Tellurian grows production in Q1 2022
US LNG developer Tellurian, nearing a final investment decision (FID) on the first phase of its 27mn mt/yr Driftwood LNG project in Louisiana, said May 4 it ended Q1 2022 with increased natural gas production and nearly $300mn cash on hand.
“Tellurian’s own natural gas production and sales provide valuable operating cash and a unique advantage to us as a liquefied natural gas (LNG) supplier” CEO Octavio Simoes said. “We are nearing net production of 100mn ft3-equivalent/day and plan to reach 200mn ft3-e/day by year end.”
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Tellurian produced 6.1bn ft3 of natural gas from its Haynesville producing assets in Q1 2022, up about 24% from 4.8bn ft3 in the previous quarter. At March 31, 2022, its upstream assets included 82 producing wells on 13,251 net acres.
Gas production is now generating free cash flow to support capital expenditures, Simoes said, and Tellurian intends to maintain capex at about $150mn/year now that prime contractor Bechtel has been given a limited notice to proceed at Driftwood.
“With Bechtel now onsite beginning construction of Driftwood, we are on schedule to begin LNG production in 2026,” he added.
Tellurian ended Q1 with $296mn of cash and cash equivalents and about $732mn in total assets. Natural gas sales generated revenue of about $26mn, up from $8.7mn in Q1 2021, but Tellurian generated a net loss of about $67mn in Q1 2022.