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. I do all the work of picking the most attractive stocks. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. The partners were to receive LNG from the project. 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 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. Bitcoin, Like the Internet Itself, Could Change Everything. Driftwood Lng 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. This means that investors simply aren't buying into Souki's vision. 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: As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. I follow countless companies and select for you the most attractive investments. All quotes delayed a minimum of 15 minutes. | I provide a hand-holding service. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. We are all working together to compound returns. I am not receiving compensation for it (other than from Seeking Alpha). Altogether, Tellurian would need to dilute shareholders by approximately 7x. This is of course if Driftwood ends up getting built at all. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. The LNG market has since tightened and the outlook is improving as the global economy recovers in the aftermath of the Covid-19 outbreak. 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. Tellurian is reasonably well capitalized, with very roughly $400 million of net cash. Four of the analysts have a buy rating, while three have a sell rating on the stock. 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. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. 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. 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. On the other hand, if the stars aligned, and Driftwood gets built, investors could be very nicely rewarded. Tellurian clearly has assets with some value. 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. Meaning that its equity would increase to around $12 billion ($2 billion right now + $10 billion in the raise). In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. The ongoing natural gas market recovery has made many analysts turn bullish on the companys stock. 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. 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. 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. Infrastructure The difference between selling 150 million cubic feet domestically would bring in around $35 million in revenues per month. 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. Last years loss included a $81.1 million impairment of upstream properties. DEEP VALUE RETURNS: The only Marketplace with real performance. Tellurian sold off 40% in the past month. 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. 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. But investors crave FID details. The Hartbeespoort dam in South Africa used to be brimming with people enjoying scenic landscapes and recreational water sports. Gas producer . 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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. 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. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. Please. If you have an ad-blocker enabled you may be blocked from proceeding. No gimmicks. 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. At the FID point, major equipment orders are placed, and contracts are signed for EPC. Tellurian then secured a third SPA with Shell in July 2021. Driftwood LNG Plans Move Forward Despite Lack Of Financing. Ultimately, this investment is still an extremely high risk but investors should not necessarily throw in the towel. Offers may be subject to change without notice. Tellurian said that it has received most of the needed permits required for construction and operation with around 30% of the engineering already complete thanks to US$150 million of prior investments. Next, Tellurian's share price is trading at a multi-year low. | Both companies had a contractual right to nix their deals after the company failed to meet a July 31 deadline on a final investment decision that could have paved the way for construction to begin . 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. Deep Value Returns' Marketplace continues to rapidly grow. B.Riley analyst Liam Burke is positive on the stock. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. I have no business relationship with any company whose stock is mentioned in this article. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. I wrote this article myself, and it expresses my own opinions. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. I argue that this meaningfully improves the bull. In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. Written by This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. Tellurian believes its integrated business model gives it distinct advantages over competitors like Cameron LNG or Cheniere which use fixed-fee pricing structures. 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. It's a high beta stock. read more. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. 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. Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. 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. 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