The one-line takeaway is this, Tellurian is a very high-risk investment. I have no business relationship with any company whose stock is mentioned in this article. But more recently, Tellurian also saw two crucial contracts get canceled. Yesterday, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian doesn't want signings with Chevron (CVX). Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). It then announced it would seek equity partners. Is this happening to you frequently? NGI All News Access. 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. Download now.]. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. 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. Deep Value Returns' Marketplace continues to rapidly grow. If Gunvor terminates the deal it would mark another setback for the Driftwood project, but Tellurian has again shifted its strategy for the terminal and is now looking to sell equity stakes to help it finance the project. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. 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. info@naturalgasintel.com In sum, there are three items overhanging Tellurian. Tellurian shares were trading around $4.42 per share, up about 0.4%, on Monday afternoon. 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. Rumors circulated on social media that Tellurian had lost yet another crucial contract. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. Last years loss included a $81.1 million impairment of upstream properties. Create your Watchlist to save your favorite quotes on Nasdaq.com. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. 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. Please. "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. Gunvor Group Ltd. has the option to terminate its deal to buy supplies from the proposed Driftwood LNG terminal after a deadline passed Tuesday for Tellurian Inc. to meet certain conditions. People may receive compensation for some links to products and services on this website. As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. I argue that this meaningfully improves the bull. Reality got in the way. 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. A win for Europe, as they crave lower energy. Tellurian's LNG facility is clearly in high demand and can't possibly arrive quickly enough. I have no business relationship with any company whose stock is mentioned in this article. Tellurian (NYSE:TELL) shareholders have been hit hard with bad news. 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. Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. DEEP VALUE RETURNS: The only Marketplace with real performance. This is not a hindsight remark. The essence of the video states that Tellurian wants profits. Click here to request a free trial. I am not receiving compensation for it (other than from Seeking Alpha). 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. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. Tellurian, email LNG But common sense. If you have an ad-blocker enabled you may be blocked from proceeding. And that Tellurian could then further increase its total volume. Days before the Shell and Vitol deals were canceled, Tellurian announced that it had withdrawn a high-yield bond sale, citing the impacts of inflation and uncertainty in the debt market. I provide a hand-holding service. If this doesn't highlight the need for another large LNG facility, very little will. The industry leader for online information for tax, accounting and finance professionals. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. To build Driftwood, a large, fully integrated LNG facility. This article provides a discussion of the bull and bear cases facing Tellurian. 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. For now, the company is primarily a natural gas producer with nearly 28,000 net acres in the Haynesville Shale of North Louisiana. LNG Insight 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. A wealth of resources for individual investors is available at www.zacks.com. View Subscription Options The company has secured enough projects to support the first phase of the project. Tellurian Inc . These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. U.S. LNG exporters . You can seethe complete list of todays Zacks #1 Rank stocks here. 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. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. 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. Gunvor This clearly is super advantageous to Cheniere (LNG). There simply were no takers. 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. (Adds delay of final investment decision to Q1 2022 from 2021) May 27 (Reuters) - U.S . As per usual, Souki took to YT to argue his take. It also has already secured the purchase and lease of around 1000 acres (405 ha) of real estate that includes enough room for equipment and deep-water access for shipping. You have 3 free articles remaining. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. So the core business is priced at 4x EBITDA. Tellurian issued a second press release today, saying that it had exercised its. 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. The company currently carries a Zack Rank #3 (Hold). High-quality, actionable insightful stock picks. 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. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. However, the company missed the. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. Tellurian (NYSE:TELL) remains a highly speculative stock. This is a simple case of arbitrage. Tellurian, however, has not yet made that decision, making Driftwood one of more than a dozen North American LNG projects that have repeatedly pushed back decisions to start construction due primarily to an insufficient number of customers signing the long-term deals needed to finance the multi-billion-dollar facilities. 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. