Tellurian posts first-quarter net loss of $67 million

Tellurian Inc., Houston, incurred a net loss of about $67 million for first-quarter 2022, but generated $26 million in revenues from natural gas sales in the quarter on a production increase of about 24% compared to the previous quarter. Revenues from natural gas sales for the year-ago period were $8.7 million.

The company produced 6.1 bcf of natural gas for the quarter compared to 4.9 bcf in fourth-quarter 2021. Tellurian’s upstream assets include 13,521 net acres and interests in 82 producing wells as of Mar. 31.

“Tellurian’s own natural gas production and sales provide valuable operating cash and a unique advantage to us as a liquefied natural gas (LNG) supplier. We are nearing net production of 100 MMcfed and plan to reach 200 MMcfed by yearend. Tellurian production is now generating free cash flow after capex and we intend to maintain capex at approximately $150 million a year,” said Octávio Simões, president and chief executive officer in its May 4 earnings release. No earnings call was scheduled.

Driftwood LNG

The company said Driftwood LNG, the company’s flagship 27.6 million tonne/year liquefaction plant in Calcasieu Parish, La., is on schedule for LNG production in 2026. No other updates were given. Bechtel Oil, Gas, and Chemicals Inc. was previously given notice to proceed, and construction has begun (OGJ Online, Feb. 2, 2022).

In early February, Executive Chairman Charif Souki said the project would begin construction regardless of whether full Phase 1 financing was in place. A final investment decision is pending.