Tellurian values note offering at $50mn
US LNG company Tellurian on August 26 put a $50mn value on previously announced senior notes, with the capital going to potential upstream purchases.
Tellurian this week said it would place senior notes due 2028, but had expressed caution about the end results. It has now priced the public offering of the 8.25% senior notes due 2028. Underwriters have a 30-day option to purchase another $7.5mn in senior notes in connection with the offering.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Tellurian’s executive chairman Charif Souki said in early July the company was looking to expand upstream production through organic growth and acquisitions. The company is seeking sufficient throughput to underpin its Driftwood LNG terminal and is pursuing an integrated model, combining upstream production and liquefaction capacity.
Tellurian announced Q2 2021 results showing a cash and cash equivalents balance of $111.9mn, with no borrowing obligations. Quarterly revenues from natural gas sales were about $5.6mn. Production at the end of 2021 is expected to be about 95mn ft3/day. The company reported a net loss for the quarter of $30.6mn but claimed a strong balance sheet with assets estimated at $328.2mn.
Tellurian exercised a long-term lease option for the Driftwood site in Louisiana in June and agreed to terms for a sales and purchase agreement with commodities trader Vitol.