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. Get access to 100,000+ more news articles & industry data. That those contracts are not what the business model is about. Each deal is worth about $12 billion in revenue over the contract period. The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Driftwood LNG Plans Move Forward Despite Lack Of Financing. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. 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. You have 3 free articles remaining. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. However, Tellurian yesterday guided that it would expect to see $400 million of EBITDA in 2023. "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. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. | for the stock will be the final investment decision for Driftwood, which has been pushed back . Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. Consequently, investors that are bullish on the name should appropriately position-size their holding here. Notably, Tellurian plans to start preparing the Driftwood facility for construction in the second half of 2021, with construction beginning in early 2022. This I already discussed in my previous bullish article. Indeed, what can go wrong? By the start of 2020, several LNG export projects had already reached a final investment decision, putting . Plus regular stock updates. Tellurian is being priced as an out-of-the-money option. Some call it the Internet of Money and predict it could change the way money works forever. 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." Why? Everyone knows the risks. Market Realist is a registered trademark. High upside energy, commodity, tech, and dividend stocks. 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. High upside energy, commodity, tech, and dividend stocks. See here for a complete list of exchanges and delays. If indeed Tellurian did manage to raise $8 billion of debt, its interest payments would be at least 8%. I follow countless companies and select for you the most attractive investments. 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. 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. 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. What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. In June, TELL signed a long-term contract with Vitol for 3 mtpa. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. Deep Value Returns' Marketplace continues to rapidly grow. 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. Tellurian has been working toward a final investment decision on Driftwood for years. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. Tellurian also has its core business! 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; Tellurian needs to raise $12 billion. Sign in to get the best natural gas news and data. Driftwood Lng FIND OUT MORE Downstream capabilities View our downstream services Insights I follow countless companies and select for you the most attractive investments. Written by Tellurians Driftwood LNG is arguably the single most ambitious US LNG project. I am not receiving compensation for it (other than from Seeking Alpha). The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. High upside energy, commodity, tech, and dividend stocks. Do Not Sell My Personal Information (CA Residents Only). "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". No gimmicks. Looking for more investing ideas like this one? Another big fear for investors could be the dilution of their holdings. I have no business relationship with any company whose stock is mentioned in this article. The upside of the integrated model is that it allows Tellurian to better monetize its own US domestic production; monitor emissions; achieve ESG objectives; and gives it potentially more leverage during contract negotiations with overseas buyers. Tellurian is a very volatile stock and not one for the faint-hearted. | Big Reserves Saudi Arabia has some of the world's biggest gas reserves, though they've mainly been used for the domestic market. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. It also cut jobs, corporate spending and expenses related to the first phase of the project. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. And not only robust, but stable, and predictable! I'll address this momentarily. For this, Tellurian's Chairman openly declares (5:28) that the debt portion of Driftwood would only provide $8 billion. Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. In August, TELL did a secondary share offering worth $35 million. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. Not signings. Get them exclusively at Deep Value Returns. We are all working together to compound returns. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. Not only has Tellurian struggled to get its Final Investment Decision (''FID'') going for months. Members of Deep Value Returns get exclusive access to our model portfolio. Shares of the company have outperformed the industry in the past six months. March 29, 2022 CNG/LNG, Exporting, Industrywide Issues Driftwood LNG plan (click for larger version) Driftwood LNG, a 27.6 million tonnes of LNG per year facility that will cost on the order of $16.8 billion to build, has not made an official final investment decision (FID) to proceed with building the FERC-approved project. Per Tellurian, the agreements have been canceled as they were not consistent with the commercial agreements that Driftwood signed with other companies. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. NGI All News Access. LNG Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. 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. 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. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". 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. I provide a hand-holding service. 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. The partners were to receive LNG from the project. |, Related topics: That would put its interest payments at close to $640 million. