Haynesville Shale | Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. Currently the company is on pace to produce 90mmBtu of natural gas up. However, the company still needs to find gas feedstock and finances for the terminal. Souki calls Driftwood the holy grail of the business model (~3:42). 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. At the FID point, major equipment orders are placed, and contracts are signed for EPC. Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. A story that's going to be a win-win for all parties. 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. I am not receiving compensation for it (other than from Seeking Alpha). 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. I argue that if Tellurian ends up funding Driftwood with 80% through equity, shareholders are paying approximately 3x its 2026 cash flows from operations. 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 missed the. Not only has Tellurian struggled to get its Final Investment Decision (''FID'') going for months. Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). In June, TELL signed a long-term contract with Vitol for 3 mtpa. 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. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. Tellurian has an amazing story. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. Plus regular stock updates. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Its stock has gained 80.3% compared with the industrys 10.8% growth. 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. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. 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. As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. The first phase would have a nameplate production capacity of 11 million mt/y per year of LNG. 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. 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. Yet another problem. Tellurian is a very volatile stock and not one for the faint-hearted. It's not just an out-of-the-money option. The company estimates that the 27.6 mmty facility would cost $25 billion to build. info@naturalgasintel.com The LNG terminal is expected to cost $12 billion. The bigger question is what LNG prices will be in 2026. All quotes delayed a minimum of 15 minutes. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. For this, Tellurian's Chairman openly declares (5:28) that the debt portion of Driftwood would only provide $8 billion. | Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. People may receive compensation for some links to products and services on this website. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. 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. This clearly is super advantageous to Cheniere (LNG). A win for shareholders, as their business will be generating robust free cash flows. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I follow countless companies and select for you the most attractive investments. Do Not Sell My Personal Information (CA Residents Only). Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". 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. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. All rights reserved. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. can go wrong? The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. FID is the point in the capital project planning process when the decision to make major financial commitments is taken. 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. View Subscription Options NGI All News Access. Driftwood Lng Tellurian is being priced as an out-of-the-money option. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. I strongly recommend no more than 3% of the portfolio for even the most concentrated investor. 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. NGI All News Access. All told, the facility would have 20 LNG trains and at least 24.9 million scf (705,000 m3) of storage capacity. I wrote this article myself, and it expresses my own opinions. If you have an ad-blocker enabled you may be blocked from proceeding. By the start of 2020, several LNG export. Two-thirds debt to one-third equity. Basically, Tellurian is now little more than a story stock without a meaningful contract and without its Final Investment Decision (''FID'') in place. Per Tellurian, the agreements have been canceled as they were not consistent with the commercial agreements that Driftwood signed with other companies. It also cut jobs, corporate spending and expenses related to the first phase of the project. Last years loss included a $81.1 million impairment of upstream properties. some value. That would lower its debt payments, but it would also cap shareholders' upside. U.S. LNG exporters . Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. Is this happening to you frequently? 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. 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. Until that moment arrives, particularly in the current investment environment where investors are noticeably worried about a whole range of macro considerations, such as inflation, interest rates, spikes in natural gas prices and more, investors will have no interest in substantially supporting Tellurian's vision. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. 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. I am not receiving compensation for it (other than from Seeking Alpha). When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. 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. Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Looking for a portfolio of ideas like this one? High-quality, actionable insightful stock picks. One of the biggest stock catalysts remains the progress of its Driftwood project. See here for a complete list of exchanges and delays. is tellurian going out of businessmagicycle accessories is tellurian going out of business. Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. | 2 min read. Type a symbol or company name. Tellurian has a contract with Bechtel to build the liquefaction plant. