US Tellurian Loss Widens in 2020
US LNG hopeful Tellurian, which is now calling itself an integrated natural gas company, reported a 2020 net loss of $210.7mn on February 24, an increase from the $151.8mn net loss it reported for 2019.
Included in the 2020 loss was a non-cash impairment charge of $81.1mn related to its upstream properties.
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It ended the year with about $78.3mn of cash and cash equivalents and about $72.8mn in short-term borrowings. Natural gas sales for the year generated revenue of about $30.4mn.
“Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021,” Tellurian CEO Octavio Simoes said. “Operationally, our Haynesville shale wells have outperformed to unlock value, providing domestic natural gas supply and a valuable contribution to our integrated Driftwood model which will offer low-cost liquefied natural gas (LNG) to the world.”
Tellurian did not provide an update on its efforts to push its two-phase, 27.6mn mt/yr Driftwood LNG project to a final investment decision.
But it did increase production from its Haynesville shale assets in northern Louisiana to 16.9bn ft3 in 2020 from 13.9bn ft3 in 2019. At the end of 2020, Tellurian’s upstream assets comprised interests in 72 producing wells on 9,373 net acres, with estimated proved reserves of 99.5bn ft3 of natural gas.
Last November, Tellurian chairman Charif Souki suggested the company’s natural gas production could reach 150mn ft3/day (about 55bn ft3) by the end of this year, as it awaits higher commodity prices to drill up to 100 Haynesville wells.