Tellurian Reports 2020 Results
Tellurian Inc. (NASDAQ: TELL) reported a substantial net loss of approximately $210.7 million for the fiscal year ended December 31, 2020, impacted by an $81.1 million non-cash impairment charge. Despite this, the company emphasized its strong liquidity position with $78.3 million in cash and a focus on expense and debt reduction. Production increased to 16.9 billion cubic feet (Bcf) of natural gas, up from 13.9 Bcf in 2019. Tellurian is advancing its integrated LNG operations and aims to capitalize on growing natural gas demand globally.
- Increased natural gas production to 16.9 Bcf in 2020 from 13.9 Bcf in 2019.
- Strong liquidity with $78.3 million in cash.
- Operational performance of Haynesville Shale wells has exceeded expectations.
- Reported a net loss of approximately $210.7 million for 2020.
- Included a non-cash impairment charge of $81.1 million related to upstream properties.
Tellurian Inc. (Tellurian) (NASDAQ: TELL) continued to build its integrated global natural gas business in 2020, focusing on expense and debt reduction.
Tellurian President and CEO Octávio Simões (Photo: Business Wire)
President and CEO Octávio Simões said, “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. 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. As the global market transitions away from coal and natural gas demand continues to increase, LNG is a powerful resource in the quest to provide energy access with a much lower carbon footprint and energy equity to the growing global population.”
Operating activities
Tellurian produced 16.9 billion cubic feet (Bcf) of natural gas for the year ended December 31, 2020 as compared to 13.9 Bcf for the prior year. As of December 31, 2020, Tellurian’s upstream assets include 9,373 net acres, interests in 72 producing wells, and estimated proven reserves of 99.5 Bcf. The reserve estimates were determined under the U.S. Securities and Exchange Commission guidelines and were prepared by an independent petroleum consulting firm.
Financial results
Tellurian ended its 2020 fiscal year with approximately
About Tellurian Inc.
Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production and has nearly 100 drillable locations with an estimated one trillion cubic feet of net resource. It is also developing an LNG trading operation and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL”.
For more information, please visit www.tellurianinc.com. Follow us on Twitter at twitter.com/TellurianLNG
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, and other aspects of the Driftwood project, and future costs and benefits of, and demand for, LNG. 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, 2020 filed by Tellurian with the Securities and Exchange Commission (the SEC) on February 24, 2021, and other Tellurian filings with the SEC, all of which are incorporated by reference herein. Estimates of natural gas resources are subject to substantially greater risk of not being produced than estimates of proved reserves. 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.
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