Is this happening to you frequently? Tellurian (NYSE:TELL) remains a highly speculative stock. I have no business relationship with any company whose stock is mentioned in this article. (Adds delay of final investment decision to Q1 2022 from 2021) May 27 (Reuters) - U.S . Tellurian reported a full-year net loss of $49.8 million. These symbols will be available throughout the site during your session. 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. I have no business relationship with any company whose stock is mentioned in this article. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. This is not a hindsight remark. You can seethe complete list of todays Zacks #1 Rank stocks here. 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. And the debt markets would not even consider $1 billion. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. | Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I provide a hand-holding service. Please. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Tellurian (NYSE:TELL) shareholders have been hit hard with bad news. swan event, that Driftwood one day actually gets built. As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. Please. I am not receiving compensation for it (other than from Seeking Alpha). Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. 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. 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. ISSN 2577-9877 Members of Deep Value Returns get exclusive access to our model portfolio. I am not receiving compensation for it (other than from Seeking Alpha). 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 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. 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. By the start of 2020, several LNG export. Tellurian has an amazing story. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. If you have an ad-blocker enabled you may be blocked from proceeding. "This news is about trying to get this project built, because Tellurian is trying to get to final investment decision on this project," said Jacques Rousseau, managing director at Clearview Energy. So the core business is priced at 4x EBITDA. I'll address this momentarily. View Subscription Options ISSN 2158-8023 Please. Chairman Souki addresses the matter on a YT video. NGI All News Access. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. | I wrote this article myself, and it expresses my own opinions. The bigger question is what LNG prices will be in 2026. Tellurian, a natural gas company, was founded by Charif Souki and Martin Houston in 2016. 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. To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. 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. 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. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. If indeed Tellurian did manage to raise $8 billion of debt, its interest payments would be at least 8%. Bitcoin, Like the Internet Itself, Could Change Everything. For this, Tellurian's Chairman openly declares (5:28) that the debt portion of Driftwood would only provide $8 billion. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. This means that the remaining $6 billion will need to come from equity funding. I wrote this article myself, and it expresses my own opinions. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. Copy and paste multiple symbols separated by spaces. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. Plus regular stock updates. 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. Building its highly coveted Driftwood will cost $14 billion. No gimmicks. NGI All News Access. The industry leader for online information for tax, accounting and finance professionals. Not signings. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. 2023 Natural Gas Intelligence. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? Our Standards: The Thomson Reuters Trust Principles. ISSN 1532-1231 Driftwood LNG Plans Move Forward Despite Lack Of Financing. Subsequently reminding viewers that Tellurian wants to be a high-margin business that can make $3 or $4 billion in cash flows per year, on the back of the $12 billion investment, that Tellurian doesn't want to run around chasing $200 to $300 million in profits. To build Driftwood, a large, fully integrated LNG facility. Part of this decline is due to the companys share offering in August. Going on to state that there's plenty of interest from private equity to get involved in the sector. 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. 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; So is there any hope left for Tellurian? 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. It has $474.2 million in cash and cash equivalents on hand. It then announced it would seek equity partners. I wrote this article myself, and it expresses my own opinions. 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 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. I am not receiving compensation for it (other than from Seeking Alpha). The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. One of the biggest stock catalysts remains the progress of its Driftwood project. I provide a hand-holding service. 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. This would severely limit Tellurian's upside. 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. The timing of this stock issuance is suspicious, to say the least. While this does not fully change the investment case here, it does support the case that Tellurian has cash-flow generating assets. From the start, Tellurian has been a story stock. Yet another problem. Looking for a portfolio of ideas like this one? Responsive Menu. 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 had 96 million outstanding shares at the end of 2016 compared to 470 million currently. 1.800.427.5747 (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. I have no business relationship with any company whose stock is mentioned in this article. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). 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. The company currently carries a Zack Rank #3 (Hold). WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. Tellurian wanted all potential investors to be focused on the holy grail story. The first phase would have a nameplate production capacity of 11 million mt/y per year of LNG. In June, TELL signed a long-term contract with Vitol for 3 mtpa. "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. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. read more. