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I personally feel it’s people shorting the stock. IMO, the fundamentals look really favorable - for a long term hold.
I think once they get FID, this will go to $15+.
Funny how XI175 has gone silent...
I guess I’m more of the mindset to look at the overall business and LNG market as a whole. LNG prices are coming up and we haven’t even hit winter months yet. I would also venture a guess that companies like Bechtel and GE know what they’re doing when they invest money in projects like this. I couldn’t listen and watch what they do or I can listen to you trying to push a delist narrative. Hmmm.
Any thoughts on the MOU expiring?
IDK - if Petronet doesn’t sign in May - I’m really concerned. Thoughts?
You think they have the cash to weather this?
Anyone loading up here?
Yes it is! Surprised it didn’t bounce more...
Anybody picking up more shares at this price?
I believe they have full approval from the DOE on exporting and also have full approval to begin construction on Driftwood.
I would have thought we would’ve seen more of a bump stemming from the FERC approval. Then I read this and wonder if that’s dragging it down. This came out of nowhere.
Levi & Korsinsky announces it has commenced an investigation of Tellurian Inc. (NASDAQCM: TELL) concerning possible breaches of fiduciary duty.
Do you mind me asking why you sold all your shares?
Why would you sell all of your shares based on an article? Nothing changes in terms of TELL’s path to being a viable NG producer. When that plant starts producing in 2023, this stock will soar.
Ouch! I’m assuming this is related to the Exxon/Qatar Oil news.
It’s a valid concern and if there is a related pullback, it would be temporary. Just curious, why do you think it will be June before Trump picks a replacement?
I think we’ll get a bump when they announce the investors in Q1 2019 - but it will be 2022/2023 before they earn revenue from Driftwood and we probably won’t see a real good bump until then.
Psycho what’s driving a new high? Did I miss a news story?
Looks like Aramco is getting close to making an investment decision between Driftwood and Sempra.
What is your basis for TELL going to zero?
Anyone else picking up additional shares?
Does this concern anyone? Further dilution?
Why Tellurian Inc. Stock Is Drifting Lower Today
The natural gas infrastructure company is raising some cash.
Matthew DiLallo (TMFmd19) Jun 19, 2018 at 11:08AM
What happened
Shares of Tellurian Inc. (NASDAQ: TELL) were off by more than 10% by 10:30 a.m. EDT on Tuesday after the natural gas infrastructure company priced a public offering of new shares.
So what
Tellurian sold 12 million shares to the public for $118.8 million, or about $9.90 each. That's around a 10% discount to where shares closed yesterday, which is why the stock fell today. In addition to that sale, the company gave underwriters the option to buy another 1.8 million shares within the next 30 days at that same price to cover any additional demand from investors.
LNG storage tanks under construction.
IMAGE SOURCE: GETTY IMAGES.
Tellurian plans to use the cash for general corporate purposes, including the development of pipelines to support its Driftwood liquified natural gas (LNG) facility. The LNG project alone could cost upwards of $15 billion, while the pipelines and related infrastructure could cost another $7 billion. In other words, today's equity offering is just a drop in the bucket compared to the capital the company needs, suggesting it won't be the last dilutive offering (and it certainly wasn't the first).
Now what
Tellurian is a very early stage company that needs to raise billions in capital to build two massive natural gas infrastructure projects. While Driftwood's development could create significant value for investors, it's several years away from being a reality, and that's if the company secures the necessary approvals. That makes it a very high-risk energy stock, but one with an equally high potential reward.
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Is there some bad news or something. Curious why it’s tanking today. I can’t find anything
(Reuters) - The co-founder and chairman of Tellurian Inc said on Thursday the U.S. natural gas company expects to make a final investment decision on its proposed Driftwood liquefied natural gas export facility in Louisiana in the first quarter of 2019.
Chairman Charif Souki, who spoke to Reuters at the World Gas Conference in Washington, D.C., said the company expects to start producing liquefied natural gas (LNG) at the $30 billion project in early 2023.
"We expect to receive our federal permits ... and make a final investment decision in the first quarter of next year," Souki said, which should allow Tellurian to start producing LNG in early 2023 and complete the project in 2026.
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Unlike most other proposed U.S. LNG export projects that will liquefy gas for a fee, Tellurian is offering customers the opportunity to meet their gas needs by investing in a full range of services from production to pipelines and liquefaction.