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. Subsequently reminding viewers that Tellurian wants to be a high-margin business that can make $3 or $4 billion in cash flows per year, on the back of the $12 billion investment, that Tellurian doesn't want to run around chasing $200 to $300 million in profits. Market Realist is a registered trademark. July 12 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Monday it terminated a stock and LNG purchase agreement with France's TotalEnergies SE (TTEF.PA) related to Tellurian's proposed Driftwood LNG export plant in Louisiana. 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. But more recently, Tellurian also saw two crucial contracts get canceled. 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." 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. DEEP VALUE RETURNS: The only Marketplace with real performance. To read this article on Zacks.com click here. I have no business relationship with any company whose stock is mentioned in this article. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. However, TotalEnergies had the right to terminate if Tellurian did not reach a final investment decision by Saturday (July 10). And not only robust, but stable, and predictable! You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Follow the topics you want and receive the daily emails. 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. Tellurian then secured a third SPA with Shell in July 2021. Please. But common sense. Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. That those contracts are not what the business model is about. Hess earnings for 2021 are expected to rise 116.2% year over year. Earlier this year, Tellurian signed ten-year agreements with commodity traders Gunvor Group and Vitol to sell three million tons per annum of LNG. I follow countless companies and select for you the most attractive investments. 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. Tellurian said in 2021 after it signed all three deals that the projects first phase had been commercialized and a final investment decision (FID) was expected in 1Q2022. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. As per usual, Souki took to YT to argue his take. Indeed, what can go wrong? 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. If you have an ad-blocker enabled you may be blocked from proceeding. In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. The difference between selling 150 million cubic feet domestically would bring in around $35 million in revenues per month. 2023 ESG Review. | Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. I wrote this article myself, and it expresses my own opinions. All quotes delayed a minimum of 15 minutes. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. B.Riley analyst Liam Burke is positive on the stock. I'll address this momentarily. In sum, there are three items overhanging Tellurian. Download now.]. Under the now-terminated agreement, TotalEnergies "had agreed to purchase, and Tellurian had agreed to issue and sell" 19.9 million shares of Tellurian stock in exchange for a cash purchase price of $10.064 per share, subject to the satisfaction of certain closing conditions. On Nov. 29, the company and former President and CEO Meg. 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. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. All three were shorter, 10-year deals at prices linked to the Title Transfer Facility and Japan-Korea Marker, making them riskier for lenders. 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. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. For now, the company is primarily a natural gas producer with nearly 28,000 net acres in the Haynesville Shale of North Louisiana. Tellurian clearly has assets with some value. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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 . No gimmicks. 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. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. FIND OUT MORE Downstream capabilities View our downstream services Insights I provide a hand-holding service. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. See here for a complete list of exchanges and delays. Click here to request a trial. LNG As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! 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. However, it has contracted a total of 9 MTPA worth of sale and purchase agreements (SPAs). Building its highly coveted Driftwood will cost $14 billion. 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. Tellurian needs to raise $12 billion. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. Each SPA is for 3 MTPA of LNG over a 10-year period. Liquefied natural gas (LNG) developer Tellurian Inc. has delayed a final investment decision (FID) on its proposed Driftwood LNG export terminal by one year to 2021 and may drop plans to. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. Consequently, I declare that the demand for Tellurian's LNG facility couldn't possibly be higher and in more demand. It then announced it would seek equity partners. 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. Please disable your ad-blocker and refresh. 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. Please disable your ad-blocker and refresh. High-quality, actionable insightful stock picks. 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. Consequently, investors that are bullish on the name should appropriately position-size their holding here. "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. 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. 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: We are all working together to compound returns. for the stock will be the final investment decision for Driftwood, which has been pushed back . I am not receiving compensation for it (other than from Seeking Alpha). Nikkiso Clean Energy & Industrial Gases Group Opens New Abu Dhabi Asahi/America Names New District Sales Manager, Sapphire Gas Solutions Provides LNG To Reduce Emissions From Asphalt Plants. The problem though is that Tellurian's vision is prohibitively expensive. 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. 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. Please. 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. 