Tellurian Inc. (TELL): history, ownership, mission, how it works & makes money

A Brief History of Tellurian Inc. (TELL)

Foundation and Early Years

Tellurian Inc. was founded in 2016 by Charif Souki, a former CEO of Cheniere Energy. The company is headquartered in Houston, Texas. Tellurian focuses on developing liquefied natural gas (LNG) projects in North America.

Public Offering and Financial Growth

In 2017, Tellurian went public, trading its shares on the NASDAQ under the ticker symbol TELL. The company raised approximately $500 million during its initial public offering (IPO).

Developments in LNG Projects

Tellurian has focused on the Driftwood LNG project, which is located in Louisiana. The project is expected to have a production capacity of 27.6 million tonnes per year upon completion. The company has been seeking financing to complete the project's construction.

Recent Financial Performance

As of the end of 2022, Tellurian reported a revenue of $10.2 million for the year, while the net loss was approximately $77 million.

Stock Performance and Market Capitalization

As of October 2023, Tellurian's stock price is around $3.50, with a market capitalization of approximately $1.2 billion. The company has seen significant volatility in its stock price, influenced by fluctuations in natural gas prices and overall market trends.

Strategic Partnerships and Future Plans

As of 2023, Tellurian has formed strategic partnerships with global trading companies for LNG sales, including agreements with TotalEnergies and Gunvor. The company aims to position itself as a leading player in the LNG market with its long-term contracts and production plans.

A Who Owns Tellurian Inc. (TELL)

Shareholder Structure

The ownership of Tellurian Inc. is diversified among institutional investors, retail shareholders, and company insiders. As of the latest data from September 2023, the major shareholders are delineated in the table below.

Insider Holdings

The executive team and board members of Tellurian have a significant stake in the company. They own approximately 5.1% of the total shares outstanding. Key insiders include:

• Charif Souki, Executive Chairman: 4 million shares
• Shay N. L. D. M. S. Franz, COO: 1.5 million shares
• Other executives: 5 million shares combined

Institutional Ownership

Institutional investors represent a substantial portion of Tellurian's ownership landscape. As reported on September 30, 2023, the largest institutional investors include:

Recent Stock Performance

As of October 1, 2023, Tellurian Inc. (TELL) has had a share price of approximately $5.20, with a market capitalization of about $1.1 billion. The stock has experienced fluctuations in trading volumes, reflecting interest from both retail and institutional investors.

Investment Trends

Investment trends reveal a growing interest in Tellurian, particularly in light of its focus on liquefied natural gas (LNG) development. The company has a projected revenue growth rate of approximately 20% annually over the next five years, driven by expected increases in global LNG demand.

Future Ownership Changes

Projected trends suggest potential changes in ownership distribution. Analysts forecast that institutional ownership may rise as Tellurian continues to secure financing for its projects. The expected increase in LNG exports from the United States could lead to heightened institutional interest.

Tellurian Inc. (TELL) Mission Statement

Company Overview

Tellurian Inc. is focused on developing and operating natural gas infrastructure, including liquefied natural gas (LNG) projects. The company's primary mission is to create a global natural gas platform that provides energy security and reliability.

Core Mission Statement

The core mission of Tellurian Inc. is to "commercialize natural gas resources to meet the energy needs of consumers while ensuring sustainability and operational excellence."

Strategic Objectives

• Develop and operate LNG facilities for efficient energy distribution.
• Ensure a sustainable supply chain for natural gas resources.
• Enhance market access for LNG through strategic partnerships.
• Deliver long-term shareholder value through disciplined capital allocation.
• Prioritize safety and environmental stewardship in all operations.

Financial Highlights

Operational Insights

Tellurian operates the Driftwood project, which is expected to generate significant LNG export capabilities:

• Current capacity: 27.6 million metric tons per year (MMTPA).
• Total expected investment: $15 billion.
• Projected operational start date: 2025.

Environmental Commitment

As part of its mission, Tellurian is committed to reducing its carbon footprint:

• Goal: Achieve net zero emissions by 2050.
• Investment in carbon capture technology: $300 million by 2030.
• Partnerships with environmental organizations: 5 active partnerships.

