US LNG export project developer Tellurian logged a lower net loss in the second quarter while the firm also revealed plans to sell common shares in an underwritten public offering.
Tellurian posted a net loss of about $30.6 million, compared to a loss of $128.8 million in the April-June period last year.
The developer of the 27.6 mtpa Driftwood project ended its second quarter with about $111.9 million of cash and cash equivalents and no borrowing obligations.
Tellurian generated about $5.6 million in revenues from natural gas sales.
Based on current production and anticipated results from new wells, Tellurian expects the 2021 year-end exit rate for gross natural gas production to reach about 95 million cubic feet per day (mmcf/d).
The Houston-based firm has this year signed three 10-year LNG supply deals for its Driftwood project in Louisiana for a total of 9 million tonnes per year.
These include contracts with Gunvor, Vitol, and the latest with Shell.
“Tellurian’s strengthened balance sheet and commercial success, combined with supportive market fundamentals, enable Driftwood’s continued progression,” chief executive Octavio Simoes, said.
He said the firm has exercised its long-term lease option with the Port of Lake Charles but it also has started on owner’s projects for site preparation.
“Tellurian Production is also enhancing our natural gas drilling program and this integrated approach will create the physical hedge for Driftwood’s natural gas purchases for liquefaction and export,” Simoes said.
Share sale
In a separate statement, Tellurian revealed plans to offer for sale shares of its common stock in an underwritten public offering.
The company also expects to grant the underwriter of the offering a 30-day option to purchase additional shares of common stock to cover over-allotments, if any.
Tellurian said it intends to use the net proceeds from the offering for general corporate purposes, including the potential acquisition of upstream assets.
The firm did not provide any additional information.