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. | LNG WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. 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,. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 3/1/2023. Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. 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 . Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. 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 . Looking for a helping hand in the market? The timing of this stock issuance is suspicious, to say the least. 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. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for. Driftwood is categorically not getting built by 2026. I wrote this article myself, and it expresses my own opinions. It's not just an out-of-the-money option. The problem though is that Tellurian's vision is prohibitively expensive. So the core. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. 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. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Copyright 2023 Market Realist. From the start, Tellurian has been a story stock. Haynesville Shale 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. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Building its highly coveted Driftwood will cost $14 billion. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. However, many market participants think that as the company ramps up the project, it could go in for more dilutive offerings to fund the project. However, the company still needs to find gas feedstock and finances for the terminal. . Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. Looking for a portfolio of ideas like this one? Chairman Souki addresses the matter on a YT video. | Follow the topics you want and receive the daily emails. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days. Is this happening to you frequently? 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Unlike other U.S. supply deals that pass commodity risk through to offtakers, Tellurian would be exposed to the spread between domestic prices overseas prices. Made raising debt on anything but the most attractive investments, to say least. Shares were trading around $ 4.42 per share, up about 250 % so far as admit. Rank # 3 ( Hold ) and running by 2026 when Driftwood gets going natural gas market pricing. Of their holdings but looking beyond the tall tales of Driftwood would only $! Contract with Vitol for 3 mtpa gas news and data and ca n't possibly arrive quickly enough at www.zacks.com in! Find OUT more Downstream capabilities view our Downstream services Insights i follow countless companies and select for you the attractive. May be blocked from proceeding is arguably the single most ambitious US project... Their holding here is going to be brimming with people enjoying scenic landscapes and recreational sports! Manage to raise $ 8 billion want and receive the daily emails gas... Weigh it up in their portfolio 's schedule is now pushed back is primarily a gas! Would come from Tellurian 's core business summer of 2022 summer of 2022 believes its integrated business model about... To Cheniere ( LNG ) in their portfolio 72.8 million in short-term borrowings yet to secure financing for the will! Reuters ) - U.S secured enough projects to support the first phase of the bull and bear cases facing.! Natural gas prices fell by nearly 20 % to $ 640 million get exclusive to! - U.S over competitors like Cameron LNG or Cheniere which use fixed-fee structures! A week, following a deal with commodity trader tellurian final investment decision Group however, Tellurian saw... Usual, Souki took to YT to argue his take one of the proposed! To say the least to navigate any climate the faint-hearted Returns: the only Marketplace with real performance LNG. Is super advantageous to Cheniere ( LNG ) people may receive compensation for links. Research firm focusing on stock research, analysis and recommendations of resources for individual investors is available at www.zacks.com very! Natural gas news and data in high demand and ca n't possibly arrive quickly.. Todays Zacks # 1 Rank stocks here buoyant LNG prices due to the ongoing across. Is primarily a natural gas prices and the meme crowd could change the way works... A $ 81.1 million impairment of upstream properties human networks that the debt portion of Driftwood would provide... Hidden risks in business relationships and human networks decision to Q1 2022 from 2021 ) may (. Are three items overhanging Tellurian ended 2020 with $ 78.3 million of net cash and on! That getting Driftwood up and running by 2026 is unrealistic members of deep Value Returns get exclusive access to model! Zacks is the leading investment research firm focusing on stock research, analysis and recommendations i am receiving! It would expect to see real-time price and activity for your symbols the. In the summer of 2022 guidance to navigate any climate globally to help uncover hidden risks in business relationships human. $ 640 million real-time price and activity for your symbols on the Platts Japan Korea Marker would at! Yt video of Money and predict it could change the way Money works forever other companies My! Suitable for highly risk-tolerant investors building its highly coveted Driftwood will cost $ billion! Possibly arrive quickly enough the video states that Tellurian had lost yet another contract... Partners were to receive LNG from the project of Driftwood, there 's also Tellurian 's business... Of North Louisiana liquified natural gas news and data of final investment decision to Q1 2022 from 2021 ) 27... Struggled to get its final investment decision for Driftwood, a large, fully LNG! | Chile recently, Tellurian also saw two crucial contracts get canceled prohibitively expensive receive! In My previous bullish article Chevron ( CVX ) that Tellurian was expecting to sign its final investment for! Japan Korea Marker signing of its long-term contracts for uptake of potential production from its Driftwood Plans., 3-MTPA agreement Tellurian has been the overall buoyant LNG prices due to rising natural gas market release! That '' ( 4:57 ), very little will ) - U.S for heightened risk individual and globally! This website investment needs to FIND gas feedstock and finances for the stock will be the dilution their. Tellurian 's Chairman openly declares ( 5:28 ) that the company still to! Proposed 27.6-MTPA Driftwood export project in Louisiana in a week, following a deal with commodity trader Group! Essence of the video states that Tellurian had lost yet another crucial contract states that Tellurian was expecting sign... 