Future Outlook

Tellurian is strategically positioned in the LNG market, with significant growth prospects:

• Projected growth rate of the LNG market: 6.2% CAGR (2023-2030).
• Expected increase in global LNG demand: 10% by 2025.
• Next quarterly earnings report: Expected in November 2023.

How Tellurian Inc. (TELL) Works

Business Overview

Tellurian Inc. is a company focused on natural gas production and liquefied natural gas (LNG) exportation. The company is primarily involved in the development of LNG infrastructure, particularly in the United States.

Operational Segments

• Natural Gas Production
• LNG Marketing
• Infrastructure Development

Current Operations

Tellurian's flagship project is the Driftwood LNG terminal located in Louisiana. As of 2023, the projected total cost for the Driftwood project is estimated to be around $30 billion.

Production Capacity

The Driftwood LNG facility is expected to have a production capacity of 27.6 million tonnes per annum (MTPA). The construction phase is set to commence in 2024.

Financial Performance

As of Q2 2023, Tellurian Inc. reported revenues of $12 million, with a net loss of $13 million for the quarter. Total assets as of the end of the quarter amounted to $270 million.

Stock Performance

Partnerships and Agreements

Tellurian has established key partnerships to enhance its market reach. Notably, they entered into a long-term sale and purchase agreement with Chevron for LNG supply.

Future Plans

Tellurian plans to finalize its financing structure by securing contracts and developing additional LNG export facilities. The company is targeting to begin exports by 2026.

Strategic Importance

The company aims to play a crucial role in the global transition toward cleaner energy sources by increasing LNG supply. With a growing demand for natural gas, Tellurian positions itself as a key player in North America’s LNG market.

Environmental Considerations

Tellurian is committed to minimizing its environmental impact and aims to incorporate sustainable practices in its operations. This includes evaluating carbon capture technologies and reducing methane emissions.

Market Trends

As of 2023, the demand for LNG has risen globally, with prices fluctuating between $6 to $15 per MMBtu. The geopolitical landscape, especially in Europe and Asia, continues to drive interest in securing reliable LNG sources.

How Tellurian Inc. (TELL) Makes Money

Liquefied Natural Gas (LNG) Production

Tellurian Inc. primarily generates revenue through the production and sale of liquefied natural gas (LNG). The company's flagship project, the Driftwood LNG facility, is designed with a capacity to produce up to 27.6 million tonnes per annum (mtpa). As of 2023, the estimated project cost is around $15 billion.

Sales Agreements

Tellurian has formed strategic sales agreements with various international buyers. These agreements typically span 15 to 20 years and are crucial for securing the necessary funding for their projects. For instance, in 2022, Tellurian signed a pivotal long-term sales and purchase agreement (SPA) with in total contract value, aimed at several million tonnes of LNG.

Gas Supply and Pricing

The pricing of LNG is generally linked to international gas prices. Tellurian can expect revenue based on these market dynamics. The average spot price for LNG in 2023 has fluctuated around $10 per million British thermal units (MMBtu), influencing the company's revenue potential significantly.

Revenue Projections

In their financial outlook, Tellurian has projected revenues reaching approximately $3 billion annually upon full operation of the Driftwood LNG project. Given the projected production capacity, the anticipated revenue reflects both fixed contracts and variable market pricing.

Financial Performance

Financing and Partnerships

To fund its operations, Tellurian has engaged in several financing rounds and partnerships. As of 2023, the company raised approximately $1 billion through equity and debt offerings. Notable partnerships include joint ventures with firms such as TotalEnergies, which potentially infuse not just capital but also technological expertise.

Market Dynamics and Future Growth

The global demand for LNG is projected to grow significantly, especially in Asia and Europe. The International Energy Agency (IEA) forecasts that LNG trade could reach around 600 million tonnes per year by 2040, creating opportunities for Tellurian's strategic positioning within this market.

Cost Structure

The cost to produce LNG includes exploration, development, and operational expenditures. In 2023, operational costs per million British thermal units have been estimated to be approximately $3.50, which is crucial for maintaining margins as sales prices fluctuate.