Tellurian reveals pricing of public offering
US natural gas company Tellurian said August 4 that it priced its public offering at more than $100mn, one day after reporting a net loss for the second quarter.
Tellurian announced on August 3 its intent to offer shares of its common stock in an underwritten offering, but did not reveal the expected proceeds. Instead, it said only that proceeds would be used for general corporate purposes, including the potential acquisition of upstream assets.
The company has now announced the public offering of 35mn shares of common stock priced at $105mn, before expenses and compensation for underwriters. Underwriters have a 30-day option to purchase up to 5.24mn shares.
Tellurian announced Q2 2021 results showing a cash and cash equivalents balance of $111.9mn, with no borrowing obligations and quarterly revenues from natural gas sales of about $5.6mn. It reported a net loss for the quarter of $30.6mn, but claimed a strong balance sheet with assets estimated at $328.2mn.
The company noted again the 6mn metric tons/yr of LNG sale and purchase agreements (SPAs) with Gunvor Singapore and Vitol and, subsequent to the quarter, two additional SPAs totalling 3mn mt/yr with Anglo-Dutch major Shell. Together, the SPAs complete the sales for plants one and two of its Driftwood LNG project in Lake Charles, Louisiana.
Production at the end of 2021 is expected to be about 95mn ft3/day.