Tellurian Reports Full Year 2023 Financial Results and Progress on Driftwood LNG Project
Houston-based energy company Tellurian Inc. has released its full-year financial results for 2023, highlighting significant progress made on the Driftwood LNG project. The company has reported driving over 14,000 piles at the site and making advancements in the construction of concrete foundations for critical equipment, reducing the risk associated with site construction.
In addition to these milestones, Tellurian has secured the Federal Energy Regulatory Commission (FERC) Certificate for its pipelines, Lines 200 and 300. The company has also continued to advance the fabrication of Baker Hughes zero-emissions ICL compressors for the pipeline.
To provide financial flexibility, Tellurian has amended its senior secured notes and senior convertible notes. While additional collateral has been provided relating to the Driftwood Project, the company expects that this will not interfere with the commercialization or financing of the project. The improved near-term liquidity is expected to enable a higher degree of engagement with potential counterparties and financing sources.
Octávio Simões, Chief Executive Officer of Tellurian, expressed confidence in the company’s progress, stating, “Tellurian ended 2023 with an exemplary safety record. Driftwood’s recent FERC order extension to construct all five plants, with a capacity of ~27.6 million tonnes per annum (mtpa), coupled with its non-free trade agreement export authorization, have differentiated the project and have intensified our commercial discussions.”
Simões also mentioned that Tellurian has received positive feedback from interested parties regarding the potential sale of their upstream assets. The company believes that its financial discipline will provide a sustainable path forward.
Upstream Segment Results
Tellurian reported the following results for its upstream segment for the three months ended December 31, 2023:
– Net production: 16.4 billion cubic feet (Bcf)
– Revenue: $40.0 million
– Operating loss: $11.3 million
– Adjusted EBITDA: $21.7 million
These results reflect a decrease in net production compared to the same period in 2022, as well as a decrease in revenue and operating profit.
Operating Activities
Tellurian produced a total of 72.5 Bcf of natural gas for the year ended December 31, 2023. The company’s natural gas assets include 30,034 net acres and interests in 161 producing wells as of the same date.
Consolidated Financial Results
Tellurian generated approximately $166.1 million in natural gas revenue for the year ended December 31, 2023, driven by decreased realized natural gas prices and increased production volumes. This is compared to $391.9 million in total revenues for 2022. The company reported a net loss of approximately $166.2 million, or $0.29 per share (basic and diluted), for the year ended December 31, 2023, compared to a net loss of $49.8 million, or $0.09 per share (basic and diluted), for 2022.
As of December 31, 2023, Tellurian had approximately $1.3 billion in total assets, including $75.8 million of cash and cash equivalents.
About Tellurian Inc.
Tellurian Inc. is focused on building a low-cost, global natural gas business and delivering natural gas to customers worldwide. The company is developing an LNG export facility with a capacity of approximately 27.6 million tonnes per annum (mtpa) and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the NYSE American under the symbol “TELL.”
Conclusion
Tellurian Inc. has made significant progress on its Driftwood LNG project in 2023, driving over 14,000 piles and advancing the construction of critical equipment foundations. The company has also secured the necessary regulatory approvals and amended its financial agreements to provide flexibility. With improved liquidity, Tellurian expects to engage with potential partners and financing sources more effectively. The positive feedback received on the potential sale of upstream assets further strengthens the company’s position. Despite reporting a net loss for the year, Tellurian remains confident in its financial discipline and sustainable path forward.