Looking for a portfolio of ideas like this one? | High-quality, actionable insightful stock picks. 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. Infrastructure The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. Get access to 100,000+ more news articles & industry data. Tellurian has no signed Final Investment Decision. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Tellurian is actively pursuing additional upstream acreage. To read this article on Zacks.com click here. 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. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. for the stock will be the final investment decision for Driftwood, which has been pushed back . I wrote this article myself, and it expresses my own opinions. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. Looking for more investing ideas like this one? The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. | Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. 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. Amid a record stretch of U.S. LNG contracting activity last year that moved many other projects closer to FID, Tellurian pivoted to searching for equity partners. Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. | This clearly is super advantageous to Cheniere (LNG). I provide a hand-holding service. 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. Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. 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 . Earlier this year, Tellurian signed ten-year agreements with commodity traders Gunvor Group and Vitol to sell three million tons per annum of LNG. Currently the company is on pace to produce 90mmBtu of natural gas up. All quotes delayed a minimum of 15 minutes. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. 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. Today, that discovery is still the heart of the Zacks Rank. 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. Sign in to get the best natural gas news and data. 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. It's a high beta stock. 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. So, let's get to this story's next episode. 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. Plus regular stock updates. 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. 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. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. All Rights Reserved. Tellurian is a very volatile stock and not one for the faint-hearted. See here for a complete list of exchanges and delays. View Subscription Options Tellurian reported a full-year net loss of $49.8 million. JKM But more recently, Tellurian also saw two crucial contracts get canceled. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. U.S. LNG exporters . Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. "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. Haynesville Shale Looking for a helping hand in the market? 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. 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. This is not a significant dilution and amounts to less than 4%. Offers may be subject to change without notice. This is not a hindsight remark. 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Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. And that Tellurian could then further increase its total volume. Tellurian needs to raise $12 billion. I am not receiving compensation for it (other than from Seeking Alpha). Tellurian Inc. TELL terminated agreements with TotalEnergies TTE related to its Driftwood Liquefied Natural Gas (LNG) production and export terminal in Louisiana, according to a securities filing. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. Its stock has gained 80.3% compared with the industrys 10.8% growth. Presently, Tellurian's market cap is around $1 billion. I have no business relationship with any company whose stock is mentioned in this article. Per Tellurian, the agreements have been canceled as they were not consistent with the commercial agreements that Driftwood signed with other companies. If you have an ad-blocker enabled you may be blocked from proceeding. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Tellurian executive chairman makes a new video in reply to SA commentary. Tellurian has a contract with Bechtel to build the liquefaction plant. Everyone knows the risks. However, the company missed the. 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. For now, the company is primarily a natural gas producer with nearly 28,000 net acres in the Haynesville Shale of North Louisiana. 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. Two-thirds debt to one-third equity. 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. Is this happening to you frequently? I wrote this article myself, and it expresses my own opinions. 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. This is of course if Driftwood ends up getting built at all. Well, there's always hope. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Not at less than $2 per share. Deep Value Returns' Marketplace continues to rapidly grow. Haynesville Shale In August, TELL did a secondary share offering worth $35 million. I have no business relationship with any company whose stock is mentioned in this article. LNG Each SPA is for 3 MTPA of LNG over a 10-year period. 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. 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. Please disable your ad-blocker and refresh. There simply were no takers. I follow countless companies and select for you the most attractive investments. 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. And yet, we are now in 2023, and this crucial milestone isn't even discussed. 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. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. But does this mean it won't get built at all? As per usual, Souki took to YT to argue his take. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. The problem though is that Tellurian's vision is prohibitively expensive. 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. $6 billion from equity. Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). Tellurian also has its core business! Tellurian shares were trading around $4.42 per share, up about 0.4%, on Monday afternoon. Another big fear for investors could be the dilution of their holdings. Bitcoin, Like the Internet Itself, Could Change Everything. 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. Driftwood Lng Nevertheless, as ebullient as always, Tellurian's Chairman Charif Souki took to his YT channel in the past few days to dispel certain myths, that Souki believes have plagued the stock. 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 . As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! The LNG terminal is expected to cost $12 billion. You can seethe complete list of todays Zacks #1 Rank stocks here. 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. Tellurian dangles a carrot to investors, $400 million of EBITDA in 2023. 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. NGI All News Access. 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. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. 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. Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. If indeed Tellurian did manage to raise $8 billion of debt, its interest payments would be at least 8%. If you have an ad-blocker enabled you may be blocked from proceeding. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. 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