That strategy, Gabelman said, has added uncertainty since backers need to try to forecast commodity prices 4 years into the future, when Driftwood is forecast to come online. analyst Jason Gabelman, is Tellurian’s approach of estimating its future cash flows based on natural gas prices rather than fixed fees from counterparties. One main disparity driver, said Cowen Inc. plan to jointly fund construction and operation of a 2.1-million tpy LNG plant in British Columbia ( OGJ Online, Aug. made final investment decision on its $13.2 billion, 20-million tpy project in Louisiana, and Enbridge Inc. entered an LNG export partnership via the latter’s planned port off the coast of Louisiana while, among others, Venture Global LNG Inc. Tellurian’s treading water on financing comes as other players in the LNG sector struck deals this summer as the industry looks to ramp up capacity following Russia’s invasion of Ukraine. The company also would buy back half of the $500 million of notes it sold in June and pay a $50 million redemption premium as part of changes that would make those instruments unsecured rather than backed by its upstream assets.Executives also say they are willing to establish a reserve that would cover up to a year’s worth of interest payments on the new debt.While the proposed 5-year notes are outstanding, Tellurian would commit to not issuing common stock or instruments convertible into common stock to help finance Driftwood.In addition to pledging as collateral equity interests in Driftwood, Tellurian also would pledge equity in its upstream oil and gas assets to help secure the bonds being marketed.This week, they said that talks with possible investors have led them to offer a number of deal sweeteners should the debt offering go ahead at all.
29 plans to sell senior secured debt paying 11.25% in interest while also giving investors warrants to buy the company’s common stock.
#STOCK PRICE FOR VENTURE GLOBAL LNG FULL#
The company this spring started construction on the project’s first phase before securing full funding-in a recent investor presentation, it said some infrastructure and site preparation work has advanced-and executive chairman Charif Souki in May said he expected to quickly land financial backing ( OGJ Online, May 12, 2022).īut that support hasn’t yet materialized as expected-although Tellurian this summer did sell $500 million in 3-year convertible notes paying 6% interest-and executives announced on Aug. 12 filing with the US Securities and Exchange Commission, Tellurian executives said they are proposing several adjustments to a planned debt offering first outlined late last month that would move forward the Houston-based company’s work on the $12-billion, 27.6 million tonne/year (tpy) Driftwood project in southwestern Louisiana.
Potential investors in Tellurian Inc.'s planned Driftwood LNG plant are extracting a steep price from the company as it looks to secure its next round of funding.
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