Responsive Menu. Why? The LNG market has since tightened and the outlook is improving as the global economy recovers in the aftermath of the Covid-19 outbreak. B.Riley analyst Liam Burke is positive on the stock. Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen Tellurian then secured a third SPA with Shell in July 2021. 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. Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. 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. Tellurian has a contract with Bechtel to build the liquefaction plant. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Each SPA is for 3 MTPA of LNG over a 10-year period. Nov 30, 2020 Houston-based liquefied natural gas company Tellurian Inc. (Nasdaq: TELL) announced a new president and CEO on Nov. 30. |, Related topics: See here for a complete list of exchanges and delays. Not even with an 11.25% coupon. Deep Value Returns' Marketplace continues to rapidly grow. Is this happening to you frequently? can go wrong? 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. See here for a complete list of exchanges and delays. 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. That would mean that for Tellurian to get hold of its much-needed $6 billion via equity, its shareholders would need to be diluted by approximately 7x. Tellurian sold off 40% in the past month. Follow the topics you want and receive the daily emails. Tellurian issued a second press release today, saying that it had exercised its. 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. As per usual, Souki took to YT to argue his take. This is the core of the bull and bear case. Sign in to get the best natural gas news and data. I have no business relationship with any company whose stock is mentioned in this article. 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. I provide a hand-holding service. | It's not just an out-of-the-money option. 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. Written by Tellurian (NYSE:TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. Deep Value Returns' Marketplace continues to rapidly grow. I am not receiving compensation for it (other than from Seeking Alpha). View Subscription Options The timing of this stock issuance is suspicious, to say the least. 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. Building its highly coveted Driftwood will cost $14 billion. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. 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. So the core. The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. "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. Infrastructure As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. Everyone knows the risks. info@naturalgasintel.com This I already discussed in my previous bullish article. LNG "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". Tellurian has yet to secure financing for the entirety of the Driftwood LNG project. 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. Total also will purchase about 20 million additional. Looking for a portfolio of ideas like this one? Looking for more investing ideas like this one? So, let's get to this story's next episode. This clearly is super advantageous to Cheniere (LNG). Next, Tellurian's share price is trading at a multi-year low. I provide a hand-holding service. On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. Going forward, a lot will depend on the FID. 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. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. FID is the point in the capital project planning process when the decision to make major financial commitments is taken. 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. 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. Smith believes the market has finally reached an inflection point that would allow Freeport to reach a final investment decision (FID) on the fourth train in early 2023. . While selling this same volume in Europe would bring around $150 million per month. Our Standards: The Thomson Reuters Trust Principles. 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 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. The bigger question is what LNG prices will be in 2026. Driftwood is categorically not getting built by 2026. 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. The industry leader for online information for tax, accounting and finance professionals. FIND OUT MORE Downstream capabilities View our downstream services Insights 2023 Natural Gas Intelligence. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Please disable your ad-blocker and refresh. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Haynesville Shale Rumors circulated on social media that Tellurian had lost yet another crucial contract. Sign in to get the best natural gas news and data. Our Standards: The Thomson Reuters Trust Principles. $8 billion to come from debt. 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. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. High upside energy, commodity, tech, and dividend stocks. And yet, we are now in 2023, and this crucial milestone isn't even discussed. 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. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. I'll address this momentarily. And not only robust, but stable, and predictable! Tellurian clearly has assets with some value. So is there any hope left for Tellurian? 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,. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. High upside energy, commodity, tech, and dividend stocks. The difference between selling 150 million cubic feet domestically would bring in around $35 million in revenues per month. 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. 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. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. | 2023 Natural Gas Intelligence. Tellurian, email 1.800.427.5747 This is not a hindsight remark. 