About Tellurian Inc. (AMEX: TELL)
Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the NYSE American under the symbol “TELL”. For more information, please visit www.tellurianinc.com.
Let’s Start with Tellurians Recent News and Events
Recent News for Tellurian
Tellurian and Baker Hughes Agreement for Driftwood LNG Phase 1 Liquefaction Equipment
On September 5, 2023, Tellurian and Baker Hughes announced an agreement to supply eight main refrigerant compression packages for Phase 1 of the Driftwood LNG project. This agreement secures a delivery schedule for the necessary equipment, supporting Driftwood’s ability to achieve initial LNG production by 2027. Baker Hughes is also on schedule to complete the fabrication of the electric-powered, zero-emissions Integrated Compressor Line (ICL) packages and other turbomachinery equipment for Driftwood Pipeline 200 by early next year
Appointment of Simon Oxley as CFO
On May 10, 2023, Tellurian announced that Simon Oxley would join the company’s Executive Committee as Executive Vice President and Chief Financial Officer, effective June 1, 2023. Oxley, who was formerly a Managing Director and Co-Head of Oil & Gas Investment Banking for Europe, the Middle East, and Asia (EMEA) with Barclays Investment Bank in London, will be responsible for accounting, finance, risk, and investor relations functions.
FERC Certificate for Driftwood Natural Gas Transmission Pipeline Project
On April 24, 2023, Tellurian announced that the U.S. Federal Energy Regulatory Commission (FERC) issued a certificate granting authorization for Driftwood Pipeline, LLC’s Line 200 and Line 300. This is an approximate $1.4 billion natural gas transmission project proposed to be located in Beauregard and Calcasieu Parishes, Louisiana. The pipelines will have the ability to supply up to five and one-half billion cubic feet of natural gas daily with virtually no emissions due to the implementation of electric-powered Integrated Compressor Line (ICL) technology from Baker Hughes.
Tellurian Second Quarter 2023 Results
August 7, 2023
In the second quarter of 2023, Tellurian Inc. continued to advance its integrated strategy, focusing on the construction of its Driftwood project and the production and sales of natural gas. The company’s CEO, Octávio Simões, highlighted the progress made on the Driftwood LNG construction, with over 9,000 piles driven and more than 10,000 cubic feet of concrete poured for plant one and the storage tanks. The company also prepared the site for plant two’s piling work. Additionally, Simon Oxley, a former investment banker, was hired as Chief Financial Officer to enhance project financing efforts.
In terms of upstream segment results, Tellurian produced 17.2 billion cubic feet (Bcf) of natural gas for the quarter ended June 30, 2023, compared to 9.0 Bcf for the same period in 2022. As of June 30, 2023, Tellurian’s natural gas assets included 31,117 net acres and interests in 157 producing wells.
The consolidated financial results for the second quarter of 2023 showed that Tellurian generated approximately $32.0 million in revenues from natural gas sales, compared to $61.3 million in the second quarter of 2022. This change was driven by decreased realized natural gas prices, partially offset by increased production volumes. The company reported a net loss of approximately $59.6 million, or $0.11 per share (basic and diluted), for the quarter ended June 30, 2023, compared to a net loss of approximately $35.0 thousand, or $0.00 per share (basic and diluted), for the same period in 2022. As of June 30, 2023, Tellurian had approximately $1.3 billion in total assets, including approximately $106.7 million of cash and cash equivalents.
Revenue and EPS Growth
Source: Finviz
Analyst Coverage
See https://ir.tellurianinc.com/stock-information/analyst-coverage
Subject to any requirements of law or contractual restrictions, Tellurian Inc. intends to post on its Twitter account all reports published by such analysts relating to the company, regardless of the content of such reports, because it believes that the reports may be of interest to its investors. However, Tellurian Inc. is followed by several analysts; all analysts known by Tellurian Inc. to currently follow the company are listed below. Opinions, estimates or forecasts regarding Tellurian Inc.’s performance made by the analysts in their reports or otherwise are theirs alone and do not represent statements, opinions, forecasts or predictions of Tellurian Inc. or its management. Tellurian Inc. does not by its reference below, or by the posting of such reports, imply its endorsement of or concurrence with any statements, conclusions, predictions, or recommendations made by any analyst.
