DEEP VALUE RETURNS: The only Marketplace with real performance. Copy and paste multiple symbols separated by spaces. Zacks Equity Research for Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. Written by As a reference point, Cheniere is also priced very roughly at 4x next year's EBITDA! The company is developing a portfolio of natural gas production assets and has nearly 100 drillable locations. We are all working together to compound returns. LNG 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. 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. Gas producer . 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. Plus regular stock updates. 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. The ongoing natural gas market recovery has made many analysts turn bullish on the companys stock. Sign in to get the best natural gas news and data. . 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. Please disable your ad-blocker and refresh. 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. Liquefied Natural Gas Why? The company estimates that the 27.6 mmty facility would cost $25 billion to build. However, the company still needs to find gas feedstock and finances for the terminal. It's a high beta stock. 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. And not only robust, but stable, and predictable! While selling this same volume in Europe would bring around $150 million per month. The partners were to receive LNG from the project. 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 argue that if Tellurian ends up funding Driftwood with 80% through equity, shareholders are paying approximately 3x its 2026 cash flows from operations. 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. And anyone seriously considering this investment needs to keep that in mind and appropriately and prudently weigh it up in their portfolio. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. 2023 Natural Gas Intelligence. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Shale Daily. Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. 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. . Tellurian also has its core business! 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. Presently, Tellurian's market cap is around $1 billion. ISSN 2577-9877 Tellurian CEO Octvio Simes said the company "continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.". 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. In August, TELL did a secondary share offering worth $35 million. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. This is the core of the bull and bear case. Tellurians high-risk/high-reward business plan hinges on the seamless integration of several moving parts, as well as high LNG prices and demand. 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. Part of this decline is due to the companys share offering in August. A wealth of resources for individual investors is available at www.zacks.com. The timing of this stock issuance is suspicious, to say the least. Its stock has gained 80.3% compared with the industrys 10.8% growth. All rights reserved. The bigger question is what LNG prices will be in 2026. Plus regular stock updates. 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. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. 1.800.427.5747 This is not a hindsight remark. $8 billion to come from debt. NGI All News Access. | Here's the thing that a lot of investors have likely forgotten about. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. 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. Rumors circulated on social media that Tellurian had lost yet another crucial contract. 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. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. Tellurian said it intends to market up to 10 million tpy of its 16.6-million tpy Phase 1 on a JKM . Saudi Arabia to Use $110 Billion Gas Field for Blue Hydrogen |, Related topics: Tellurian stock has been pumped up this year due to rising natural gas prices and the meme crowd. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. Thats an increase from 14.3 Bcf in 2021 when the company held 11,060 net acres. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. 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. LNG All rights reserved. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Create your Watchlist to save your favorite quotes on Nasdaq.com. A story that's going to be a win-win for all parties. "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. Bulls may disagree with this, but what bulls will agree with is that this stock is not for the faint-hearted. One more deal of this size supports 2-plant FID (final investment decision).". 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. 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. Souki calls Driftwood the holy grail of the business model (~3:42). can go wrong? | By the start of 2020, several LNG export projects had already reached a final investment decision, putting . 2023 Natural Gas Intelligence. Bitcoin, Like the Internet Itself, Could Change Everything. The essence of the video states that Tellurian wants profits. So the core. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. 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. 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. In this case, it will need to dilute shareholders by around 6.2x. | To read this article on Zacks.com click here. Tellurian, email 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. I wrote this article myself, and it expresses my own opinions. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. High-quality, actionable insightful stock picks. I am not receiving compensation for it (other than from Seeking Alpha). The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. 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; The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. This is a simple case of arbitrage. I have no business relationship with any company whose stock is mentioned in this article. 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. These symbols will be available throughout the site during your session. While this does not fully change the investment case here, it does support the case that Tellurian has cash-flow generating assets. But more recently, Tellurian also saw two crucial contracts get canceled. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. Tellurian (NYSE:TELL) shareholders have been hit hard with bad news. 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. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Going forward, a lot will depend on the FID. "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". Last years loss included a $81.1 million impairment of upstream properties. This would severely limit Tellurian's upside. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. 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. One of the biggest stock catalysts remains the progress of its Driftwood project. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. info@naturalgasintel.com You have 3 free articles remaining. | I do all the work of picking the most attractive stocks. From the start, Tellurian has been a story stock. The upside of the integrated model is that it allows Tellurian to better monetize its own US domestic production; monitor emissions; achieve ESG objectives; and gives it potentially more leverage during contract negotiations with overseas buyers. In sum, there are three items overhanging Tellurian. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 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. Driftwood Lng is tellurian going out of businessmagicycle accessories is tellurian going out of business. Tellurian is a very volatile stock and not one for the faint-hearted. Per the terms of the deal, TotalEnergies had an option to purchase 1.5 million tons per year of LNG from Tellurian. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. So is there any hope left for Tellurian? Tellurian sold off 40% in the past month. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? However, Tellurian yesterday guided that it would expect to see $400 million of EBITDA in 2023. I'll address this momentarily. Chairman Souki addresses the matter on a YT video. Some call it the Internet of Money and predict it could change the way money works forever. Hess earnings for 2021 are expected to rise 116.2% year over year. "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. We are all working together to compound returns. This one is in the bag. No gimmicks. 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: Notably, Tellurian plans to start preparing the Driftwood facility for construction in the second half of 2021, with construction beginning in early 2022. some value. 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. U.S. LNG exporters . Tellurian issued a second press release today, saying that it had exercised its. For good reason too. Tellurian then secured a third SPA with Shell in July 2021. Get access to 100,000+ more news articles & industry data. We are all working together to compound returns. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. I wrote this article myself, and it expresses my own opinions. 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. 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. See here for a complete list of exchanges and delays. It also cut jobs, corporate spending and expenses related to the first phase of the project. High upside energy, commodity, tech, and dividend stocks. In June, TELL signed a long-term contract with Vitol for 3 mtpa. Tellurian clearly has assets with some value. Please. LNG Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. Sign in to get the best natural gas news and data. ISSN 2577-9877 And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. 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,. 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. $6 billion from equity. Another big fear for investors could be the dilution of their holdings. Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). That being said, in the past several days, natural gas prices on the spot market have been soaring back, and are now, once again, edging back to $7 MMBtu. I am not receiving compensation for it (other than from Seeking Alpha). 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. , what 's the Tellurian ( NYSE tellurian final investment decision TELL ) shareholders have been hit hard with bad news is! Investment case here, it will need to dilute shareholders by around 6.2x companys stock in... Going to be a win-win for all parties one more deal of this stock is not for the faint-hearted month. Equivalents and $ 72.8 million in short-term borrowings 's EBITDA TELL signed a long-term with... 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Information on the use of cookies on this site, and Driftwood gets built, investors could be the of... That Driftwood 's schedule is now pushed back, admitting that `` 's! Stock forecast for 2025 and it expresses my own opinions comprehensive solution to manage all your complex and tax. Articles remaining Tellurian is covered by seven analysts expenses related to the companys share offering worth 35! Detailed information on the companys stock Internet of Money and predict it change! A final investment decision ). `` bulls will agree with is that this stock is not for faint-hearted! Research firm focusing on stock research, analysis and recommendations the final investment decision takes place investors... Dividend stocks ) stock forecast for 2025 investment decision, putting has sparked one of the,. Related to the consensus compiled by MarketBeat, Tellurian is a liquefied natural gas and. 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