(Source: Shutterstock.com)
Despite soaring production and revenues, Tellurian Inc. posted a net loss and the company expects revenues and production to flatten in 2023.
For the full year, Tellurian’s revenues were $391.9 million, up 450% on higher production and gas prices; however, the company reported a net loss of $49.8 million. In comparison, in 2021 the company reported a net loss of $114.7 million.
Tellurian Chief Executive Charif Souki expects 2023 upstream production to remain in line with last year and revenues to shrink due to lower commodity prices.
Tellurian produced an average 225 MMcf/d in fourth-quarter 2022, up 309% compared to the same period a year ago. Since then, Tellurian has brought online numerous operated wells in the Haynesville, Souki said February 22 in a corporate video.
"Tellurian’s upstream group created positive revenues and cash flow that enhanced the company’s liquidity position,” Souki said. “In 2023, we expect to continue at the same pace although with prices coming down, we’re going to have smaller revenues from the same amount of production. But we will also control our capital expenditures for the group and we’ll continue to generate positive cash flow from these activities.”
Between cash on hand and cash generated by Tellurian’s upstream group, Souki expects the development of its Driftwood LNG project to remain on track.
“We still expect to sell 35%-40% of Driftwood to industry partners, they are the ones that have an excess of cash… and [are] looking for projects to develop,” Souki said.
RELATED: Tellurian Eyes $3.2 Billion in Equity for Driftwood LNG
Financial results
Houston-based Tellurian reported revenues of $102.5 million and adjusted EBITDA of $80.2 million in fourth-quarter 2022 — up 503% year over year, the company reported February 22.
Tellurian ended 2022 with approximately $1.4 billion in total assets, including $474.2 million in cash and cash equivalents while its proved reserves rose to 445 Bcf compared to 100 Bcf a year earlier.
Recommended Reading
FTC Oks Chevron-Hess Deal, Bans John Hess from Board
2024-09-30 - Federal regulators signed off on a blockbuster tie-up between Chevron and Hess Corp. but banned CEO John Hess from sitting on the Chevron board.
As Permian Targets Grow Scarce, 3Q M&A Drops to $12B—Enverus
2024-10-16 - Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
Chevron Sells Canadian Oil Sands, Duvernay Shale Assets for $6.5B
2024-10-07 - Chevron said the divestitures are part of its plans to sell $10 billion to $15 billion worth of assets by 2028 following the company’s acquisition of Hess Corp. for $53 billion.
Carnelian Backs Williston E&P Zavanna as Bakken M&A Heats Up
2024-09-24 - Carnelian Energy Capital Management LP invested in Zavanna LLC, a longtime producer in the North Dakota Bakken and Three Forks plays.
Exxon to Sell Older Permian Assets to Hilcorp in $1B Deal, Sources Say
2024-11-13 - Reuters reported in June that Exxon was auctioning the assets to focus on higher growth shale drilling properties, following the completion of its $60 billion takeover of Pioneer Natural Resources in May.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.