is tellurian going out of business

TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. 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. However, at that time, the board of directors had not yet approved such a budget. ago As part of that strategy, the After news broke that a critical financing round for the company was shut down by management because of what management referred to as uncertainty in the junk bond market, the company was left with a lack of capital needed to fund its $12.8 billion Driftwood LNG project. Kroger is an American retail company that operates supermarkets, department stores and pharmacies. Shares tumbled by 24 percent to less than $3 on Tuesday as analysts and investors questioned the project's fate. bookstore internet death confession psst The result: many users felt clueless about what was happening outside. According to the Reuters report, as of March 1, Souki held around 11 million shares. Tellurian posted a net loss of approximately $18.7 million, translating to a basic and diluted loss of $0.04 per share. I do all the work of picking the most attractive stocks. In most cases, I would argue that this could be grounds for an eventual bankruptcy. The odd offering and its withdrawal was par for the course for Tellurian, which is known to place risky bets, said Clark Williams-Derry, an energy finance analyst for the Institute of Energy Economics and Financial Analysis. With over 2,700 stores across the United States, Kroger is one of the largest grocery store chains in the country, serving millions of customers every day. That means no money is going to come into my business," the 29-year-old said. But even that is speculative. Management estimate for 2023 based on a capital budget of ~30 million that has not been approved by the Tellurian board of directors. As they battle to simply mitigate the worsening crisis, telecommunications This has investors concerned it might not get the financing needed to build its Driftwood project. WebRead reviews, compare customer ratings, see screenshots and learn more about Startup Pro: Launch 10x Faster. that Tellurian's share price could reach $3.25 by Feb 23, 2024. Cheniere rose from $1 per share to $175/share between 2010 and 2022. The management team at Tellurian decided to withdraw a massive financing attempt that would have hit the company with incredibly onerous terms. These guys came out to my house two weeks ago because my homeowners insurance company wanted me to remove a branch that was touching the roof. Another big fear for investors could be the dilution of their holdings. Great advice!!!! Download Startup Pro: Launch 10x Faster and enjoy it on your iPhone, iPad and iPod touch. But it would also cut out most of the upside as well. ", TPC President John Howie added, "We have been diligently growing our natural gas production and reserves in the Haynesville. I provide a hand-holding service. In late August, Tellurian announced its intentions to offer and sell units consisting of 11.25% senior secured notes due in 2027 andwarrantsto purchase shares in the company. (4) Management estimate based on current production levels and anticipated development activities. These guys came out to my house two weeks ago because my homeowners insurance company wanted me to remove a branch that was touching the roof. Looking for a helping hand in the market? Furthermore, its robust growth outlook for the foreseeable future also suggests that total returns could be very strong going forward. We use cookies in a variety of ways to improve your experience, such as keeping NHST websites reliable and secure, personalising content and ads and to analyse how our sites are being used. Learn More. Please disable your ad-blocker and refresh. Post # of 1703. Tellurian's Chairman has nearly sold all his holding in Tellurian. Wednesday, April 05, 2023 1:47:32 PM. On Wednesday, Tellurian reported its Q3 earnings. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. 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. Posted on Apr 4, 2023 Updated on Apr 4, 2023, 2:00 pm CDT. I used to love to go to Panera with friends or alone, get coffee or lunch, maybe relax and chat during the slower times of day. This will come in the form of $3.5 billion of equity, approximately Tellurian entered into a deal to sell another $200 million shares of common stock to New Jersey-based T.R. Type a symbol or company name. The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. The company showcased a strong balance sheet and ended the quarter with approximately $210.8 million in cash and cash equivalents and zero debt. 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This breakdown includes $8.5 billion for the actual LNG terminal, $1.5 billion in miscellaneous operational costs, roughly $900 million for pipeline development, and financing, interest, and other costs totaling $1.9 billion. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. Of course, this number is not entirely reliable. I said $100, and after they called the boss, they agreed. It also plans to drill 12 to 14 natural gas wells that are expected to produce 220 mmcfed by the end of Fiscal Year 2022. PSYC The management team at Tellurian decided to withdraw a massive financing attempt that would have hit the company with incredibly onerous terms. InnerScope Hearing Technologies (OTC: INND) Launches HearingAssist Brand of OTC Rechargeable Hearing Aids on Walgreens.com, Tellurian Inc (TELL), Tellurian Inc (TELL), PSYC's Psychedelic Spotlight Closes Strong Q1 With New KPI Records in March, Strathmore Signs Working Agreement with Ur-Energy, Progressive Care Inc. Although seeking equity investors could definitely get the job done, the question becomes one of the cost to current shareholders. And if the company starts issuing common stock to fund the deal, it could push its share price down considerably depending on how the firms existing assets are being valued. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. Current interest expense per year is only around $35 million. This project is slated to cost the company $12.8 billion to build for the first two plants of the five, with said project capable of 11 million tons of capacity per year. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Apr 5, 2023 9:36 AM, PSYC's Psychedelic Spotlight Closes Strong Q1 With New KPI Records in March These factors also could have played a role in what transpired. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. A very long-dated option. was news that it pulled a bond offering and terminated two sales contracts as it shifted the financing strategy for its proposed Driftwood LNG project. I follow countless companies and select for you the most attractive investments. Photographer: Aaron M. Sprecher/Bloomberg. 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. After this, the situation started to change some. The EnSight asset is a great fit with Tellurians existing position in the Haynesville Shale and allows us to step into an ongoing development program and bring on-line significant additional natural gas volumes in the fourth quarter of 2022.". Is this happening to you frequently? The analyst noted the company's inability to raise capital even at a high cost "simply reinforces the challenge of capital raising and challenging prospects of the project attracting a strategic investor.". Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. The industry leader for online information for tax, accounting and finance professionals. TELL is a rapidly growing company that should benefit from strong demand for natural gas for many years to come. Though this may seem odd, it's not uncommon for large, multi-year projects to defray costs by only having the necessary work done at any given time. One should size TELL stock accordingly. Analysts 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. Based on the $1 billion in financing the company wanted to raise, this would ultimately dilute investors in the company by 11.7% and at a price that would represent only a 20% premium over the 30-day volume weighted average price of the firm's stock at the time the deal closed. I have no business relationship with any company whose stock is mentioned in this article. Click to get this free report, Tellurian Inc. (TELL) : Free Stock Analysis Report. Current net production of ~45 million cubic feet of natural gas per day (MMcf/d) (100% natural gas) (1), Approximately 5,000 net acres in the core of the Haynesville Shale in DeSoto, Bossier, Caddo, and Webster Parishes, Louisiana, 44 producing wells and five wells in progress at transaction close, Low-cost, high-margin producing assets generating significant free cash flow, Asset-level projected 2023 EBITDA of approximately $90-120 million (2), High return, de-risked drilling inventory with over 30 gross drilling locations (3), EnSight is currently operating a one-rig drilling program, which Tellurian plans to maintain on the acquired assets through the fourth quarter of 2022, Proved reserves of approximately 108 billion cubic feet of natural gas (Bcf) and a $180 million PV-10 projected (3), 2022 proforma net production estimated to be ~140 MMcf/d, from 39 MMcf/d in 2021 (4), At closing, TPCs Haynesville Shale acreage increases to ~20,000 net acres, with >275 gross drilling locations and a net resource expected at >2 trillion cubic feet (Tcf) (5), Tellurian anticipates TPC 2023 drilling program to be a two-rig program with approximately 350 MMcf/d of net production (6), Tellurian President and CEO Octvio Simes said, "Tellurian continues to focus on two critical pathways - progressing Driftwood LNG and continuing to increase our upstream footprint. Energy prices are expected to be a continued tailwind for Vertex going forward, with management guiding for an elevated margin environment for this year. to purchase shares in the company. For Tellurian Inc. rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. The company cited instability in the junk-bond market in a statement announcing it would not hold the sale. Today, you can download 7 Best Stocks for the Next 30 Days. Not long ago, Tellurian reported that it reduced the companys debt by $57 billion. Making the world smarter, happier, and richer. Never mind the fact that in the second quarter of this year, investments in production helped to increase natural gas output by 47% compared to the first quarter of this year. The Tellurian price target of $7 implies 131% upside potential. Even after revising the terms of the debt to offer a 12.5% all-in yield instead of the original 11.25% interest rate, there was still insufficient interest from the investment community to gather the $1 billion. "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". Announces 2022 Annual Financial Results; $40.6 Million Total Revenue That's an incredibly high interest rate for debt that ultimately was senior-secured debt. I wrote this article myself, and it expresses my own opinions. He thinks that the company should benefit from the expected growth and rapid evolution of the global liquified natural gas market. But it's unclear how the company will finance the massive project. One of the top executives at Houston-based liquefied natural gas export hopeful Tellurian Inc. (Nasdaq: TELL) has left the company. These guys come out, look at this 4 inch thick branch, and quote me $450. In June of this year, management, citing strip pricing from June 24th as a base, said that annual EBITDA starting in 2023 should be around $400 million assuming the company spends $300 million in capital to achieve it. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>. Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. (3) Reserves and inventory information as of August 1, 2022 (using June 30, 2022 NYMEX strip pricing and cost information as of July 6, 2022) as prepared by Netherland, Sewell & Associates in accordance with the definitions and guidelines set forth in the 2018 Petroleum Resources Management System (PRMS). However, the company withdrew that offering in mid-September due to uncertain conditions in the high-yield bond market as the Federal Reserve raised interest rates. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Soukis admission and change of vision for the company came a week after Tellurian withdrew a failed bond raise intended to bring in $1 billion, saw its share price crash and had two long-term LNG export contracts terminated. 