Vice Chairman Martin Houston @BloombergTV @SIEW_sg https://t.co/NYRqjdjmGh
— Tellurian (@TellurianLNG) October 23, 2023
@TellurianLNG Chairman on $TELL share price https://t.co/ALzKxpF3Xq
— Tellurian (@TellurianLNG) October 19, 2023
Share Statistics
Current price .65/share as of market close 10-30-2023
Average Volume (3 months): 12.54M
Average Volume (10 days): 29.55M
Shares Outstanding: 583.63M
Implied Shares Outstanding: 650.61M
Float: 554.65M
Percentage Held by Insiders: 5.10%
Percentage Held by Institutions: 37.65%
Shares Short (as of October 13, 2023): 83.36M
Short Ratio (as of October 13, 2023): 8.36
Short Percentage of Float (as of October 13, 2023): 15.02%
Short Percentage of Shares Outstanding (as of October 13, 2023): 14.28%
Shares Short (as of prior month, September 15, 2023): 79.61M
Income Statement
Revenue (ttm) 266.56M
Revenue Per Share (ttm) 0.50
Quarterly Revenue Growth (yoy) -47.90%
Gross Profit (ttm) 153.59M
EBITDA 8.76M
Balance Sheet
Total Cash (mrq) 106.98M
Total Cash Per Share (mrq) 0.18
Total Debt (mrq) 522.47M
Total Debt/Equity (mrq) 87.17%
Current Ratio (mrq) 1.05
Book Value Per Share (mrq) 1.04
Source: Yahoo Finance
Short Interest
Short Interest Ratio 2.96 Days to Cover
Short Interest % Float 14.98% – source: NASDAQ (short interest), Capital IQ (float)
Off-Exchange Short Volume 6,529,152 shares – source: FINRA (inc. Dark Pool volume)
Off-Exchange Short Volume Ratio 47
Source: FinTel
TELL Daily Chart
There has been an uptick in volume and what appears to be a bounce starting from oversold conditions.
Also see Tellurians August 2023 Investor Presentation
Conclusion
In conclusion, Tellurian Inc. has shown a positive trajectory in its strategic initiatives and project developments. The company seems to be committed to advancing its integrated strategy, focusing on the construction of its Driftwood project and increasing LNG production and sales. We are keeping Tellurian on our watch list based on the following potential catalysts.
Key potential catalysts that shareholders should be aware of include:
Tellurian and Baker Hughes Agreement for Driftwood LNG Phase 1 Liquefaction Equipment: This agreement, announced on September 5, 2023, secures a delivery schedule for the necessary equipment, supporting Driftwood’s ability to achieve initial LNG production by 2027.
Appointment of Simon Oxley as CFO: Effective from June 1, 2023, Simon Oxley’s appointment as CFO is expected to significantly enhance the company’s project financing efforts.
FERC Certificate for Driftwood Natural Gas Transmission Pipeline Project: The U.S. Federal Energy Regulatory Commission (FERC) issued a certificate granting authorization for Driftwood Pipeline, LLC’s Line 200 and Line 300 on April 24, 2023. This is an approximate $1.4 billion natural gas transmission project proposed to be located in Beauregard and Calcasieu Parishes, Louisiana.
Second Quarter 2023 Results: Despite a net loss of approximately $59.6 million, or $0.11 per share (basic and diluted), for the quarter ended June 30, 2023, the company’s progress on the Driftwood LNG construction and the increase in natural gas production volumes indicate potential for future growth.
Your friend,
Steve Macalbry
Senior Editor, BestGrowthStocks.Com
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Disclaimer: The author of this article is not a licensed financial advisor. This article is intended for informational purposes only. It should not be considered financial or investment advice. We have not been compensated for the creation or distribution of this article in any way. We do not hold any form of equity in the securities mentioned in this article as of 10/30/2023. Always consult with a certified financial professional before making any financial decisions. Growth stocks are speculative in nature, and you could lose your entire investment.