Tellurian is offering equity interests in Driftwood Holdings at $1,500 per ton of LNG delivered at cost - expected to be around $3 per million British thermal units (mmBtu)- which Souki said removes the commodity price risk from the customer's list of concerns. That compares with an average of $3.25 per mmBtu for gas at the Henry Hub benchmark over the past five years.
Tellurian said about 25 prospective customer/partners are looking at the offering. Souki said the company expects to narrow the list and convert letters of intent into firm sales agreements by the end of the year.
Current partners include Total SA, General Electric Co and Bechtel, which has a $15.2 billion contract to build the liquefaction facility at the center of the project. Pipelines, reserves and other costs make up the rest of the $30 billion price tag of the project.
Driftwood will have capacity to produce 27.6 million tonnes per annum of LNG or about 4 billion cubic feet per day (bcfd) of gas. One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.
There are two LNG export terminals operating in the United States today, Cheniere Energy Inc's Sabine Pass in Louisiana and Dominion Energy Inc's Cove Point in Maryland. There are 20 liquefaction trains under construction at five facilities and more than two dozen LNG projects in various stages of development, like Tellurian's Driftwood.
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Based only on the plants under construction, total U.S. LNG export capacity is expected to rise to 3.9 bcfd by the end of 2018, 8.7 bcfd by the end of 2019 and 10.1 bcfd by the end of 2020 from 3.8 bcfd now, which should make the United States the third-biggest LNG exporter by capacity in 2019.
At the start of 2016 before Cheniere's terminal entered service in February of that year, the United States was not exporting any LNG. Souki founded and was the CEO of Cheniere until late in 2015.
In 2017, global LNG sales rose 9.9 percent to a record 289.8 million tonnes, according to the International Association of Liquefied Natural Gas Importers.
As consumers shift from coal to cleaner burning gas for power generation and other uses, Tellurian has estimated that 127 million tonnes per annum of additional liquefaction construction will be required to meet the world's demand for LNG in 2025.
Tellurian has acquired about 11,620 acres with an estimated 1.4 trillion cubic feet of low-cost resources in the Haynesville shale play, which straddles the Texas-Louisiana border.
From there, the company is developing the $1.4-billion Haynesville Global Access pipeline to move up to 2 bcfd of gas to southwest Louisiana near its Driftwood facility. Souki said Tellurian was building a pipeline network to get access to the cheapest gas available.
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Tellurian is also developing the $2.2 billion Driftwood pipeline to move up to 4 bcfd of gas across southwest Louisiana and a $3.7 billion pipeline to bring up to 2 bcfd of gas in from the Permian formation, the nation's biggest shale oil basin.
Energy firms have flocked to the Permian, the nation's biggest shale oil basin in west Texas and eastern New Mexico, over the past several years in search of oil. With that oil has come a lot of associated gas, in some cases more than some producers can process, forcing them to resort to burning or flaring some of that fuel.
Here comes dilution. Tellurian just announced issuance of 12 million shares of common stock
Dang! That hurts! I wonder why the pull back?
Anyone concerned with dilution? I’ve seen them (TELL) mention that they are exploring all other options other than dilution to fund Driftwood but the fact they’ve mentioned it a few times bothers me a bit. Am I over thinking this here?
Would you wait for a pull back before you bought in?
Hey guys – new to the board here. I work in the manufacturing sector and started buying some of this stock ever since my company started tracking the Driftwood project. I’m thinking about rolling the dice and taking large position in the stock. If I’m wrong, then we lose a decent amount of money (however I don’t feel this will ever go to zero). But if I’m right, we’re millionaires. I wanted to bounce some ideas off of you guys before I jumped in. At this point, we are basically buying stock in Souki and his track record.
My concerns are;
P/E ratios are high which indicates a large correction may be coming. I know no one knows when and where but it the tariffs go through coupled with the Fed raising interest rates – now it will cost more to finance and build more expensive buildings. Does that cause a big slowdown in construction and start the ball rolling for the correction? I’m in it for at least 2-4 years but I still wonder if I should wait for a massive pull back. How do you approach this?
Another concern is if the project doesn’t get approval. Does anyone think that the project won’t move forward? Anything that you guys feel would put the brakes on this project?
Do you think Souki and his team can really be that far ahead of everyone else in the LNG game?
The positives;
The fact that Bechtel has made a $50M equity investment and that GE is partnered on the project as well gives me some reassurance that this will move forward.
Thoughts? Please tell me if I’m an idiot or if I’m on the right path.
Thx!