HOUSTON, TX- Tellurian Inc. (Tellurian) (NASDAQ: TELL) reports significant progress made on its proposed Driftwood LNG terminal and Driftwood pipeline (together the Driftwood Project) during the first quarter of 2017. Notably, Tellurian:
Issued 23% of its common stock to Total for $207 million,
Closed a reverse subsidiary merger with Magellan Petroleum Corporation (Magellan) to become a public company which is listed on the Nasdaq,
Received authorization to export LNG to free trade agreement countries,
Submitted applications to the Federal Energy Regulatory Commission (FERC) to construct and operate the Driftwood Project, and
Engaged Societe Generale as a financial advisor.
Tellurian also reported a net loss of $141 million, or ($0.92) per share (basic and diluted), for the three months ended March 31, 2017.
President and CEO Meg Gentle said, “Tellurian continues to consistently execute its plans to build a global natural gas business and has laid the foundation to design, permit, and finance the next world-scale LNG infrastructure in southwest Louisiana. We recently began marketing LNG to potential customers and we have received positive feedback and interest in our Driftwood Project which we expect to produce first LNG in 2022.”
Estimated Driftwood Project timeline
LTSK EPC contract Mid-2017
LNG sales and purchase agreements 1H 2018
FERC construction authorization Mid-2018
Liquefaction project financial close Mid-2018
Begin construction Mid-2018
Begin operations 2022
Q1 2017 Results
Tellurian reported a net loss attributable to common stockholders of $141 million for the three months ended March 31, 2017. Such net loss includes (i) $22 million of development expenses, which were primarily associated with the development of the Driftwood Project and related regulatory filings, (ii) $45 million of general and administrative expenses, which includes approximately $35 million of share-based compensation for employees and directors and share-based payment charges related to commercial development and management consulting contractors, and (iii) $78 million to impair goodwill that was recognized as a result of the merger with Magellan in February 2017.
Total cash disbursements for the quarter were approximately $42 million, which included one-time payments of $12 million related to engineering, procurement and construction activities, $5 million of merger-related expenses, and $25 million of disbursements in the normal course of business.
As of March 31, 2017, Tellurian had $187 million of cash and cash equivalents, including the proceeds from Total’s investment.
About Tellurian Inc.
Tellurian was founded by Charif Souki and Martin Houston and is led by President and CEO Meg Gentle. Tellurian plans to build a natural gas business that includes development of Driftwood LNG, a 26 mtpa LNG export facility, and an associated pipeline. Tellurian intends to create value for shareholders by developing low-cost natural gas-related infrastructure, profitably delivering natural gas to customers worldwide and pursuing value-enhancing, complementary business lines in the energy industry. Tellurian is based in Houston, Texas and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL”.
Source: Tellurian, Inc.