US LNG export project developer Tellurian said on Thursday it reduced the firm’s debt by $57 million, strengthening its balance sheet.
The firm said in a statement it made a voluntary principal prepayment of $43 million on its 2018 term loan.
In addition, the Driftwood LNG developer funded the debt prepayment using cash on hand and from its upstream subsidiary, Tellurian Production Holdings, resulting in interest savings of about $2.4 million in 2021, it said.
Tellurian 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 the new 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, it said.
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,” he said.
Furthermore, he added that as an LNG supplier, the firm is “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.”
Tellurian has struggled to secure deals for its 27.6 mtpa Driftwood development as the Covid-19 pandemic hit the entire industry.
The US LNG developer also delayed last year a final investment decision to 2021.
France’s Total is currently the only company that made a firm commitment to support the project with a $500 million investment.