2 analysts, 1 (50%) On average, Wall Street analysts predict. In the US, the average cost per gallon is $3.51, up seven cents from a week ago. They would also be convertible into shares of Tellurian at a conversion price of $5.724 per share. FREE. In August, the company completed the acquisition of some natural gas assets in the Haynesville Shale in exchange for what ultimately ended up being $125.5 million, plus $7.5 million in contingent consideration should certain events transpire. Needless to say, such a significant amount of cash flow would propel Tellurian into the stratosphere from a share price perspective. In March, the company started construction before securing financing. WebShame on TELL mgmt for not issuing a statement last week on the selloff, as any reputable company would when its stock crashes that much in a single day (even if they're not aware of a reason, they simply state such to give their investors an update & peace of mind). It believes that the type of strategic partners it's seeking might want LNG volumes they can sell globally, which it can now offer. And yet, Tellurian's Driftwood project remains under construction. Last year, Tellurian stated that it would have reached a Final Investment Decision (''FID''). Investors should watch this space. Create your Watchlist to save your favorite quotes on Nasdaq.com. "With Henry Hub $7 or $8, they're going to have to raise even more money to lock in the best properties, which everybody's already clamoring for," he said. When the train really went off the rails was later in the month of August when the company announced another move. WebThe intrepid professor Dr. 8 analysts offering 12-month price targets in the last 3 months for Tellurian evaluate the company at an average price target of $6.42 with a high of $8.00 and a low of $4.40. In the past, Tellurian wanted partners like TotalEnergies to invest in its Driftwood project, which will include a liquefaction plant, pipelines and natural gas production. For example, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Copy and paste multiple symbols separated by spaces. That increased investor concern about how the company might fund its proposed export facility. In Perelandra, Dr. Please. Read more about DN Media Group here. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The partners were to receive LNG from the project. The company is now focusing its attention on Driftwood and plans to instruct the construction company, Bechtel, to start construction by the start of 2022. All quotes delayed a minimum of 15 minutes. Tellurian could begin building its $16.8 billion liquefied natural gas terminal in Lake Charles, La., within the next few months as the Houston LNG company rebounds from the lows of the pandemic. This was a high-yield bond sale looking for $1 billion in capital. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It would be one thing if this were one of multiple projects the company had in the works or if it was already well-established in the space. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector. Let's celebrate our first year helping strivers become thrivers! At the end of the day, we live in a global economy and it's not unthinkable that Russia could sell product, given enough time, to other countries that don't mind looking the other way when it comes to the war in Ukraine. Tellurians co-founder announces change in business model Charif Souki says company is a solid producer of domestic natural gas and calls eventual LNG exports In May, Tellurian agreed to supply 3 mtpa of LNG over a 10-year period to Gunvor Singapore. The result: many users felt clueless about what was happening outside. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Apr 5, 2023 8:30 AM, Strathmore Signs Working Agreement with Ur-Energy Offers may be subject to change without notice. Editor's note: US District Judge Mary Ann Vial Lemmon dismissed the litigation against the owners of Mariner Shipyard in April 2010. "It's a major increase in the risk that investors will be perceiving the project to have.". These symbols will be available throughout the site during your session. Post # of 1703. Yes, market conditions are abnormal. Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. Can you guess its price? Additionally, Wall Street analysts are generally bullish on the stock, and the consensus price target indicates that it could double in price over the next year. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. For example, Stifel analyst Benjamin Nolan lowered that firm's price target from $3 per share to $2 while keeping a sell rating. When I said no, they asked me what I was willing to pay. InnerScope Hearing Technologies (OTC: INND) Launches HearingAssist Brand of OTC Rechargeable Hearing Aids on Walgreens.com Absolutely nothing. Citing a series of tactical mistakes, Tellurian co-founder Charif Souki said on Tuesday the company should be considered a healthy domestic natural gas producer with the objective of eventually becoming an international liquefied natural gas exporter. Turning to Wall Street, Tellurian has a Moderate Buy consensus rating, based on one Buy assigned in the past three months. Investors should approach this with caution. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. B.Riley initiated on TELL with a buy rating and a target price of $8 in July. As a result, I am bullish on TELL. In the event that the Driftwood LNG project ends up being successful, management forecasts that annual operating cash flow from Phase 1, which focuses on the first two plants, will be around $4 billion annually. Kroger is an American retail company that operates supermarkets, department stores and pharmacies. When I said no, they asked me what I was willing to pay. Upstream is part of DN Media Group. High upside energy, commodity, tech, and dividend stocks. 2022 revenue: $148.30 billion. Matthew DiLallo has no position in any of the stocks mentioned. Initially, the goal was to pay out an annual interest rate of 11.25%. I wrote this article myself, and it expresses my own opinions. Things are not going particularly well for energy company Tellurian (NYSE:TELL). For a couple of years now, the management team at Tellurian has been focused on building one of the largest LNG export terminals in the world, with the end goal being a facility with annual capacity of up to 27.6 million tons per annum. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. In March of this year, the company officially began the construction of Driftwood LNG, despite only having 30% of the detailed engineering work completed. You can learn more about the Zacks Rank here >>>. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Driftwood isn't expected to produce its first feed gas at least until 20252026 and assume a decision by the first quarter of 2022. click here. Given the rising interest rates that we have seen and where shares were priced at that moment, I would have argued then that the financing in question was appropriate. Also, Williams-Derry said, other projects impose a fixed liquefaction fee that guarantees steady income over the contract's term.

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