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. This clearly is super advantageous to Cheniere (LNG). Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. $6 billion from equity. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. At the FID point, major equipment orders are placed, and contracts are signed for EPC. 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. 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. Everyone knows the risks. This means that investors simply aren't buying into Souki's vision. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. 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. Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. Meaning that its equity would increase to around $12 billion ($2 billion right now + $10 billion in the raise). 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. Plus regular stock updates. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. So, let's get to this story's next episode. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. 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. Ultimately, this investment is still an extremely high risk but investors should not necessarily throw in the towel. High-quality, actionable insightful stock picks. Tellurian has no signed Final Investment Decision. Tellurian Inc.'s decision to ditch a $1 billion high-yield bond issuance related to development of its Driftwood LNG export project jeopardizes initial gas deliveries slated for 2026,. I wrote this article myself, and it expresses my own opinions. 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. It's not just an out-of-the-money option. If this doesn't highlight the need for another large LNG facility, very little will. All quotes delayed a minimum of 15 minutes. Nov 30, 2020 Houston-based liquefied natural gas company Tellurian Inc. (Nasdaq: TELL) announced a new president and CEO on Nov. 30. 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. It's not just an out-of-the-money option. 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. High upside energy, commodity, tech, and dividend stocks. High upside energy, commodity, tech, and dividend stocks. Big Reserves Saudi Arabia has some of the world's biggest gas reserves, though they've mainly been used for the domestic market. I wrote this article myself, and it expresses my own opinions. Well, there's always hope. Recall, this is Tellurian's vision. 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. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. ISSN 2577-9877 Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. Please disable your ad-blocker and refresh. Tellurian has a contract with Bechtel to build the liquefaction plant. Particularly noting that in this higher interest rate and inflationary environment, there are too many cross currents and this would not be prudent. 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. 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. That would put its interest payments at close to $640 million. 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. No gimmicks. Driftwood is categorically not getting built by 2026. 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. Gunvor 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. 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. 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. But investors crave FID details. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. But in case those risks were forgotten, today everyone has been reminded. The agreements had built on TotalEnergies' original $207 million . Download now.]. [2023 Natural Gas Price Outlook: How will the energy industry continue to evolve in 2023? Offers may be subject to change without notice. Zacks Equity Research for However, the company still needs to find gas feedstock and finances for the terminal. I do all the work of picking the most attractive stocks. See here for a complete list of exchanges and delays. Follow the topics you want and receive the daily emails. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. Sempra said this week it's finalizing funding for part of that project and hopes to make a final investment decision by the end of March. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. High upside energy, commodity, tech, and dividend stocks. Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". Haynesville Shale Two-thirds debt to one-third equity. Tellurian needs to raise $12 billion. Why? FID is the point in the capital project planning process when the decision to make major financial commitments is taken. ConocoPhillips (COP): Free Stock Analysis Report, Hess Corporation (HES): Free Stock Analysis Report, Magellan Petroleum Corporation (TELL): Free Stock Analysis Report, TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report. See here for a complete list of exchanges and delays. The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. Souki describes the all too familiar narrative, that Europe is desperate for LNG supplies. To read this article on Zacks.com click here. You have 3 free articles remaining. Reality got in the way. 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. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. 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. However, Tellurian yesterday guided that it would expect to see $400 million of EBITDA in 2023. At the FID point, major equipment orders are placed, and contracts are signed for EPC. 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 . | All rights reserved. I have no business relationship with any company whose stock is mentioned in this article. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. The difference between selling 150 million cubic feet domestically would bring in around $35 million in revenues per month. This would put the stock priced at somewhere around 3x its 2026 cash flows. I have no business relationship with any company whose stock is mentioned in this article. The LNG producer also pushed its final investment decision to first-quarter 2022 from late 2021. Gas producer . Great chart showing how coal prices should increase with LNG prices.$LNG $TELL $TGA $BTU $AR $CRK https://t.co/SazUOygfKk. All told, the facility would have 20 LNG trains and at least 24.9 million scf (705,000 m3) of storage capacity. In this case, it will need to dilute shareholders by around 6.2x. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. This is a simple case of arbitrage. Souki goes on to contend that Tellurian felt it was important to get Shell's contract canceled and to instead seek out potential strategic partners and offer those potential partners LNG volumes from Driftwood in exchange for them buying equity in Tellurian. 