[ad_1]
Tellurian Inc. mentioned it might quickly be bancrupt except it raises extra capital to repay debt and fund its operations as plans to develop the Driftwood LNG export terminal in Louisiana haven’t develop into a actuality.
The corporate mentioned in its quarterly report filed with the U.S. Securities and Alternate Fee (SEC) that it faces borrowing prices of $391 million along with one other $15 million of different debt due over the following yr. The corporate mentioned it has simply $83 million in money and accounts receivable, which it mentioned probably received’t be sufficient to cowl its bills or debt covenants.
“These situations increase substantial doubt about our means to proceed as a going concern inside one yr after the date that the monetary statements are issued,” Tellurian mentioned within the 10-Q filed Thursday with the SEC.
So as to stay solvent, the corporate mentioned it will attempt to increase proceeds within the fairness and debt markets, which it has leaned on closely because it was based in 2016. Administration additionally mentioned the corporate might higher handle prices and even promote its upstream pure gasoline property. The corporate’s 31,149 internet Haynesville Shale acres are presently its major supply of revenues.
Tellurian has but to enroll any liquefied pure gasoline prospects for the 27 million metric tons/yr (mmty) Driftwood undertaking. It has pivoted between enterprise fashions repeatedly, at instances providing fairness within the undertaking or gross sales and buy agreements to underpin it which have lapsed.
CEO Octávio Simões mentioned once more in a press launch Thursday that the corporate is having “plenty of discussions with counterparties for each fairness partnership and LNG offtake for the Driftwood undertaking.” An fairness partnership, the corporate mentioned, might additionally assist increase further proceeds to assist fund operations.
The corporate is presently targeted on advancing the primary section of Driftwood, which would come with two trains and 11 mmty of liquefaction capability. A second section would come with three trains and 16 mmty of capability. Tellurian has already spent greater than $1 billion on the ability, and it began restricted development final yr.
The corporate produced 19.5 Bcf of pure gasoline within the third quarter, up from 11.4 Bcf within the year-ago interval.
Nevertheless, falling commodity costs dented income, which fell from $43.2 million within the interval to $81.1 million in 3Q2022. Common realized costs have been $2.22/Mcf within the third quarter, down from $7.07 within the year-ago interval.
Tellurian reported a 3rd quarter internet lack of $65.4 million (12 cents/share), in comparison with a internet lack of $14.2 million (3 cents) on the similar time final yr.
The publish Tellurian Warns of Insolvency because it Tries to Advance Driftwood LNG appeared first on Pure Gasoline Intelligence
[ad_2]
Source_link
