One more deal of this size supports 2-plant FID (final investment decision).". 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. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. Driftwood 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. Get access to 100,000+ more news articles & industry data. But does this mean it won't get built at all? Tellurian needs to raise $12 billion. I wrote this article myself, and it expresses my own opinions. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. FIND OUT MORE Downstream capabilities View our downstream services Insights 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. 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. Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. Shares of the company have outperformed the industry in the past six months. 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. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. It's also developing an LNG trading operation and infrastructure that includes a 27.6 mtpa (million tons per annum) LNG export facility and an associated pipeline, known as Driftwood. At the FID point, major equipment orders are placed, and contracts are signed for EPC. 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The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. The one-line takeaway is this, Tellurian is a very high-risk investment. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. Tellurian, email Is this happening to you frequently? A wealth of resources for individual investors is available at www.zacks.com. Everyone knows the risks. "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. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. can go wrong? Our Standards: The Thomson Reuters Trust Principles. Tellurian, a natural gas company, was founded by Charif Souki and Martin Houston in 2016. LNG Insight The bigger question is what LNG prices will be in 2026. 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. I wrote this article myself, and it expresses my own opinions. By the start of 2020, several LNG export projects had already reached a final investment decision, putting . 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. At the FID point, major equipment orders are placed, and contracts are signed for EPC. The timing of this stock issuance is suspicious, to say the least. Tellurian, email 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. It's a high beta stock. From the start, Tellurian has been a story stock. Yet another problem. Before that, I highlight that over the Christmas season, when traders and analysts would have been busy, on December 30, Tellurian signaled its intention to dilute shareholders by 20 million shares. Hess earnings for 2021 are expected to rise 116.2% year over year. I am not receiving compensation for it (other than from Seeking Alpha). Some call it the Internet of Money and predict it could change the way money works forever. I am not receiving compensation for it (other than from Seeking Alpha). 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. If this doesn't highlight the need for another large LNG facility, very little will. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. I provide a hand-holding service. 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. Copy and paste multiple symbols separated by spaces. I am not receiving compensation for it (other than from Seeking Alpha). Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen [2023 Natural Gas Price Outlook: How will the energy industry continue to evolve in 2023? And that Tellurian could then further increase its total volume. This is not a significant dilution and amounts to less than 4%. 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. JKM for the stock will be the final investment decision for Driftwood, which has been pushed back . Members of Deep Value Returns get exclusive access to our model portfolio. Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021, CEO Octvio Simes said last week after the company released 2020 results. 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. Not even with an 11.25% coupon. I have no business relationship with any company whose stock is mentioned in this article. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. 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,. 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. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. | So is there any hope left for Tellurian? Part of this decline is due to the companys share offering in August. 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. As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! I have no business relationship with any company whose stock is mentioned in this article. Please disable your ad-blocker and refresh. High upside energy, commodity, tech, and dividend stocks. 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: The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. So the core. 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. 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. High upside energy, commodity, tech, and dividend stocks. 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. I do all the work of picking the most attractive stocks. 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. DEEP VALUE RETURNS: The only Marketplace with real performance. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. This would put the stock priced at somewhere around 3x its 2026 cash flows. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. 2 min read. Tellurian (NYSE:TELL) remains a highly speculative stock. Is this happening to you frequently? 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. See here for a complete list of exchanges and delays. Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer. 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. Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. 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. 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. | Two-thirds debt to one-third equity. See here for a complete list of exchanges and delays. "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. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. 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