Tellurian sees 47% production growth in Q2
US natural gas company Tellurian said August 3 it increased natural gas production in Q2 2022 by 47% from Q1 and expects to see output climb again with an agreement in July to acquire more producing assets.
“Tellurian’s business model provides a unique proposition amongst US LNG producers,” Tellurian CEO Octavio Simoes said. “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.”
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Net natural gas production in Q2 this year increased to 9bn ft3 from 2.1bn ft3 in Q2 2021, while revenues from natural gas sales – on the back of the production gains and robust commodity prices – soared to $61.3mn from $5.6mn in the same period a year ago.
Tellurian ended the second quarter – in which it reported a net loss of $35,000 but operating profit of $38.5mn – with $823mn of cash on hand and assets of about $1.34bn.
Subsequent to the end of the quarter, the company entered into an agreement to acquire 5,000 net acres of assets in the Haynesville shale play, with 44 producing wells. The acquisition will increase Tellurian’s Haynesville position to about 20,000 net acres, 126 producing wells and more than 275 potential drilling locations.
Simoes added that early works are continuing at the site of Tellurian’s planned 27.6mn mt/yr Driftwood LNG terminal in Louisiana, with piles being driven to set the foundation for the first phase, which will consist of two trains and 11mn mt/yr of liquefaction capacity.