Tellurian Strengthens Balance Sheet, Reduces Debt by $57 Million

Rhea-AI Summary

Tellurian Inc. (NASDAQ: TELL) has announced a voluntary principal prepayment of $43 million on its 2018 Term Loan, funded by cash and its subsidiary, Tellurian Production Holdings LLC. This move is expected to save approximately $2.4 million in interest for 2021. Additionally, the company repaid $13.6 million to other creditors, totaling a $57 million debt reduction. After this prepayment, Tellurian maintains around $80 million in unrestricted cash and $25 million in borrowings due in 2021. CEO Octávio Simões emphasized the company's focus on debt reduction and its strategic positioning in the LNG market.

Positive

• Voluntary $43 million prepayment on 2018 Term Loan to save $2.4 million in interest for 2021.
• Total debt reduction of $57 million year-to-date.
• Approximately $80 million in unrestricted cash enhances liquidity.
• Strong market capitalization over $1 billion.

Negative

• None.

Tellurian Inc. (Tellurian) (NASDAQ: TELL) today announced it has made a voluntary principal prepayment of $43 million on its 2018 Term Loan. The debt prepayment was funded using cash on hand and from its upstream subsidiary, Tellurian Production Holdings LLC, resulting in interest savings of approximately $2.4 million in 2021. Tellurian Inc. has also made $13.6 million in other debt repayments year to date to other creditors, for a total debt reduction of $57 million.

After today’s prepayment, Tellurian has approximately $80 million in unrestricted cash and $25 million in borrowings that mature in 2021, of which $17 million will be paid from Tellurian production.

President and CEO ­­Octávio Simões said, “Tellurian is delivering on our debt reduction plan and strengthening our balance sheet, with comfortable liquidity for operations and a market capitalization value of over $1 billion. We are producing natural gas from our Haynesville position as we watch the global natural gas market restructure with liquefied natural gas (LNG) supply tightening and prices rising. As an LNG supplier, we are well positioned with our integrated Driftwood partnership to control supply cost, effectively manage emissions through our own production, and produce LNG at a very low and stable cost that is globally competitive.”

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, LNG trading, 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, future costs, emissions, market factors and business prospects. 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, 2019, and other Tellurian filings with the Securities and Exchange Commission, all of which are incorporated by reference herein. 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/20210218006036/en/

FAQ

What was Tellurian's recent debt repayment announcement?

Tellurian announced a $43 million voluntary principal prepayment on its 2018 Term Loan, contributing to a total debt reduction of $57 million.

How much cash does Tellurian have after the recent prepayment?

After the prepayment, Tellurian has approximately $80 million in unrestricted cash.

What is the significance of Tellurian's debt repayment strategy?

The debt repayment strategy is aimed at strengthening the balance sheet and reducing interest expenses, positioning the company for better financial health.

How is Tellurian positioned in the LNG market according to the recent announcement?

Tellurian is positioned as a competitive LNG supplier, focusing on low-cost production and managing emissions effectively.

What are Tellurian's borrowings due in 2021?

Tellurian has $25 million in borrowings maturing in 2021, with $17 million expected to be paid from Tellurian Production.