Tellurian Inc. (Tellurian) (NYSE American: TELL) ended the
second quarter with $823 million of cash on hand. During the
quarter, Tellurian generated $61.3 million in revenues from natural
gas sales on an increase of production of approximately 47% as
compared to the previous quarter. Subsequent to the quarter end,
Tellurian entered into an agreement to acquire various natural gas
assets located on approximately 5,000 net acres and including 44
producing wells.
President and CEO Octávio Simões said, “Tellurian’s business
model provides a unique proposition amongst U.S. liquefied natural
gas (LNG) producers. By having our own natural gas production, we
create cash from domestic sales that we can use for further
investment, and upon completion of Driftwood LNG, we have an
economic hedge for natural gas purchases which creates additional
value for our shareholders and Tellurian.”
“While Tellurian continues to add natural gas production and
sales revenue, we are also progressing with construction of
Driftwood LNG, having cleared the site and begun an extensive pile
driving program to set the foundation for the first plant,” Simões
added.
Upstream segment results
Quarter ended June 30,
2022
Quarter ended June 30,
2021
Net production
9.0 Bcf
2.1 Bcf
Revenue
$61.3 million
$5.6 million
Operating profit (loss)
$38.5 million
($6.3 million)
Adjusted EBITDA*
$53.2 million
($1.7 million)
* Non-GAAP measure – see the end of this press release for a
definition and a reconciliation to the most comparable GAAP
measure.
Following the completion of the Haynesville Shale acquisition,
Tellurian upstream pro forma assets will include approximately
20,000 net acres of natural gas production, interests in 126
producing wells and over 275 gross drilling locations.
Consolidated financial results
Tellurian generated approximately $61.3 million in revenues from
natural gas sales, compared to $5.6 million in the second quarter
of 2021. Tellurian reported a net loss of approximately $35,000, or
$0.00 per share (basic and diluted), for the three months ended
June 30, 2022.
Tellurian ended its second quarter of 2022 with approximately
$823 million of cash and cash equivalents and approximately $1.34
billion in total assets.
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”.
For more information, please visit www.tellurianinc.com. Follow
us on Twitter at twitter.com/TellurianLNG
Tellurian will post a video by Executive Chairman Charif Souki
on its website shortly following the issuance of this release.
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 benefits of Tellurian’s business model and pro forma
acreage, wells and locations. 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.
Explanation and Reconciliation of Non-GAAP
Financial Measures
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). However, management believes a certain non-GAAP
performance measure may provide financial statement users with
additional meaningful comparisons between current results, the
results of the Company’s peers and of prior periods.
A non-GAAP financial measure the Company may present from time
to time is the Upstream segment’s Adjusted EBITDA, which excludes
certain charges or expenditures. The Upstream segment’s Adjusted
EBITDA is a supplemental measure of performance and should not be
viewed as a substitute for any GAAP measure.
Management presents the Upstream segment’s Adjusted EBITDA
because (i) it is consistent with the manner in which the Company’s
position and performance are measured relative to the position and
performance of its peers and (ii) it is more comparable to earnings
estimates provided by securities analysts.
(in thousands, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Upstream segment Adjusted
EBITDA:
Upstream segment operating profit
(loss)
$38,505
$(6,310)
$43,101
$(8,034)
Add back:
Interest expense
—
382
—
1,635
Depreciation, depletion and
amortization
5,756
2,233
9,680
4,784
Net loss on extinguishment of
debt
—
152
—
665
Allocated corporate general and
administrative
8,952
1,891
14,446
7,159
Upstream segment Adjusted
EBITDA
$53,213
$(1,652)
$67,227
$6,209
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version on businesswire.com: https://www.businesswire.com/news/home/20220802006175/en/
Media: Joi Lecznar EVP Public and Government Affairs
Phone +1.832.962.4044 joi.lecznar@tellurianinc.com
Investors: Matt Phillips Vice President, Investor Relations
Phone +1.832.320.9331 matthew.phillips@tellurianinc.com
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