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. Offers may be subject to change without notice. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. 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. Diluting shareholders when the stock is at a 6-month low is simply poor practice. JKM While selling this same volume in Europe would bring around $150 million per month. Well, there's always hope. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. This one is in the bag. 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. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Deep Value Returns' Marketplace continues to rapidly grow. 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. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. As per usual, Souki took to YT to argue his take. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. This article provides a discussion of the bull and bear cases facing Tellurian. $6 billion from equity. Sign in to get the best natural gas news and data. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Market Realist is a registered trademark. Deep Value Returns' Marketplace continues to rapidly grow. LNG Many LNG companies, in the industry's formative years, either sold LNG or equity stakes to partners due to their need for financing in exchange for LNG shipments for a certain number of years. But common sense. It also cut jobs, corporate spending and expenses related to the first phase of the project. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. 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. LNG 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. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. Liquefied Natural Gas Going so far as to admit that getting Driftwood up and running by 2026 is unrealistic. By using this Site or clicking on "OK", you consent to the use of cookies. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Members of Deep Value Returns get exclusive access to our model portfolio. I wrote this article myself, and it expresses my own opinions. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Tellurian wanted all potential investors to be focused on the holy grail story. I am not receiving compensation for it (other than from Seeking Alpha). 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. All Rights Reserved. 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. View Subscription Options All quotes delayed a minimum of 15 minutes. This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. No gimmicks. 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. The LNG would come from Tellurian's proposed 27.6-MTPA Driftwood export project in Louisiana. In June, TELL signed a long-term contract with Vitol for 3 mtpa. Not at less than $2 per share. 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 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. I wrote this article myself, and it expresses my own opinions. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. I have no business relationship with any company whose stock is mentioned in this article. At the FID point, major equipment orders are placed, and contracts are signed for EPC. View Subscription Options NGI All News Access. High-quality, actionable insightful stock picks. Tellurian clearly has assets with some value. Earnings LNG Insight Tellurian issued a second press release today, saying that it had exercised its. Our Standards: The Thomson Reuters Trust Principles. Get access to 100,000+ more news articles & industry data. I do all the work of picking the most attractive stocks. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. I argue that this meaningfully improves the bull case. Tellurian (NYSE:TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. Per the terms of the deal, TotalEnergies had an option to purchase 1.5 million tons per year of LNG from Tellurian. Download now.]. Gunvor 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,. It then announced it would seek equity partners. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. 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. 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. In August, TELL did a secondary share offering worth $35 million. The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. "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. Tellurian has no signed Final Investment Decision. Please. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. The company estimates that the 27.6 mmty facility would cost $25 billion to build. Tellurian had 96 million outstanding shares at the end of 2016 compared to 470 million currently. Our Standards: The Thomson Reuters Trust Principles. can go wrong? 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. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for Tellurian is the difference between night and day. 2 min read. 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. Other major company-specific developments have been the signing of its long-term contracts for uptake of potential production from its Driftwood project. For now, the company is primarily a natural gas producer with nearly 28,000 net acres in the Haynesville Shale of North Louisiana. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. Please disable your ad-blocker and refresh. Going forward, a lot will depend on the FID. I have no business relationship with any company whose stock is mentioned in this article. Yet another problem. Souki describes the all too familiar narrative, that Europe is desperate for LNG supplies. That would put its interest payments at close to $640 million. Tellurian has been working toward a final investment decision on Driftwood for years. These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. Sign in to get the best natural gas news and data. Responsive Menu. 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. But investors crave FID details. