Tellurian Closes $260 Million Asset Sale and Retires Senior Secured Debt
July 01 2024 - 7:00AM
Business Wire
Tellurian Inc. (Tellurian or the Company) (NYSE American: TELL)
announced today that it has closed the previously reported sale of
its integrated upstream assets for $260 million to affiliates of
Aethon Energy Management LLC (Aethon), fulfilling a key objective
outlined in May and substantially strengthening its balance sheet
as it advances the Driftwood liquefied natural gas (LNG) project.
The Company utilized proceeds from the sale to retire the $230
million of non-convertible Senior Secured Notes scheduled to mature
in 2025.
“With the retirement of the senior secured debt, Tellurian is in
a much-improved commercial position as we work to advance Driftwood
LNG,” said Tellurian President Daniel Belhumeur.
“As a private equity firm and operator, we are excited to
enhance our strategic footprint by integrating Tellurian's upstream
and midstream assets into our extensive Haynesville position,” said
Gordon Huddleston, President and Partner of Aethon Energy. “Our
goal is to generate compelling returns while supporting the
communities we operate in as we make progress towards providing net
zero natural gas to both domestic and international customers. We
continue to work with Tellurian on a long-term sale and purchase
agreement for two mtpa of LNG and believe in the many benefits that
low emission exports have for the broader energy transition.”
“This transaction is a significant step in securing our balance
sheet and progressing Driftwood,” added Tellurian Executive
Chairman Martin Houston. “The partnership between Aethon and
Tellurian is vital as we continue securing buyers for Driftwood’s
remaining capacity and advance its development. Our agreement
validates the role of U.S. LNG as the global transition fuel and in
providing energy security to America’s partners around the
world.”
About Tellurian Inc.
Tellurian aims to generate shareholder value by establishing a
competitive, LNG enterprise, effectively supplying natural gas to
customers worldwide. Headquartered in Houston, Texas, Tellurian is
actively developing Driftwood LNG, an approximately 27.6 mtpa LNG
export facility and associated pipeline network. Tellurian is
publicly traded on the NYSE American under the symbol “TELL”. For
more information, please visit www.tellurianinc.com.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,”
“forecast,” “initial,” “intend,” “may,” “plan,” “potential,”
“project,” “proposed,” “should,” “will,” “would,” and similar
expressions are intended to identify forward- looking statements.
Forward-looking statements herein relate to, among other things,
the capacity, timing, commercialization and other aspects of the
Driftwood LNG project, the development of the project, possible
sales of LNG to Aethon and other buyers, the Company’s balance
sheet and commercial position, and the role of U.S. LNG in the
global energy transition and energy security. These statements
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include the matters
discussed in Item 1A of Part I of the Annual Report on Form 10-K of
Tellurian for the fiscal year ended December 31, 2023, filed by
Tellurian with the Securities and Exchange Commission (the SEC) on
February 23, 2024, and other Tellurian filings with the SEC, all of
which are incorporated by reference herein. There can be no
assurance that the LNG sale and purchase agreement referenced in
this press release will be entered into. The forward-looking
statements in this press release speak as of the date of this
release. Although Tellurian may from time to time voluntarily
update its prior forward-looking statements, it disclaims any
commitment to do so except as required by securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240628393311/en/
Media: Jason French Executive Director, Corporate
Communications Phone +1.832.320.9247
jason.french@tellurianinc.com
Investors: Matt Phillips Vice President, Investor
Relations Phone +1.832.320.9331
matthew.phillips@tellurianinc.com
Johan Yokay Director, Investor Relations Phone +1.832.320.9327
johan.yokay@tellurianinc.com
Tellurian (AMEX:TELL)
Historical Stock Chart
From Nov 2024 to Dec 2024
Tellurian (AMEX:TELL)
Historical Stock Chart
From Dec 2023 to Dec 2024