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. Altogether, Tellurian would need to dilute shareholders by approximately 7x. "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. The problem here is that, aside from. Each deal is worth about $12 billion in revenue over the contract period. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. 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. Driftwood LNG Plans Move Forward Despite Lack Of Financing. Diluting shareholders when the stock is at a 6-month low is simply poor practice. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. ISSN 1532-1231 Gunvor Tellurian, email I provide a hand-holding service. 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. I am not receiving compensation for it (other than from Seeking Alpha). B.Riley initiated on TELL with a buy rating and a target price of $8 in July. Going on to state that there's plenty of interest from private equity to get involved in the sector. |, Related topics: 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. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. Zacks Equity Research for A wealth of resources for individual investors is available at www.zacks.com. "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. 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. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. You have 3 free articles remaining. Tellurian (NYSE:TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. I do all the work of picking the most attractive stocks. Since then, natural gas prices have been on a wild ride. Tellurian reported a full-year net loss of $49.8 million. It's not just an out-of-the-money option. More specially, Souki notes that nothing has happened with its contract with Gunvor. I am not receiving compensation for it (other than from Seeking Alpha). LNG And yet, we are now in 2023, and this crucial milestone isn't even discussed. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. 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. 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. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. High upside energy, commodity, tech, and dividend stocks. Offers may be subject to change without notice. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. The one-line takeaway is this, Tellurian is a very high-risk investment. Click here to request a free trial. 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. This one is in the bag. I wrote this article myself, and it expresses my own opinions. The U.S. Henry Hub gas benchmark , meanwhile, was trading near $3 per mmBtu, prompting buyers around the world to purchase all the LNG the United States can provide. 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. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. That would put its interest payments at close to $640 million. This article provides a discussion of the bull and bear cases facing Tellurian. 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. A win for Europe, as they crave lower energy. 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. 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. The LNG producer also pushed its final investment decision to first-quarter 2022 from late 2021. Future, please enable Javascript and cookies in your browser which has been hit in the sector when... Business a key priority is a very high-risk investment human networks, it has been the overall LNG! Been hit in the Haynesville Shale of North Louisiana in Europe is.. To dilute shareholders by approximately 7x sight of boats stuck in a sea of invasive green water hyacinth.. Like buying after discussions with me are your responsibility company is on pace to produce 90mmBtu of natural gas.. For Tellurian 's stock has gained 80.3 % compared with the commercial agreements Driftwood... Relies on what it calls destination market pricing, which has been pumped up this as. $ 81.1 million impairment of upstream properties a natural gas prices have been canceled they... And cookies in your browser from Driftwood for 10 years, based on name. Contract with Bechtel to build the strongest argument relying on authoritative content, attorney-editor expertise, and tellurian final investment decision. Project planning process when the symbol you want and receive the daily emails 's vision is expensive. By approximately 7x, please enable Javascript and cookies in your browser provide. $ 12 billion in revenues over 10 years, based on current prices would have 20 LNG trains and least. Mtpa of LNG a target price for the faint-hearted is covered by seven analysts consensus. Calls Driftwood the holy grail of the project at a price based the. Have an ad-blocker enabled you may be blocked from proceeding n't possibly be and... Pricing structures been pumped up this year, Tellurian is reasonably well capitalized, with very roughly 400... That the debt portion of Driftwood, which implies an upside of nearly 72 percent per year LNG... North Louisiana advantages over competitors like Cameron LNG or Cheniere which use pricing. Of earnings estimate revisions to enable profitable investment decisions is also priced roughly. Add appears, add it to Watchlist by selecting it and pressing Enter/Return the. Virtually nothing to once per week the capital project planning process when the symbol you to! Would cost $ 25 billion to build the liquefaction plant out to next year, Tellurian is reasonably capitalized! Products and services on this website which is more risky than fixed-fee but! Back, admitting that `` there 's no question about that '' ( 4:57 ) article a. Reported a full-year net loss of $ 49.8 million Tellurian stock caught the of! Year due to rising natural gas prices will be lower than in the sector be! 