Plus regular stock updates. Reality got in the way. Click here to request a trial. Last years loss included a $81.1 million impairment of upstream properties. $8 billion to come from debt. Tellurian is being priced as an out-of-the-money option. We are all working together to compound returns. Follow the topics you want and receive the daily emails. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Particularly noting that in this higher interest rate and inflationary environment, there are too many cross currents and this would not be prudent. 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; Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Copyright 2023 Market Realist. 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. Copy and paste multiple symbols separated by spaces. The company has secured enough projects to support the first phase of the project. Tellurian has said it plans to start preparing the Driftwood site for construction later this summer, with construction beginning in the first quarter of 2022. read more. Tellurian sold off 40% in the past month. There simply were no takers. This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. So the core. Nov 30, 2020 Houston-based liquefied natural gas company Tellurian Inc. (Nasdaq: TELL) announced a new president and CEO on Nov. 30. 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. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. "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. 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 is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. The one-line takeaway is this, Tellurian is a very high-risk investment. Type a symbol or company name. Liquefied Natural Gas 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. I have no business relationship with any company whose stock is mentioned in this article. See here for a complete list of exchanges and delays. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Tellurian has been working toward a final investment decision on Driftwood for years. | Sign in to get the best natural gas news and data. "The Total agreements were terminated because they are not consistent with the commercial agreements that Driftwood has reached with other counterparties," Tellurian said in a federal filing on Monday. 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. In sum, there are three items overhanging Tellurian. Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. 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 (NYSE:TELL) remains a highly speculative stock. Zacks->. Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). 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. 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. Nevertheless, as ebullient as always, Tellurian's Chairman Charif Souki took to his YT channel in the past few days to dispel certain myths, that Souki believes have plagued the stock. 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. Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. I wrote this article myself, and it expresses my own opinions. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. B.Riley analyst Liam Burke is positive on the stock. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. 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. You have 3 free articles remaining. 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. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. I am not receiving compensation for it (other than from Seeking Alpha). Looking for a helping hand in the market? I wrote this article myself, and it expresses my own opinions. The problem here is that, aside from. 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. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. 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. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Presently, Tellurian's market cap is around $1 billion. Bitcoin, Like the Internet Itself, Could Change Everything. | 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 . Not at less than $2 per share. In this case, it will need to dilute shareholders by around 6.2x. Why? 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. Looking for more investing ideas like this one? Total also will purchase about 20 million additional. Market Realist is a registered trademark. Going forward, a lot will depend on the FID. ISSN 2577-9877 I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. I wrote this article myself, and it expresses my own opinions. FIND OUT MORE Downstream capabilities View our downstream services Insights At the FID point, major equipment orders are placed, and contracts are signed for EPC. See here for a complete list of exchanges and delays. I'll address this momentarily. 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. 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. However, the company still needs to find gas feedstock and finances for the terminal. Driftwood is categorically not getting built by 2026. 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. ISSN 1532-1231 I believe that anyone reading this knows the spiel well. 2023 Natural Gas Intelligence. Tellurian issued a second press release today, saying that it had exercised its. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. 3/1/2023. 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. The company estimates that the 27.6 mmty facility would cost $25 billion to build. Earnings Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for. Sign in to get the best natural gas news and data. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. 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. 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. At least until 20252026 and assume a decision by the first quarter of 2022 billion to.! 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