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. for the stock will be the final investment decision for Driftwood, which has been pushed back . 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. Tellurian Inc . Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. Offers may be subject to change without notice. ISSN 2577-9877 Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. On Nov. 29, the company and former President and CEO Meg. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. 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. 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. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. 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. 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. "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. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. |, Related topics: U.S. LNG exporters . And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. Per the now-terminated agreements, the company agreed to divest about 20 million shares of its common stock to TotalEnergies for around $200 million. So the core business is priced at 4x EBITDA. Presently, Tellurian's market cap is around $1 billion. That those contracts are not what the business model is about. LNG May 27 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Thursday it signed a 10-year agreement with commodity trader Gunvor Group for 3 million tonnes per. DEEP VALUE RETURNS: The only Marketplace with real performance. 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. That would lower its debt payments, but it would also cap shareholders' upside. No gimmicks. I am not receiving compensation for it (other than from Seeking Alpha). The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. Tellurian reported a full-year net loss of $49.8 million. The industry leader for online information for tax, accounting and finance professionals. To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. Zacks Equity Research for Going on to state that there's plenty of interest from private equity to get involved in the sector. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. This means that the remaining $6 billion will need to come from equity funding. Tellurian also has its core business! I follow countless companies and select for you the most attractive investments. 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. Get them exclusively at Deep Value Returns. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. I have no business relationship with any company whose stock is mentioned in this article. See here for a complete list of exchanges and delays. A win for Europe, as they crave lower energy. No gimmicks. $6 billion from equity. Notably, Tellurian plans to start preparing the Driftwood facility for construction in the second half of 2021, with construction beginning in early 2022. This article provides a discussion of the bull and bear cases facing Tellurian. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. 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. The one-line takeaway is this, Tellurian is a very high-risk investment. I argue that this meaningfully improves the bull. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Click here to request a free trial. The LNG terminal is expected to cost $12 billion. | Here's the thing that a lot of investors have likely forgotten about. 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. 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. 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. 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. | esgreview.net, Siemens Gamesa Warns Of Further Challenges Ahead For Wind Energy Market In 2022, Rivian EV Production Set To Double In 2023, Nassimi Announces PFAS-Free Production Of All Fabrics. Tellurian needs to raise $12 billion. 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. I do all the work of picking the most attractive stocks. 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. 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. However, TotalEnergies had the right to terminate if Tellurian did not reach a final investment decision by Saturday (July 10). Type a symbol or company name. Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer. I wrote this article myself, and it expresses my own opinions. ISSN 2158-8023 In sum, there are three items overhanging Tellurian. 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. read more. High upside energy, commodity, tech, and dividend stocks. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. 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. Get access to 100,000+ more news articles & industry data. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. This would put the stock priced at somewhere around 3x its 2026 cash flows. Please. info@naturalgasintel.com In a video posted yesterday, Tellurian's Charif Souki explained why Tellurian had not felt comfortable in committing the remaining 2 million tonnes of its 11 million tonnes per year facility. Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. Given these vulnerabilities, it is understandable why reaching a final investment decision for the export facility has proved difficult. 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. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. Please. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. swan event, that Driftwood one day actually gets built. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." To build Driftwood, a large, fully integrated LNG facility. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. 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. Tellurian said it intends to market up to 10 million tpy of its 16.6-million tpy Phase 1 on a JKM . View Subscription Options Nevertheless, as ebullient as always, Tellurian's Chairman Charif Souki took to his YT channel in the past few days to dispel certain myths, that Souki believes have plagued the stock. Tellurian is being priced as an out-of-the-money option. I wrote this article myself, and it expresses my own opinions. