";s:4:"text";s:22604:"I do all the work of picking the most attractive stocks. This is not a significant dilution and amounts to less than 4%. 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 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. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. "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. 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. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. View Subscription Options Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. I am not receiving compensation for it (other than from Seeking Alpha). What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. People may receive compensation for some links to products and services on this website. Gunvor Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. If indeed Tellurian did manage to raise $8 billion of debt, its interest payments would be at least 8%. 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. Plus regular stock updates. Big Reserves Saudi Arabia has some of the world's biggest gas reserves, though they've mainly been used for the domestic market. I'll address this momentarily. FID Also known as: Final investment decision FID is the point in the capital project planning process when the decision to make major financial commitments is taken. 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. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. If you have an ad-blocker enabled you may be blocked from proceeding. In April, Total agreed to buy shares of Tellurian common stock for about $200 million, subject to certain closing conditions, including a final investment decision by Tellurian. Download now.]. Not at less than $2 per share. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. That being said, in the past several days, natural gas prices on the spot market have been soaring back, and are now, once again, edging back to $7 MMBtu. At the FID point, major equipment orders are placed, and contracts are signed for EPC. The sales and purchase agreement (SPA) was amended to give Gunvor the option of walking away if Tellurian failed to meet conditions, including sanctioning the Driftwood project and securing financing by Feb. 28. | Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. No gimmicks. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. A wealth of resources for individual investors is available at www.zacks.com. A story that's going to be a win-win for all parties. ISSN 2577-9877 Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. 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. Everyone knows the risks. Tellurian needs to raise $12 billion. Each SPA is for 3 MTPA of LNG over a 10-year period. Another big fear for investors could be the dilution of their holdings. To read this article on Zacks.com click here. However, the company missed the. No gimmicks. Tellurian has no signed Final Investment Decision. As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! 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. Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. High upside energy, commodity, tech, and dividend stocks. Tellurian (NYSE:TELL) shareholders have been hit hard with bad news. The company currently carries a Zack Rank #3 (Hold). "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. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. From the start, Tellurian has been a story stock. Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. Not even with an 11.25% coupon. 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. If you have an ad-blocker enabled you may be blocked from proceeding. ISSN 2158-8023 Not only has Tellurian struggled to get its Final Investment Decision (''FID'') going for months. 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. You have 3 free articles remaining. And the debt markets would not even consider $1 billion. 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. The company estimates that the 27.6 mmty facility would cost $25 billion to build. 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. 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,. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Tellurian, email 2 min read. Last years loss included a $81.1 million impairment of upstream properties. | Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. 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. I provide a hand-holding service. Zacks->. 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. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. for the stock will be the final investment decision for Driftwood, which has been pushed back . Sign in to get the best natural gas news and data. 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. All three were shorter, 10-year deals at prices linked to the Title Transfer Facility and Japan-Korea Marker, making them riskier for lenders. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. 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 . According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. Tellurian said it intends to market up to 10 million tpy of its 16.6-million tpy Phase 1 on a JKM . 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. As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. In sum, there are three items overhanging Tellurian. Diluting shareholders when the stock is at a 6-month low is simply poor practice. I have no business relationship with any company whose stock is mentioned in this article. Tellurian Inc confirmed on Wednesday it still plans to make a final investment decision to build its proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana in 2019: 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. 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. Some call it the Internet of Money and predict it could change the way money works forever. I have no business relationship with any company whose stock is mentioned in this article. Yet another problem. See here for a complete list of exchanges and delays. Tellurian had 96 million outstanding shares at the end of 2016 compared to 470 million currently. By the start of 2020, several LNG export. 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. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? The company, through its subsidiary Driftwood LNG LLC (Driftwood), is developing an LNG production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. Members of Deep Value Returns get exclusive access to our model portfolio. Presently, Tellurian's market cap is around $1 billion. 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. But more recently, Tellurian also saw two crucial contracts get canceled. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. I am not receiving compensation for it (other than from Seeking Alpha). $8 billion to come from debt. Great chart showing how coal prices should increase with LNG prices.$LNG $TELL $TGA $BTU $AR $CRK https://t.co/SazUOygfKk. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. See here for a complete list of exchanges and delays. 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. 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. Fid '' ) going for months get its Final Investment Decision ( `` FID '' ) for. 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