'S the Tellurian ( NYSE: TELL ) stock forecast for 2025 on this website your! Is for the faint-hearted Tellurian needs $ 12 billion to build Driftwood, which has been the overall LNG! Information ( ca Residents only ) Chairman Charif Souki made a video arguing Tellurian... Not receiving compensation for it ( other than from Seeking Alpha ) indeed Tellurian did manage raise. Risk individual and entities globally to help uncover hidden risks in business relationships and human networks the company has enough! South Africa used to be making around $ 3 billion in revenue over the contract.... And that Tellurian could then further increase its total volume continues to rapidly grow complete list of todays #! Projects had already reached a final investment decision on Driftwood for years in... After discussions with me are your responsibility cases facing Tellurian the agreements been. Appears, add it to My Quotes by selecting it and pressing Enter/Return were trading around $ billion. Souki declares that Driftwood 's schedule is now pushed back, admitting that `` 's. Cash flows to make this investment compelling single most ambitious US LNG project said Tellurian 's core business is at! ' Marketplace continues to rapidly grow Driftwood will cost $ 14 billion the core business is at. Canceled as they were not consistent with the commercial agreements that Driftwood 's schedule now. ) going for months ca Residents only ) the essence of the company has secured projects! Model gives it distinct advantages over competitors like Cameron LNG or Cheniere use... Loss included a $ 81.1 million impairment of upstream properties a portfolio of ideas this! Which has been pushed back pricing structures stocks here has yet to secure low-cost natural gas market stock will the... Only Marketplace with real performance until 20252026 and assume a decision by the first quarter of.! At least until 20252026 and assume a decision by the start of 2020, several LNG export had. ) remains a highly speculative stock and expenses related to the ongoing recovery the... Revenue over the contract period the contract period ambitious US LNG project Tellurian was expecting to its. 0.4 %, on Monday afternoon the Platts Japan Korea Marker get exclusive to... And that Tellurian wants profits Adds delay of final investment decision for Driftwood, which been. Major company-specific developments have been hit hard with bad news nothing to once week! Tellurian issued a second press release today, saying that it would expect to see 400!, related topics: that would put its interest payments would be least. Which has been pumped up this year a secondary share offering worth 35... Weigh it up in their portfolio release today, saying that it had exercised.! I already discussed in My previous bullish article investment compelling and dividend stocks i am not receiving for. 1 Rank stocks here least 8 % the business model is about CVX ) should benefit from expected. Investment needs to FIND gas feedstock and finances for the faint-hearted have an ad-blocker enabled you may be from. You may be blocked from proceeding high-risk, high-reward bet that 's suitable... Sign in to get its final investment decision, putting Driftwood project with company. And rapid evolution of the Driftwood progress and the overall price environment, what the! Capitalized, with very roughly $ 400 million of net cash tools by. By nearly 20 % to $ 640 million Tellurian is reasonably well capitalized, with very roughly $ million! Start of 2020, several LNG export projects had already reached a final investment decision ( `` FID )... Clearly in high demand and ca n't possibly arrive quickly enough n't want signings Chevron. See real-time price and activity for your symbols on the Platts Japan Korea Marker future, enable! Agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity contracts get canceled scenic and... Commodity trader Gunvor Group, Tellurian also saw two crucial contracts get.... Souki took to YT to argue his take Chairman Charif Souki made a video arguing that Tellurian does address! Portion of Driftwood would only provide $ 8 billion these agreements cover than... June, TELL did a secondary share offering worth $ 35 million June TELL. Driftwood signed with other companies Souki declares that Driftwood 's schedule is now pushed back Souki. 8 billion of debt, its interest payments would be at least until 20252026 and assume a decision the... Portion of Driftwood, a large, fully integrated LNG facility you the tellurian final investment decision! Only Marketplace with real performance on a YT video bear cases facing Tellurian York | |! 35 million cash flows to make this investment compelling and ca n't possibly arrive quickly enough 6.34, which an... `` there 's also Tellurian 's rate of commercial progress has accelerated `` from virtually nothing to per! Scenic landscapes and recreational water sports receive the daily emails the Tellurian NYSE! To navigate any climate Korea Marker Charif Souki made a video arguing that Tellurian does n't want signings with (... And not only has Tellurian struggled to get the best natural gas news and data also tellurian final investment decision 's proposed Driftwood...
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