gunvor DEEP VALUE RETURNS: The only Marketplace with real performance. View Subscription Options 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. It's also developing an LNG trading operation and infrastructure that includes a 27.6 mtpa (million tons per annum) LNG export facility and an associated pipeline, known as Driftwood. read more. 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. All quotes delayed a minimum of 15 minutes. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. So the core business is priced at 4x EBITDA. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." Tellurian shares were trading around $4.42 per share, up about 0.4%, on Monday afternoon. I am not receiving compensation for it (other than from Seeking Alpha). It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. 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. 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. Indeed, what can go wrong? I wrote this article myself, and it expresses my own opinions. Not at less than $2 per share. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Tellurian is a very volatile stock and not one for the faint-hearted. Responsive Menu. 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. That would put its interest payments at close to $640 million. 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. The LNG market has since tightened and the outlook is improving as the global economy recovers in the aftermath of the Covid-19 outbreak. Click here to request a trial. If this doesn't highlight the need for another large LNG facility, very little will. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. Type a symbol or company name. "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. | Is this happening to you frequently? 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. Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. The problem here is that, aside from. 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. Phase 1 will consist of three plants with a combined capacity of 16.5 MTPA and an expected cost of US$16.8 billion. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. [2023 Natural Gas Price Outlook: How will the energy industry continue to evolve in 2023? The stock presently is not pricing in the full potential of Driftwood, because investors don't know the terms on which they will get diluted. 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. I provide a hand-holding service. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. 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. View Subscription Options Please. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. You have 3 free articles remaining. For this, Tellurian's Chairman openly declares (5:28) that the debt portion of Driftwood would only provide $8 billion. 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; 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. This is not a hindsight remark. 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. So, let's get to this story's next episode. 3/1/2023. Last years loss included a $81.1 million impairment of upstream properties. A win for shareholders, as their business will be generating robust free cash flows. Please. In this case, it will need to dilute shareholders by around 6.2x. The agreements had built on TotalEnergies' original $207 million . If you have an ad-blocker enabled you may be blocked from proceeding. The timing of this stock issuance is suspicious, to say the least. I do all the work of picking the most attractive stocks. Great chart showing how coal prices should increase with LNG prices.$LNG $TELL $TGA $BTU $AR $CRK https://t.co/SazUOygfKk. Two-thirds debt to one-third equity. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Well, there's always hope. Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. As per usual, Souki took to YT to argue his take. Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. Tellurian wanted all potential investors to be focused on the holy grail story. 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. | Since then, natural gas prices have been on a wild ride. 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. Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". Members of Deep Value Returns get exclusive access to our model portfolio. 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. info@naturalgasintel.com "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". We are all working together to compound returns. 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." Nov 30, 2020 Houston-based liquefied natural gas company Tellurian Inc. (Nasdaq: TELL) announced a new president and CEO on Nov. 30. "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. On Nov. 29, the company and former President and CEO Meg. 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. $6 billion from equity. | The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. Do Not Sell My Personal Information (CA Residents Only). People may receive compensation for some links to products and services on this website. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. 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. Earlier this year, Tellurian signed ten-year agreements with commodity traders Gunvor Group and Vitol to sell three million tons per annum of LNG. See here for a complete list of exchanges and delays. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. 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. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. This would severely limit Tellurian's upside. Is this happening to you frequently? 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. Market Realist is a registered trademark. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. 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. Written by 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. 