Tellurian Inc., which continues to work toward a final investment decision on its Driftwood liquefied natural gas (LNG) terminal proposed for Louisiana, plans to acquire additional assets in the Haynesville Shale this year.
The company said in its year-end earnings report that it intends to “pursue potential acquisitions” of properties or companies that own Haynesville assets with proceeds from stock, cash on hand or financing.
Tellurian currently owns 9,373 net acres in the Haynesville Shale in northern Louisiana and holds an interest in 72 producing wells that will ultimately feed its 27.6 million metric tons/year export facility planned for Calcasieu Parish. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019.
“Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021,” CEO Octávio Simões said last week after the company released 2020 results.
Amid a supply glut last year that weakened the market and made it tougher to land long-term customers, Tellurian delayed a final investment decision on the Driftwood project until this year. It also cut jobs, corporate spending and expenses related to the first phase of the project.
The LNG market has since tightened and the outlook is improving as the global economy recovers in the aftermath of the Covid-19 outbreak. The company ended 2020 with $78.3 million of cash and cash equivalents and $72.8 million in short-term borrowings. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019.
The company reported a net loss of $210.7 million (minus 79 cents/share) in 2020, compared to a net loss of $151.8 million (minus 69 cents) in 2019. Last year’s loss included a $81.1 million impairment of upstream properties.
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