US Tellurian Reports Q1 Loss

US LNG developer Tellurian said May 4 it had a Q1 2020 net loss of $40.7mn, an increase from a $34.1mn loss in the same period a year ago. Loss from operations increased slightly, to $34.4mn from $32.6mn.

It is developing the Driftwood LNG project, but has failed to attract sufficient investors to allow it to take the final investment decision in a presently oversupplied global gas market.

Tellurian ended the quarter with about $55.5mn in cash and cash equivalents and about $128.6mn in debt. Its balance sheet consisted of about $364.3mn in assets.

“Tellurian has taken actions to strengthen our balance sheet in the midst of extreme energy and financial market conditions,” CEO Meg Gentle said. “We have streamlined the organization and arranged a $50mn financing. We are lean, resolved, and focused on delivering our first project, Driftwood LNG.”

Notable developments since Q1 ended were the issuance of $56mn in zero coupon, unsecured notes in April and a reduction in corporate overhead to about $6mn/month beginning in June. Had the financing been included in Q1 results, Tellurian would have ended the quarter with $100.7mn in cash and cash equivalents, $167.5mn in long-term debt and $409.5mn in assets.