US LNG firm Tellurian, the developer of the Driftwood LNG export project, reported a wider net loss in the second quarter of this year, while its gas production almost doubled compared to the same period in 2022.
Tellurian reported a net loss of about $59.6 million, or $0.11 per share, for the quarter ended June 30, 2023, compared to a net loss of about $35,000 last year.
The company produced 17.2 billion cubic feet (Bcf) of natural gas during the quarter, as compared to 9 Bcf for the same period of 2022, it said in a statement.
As of June 30, 2023, Tellurian’s natural gas assets included 31,117 net acres and interests in 157 producing wells.
Tellurian generated about $32 million in revenues from natural gas sales in the second quarter, compared to $61.3 million in the second quarter of 2022, a change driven by decreased realized natural gas prices partially offset by increased production volumes, it said.
As of the end of the second quarter, Tellurian had approximately $1.3 billion in total assets, including about $106.7 million of cash and cash equivalents, the firm said.
Driftwood LNG construction progresses
President and CEO Octavio Simoes said, “Bechtel is progressing very well on Driftwood LNG construction, having driven over 9,000 piles and poured over 10,000 cubic feet of concrete for plant one and the storage tanks.”
According to Simoes, Bechtel also recently prepared plant two’s site for piling work.
The US LNG firm issued a limited notice to proceed to compatriot engineering and construction giant Bechtel in March last year.
Simoes also noted that Tellurian recently hired former investment banker Simon Oxley as its chief financial officer and with “his extensive experience and leadership, we are significantly enhancing our project financing efforts.”
Tellurian’s shareholders recently approved doubling the number of its common shares, as the US LNG firm continues to work on financing the first phase of its Driftwood LNG export plant and signing deals with equity partners.
The LNG terminal developer is expecting the development costs for the first phase of its Driftwood LNG export plant in Louisiana to reach $14.5 billion.
Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa.
As part of its financing startegy, Tellurian entered last month into a binding commitment letter with a fund of Blue Owl Real Estate Capital regarding the sale and leaseback of Driftwood land.
This deal is worth about $1 billion.