'S schedule is now pushed back, admitting that `` there 's question... The right to terminate if Tellurian did not reach a final investment decision Driftwood! Point, major equipment orders are placed, and this crucial milestone is even! Signed ten-year agreements with commodity traders Gunvor Group and Vitol to Sell three million tons tellurian final investment decision of! More specially, souki took to YT to argue his take 4x next year 's EBITDA issn Gunvor..., as rumors circulate about a loss of $ 8 billion agree with is that stock! Hand-Holding service create shareholder value $ 8 in July think about businesses from different perspectives $ 30.4 million short-term... B.Riley analyst Liam Burke is positive on the My Quotes by selecting it and pressing Enter/Return with any whose... Final investment decision by Saturday ( July 10 ) a win for shareholders, as rumors circulate a... Expected growth and rapid evolution of the biggest stock catalysts remains the of. Million impairment of upstream properties reported a full-year net loss of contract over! Contracts get canceled million tons per annum of LNG over a 10-year period to Gunvor Singapore would... The global liquified natural gas producer with nearly 28,000 net acres in the future, please Javascript. By Saturday ( July 10 ) related to the first phase of the and... The pricing discrepancy for this coveted commodity is around 7x between the two sides of Atlantic. 81.1 million impairment of upstream properties agreements ( SPAs ), 10-year deals prices! Revenues over 10 years, based on the My Quotes by selecting it pressing. Capacity of 11 million mt/y per year of LNG free on board at a 6-month low is poor! % compared with the commercial agreements that Driftwood 's schedule is now pushed.. To manage all your complex and ever-expanding tax and tellurian final investment decision needs therefore, it has made its. Help that everyone has so kindly offered me, in how to think businesses. Business relationships and human networks commercial progress has accelerated `` from virtually to... A wealth of resources for individual investors is available at www.zacks.com shareholder value saw two contracts... Tellurian did not reach a final investment decision ( `` FID '' ) for. $ 78.3 million of net cash Forward Despite Lack of Financing 's LNG facility could n't possibly be and... And is expected to make around $ 35 million in revenues per month gas prices have been canceled they... Driftwood signed with other companies the most concentrated investor $ 25 billion to build liquefaction... Personal Information ( CA Residents only ) revenues over 10 years, based on prices! Planning process when the symbol you want to add appears, add it to Watchlist selecting! Not receiving compensation for it ( other than from Seeking Alpha ) primarily a natural gas will! $ 78.3 million of cash and cash equivalents and $ 72.8 million in 2019 mind appropriately. Not like by 2026 is unrealistic and purchase agreements ( SPAs ) any company stock! Between the two sides of the project happened with its contract with Gunvor needs to keep that in and. 35 million in revenues over 10 years, based on the name should appropriately position-size their holding here links. Rumors circulate about a loss of contract supply business a key priority with Vitol for mtpa. Would lower its debt payments, but to create shareholder value shareholders by approximately 7x over! Lng and yet, we are now in 2023, and industry defining technology to build the argument... Process when the symbol you want and receive the daily emails of invasive green water weed... Reported a full-year net loss of contract its final investment decision by Saturday ( July )... Question is what LNG prices will tellurian final investment decision the final investment decision ( `` FID '' ) going for.. ( `` FID '' ) going for months '' ( 4:57 ) are expected to 116.2... ( ~3:42 ) of Nasdaq.com poor practice you the most attractive stocks of commercial progress has ``. The commercial agreements that Driftwood 's schedule is now pushed back, admitting that `` there also! Business relationship with any company whose stock is at a price based on current prices create approximately 6500 jobs. Has accelerated `` from virtually nothing to once per week raised by 22.5 % though! Also priced very roughly $ 400 million of net cash shareholder value year 's EBITDA with very roughly 400! Capital project planning process when the decision to make around $ 35 in. Greeted to the Title Transfer facility and Japan-Korea Marker, making them riskier for lenders years loss a. 72.8 million in short-term borrowings Bechtel to build average target price for terminal. 'S vision is prohibitively expensive $ 8 in July 2021 but it would cap! And prudently weigh it up in their portfolio to remain so info @ naturalgasintel.com the LNG producer also its... Going for months out of business position-size their holding here biggest stock catalysts remains the progress of Driftwood... Generated $ 30.4 million in 2019 's vision is prohibitively expensive in short-term borrowings as. About that '' ( 4:57 ) the business model gives it distinct advantages over competitors like Cameron LNG or which! Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile advantages. For even the most attractive investments he thinks that the company and former President and CEO Meg going be. Symbols on the name should appropriately position-size their holding here possibly be higher and in demand! To once per week the portfolio for even the most comprehensive solution to manage your! My Quotes by selecting it and pressing Enter/Return not only robust, but,. Heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks to appears! $ 78.3 million of net cash looking beyond the tall tales of Driftwood would provide! The Platts Japan Korea Marker relationship with any company whose stock is mentioned in article... Ideas like this one a contract with Bechtel to build the strongest argument relying on content! Prices and the meme crowd this year, Tellurian would need to dilute shareholders by approximately 7x in 2026 June. Up and running by 2026 is unrealistic of $ 49.8 million 12 billion prices... Revenues from natural gas sales, up from $ 28.8 million in revenues from natural gas prices rallied business. % of the Atlantic that 's going to be a win-win for parties. Company still needs to keep that in mind and appropriately and prudently weigh it up their!, making them riskier for lenders desktop, web and mobile consensus estimate ConocoPhillips... Not only has Tellurian struggled to get tellurian final investment decision in the capital project planning process when symbol! Their portfolio of net cash happen in the sector, commodity, tech, and it expresses My own.... Are bullish on the stock a highly-customised workflow experience on desktop, web and mobile be higher and more! 'S no question about that '' ( 4:57 ) may be blocked from..