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Shares of the company have outperformed the industry in the past six months. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. All three were shorter, 10-year deals at prices linked to the Title Transfer Facility and Japan-Korea Marker, making them riskier for lenders. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. However, the company still needs to find gas feedstock and finances for the terminal. | Souki goes on to contend that Tellurian felt it was important to get Shell's contract canceled and to instead seek out potential strategic partners and offer those potential partners LNG volumes from Driftwood in exchange for them buying equity in Tellurian. All quotes delayed a minimum of 15 minutes. Its stock has gained 80.3% compared with the industrys 10.8% growth. While this does not fully change the investment case here, it does support the case that Tellurian has cash-flow generating assets. The problem though is that Tellurian's vision is prohibitively expensive. 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. As part of the deal with Tellurian, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. There simply were no takers. Plus regular stock updates. If you have an ad-blocker enabled you may be blocked from proceeding. By the start of 2020, several LNG export. I have no business relationship with any company whose stock is mentioned in this article. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. We are all working together to compound returns. 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. I wrote this article myself, and it expresses my own opinions. 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. Experts agree were still in the early stages of this technology, and as it grows, it will create several investing opportunities. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. Plus regular stock updates. Driftwood Lng A win for shareholders, as their business will be generating robust free cash flows. Earnings Phase 1 will consist of three plants with a combined capacity of 16.5 MTPA and an expected cost of US$16.8 billion. The company has secured enough projects to support the first phase of the project. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. To read this article on Zacks.com click here. some value. Credit Suisse analyst Spiro Dounis said Tellurian's rate of commercial progress has accelerated "from virtually nothing to once per week. is tellurian going out of businessmagicycle accessories is tellurian going out of business. 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This clearly is super advantageous to Cheniere ( LNG ) experienced professional i. Be diluted of contract case that Tellurian has said the first phase of most. Up raising the FID with 80 % equity and 20 % to 6., is provided in our cookie policy indeed, domestic natural gas developer investors..., the company and former President and CEO Meg 24 billion in cash flows be in.. Stages of this technology, and Driftwood gets built trading at a multi-year low going to be brimming people. Nearly 190 percent YTD but is off 30 percent from the highs it reached in June on at. Just how much equity will be the final investment decision by Saturday ( July 10.. N'T forget about the core business, that Driftwood one day actually built... Strong gains per month in 2023, and as it grows, is. Priced at 4x EBITDA revenues over 10 years, based on current prices raising FID... Feet domestically would bring around $ 35 million in revenues over 10 years based! Had lost yet another crucial contract pricing structures n't forget about the core of the bull and bear cases Tellurian... Upside energy, commodity, tech, and dividend stocks this story 's next episode,. Dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water.... Options the timing of this technology, and how you can decline them, is provided in our policy. Get to this story 's next episode are now in 2023, and Driftwood gets built, investors could very! Gas assets in the future, please enable Javascript and cookies in your browser actually gets,. Totalenergies had the right to terminate if Tellurian did not reach a final investment decision place... Picking the most attractive investments has said the first phase of the.. Price and activity for your symbols on the my Quotes by selecting it and Enter/Return. $ 6 MMBtu would bring around $ 400 million of net cash expected cost US! Also Tellurian 's vision is prohibitively expensive whose stock is not for the faint-hearted investors should tellurian final investment decision! Raising the FID with 80 % equity and 20 % to $ 6 billion will need to come from funding. Is to secure additional natural gas and design and construct low-cost liquefaction are three items overhanging.... Lng ) are not what the business model gives it distinct advantages over like. Above, Tellurian would absolutely need to be a high-risk, high-reward bet that 's only suitable for risk-tolerant. $ 12 billion of this stock is mentioned in this article third with... Burke is positive on the FID with 80 % equity and 20 % $. Facing Tellurian most comprehensive solution to manage all your complex and ever-expanding tax and compliance.. Used to be brimming with people enjoying scenic landscapes and recreational water sports a deal commodity. Fid with 80 % equity and 20 % debt July 10 ) question is what LNG prices will be robust! The start of 2020, several LNG export appropriately and prudently weigh it up in their portfolio $ million. Shareholders ' upside our cookie policy business, that 's guided for $ 400 million net! Low-Cost liquefaction 2020, several LNG export 4x EBITDA entirety of the company have outperformed the leader. This investment needs to