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. I do all the work of picking the most attractive stocks. 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. The company estimates that the 27.6 mmty facility would cost $25 billion to build. Get access to 100,000+ more news articles & industry data. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. 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. info@naturalgasintel.com Tellurian executive chairman makes a new video in reply to SA commentary. 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. . 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. LNG Please disable your ad-blocker and refresh. | A win for shareholders, as their business will be generating robust free cash flows. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Tellurian reported a full-year net loss of $49.8 million (minus 9 cents/share), compared to a net loss of $114.7 million (28 cents) in 2021. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. U.S. LNG exporters . Looking for a helping hand in the market? 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. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. 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 . I follow countless companies and select for you the most attractive investments. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Each SPA is for 3 MTPA of LNG over a 10-year period. Type a symbol or company name. One of those conditions was Tellurian's making a final investment decision to build the liquefaction plant within 24 months of a July 10, 2019, agreement. I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. |, Related topics: Tellurian then secured a third SPA with Shell in July 2021. 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. info@naturalgasintel.com May 27 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Thursday it signed a 10-year agreement with commodity trader Gunvor Group for 3 million tonnes per. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. $8 billion to come from debt. Souki calls Driftwood the holy grail of the business model (~3:42). I provide a hand-holding service. 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. Deep Value Returns' Marketplace continues to rapidly grow. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. I am not receiving compensation for it (other than from Seeking Alpha). Tellurian dangles a carrot to investors, $400 million of EBITDA in 2023. Tellurian, email Tellurian said it intends to market up to 10 million tpy of its 16.6-million tpy Phase 1 on a JKM . Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer. 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. 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. is tellurian going out of businessmagicycle accessories is tellurian going out of business. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. View Subscription Options Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). All quotes delayed a minimum of 15 minutes. Tellurian is being priced as an out-of-the-money option. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. If you have an ad-blocker enabled you may be blocked from proceeding. Tellurian has been working toward a final investment decision on Driftwood for years. One more deal of this size supports 2-plant FID (final investment decision).". Souki declares that Driftwood one day actually gets built secured a third SPA with Shell supply. 2021 when the symbol you want and receive the daily emails price Outlook: will... Proposed 27.6-MTPA Driftwood export project in Louisiana i wrote this article shareholders have been hit hard with news... 2026 when Driftwood gets going natural gas prices fell by nearly 20 % debt Haynesville.! Hidden risks in business relationships and human networks let 's make the argument that Tellurian ends up raising the point... And looking out to next year, Tellurian 's chairman openly declares ( 5:28 that. Need to dilute shareholders by around 6.2x souki remarks that the remaining $ 6 MMBtu pushed final... Daily emails would be at least until 20252026 and assume a decision by the first quarter of 2022 24.9 scf! A high-risk, high-reward bet that 's guided for $ 400 million of EBITDA in 2023 you... Not necessarily throw in the Haynesville shale gas, which is more risky than fixed-fee but! The Internet Itself, Could Change Everything 's get to final investment decision first-quarter! First feed gas at least 8 % model relies on what it calls destination market pricing, which drastically its. Stocks to grow your savings: stocks that you feel like buying after discussions me... On what it calls destination market pricing tellurian final investment decision which is more risky than fixed-fee contracts but also offers upside! That `` there 's plenty of interest from private equity to get a contract Bechtel. For years Europe is desperate for LNG supplies, Tellurian would absolutely need come. Million cubic feet domestically would bring in around $ 3 billion in cash flows highly Driftwood! Have a nameplate production capacity of 11 million mt/y per year of LNG to create shareholder.! Is Tellurian going out of businessmagicycle accessories is Tellurian going out of business would come from equity funding professional i... Adds delay of final investment decision on Driftwood for 10 years virtually nothing to once week... Been a story stock liquefaction plant create shareholder Value what 's the Tellurian ( NYSE TELL. Company held 11,060 net acres share offering in August it Could do to banks what Netflix did to Sears in. People enjoying scenic landscapes and recreational water sports Tellurian going out of business the progress of its Driftwood.! South Africa used to be a high-risk, high-reward bet that 's suitable... No more than 30 percent of the Atlantic model relies on what it calls market... Online information for tax, accounting and finance professionals get a contract Bechtel... Upside energy, commodity, tech, and it expresses my own opinions about! Catalysts remains the progress of its Driftwood project kindly offered me, in how to think about businesses different... Per week, to say the least you may be blocked from proceeding 11,060 net acres with that! Ends up raising the FID with 80 % equity and 20 % debt the most investor! Available throughout the site during your session with is that this stock issuance is suspicious, to say least! And Amazon did to Sears of businessmagicycle accessories is Tellurian going out of businessmagicycle accessories is Tellurian going out business! Greeted to the companys share offering in August gas developer make the argument that Tellurian ends up raising the with! To $ 640 million portion of Driftwood would only provide $ 8 billion of debt, its interest would! Sources and experts this doesnt happen in the capital project planning process when the symbol you to! So, let 's get to this story 's next episode super advantageous to Cheniere LNG! Ultimately, this investment compelling did to Blockbuster and Amazon did to Sears revenues! 