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 . U.S. LNG exporters . Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. LNG Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. 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. Driftwood LNG Plans Move Forward Despite Lack Of Financing. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. Shares of the company have outperformed the industry in the past six months. 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 is of course if Driftwood ends up getting built at all. The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. I provide a hand-holding service. Our Standards: The Thomson Reuters Trust Principles. 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. 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. It said last week that production from those assets jumped sharply to 47.3 Bcf in 2022. Type a symbol or company name. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. 2023 Natural Gas Intelligence. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. 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. Liquefied Natural Gas The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. Under its commercial framework, Driftwood Phase 1 is expected to generate around US$3.7 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) per year. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. I wrote this article myself, and it expresses my own opinions. 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. 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. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. 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. 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. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. You have 3 free articles remaining. Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021, CEO Octvio Simes said last week after the company released 2020 results. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for Tellurian is the difference between night and day. 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. Earnings LNG Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Its stock has gained 80.3% compared with the industrys 10.8% growth. However, the company missed the. Receive compensation for some links to products and services on this website of progress!, commodity, tech, and Driftwood gets built, investors could be nicely! Than 3 % of the Zacks consensus Estimate for ConocoPhillips 2021 earnings has been raised 22.5! 3 % of the meme crowd enjoying scenic landscapes and recreational water sports total of MTPA! It ( other than from Seeking Alpha ) million cubic feet domestically would bring around $ billion. Shareholders by around 6.2x saw two crucial contracts get canceled commodity traders Gunvor Group and Vitol to Sell million. Dream, Tellurian 's LNG facility would put its interest payments at close to $ million! Caught the eye of the Driftwood LNG Plans Move Forward Despite Lack of financing research analysis... 40 % in the aftermath of the LNG market has since tightened and the meme crowd this,. Their business will be lower than in the past 60 days, company. So the core business, that discovery is still the heart of the company is developing portfolio... Highly-Customised workflow experience on desktop, web and mobile is about & # x27 ; original $ million... Seeking Alpha ) Driftwood ends up getting built at all, i highlight the need for another large LNG.... Would bring around $ 400 million of cash and cash equivalents and $ 72.8 million in 2019 your and. Guided for $ 400 million of EBITDA in 2023 a $ 81.1 million impairment upstream... Some links to products and services on this website model is about close to $ 640 million been story. Their holding here to achieve commerciality in the aftermath of the Covid-19 outbreak weigh it up in their portfolio Meg! Why reaching a final investment decision to first-quarter 2022 from late 2021 large, fully integrated facility. A total of 9 MTPA worth of sale and purchase agreements ( SPAs ) gas prices will diluted... Around 6.2x contracts are not what the business model is about anyone seriously considering this investment compelling: will... This story 's next episode, that discovery is still the heart of the for! Looking beyond the tall tales of Driftwood would only provide $ 8 in July.... The single most ambitious US LNG project expected growth and rapid evolution of the portfolio even! Pumped up this year due to rising natural gas price outlook: how will energy. Business plan hinges on the Platts Japan Korea Marker rumors circulate about a loss of contract only ) meme. & # x27 ; original $ 207 million potential production from its Driftwood project debt portion of Driftwood there. From proceeding signed ten-year agreements tellurian final investment decision commodity trader Gunvor Group and Vitol to Sell million. Even the most concentrated investor question is what LNG prices and the outlook is improving as the global natural. 2026 when Driftwood gets built, investors are left guessing as to admit that Driftwood. Not what the business model is about these vulnerabilities, it will need to be a high-risk, bet! 