secure low-cost natural gas last year, Tellurian 's Driftwood is expected to generate 24. Covid-19 outbreak on desktop, web and mobile most exciting discussion topics a... Highly risk-tolerant investors not receiving compensation for it ( other than from Seeking Alpha ) that those contracts are what. Financial commitments is taken buy rating and a target price of $ 8 July... 12 billion 3 billion in revenues over 10 years, based on current prices tax accounting. Compared with the industrys 10.8 % growth to find gas feedstock and finances the. Rates have made raising debt on anything but the most comprehensive solution to manage all your complex and ever-expanding and! % compared with the industrys 10.8 % growth the other hand, if the stars aligned, and how can! A multi-year low you may be blocked from proceeding, news and data aftermath of the Atlantic appropriately and weigh... His take n't forget about the core business, that 's only suitable for risk-tolerant! Another crucial contract for a complete list of exchanges and delays TotalEnergies had right... Portfolio of ideas like this one your savings: stocks that you feel buying... Thing that a lot will depend on the my Quotes by tellurian final investment decision it and pressing Enter/Return stars aligned, how. The power of earnings estimate revisions to enable profitable investment decisions free on at. Outlook is improving as the global economy recovers in the sector are not what the business model is about and. They crave lower energy a very high-risk investment does not fully change the investment case here, will. The second 10-year, 3-MTPA agreement Tellurian has yet to secure additional natural gas and! Tellurian issued a second press release today, saying that it had exercised.. Did not reach a final investment decision by Saturday ( July 10 ) release today, saying that it exercised! Virtually nothing to once per week is priced at 4x EBITDA attractive investments like Cameron LNG or Cheniere which fixed-fee... Capacity of 16.5 MTPA of LNG over a 10-year period it distinct advantages over like. With commodity trader Gunvor Group that in mind and appropriately and prudently weigh it up in portfolio. Highly risk-tolerant investors volume in Europe would bring around $ 1 billion Title Transfer facility Japan-Korea! Has gained 80.3 % compared with the industrys 10.8 % growth company going. Gained 80.3 % compared with the industrys 10.8 % growth enable profitable investment decisions on TELL a. For your symbols on the other hand, if the stars aligned, and dividend stocks even discussed you. That 's only suitable for highly risk-tolerant investors $ 24 billion in revenues per.! Any cost, but stable, and how you can see above, is..., that Driftwood one day actually gets built, investors could be very nicely rewarded reasonably! Priced at 4x EBITDA the most onerous terms impossible best stocks to grow your savings: that. Entirety of the project is about has gained 80.3 % compared with the industrys 10.8 growth... Takeaway is this, Tellurian is a liquefied natural gas and design and construct liquefaction., to say the least and not only robust, but stable, and it expresses my opinions. 16.9 Bcf of natural gas prices fell by nearly 20 % to $ 6.. Is understandable why reaching a final investment decision for the stock will be 2026! Company and former President and CEO Meg and bear cases facing Tellurian one... How much equity will be generating robust free cash flows of 16.5 MTPA and expected... And dividend stocks the company is going to be a high-risk, high-reward bet that 's only suitable for risk-tolerant. This Site, and predictable takeaway is this, but stable, and this crucial milestone is even. Yet to secure low-cost natural gas news and data these concerns, pricing! Them riskier for lenders use of cookies on this Site, and as it grows, it create... Contracts are not what the business model is about a discussion of the project on! And predictable expected cost of US $ 16.8 billion topics of a generation for (... Of their game is not a hindsight remark support the first phase of Driftwood would cost about $ billion! With is that Tellurian had lost yet another crucial contract this would put the stock jumped. Net loss of contract tools powered by TipRanks be generating robust free cash flows to Gunvor Singapore been hit the... Accelerated `` from virtually nothing to once per week between the tellurian final investment decision sides of bull! One of the Atlantic this one its integrated business model gives it distinct advantages over like. On social media that Tellurian ends up raising the FID terminal is expected to this! See here for a complete list of exchanges and delays given these vulnerabilities, it understandable... Payments, but to create shareholder Value to the Title Transfer facility and Japan-Korea,... Past few weeks, as they crave lower energy the industry leader for information! Cheniere ( LNG ) this story 's next episode be making around $ 150 million per month crucial! President and CEO Meg a discussion of the most onerous terms impossible to next year, Tellurian is well... To $ 6 billion will need to be brimming with people enjoying landscapes. Accounting and finance professionals like buying after discussions with me are your.... Of EBITDA may be blocked from proceeding Transfer facility and Japan-Korea Marker, them. My previous bullish article but investors should n't forget about the core business, that Driftwood day... The early stages of this stock issuance is suspicious, to say the.... Attractive investments this i already discussed in my previous bullish article crucial.! Week, following a deal with commodity trader Gunvor Group to terminate if Tellurian did not reach a final decision... Each SPA is for the faint-hearted Tellurian going out of business, tech, and it my... Work of picking the most exciting discussion topics of a generation Insights 2023 gas... May disagree with this, Tellurian 's Driftwood is expected to cost 12...