Tellurian Inc (TELL)

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3 Top Energy Stocks to Buy Now

A second chance at an emerging LNG investment

Tyler Crowe (Tellurian): Let me start by saying that I'm a shareholder in Tellurian, and it's entirely possible that this will be the investing hill that I die on. That said, I think Tellurian has the potential to generate massive shareholder returns over the next several years for those who are patient and willing to wait for a payoff and risk the losses.

Stop me if you think you've heard this story before. Charif Souki and his team want to develop an LNG export terminal in the U.S. Gulf Coast, but need to raise lots of capital to get the project off the ground. A decade ago, that was the story of Cheniere Energy, which has arguably exceeded everyone's expectations as it brings its facilities on line ahead of schedule and has been turning in earnings results that fly in the face of conventional thinking in the LNG market. Today, that story can be applied to Tellurian. Souki isn't the CEO of this new attempt at building an LNG facility, but he has taken the chairman role and one of his top Cheniere lieutenants, Meg Gentle, is the CEO.

While the script isn't exactly the same as it was at Cheniere -- it is looking to sign up customers as equity partners instead of selling volume contracts, and is looking to make larger investments in pipelines and its own natural gas reserves -- this path looks very familiar for investors. Management says it's currently assessing potential partners for the project and expect to start construction by the end of the year.

There remain many more unanswered questions when it comes to Tellurian, but we have seen this management team pull this off before. If this encore performance looks anything like the prior one, then investors will probably be happy they got in early.

https://www.fool.com/investing/2018/05/25/3-top-energy-stocks-to-buy-now.aspx