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 . | Tellurian, email 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. Follow the topics you want and receive the daily emails. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. I wrote this article myself, and it expresses my own opinions. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. And that Tellurian could then further increase its total volume. 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. 2023 Natural Gas Intelligence. Presently, Tellurian's market cap is around $1 billion. You have 3 free articles remaining. Total also will purchase about 20 million additional. Reality got in the way. Currently the company is on pace to produce 90mmBtu of natural gas up. |, Related topics: By using this Site or clicking on "OK", you consent to the use of cookies. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. 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. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. Amid a record stretch of U.S. LNG contracting activity last year that moved many other projects closer to FID, Tellurian pivoted to searching for equity partners. NGI All News Access. Get access to 100,000+ more news articles & industry data. If this doesn't highlight the need for another large LNG facility, very little will. The agreements had built on TotalEnergies' original $207 million . Two-thirds debt to one-third equity. 2023 ESG Review. No gimmicks. 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. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. The industry leader for online information for tax, accounting and finance professionals. Members of Deep Value Returns get exclusive access to our model portfolio. The timing of this stock issuance is suspicious, to say the least. 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. Diluting shareholders when the stock is at a 6-month low is simply poor practice. 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. In sum, there are three items overhanging Tellurian. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? 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. 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. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. | Tellurian also has its core business! As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. |, Related topics: 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. Our Standards: The Thomson Reuters Trust Principles. 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." Driftwood Lng 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 wanted all potential investors to be focused on the holy grail story. Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer. 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. Altogether, Tellurian would need to dilute shareholders by approximately 7x. for the stock will be the final investment decision for Driftwood, which has been pushed back . 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. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. Liquefied natural gas (LNG) developer Tellurian Inc. has delayed a final investment decision (FID) on its proposed Driftwood LNG export terminal by one year to 2021 and may drop plans to. However, the company still needs to find gas feedstock and finances for the terminal. 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. Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. Please disable your ad-blocker and refresh. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. But does this mean it won't get built at all? Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. All quotes delayed a minimum of 15 minutes. Not signings. Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. It's a high beta stock. The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. read more. ISSN 2577-9877 When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. "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 (NYSE:TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. If you have an ad-blocker enabled you may be blocked from proceeding. No gimmicks. See here for a complete list of exchanges and delays. This is not a significant dilution and amounts to less than 4%. | This I already discussed in my previous bullish article. You have 3 free articles remaining. However, the company missed the. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. 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; Tellurians Driftwood LNG is arguably the single most ambitious US LNG project. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. And yet, we are now in 2023, and this crucial milestone isn't even discussed. Is this happening to you frequently? I follow countless companies and select for you the most attractive investments. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! 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. Get them exclusively at Deep Value Returns. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Tellurian is being priced as an out-of-the-money option. But investors crave FID details. Tellurian has been working toward a final investment decision on Driftwood for years. Yet another problem. 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 clearly has assets with some value. That would put its interest payments at close to $640 million. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Type a symbol or company name. I follow countless companies and select for you the most attractive investments. The industry leader for online information for tax, accounting and finance professionals. 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 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. Say the least rapid evolution of the Vitol and Gunvor deals helped push Tellurian stock up about 250 so. Raised by 22.5 % if you have an ad-blocker enabled you may be blocked from proceeding price environment, 's... 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