Tellurian preparing public stock offering
US natural gas company Tellurian announced its intent August 3 to offer shares of its common stock in an underwritten public offering.
Tellurian did not reveal expected proceeds from the offering, but said they would be used for general corporate purposes, including the potential acquisition of upstream assets.
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In a separate announcement the same day, Tellurian announced Q2 2021 results showing a cash and cash equivalents balance of $111.9mn, with no borrowing obligations and quarterly revenues from natural gas sales of about $5.6mn. Production at the end of 2021 is expected to be about 95mn ft3/day.
It reported a net loss for the quarter of $30.6mn but claimed a strong balance sheet with assets estimated at $328.2mn and noted again 6mn metric tons/yr of LNG sale and purchase agreements (SPAs) with Gunvor Singapore and Vitol and, subsequent to the quarter, two additional SPAs totalling 3mn mt/yr with Anglo-Dutch major Shell. Together, the SPAs complete the sales for plants one and two of its Driftwood LNG project in Lake Charles, Louisiana.
“Tellurian’s strengthened balance sheet and commercial success, combined with supportive market fundamentals, enable Driftwood’s continued progression,” CEO Octavio Simoes said, noting that a long-term lease option has been exercised with the Port of Lake Charles, and owner’s site preparation work has begun.
“Tellurian Production is also enhancing our natural gas drilling program and this integrated approach will create the physical hedge for Driftwood’s natural gas purchases for liquefaction and export,” Simoes said.
In a regular video briefing late June, Tellurian executive chairman Charif Souki said the company was seeking to expand its upstream production capabilities through organic growth and acquisitions.