Thursday, August 02, 2018 1:18:52 PM
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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Recent TELL News
- Tellurian Announces Approval of Merger Agreement Proposal • Business Wire • 10/04/2024 01:09:00 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 08/30/2024 09:00:18 PM
- Form DEFM14A - Definitive proxy statement relating to merger or acquisition • Edgar (US Regulatory) • 08/27/2024 08:05:31 PM
- Form PREM14A - Preliminary proxy statements relating to merger or acquisition • Edgar (US Regulatory) • 08/16/2024 08:51:30 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/15/2024 08:05:38 PM
- Form SC 13D - General Statement of Acquisition of Beneficial Ownership • Edgar (US Regulatory) • 07/30/2024 02:49:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 10:00:09 PM
- Form DFAN14A - Additional definitive proxy soliciting materials filed by non-management and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 08:31:02 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 08:07:35 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/22/2024 08:05:30 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 07:04:15 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 10:22:39 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 10:15:21 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 10:11:16 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/22/2024 10:08:21 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/22/2024 10:03:00 AM
- Tellurian to be Acquired by Woodside for Approximately $900 Million • Business Wire • 07/21/2024 10:29:00 PM
- Form SC 13G/A - Statement of Beneficial Ownership by Certain Investors: [Amend] • Edgar (US Regulatory) • 07/08/2024 08:32:41 PM
- Tellurian Closes $260 Million Asset Sale and Retires Senior Secured Debt • Business Wire • 07/01/2024 12:00:00 PM
- Aethon Energy to Acquire Tellurian Integrated Upstream Assets • Business Wire • 05/29/2024 11:00:00 AM
- Tellurian reports first quarter 2024 results and Driftwood LNG progress • Business Wire • 05/02/2024 11:33:00 AM
- Tellurian Makes Leadership Changes • Business Wire • 03/18/2024 10:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 12:15:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/23/2024 12:37:06 PM
- Tellurian Reports 2023 Financial Results and Driftwood LNG Progress • Business Wire • 02/23/2024 12:28:00 PM
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