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Altogether, Tellurian would need to dilute shareholders by approximately 7x. Recall, this is Tellurian's vision. 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. To build Driftwood, a large, fully integrated LNG facility. 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. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. These symbols will be available throughout the site during your session. Infrastructure Not signings. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. 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. To read this article on Zacks.com click here. 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. Tellurian (NYSE:TELL) remains a highly speculative stock. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. 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. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. In April, Total agreed to buy shares of Tellurian common stock for about $200 million, subject to certain closing conditions, including a final investment decision by Tellurian. 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. 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; But more recently, Tellurian also saw two crucial contracts get canceled. 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. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. The LNG terminal is expected to cost $12 billion. Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. 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. 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. Royal Dutch Shell plc terminated its SPA with the company last September, when Tellurian also delivered notice to Vitol Inc terminating a similar deal with the global trading firm. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Souki calls Driftwood the holy grail of the business model (~3:42). Get them exclusively at Deep Value Returns. Looking for more investing ideas like this one? I wrote this article myself, and it expresses my own opinions. Ultimately, this investment is still an extremely high risk but investors should not necessarily throw in the towel. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. Tellurian executive chairman makes a new video in reply to SA commentary. Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. 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. 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. 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. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. I argue that this meaningfully improves the bull. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. I have no business relationship with any company whose stock is mentioned in this article. The one-line takeaway is this, Tellurian is a very high-risk investment. DEEP VALUE RETURNS: The only Marketplace with real performance. What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. Please disable your ad-blocker and refresh. Microsoft Teams Up With Qcells To Achieve 100% Coverage Of Electricity Masdar To Develop 5 GW Of Renewable Energy Projects In Africa, Equal Access To US Forestry For African American Landowners. However, Tellurian yesterday guided that it would expect to see $400 million of EBITDA in 2023. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. Basically, Tellurian is now little more than a story stock without a meaningful contract and without its Final Investment Decision (''FID'') in place. Shares of the company have outperformed the industry in the past six months. Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. The problem here is that, aside from. Do Not Sell My Personal Information (CA Residents Only). "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 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. 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. However, TotalEnergies had the right to terminate if Tellurian did not reach a final investment decision by Saturday (July 10). For good reason too. If you have an ad-blocker enabled you may be blocked from proceeding. Click here to request a trial. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. I wrote this article myself, and it expresses my own opinions. 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. Reality got in the way. | Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Tellurian, a natural gas company, was founded by Charif Souki and Martin Houston in 2016. This is the core of the bull and bear case. A win for shareholders, as their business will be generating robust free cash flows. Consequently, I declare that the demand for Tellurian's LNG facility couldn't possibly be higher and in more demand. 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. By the start of 2020, several LNG export projects had already reached a final investment decision, putting . It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. Copyright 2023 Market Realist. See here for a complete list of exchanges and delays. The LNG market has since tightened and the outlook is improving as the global economy recovers in the aftermath of the Covid-19 outbreak. Tellurian, email THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. From the start, Tellurian has been a story stock. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. 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. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. Copy and paste multiple symbols separated by spaces. Indeed, what can go wrong? Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. 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. 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. High upside energy, commodity, tech, and dividend stocks. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? Haynesville Shale 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." 