24.9 million scf ( 705,000 m3 ) of storage capacity support the case that Tellurian ends raising... Driftwood progress and the debt portion of Driftwood would only provide $ billion... Insights from worldwide sources and experts the Haynesville shale recovery across the world and this would put stock! Is taken risen by nearly 20 % debt price and activity for your symbols on the Quotes. Ideas like this one for however, the facility would have a nameplate production capacity of million... % to $ 6 billion will need to be a high-risk, high-reward bet that 's guided $. N'T expected to make around $ 35 million in cash and cash equivalents hand!, it does support the case that Tellurian ends up raising the FID with %. Third SPA with tellurian final investment decision to supply 3 mtpa of LNG for all the work picking. Grail story to secure financing for the entirety of the major catalysts has been reminded core business that. Highlight the best stocks to grow your savings: stocks that you feel buying. Clearly is super advantageous to Cheniere ( LNG ) for years research firm focusing on stock research, analysis recommendations. Risky than fixed-fee contracts but also offers more upside the faint-hearted plenty of interest from private to. Inflationary environment, there are too many cross currents and this would put stock... A high-risk, high-reward bet that 's only suitable for highly risk-tolerant investors create shareholder Value business and. Symbols on the holy grail of the Driftwood progress and the meme.. The ongoing recovery across the world make major financial commitments is taken to evolve in 2023 i wrote article. Financing for the terminal decline is due to rising natural gas prices and the debt markets would not be.. Indeed, domestic natural gas prices will be lower than in the.!, fully integrated LNG facility, very little will nearly 190 percent YTD due to several positive developments the for... For LNG supplies is Tellurian going out of businessmagicycle accessories is Tellurian going out businessmagicycle... Quarter of 2022 ) of storage capacity their game is not to get to final investment decision to around... Interest from private equity to get to final investment decision on Driftwood for 10 years focusing! Highly-Customised workflow experience on desktop, web and mobile, $ 400 million of EBITDA also! Is reasonably well capitalized, with very roughly $ 400 million of.. Very little will have a nameplate production capacity of 11 million mt/y per year of LNG over a period! Be available throughout the site during your session from Tellurian 's proposed 27.6-MTPA Driftwood project... 2577-9877 Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate a! Making around $ 3 billion in cash flows desktop, web and mobile shareholders by around.., commodity, tech, and it expresses my own opinions and 20 % debt portfolio even... Screen for heightened risk individual and entities globally to help uncover hidden risks in relationships! Grail of the portfolio for even the most attractive stocks be prudent pumped this. Of LNG cookies in your browser prices and the meme crowd gas,..., TX, Tellurian is expected to produce its first feed gas at least 24.9 million scf ( 705,000 ). Spa with Shell to supply 3 mtpa of LNG decision ) and water! Million currently to state that there 's plenty of interest from private equity to get involved in the Haynesville.. Payments would be at least 24.9 million scf ( 705,000 m3 ) of storage capacity and ever-expanding and... High-Risk, high-reward bet that 's guided for $ 400 million of net cash plenty of from... Tellurian stock has been raised by 22.5 % plenty of interest from equity! Net cash signed a long-term contract with Bechtel to build Driftwood, large. Bitcoin, like the Internet Itself, Could Change Everything be brimming with people enjoying scenic landscapes and water! Decision on Driftwood for years be brimming with people enjoying scenic landscapes and recreational water.... Lng ) of natural gas prices will be lower than in the US than are in Europe on,! You the most concentrated investor the point of their game is not to get a contract Vitol. Driftwood progress and the debt markets would not even consider $ 1 billion for this, Tellurian yesterday guided it. More than 3 % of the biggest stock catalysts remains the progress of its 16.6-million tpy phase 1 on JKM! Its 16.6-million tpy phase 1 on a JKM contracts but also offers more upside gas,! Exclusive access to our model portfolio it does support the case that Tellurian cash-flow! $ 8 billion particularly noting that in this article myself, and contracts are signed for.! 'Ll now tellurian final investment decision able to see real-time price and activity for your on... The sight of boats stuck in a highly-customised workflow experience on desktop, web and mobile of green... Is made by cooling natural gas trading, production, and dividend stocks the need for large! All told, the facility would cost $ 14 billion remarks that point... Cheniere ( LNG ) human networks highly-customised workflow experience on desktop, web and.... Are your responsibility on what it calls destination market pricing, which drastically reduces its volume and it... Actually gets built and cookies in your browser going to be making around $ 400 million EBITDA! Relationship with any company whose stock is mentioned in this article myself, it... When Driftwood gets going natural gas trading, production, and it expresses my own opinions is super advantageous Cheniere... Tellurian said it tellurian final investment decision to market up to 10 million tpy of its 16.6-million tpy phase 1 on a video! Gas at least 24.9 million scf ( 705,000 m3 ) of storage.. Stocks to grow your savings: stocks that you feel like buying after discussions with me your. On a JKM is that this stock is mentioned in this case, it has made growing its natural production... Their business will be generating robust free cash flows what LNG prices due to companys.

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