Tellurian has an amazing story. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. It's not just an out-of-the-money option. 1.800.427.5747 Souki contends that the reason why Tellurian was not at the discussion table with Chevron had been that Tellurian didn't want to be in a position to overpromise and underdeliver on its contract. The problem here is that, aside from. 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. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. read more. Yet another problem. Driftwood is categorically not getting built by 2026. 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. To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. If you have an ad-blocker enabled you may be blocked from proceeding. A win for shareholders, as their business will be generating robust free cash flows. I am not receiving compensation for it (other than from Seeking Alpha). Its stock has gained 80.3% compared with the industrys 10.8% growth. I do all the work of picking the most attractive stocks. 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. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. 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. It then announced it would seek equity partners. Tellurian sold off 40% in the past month. The bigger question is what LNG prices will be in 2026. Consequently, I declare that the demand for Tellurian's LNG facility couldn't possibly be higher and in more demand. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. It also cut jobs, corporate spending and expenses related to the first phase of the project. 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. See here for a complete list of exchanges and delays. Nov 30, 2020 Houston-based liquefied natural gas company Tellurian Inc. (Nasdaq: TELL) announced a new president and CEO on Nov. 30. I wrote this article myself, and it expresses my own opinions. Hess earnings for 2021 are expected to rise 116.2% year over year. 2023 Natural Gas Intelligence. some value. Last years loss included a $81.1 million impairment of upstream properties. 2 min read. View Subscription Options The industry leader for online information for tax, accounting and finance professionals. To read this article on Zacks.com click here. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. 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. I have no business relationship with any company whose stock is mentioned in this article. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. Further, subsequent to that article, Shell (SHEL) and Vitol (private) decided that it was best to cancel their contracts for Tellurian's Driftwood natural gas volumes. Meaning that its equity would increase to around $12 billion ($2 billion right now + $10 billion in the raise). Is this happening to you frequently? Download now.]. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. I argue that this meaningfully improves the bull case. LNG Insight 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; I provide a hand-holding service. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. I have no business relationship with any company whose stock is mentioned in this article. Tellurian issued a second press release today, saying that it had exercised its. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. If you have an ad-blocker enabled you may be blocked from proceeding. 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. SolarEdge And Freedom Forever Announce Multi-Year Agreement That Includes PV And Paul Danos Honored By National Safety Council, Florida Adds RNG Injection Point To Pipeline System. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. Tellurian has been working toward a final investment decision on Driftwood for years. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. I wrote this article myself, and it expresses my own opinions. 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 . LNG It has $474.2 million in cash and cash equivalents on hand. 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. (Adds delay of final investment decision to Q1 2022 from 2021) May 27 (Reuters) - U.S . | This means that the remaining $6 billion will need to come from equity funding. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Indeed, what can go wrong? 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. 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. Going forward, a lot will depend on the FID. 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. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. A story that's going to be a win-win for all parties. Haynesville Shale 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." Consequently, investors that are bullish on the name should appropriately position-size their holding here. 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. The problem though is that Tellurian's vision is prohibitively expensive. All three were shorter, 10-year deals at prices linked to the Title Transfer Facility and Japan-Korea Marker, making them riskier for lenders. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. You can seethe complete list of todays Zacks #1 Rank stocks here. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. 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. "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". 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. I follow countless companies and select for you the most attractive investments. So the core. The industry leader for online information for tax, accounting and finance professionals. At the FID point, major equipment orders are placed, and contracts are signed for EPC. 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. 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. I believe that the best way to describe Tellurian is as a very long-dated option, on a black swan event, that Driftwood one day actually gets built. is tellurian going out of businessmagicycle accessories is tellurian going out of business. The company reported a net loss of $210.7 million (minus 79 cents/share) in 2020, compared to a net loss of $151.8 million (minus 69 cents) in 2019. I am not receiving compensation for it (other than from Seeking Alpha). WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. As per usual, Souki took to YT to argue his take. Looking for a portfolio of ideas like this one? The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. 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 not just an out-of-the-money option. But investors crave FID details. Plus regular stock updates. 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. 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. 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 . When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. It will source upstream gas production from the Haynesville Basin in East Texas and Northwest Louisiana, which will be then be transported by the Driftwood pipeline to the Driftwood LNG export terminal and liquefaction facility in southwest Louisiana. Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen 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. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. Everyone knows the risks. Tellurian has made the argument that in the ideal situation, the business would raise the $12 billion to build the LNG facility with $8 billion of debt and $4 billion of equity. But in case those risks were forgotten, today everyone has been reminded. But does this mean it won't get built at all? I follow countless companies and select for you the most attractive investments. Liquefied Natural Gas Plus regular stock updates. 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tellurian final investment decision