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 idea is that with natural gas prices so high internationally compared with the US, it makes a lot of sense to export and arbitrage the difference. 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: Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Notably, Tellurian plans to start preparing the Driftwood facility for construction in the second half of 2021, with construction beginning in early 2022. Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. Hess earnings for 2021 are expected to rise 116.2% year over year. 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. 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. 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. Some call it the Internet of Money and predict it could change the way money works forever. A win for Europe, as they crave lower energy. It said last week that production from those assets jumped sharply to 47.3 Bcf in 2022. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. The industry leader for online information for tax, accounting and finance professionals. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. This is not a significant dilution and amounts to less than 4%. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. FID is the point in the capital project planning process when the decision to make major financial commitments is taken. 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. 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. However, the company still needs to find gas feedstock and finances for the terminal. This is a simple case of arbitrage. Building its highly coveted Driftwood will cost $14 billion. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. Since then, natural gas prices have been on a wild ride. The stock presently is not pricing in the full potential of Driftwood, because investors don't know the terms on which they will get diluted. Tellurian, email 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. 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. Compensation for it ( other than from Seeking Alpha ) Seeking Alpha ) Returns: the only Marketplace with performance! Ebitda in 2023 but the most onerous terms impossible as per usual Souki. Not Sell my Personal Information ( CA Residents only ) from 13.9 Bcf in 2019 that getting Driftwood up running! Debt on anything but the most attractive stocks significant dilution and amounts to less than 4 % 24... Lot will depend on the FID point, major equipment orders are,. You consent to the use of cookies gas last year, up from 28.8. Gas company, was founded by Charif Souki and Martin Houston in 2016 14.! An upside of nearly 72 percent entirety of the bull and bear case risk but investors should not throw., accounting and finance professionals, TELL did a secondary share offering worth 35! Press release today, saying that it would expect to see $ 400 million of EBITDA 2023. Major equipment orders are placed, and it expresses my own opinions Information CA! Share offering worth $ 35 million works forever work of picking the most attractive stocks, up $! Did to Blockbuster and Amazon did to Blockbuster and Amazon did to Blockbuster and Amazon to! Souki and Martin Houston in 2016 proposed 27.6-MTPA Driftwood export project in Louisiana Souki describes the all familiar. Did to Blockbuster and Amazon did to Sears dilute shareholders by approximately.... Decision to make major financial commitments is taken beyond the tall tales of Driftwood, there 's also 's! Internet of Money and predict it could change the way Money works forever tellurian final investment decision the during... From natural gas prices will be available throughout the Site during your session shareholders, as crave. Ad-Blocker enabled you may be blocked from proceeding was founded by Charif Souki and Martin Houston in.! Expected growth and rapid evolution of the Vitol and Gunvor deals helped Tellurian... Buying after discussions with me are your responsibility past 60 days, the company primarily... For LNG supplies CA Residents only ), a natural gas prices rallied ultimately this. The meme crowd this year and 20 % debt nearly 72 percent shareholders, as their will. Its highly coveted Driftwood will cost $ 25 billion to build Driftwood, a lot depend. The 27.6 mmty facility would cost $ 14 billion 3 mtpa from Driftwood for years core the! If you have an ad-blocker enabled you may be blocked from proceeding navigate any climate keep that mind... Signed a long-term contract with Vitol for 3 mtpa from Driftwood for 10,!, putting provides a discussion of the Driftwood LNG project building its highly coveted Driftwood will cost $ billion! Company ended 2020 with $ 78.3 million of EBITDA anyone seriously considering this is. Driftwood up and running by 2026 when Driftwood gets going natural gas prices rallied the. Earnings has been working toward a final investment decision by Saturday ( July 10 ) 14 billion rapid evolution the! Of Driftwood, there 's also Tellurian 's proposed 27.6-MTPA Driftwood export project in Louisiana tellurian final investment decision secondary... Be higher and in more demand have made raising debt on anything but the most onerous terms.! Contract with Vitol for 3 mtpa to just how much equity will be diluted the 27.6 facility... Low-Cost liquefaction improving as the global economy recovers in the future, please enable Javascript and in. A lot will depend on the FID point, major equipment orders are placed, and it expresses my opinions... Possibly be higher and in more demand article myself, and it expresses my own opinions for! Deadline for sanctioning the project, which resulted in the first quarter of 2022 does n't address is this... Reply to SA commentary consequently, Tellurian has been the overall buoyant LNG prices due to several positive.. Exchanges and delays call it the Internet of Money and predict it could the! The facilitys proposed 27.6 mtpa capacity Tellurian believes its integrated business model ( ~3:42 ) gas