You have 3 free articles remaining. Copy and paste multiple symbols separated by spaces. 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. I am not receiving compensation for it (other than from Seeking Alpha). Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Please. See here for a complete list of exchanges and delays. Tellurian needs to raise $12 billion. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. JKM Tellurian has a contract with Bechtel to build the liquefaction plant. I wrote this article myself, and it expresses my own opinions. Rumors circulated on social media that Tellurian had lost yet another crucial contract. But more recently, Tellurian also saw two crucial contracts get canceled. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. Phase 1 will consist of three plants with a combined capacity of 16.5 MTPA and an expected cost of US$16.8 billion. Plus regular stock updates. 2023 Natural Gas Intelligence. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. |, Related topics: The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. Souki calls Driftwood the holy grail of the business model (~3:42). Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. Please disable your ad-blocker and refresh. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for. The agreements had built on TotalEnergies' original $207 million . Bitcoin, Like the Internet Itself, Could Change Everything. . 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. Tellurian dangles a carrot to investors, $400 million of EBITDA in 2023. To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. 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. Written by 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. The company estimates that the 27.6 mmty facility would cost $25 billion to build. Is this happening to you frequently? Part of this decline is due to the companys share offering in August. 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. ISSN 2158-8023 This clearly is super advantageous to Cheniere (LNG). As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. I have no business relationship with any company whose stock is mentioned in this article. A wealth of resources for individual investors is available at www.zacks.com. Click here to request a free trial. All rights reserved. I argue that if Tellurian ends up funding Driftwood with 80% through equity, shareholders are paying approximately 3x its 2026 cash flows from operations. I do all the work of picking the most attractive stocks. Tellurian said it intends to market up to 10 million tpy of its 16.6-million tpy Phase 1 on a JKM . 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 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. 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 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. 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. 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. 3/1/2023. We are all working together to compound returns. But investors crave FID details. It also cut jobs, corporate spending and expenses related to the first phase of the project. This I already discussed in my previous bullish article. 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. I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. 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 executive chairman makes a new video in reply to SA commentary. Looking for a helping hand in the market? 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. 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. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. Meanwhile, the delays in investment decisions are primarily blamed upon the insufficient number of customers signing long-term deals needed to finance the multibillion-dollar facilities. 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. Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. 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. Some call it the Internet of Money and predict it could change the way money works forever. | Diluting shareholders when the stock is at a 6-month low is simply poor practice. 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. People may receive compensation for some links to products and services on this website. Tellurian said it planned to make a final investment decision on its $30 billion Driftwood project, which includes pipelines and production fields in addition to the liquefaction plant, in. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. One of the biggest stock catalysts remains the progress of its Driftwood project. Do Not Sell My Personal Information (CA Residents Only). Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. 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; ISSN 2577-9877 "This activity has pushed a host of pre-final-investment-decision U.S. projects forward and we could see a wave of FIDs this year and next," he said in a report emailed to UPI. By using this Site or clicking on "OK", you consent to the use of cookies. By the start of 2020, several LNG export. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. 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. This one is in the bag. However, the company missed the. While selling this same volume in Europe would bring around $150 million per month. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. By the start of 2020, several LNG export projects had already reached a final investment decision, putting . 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. One of the major catalysts for the stock will be the final investment decision for Driftwood, which has been pushed back by the company from 2021 to 2022. And not only robust, but stable, and predictable! That those contracts are not what the business model is about. Analysts have said Tellurian would likely have to choose between a business model that seeks partners or a model in which the company sells LNG to buyers like Vitol and Gunvor. 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. 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. Is this happening to you frequently? 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. Please. Haynesville Shale But does this mean it won't get built at all? Tellurian is a very volatile stock and not one for the faint-hearted. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. 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. And the debt markets would not even consider $1 billion. 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