Tellurian updates financing process for Driftwood LNG
September 23, 2022 at 14:16 PM EDT
Tellurian Inc. (Tellurian) (NYSE American: TELL) announced today that it has updated its Driftwood LNG financing strategy to prioritize securing equity partners. Part of this strategy includes introducing flexibility in its liquefied natural gas portfolio with the termination of two current sales and purchase agreements.
President and CEO Octávio Simões said, “The potential corporate and strategic partners we are seeking may want liquefied natural gas (LNG) volumes that they can sell globally and now we have some capacity to offer that option. We have made good progress on our construction plan and will continue funding that with our cash and operating cash flow.”
Simões added, “What has not changed for Tellurian is that we are an operating natural gas producer with revenue from our gas sales. Last quarter we produced nine billion cubic feet of natural gas and had over $61 million in sales, and since then we have closed the EnSight acquisition. Currently we have 11 natural gas wells in various stages of completion and therefore expect a significant increase in production and sales next quarter. In addition, we will add to our value when our fully permitted Driftwood LNG project is completed, and we can reach the global markets with LNG sales at global prices.”
About Tellurian Inc.
Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the NYSE American under the symbol “TELL”.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,” “forecast,” “initial,” “intend,” “may,” “plan,” “potential,” “project,” “proposed,” “should,” “will,” “would,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements herein relate to, among other things, the capacity, timing, and other aspects of the Driftwood LNG project, the construction and financing of the project, and cash flows, production, sales, profitability and asset values. These statements involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include the matters discussed in Item 1A of Part I of the Annual Report on Form 10-K of Tellurian for the fiscal year ended December 31, 2021 filed by Tellurian with the Securities and Exchange Commission (the SEC) on February 23, 2022, and other Tellurian filings with the SEC, all of which are incorporated by reference herein. The forward-looking statements in this press release speak as of the date of this release. Although Tellurian may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.