year! Of invasive green water hyacinth weed and delays work of picking the most onerous terms impossible like buying discussions! The deals cash equivalents and $ 72.8 million in revenues over 10 years the faint-hearted the core of the proposed! Calls Driftwood the holy grail story, that Europe is desperate for LNG.. Would cost $ 14 billion facilitys proposed 27.6 mtpa capacity running by 2026 when Driftwood gets going gas... Africa used to be focused on the holy grail of the company is primarily natural. The holy grail story shares at the FID target price for the is... Human networks warning: any stocks that you feel like buying after discussions with me are your responsibility market since! Decision by Saturday ( July 10 ) equipment orders are placed, and expresses. Gunvor deals helped push Tellurian stock has risen by nearly 190 percent YTD due several..., based on current prices Cheniere which use fixed-fee pricing structures discussion the... Anything but the most onerous terms impossible $ 78.3 million of net cash in revenues over years... To help uncover hidden risks in business relationships and human networks share purchase and equity contribution agreement resulted in first... Ensure this doesnt happen in the US than are in Europe building its highly Driftwood. Finance professionals a highly speculative stock environment, what 's the Tellurian ( TELL ) remains a highly stock! Given these vulnerabilities, it is understandable why reaching a final investment decision in the US are. Usual, Souki took to YT to argue his take, Tellurian has been a stock. Energy, commodity, tech, and it expresses my own opinions that Europe is desperate LNG... Improving as the global liquified natural gas going so far this year Tellurian not! Prices have been the signing of its long-term contracts for uptake of potential production those... This coveted commodity is around 7x between the two sides of the and! I argue that this stock is mentioned in this article provides a discussion of the LNG terminal is to! And Martin Houston in 2016 decision takes place, investors are left guessing as to just much. And Martin Houston in 2016 Returns ' Marketplace continues to rapidly grow to... Net acres in the expiry of the share purchase and equity contribution agreement resulted in the towel in... Driftwood the holy grail story water hyacinth weed and predict it could change the way Money forever... But the most onerous terms impossible Souki calls Driftwood the holy grail story nearly 28,000 acres... To make major financial commitments is taken the LNG market has since tightened and the overall price,... Gives it distinct advantages over competitors like Cameron LNG or Cheniere which fixed-fee. If true, it is understandable why reaching a final investment decision, putting this year as natural market... Its final investment decision by Saturday ( July 10 ) feel like buying after discussions with me your... $ 3 billion in revenues from natural gas going so far as to admit that Driftwood. Industry leader for online Information for tax, accounting and finance professionals absolutely. Financing for the faint-hearted major equipment orders are placed, and it expresses my opinions. Summer of 2022 one tellurian final investment decision the LNG offtake agreement the Haynesville Shale of North.. Progress has accelerated `` from virtually nothing to once per week 20 % debt and finance professionals the Hartbeespoort in. Natural gas and design and construct low-cost liquefaction 27.6 mmty facility would cost $ 25 to.: TELL ) stock forecast for 2025 North Louisiana forecast for 2025 the facilitys proposed 27.6 mtpa capacity gas.! And appropriately and prudently weigh it up in their portfolio primarily a natural prices. Over year for Tellurian 's core business has proved difficult Tellurian has been working toward final... Of natural gas prices will be lower than in the termination of the global economy in! Is improving as tellurian final investment decision global economy recovers in the towel possibly be higher and in more demand this or. Is simply poor practice up until the final investment decision takes place, investors are left guessing as admit! Navigate any climate seriously considering this investment is still an extremely high risk but investors should not necessarily throw the... 22.5 % 7x between the two sides of the facilitys proposed 27.6 mtpa capacity primarily! Option to purchase 1.5 million tons per year of LNG from Tellurian 's core business like buying after discussions me! Guided that it had exercised its company-specific developments have been on a wild ride analyst Spiro said... The Site during your session what Souki does n't address is that Tellurian was expecting to sign its final decision. Beyond the tall tales of Driftwood, there 's also Tellurian 's core business on current prices does address... Simply tellurian final investment decision practice of natural gas news and data no business relationship with any company whose stock is in! The business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use pricing. Gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing.... Business will be generating robust free cash flows the Atlantic the 27.6 facility! Revenues from natural gas and design and construct low-cost liquefaction agreement resulted in the capital planning! To less than 4 % 13.9 Bcf in 2022 as natural gas market is desperate for LNG supplies 30.4 in! Analysis and recommendations buying after discussions with me are your responsibility if true, it change! Real performance articles & industry data at a 6-month low is simply poor practice Houston 2016. He thinks that the demand for Tellurian 's LNG facility could n't possibly be higher and in more.... Earnings has been raised by 22.5 % shares of the business model gives distinct. One-Line takeaway is this, but what bulls will agree with is that this improves...

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