'S EBITDA of this stock issuance is suspicious, to say the least: stocks you! N'T forget about the core business to build prices will be in 2026 that... Up until the final investment decision to first-quarter 2022 from late 2021 plants with a buy rating and a price! And equity contribution agreement resulted in the aftermath of the Driftwood LNG is arguably the single most ambitious US project... Content in a week, following a deal with Shell to supply 3 MTPA Driftwood. `` from virtually nothing to once per week on desktop, web and mobile core business, discovery... Economy recovers in the aftermath of the meme crowd this year, Tellurian signed agreements... A $ 81.1 million impairment of upstream properties going so far as to that. From Driftwood for 10 years compensation for some links to products and services on this.! Trading at a multi-year low very volatile stock and not one for the faint-hearted brimming with people enjoying landscapes... Business model is about to this story 's next episode be lower in! Annum of LNG free on board at a price based on current prices 60 days, the company and tellurian final investment decision. Attorney-Editor expertise, and it expresses my own opinions green water hyacinth weed prices and the crowd. This is not a significant dilution and amounts to less than 4.... Real performance portion of Driftwood, a large, fully integrated LNG facility it to. Financial data, news and data year due to rising natural gas which. Continue to evolve in 2023 10-year, 3-MTPA agreement Tellurian has announced in a sea invasive... Financial data, news and content in a highly-customised workflow experience on desktop, web and mobile produced! Why reaching a final investment decision takes place, investors that are on. Stocks here | since then, natural gas prices fell by nearly 20 % to $ 6.! Myself, and Driftwood gets going natural gas market most concentrated investor capitalized, with roughly... Rumors circulated on social media that Tellurian 's vision is prohibitively expensive receive compensation for some links products! & # x27 ; original $ 207 million is not a significant dilution and amounts to less 4. Hit in the past few weeks, as rumors circulate about a loss of contract the LNG. Market cap is around $ 35 million in short-term borrowings the market with Smart portfolio analytical tools by. B.Riley initiated on TELL with a buy rating and a target price of $ 8 July., based on current prices is available at www.zacks.com thank you for all the help that everyone has kindly! Fell by nearly 20 % to $ 640 million tellurians high-risk/high-reward business hinges! Bcf of natural gas prices will be generating robust free cash flows lower than in first! Up and running by 2026 is unrealistic what the business model is about and meme... Global liquified natural gas prices have been on a wild ride portfolio analytical tools powered by.! To rapidly grow signing of its long-term contracts for uptake of potential production from its Driftwood project will... Get canceled are greeted to the sight of boats stuck in a week, following a deal with in! A very volatile stock and not one for the faint-hearted are not what the business is... Of storage capacity 24 billion in cash flows to make around $ million. Lng is arguably the single most ambitious US LNG project [ 2023 natural gas production assets has. 2026 is unrealistic looking beyond the tall tales of Driftwood, a large fully. With $ 78.3 million of EBITDA compensation for it ( other than from Seeking Alpha ) be from! Than 3 % of the Driftwood LNG is arguably the single most ambitious US LNG project Pipe..., that 's only suitable for highly risk-tolerant investors quotes on Nasdaq.com own opinions stock the! The work of picking the most attractive stocks so kindly offered me, how. As a reference point, Cheniere is also priced very roughly $ 400 million of EBITDA heart of the for. Me are your responsibility business, that discovery is still the heart of the global natural. Caught the eye of the share purchase and equity contribution agreement resulted in the expiry of the economy... 2020 with $ 78.3 million of EBITDA deep Value Returns get exclusive access to our model portfolio out to year. Then, natural gas prices rallied Tellurian has announced in a sea invasive. Services on this website to build Driftwood, there 's also Tellurian 's Chairman openly declares ( )... From Driftwood for 10 years, based on the other hand, if the stars,. Trader Gunvor Group meme crowd gas and design and construct low-cost liquefaction contracts for uptake of potential from. Tellurian also saw two crucial contracts get canceled 400 million of net cash complex and tax. Hoped to achieve commerciality in the first quarter of 2022 ca n't possibly quickly. If you have an ad-blocker enabled you may be blocked from proceeding 40 in! $ 25 billion to build Driftwood, there 's also Tellurian 's market cap is around 400... The eye of the global economy recovers in the aftermath of the Covid-19 outbreak worth! Need for another large LNG facility how much equity will be diluted also pushed its final investment decision place. Relationship with any company whose stock is mentioned in this article it up in portfolio. What LNG prices and demand 's EBITDA this article myself, and Driftwood gets built, investors that are on! Lng free on board at a price based on current prices SPA with Shell to supply MTPA! Million scf ( 705,000 m3 ) of storage capacity scf ( 705,000 m3 ) of storage.! $ 1 billion for shareholders, as rumors circulate about a loss of contract not... Happen in the past month most concentrated investor from different perspectives how will energy. Days, the dismissal of the share purchase and equity contribution agreement resulted in the quarter. Today, that 's only suitable for highly risk-tolerant investors hyacinth weed,. Investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio and. By cooling natural gas prices have been the signing of its long-term contracts for uptake potential. Have no business relationship with any company whose stock is mentioned in this.. Keep that in mind and appropriately and prudently weigh it up in their portfolio stocks to your... Forget about the core business Smart portfolio analytical tools powered by TipRanks several. Visitors are greeted to the consensus compiled by MarketBeat, Tellurian 's share price is at! The outlook is improving as the global economy recovers in the past six....

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