Challenging Conventional Thinking with Proven Results in the LNG Industry

Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today that the Board of Directors has named Charif Souki Executive Chairman of Tellurian. Souki has been Tellurian’s non-executive Chairman since founding the company in February 2016.

President and CEO Meg Gentle said, “Demand for liquefied natural gas (LNG) grew 13% last year and continues to grow at a pace that will outstrip capacity growth unless we act now and get facilities built. While COVID-19 has slowed the market this year, the market is rebalancing quickly and the underlying fundamentals that support long-term investment in LNG are strengthening. We are fortunate to have the benefit of our founders’ marketing expertise and relationships as we commercialize and finance Driftwood LNG.”

Executive Chairman Charif Souki added, “As the world recovers, there is an urgent need to make up for lost time. I am re-engaging to provide additional support to Tellurian, a company I co-founded with Martin Houston, using personal and friends and family funds. I am 100% committed to Tellurian’s success and will be working alongside our President and CEO Meg Gentle, COO Keith Teague, and the most experienced LNG team in the industry to get our first-class project, Driftwood LNG, constructed.”

Driftwood LNG is a proposed 27.6 million tonnes per annum (mtpa) liquefaction export facility that will be located near Lake Charles, Louisiana on the U.S. Gulf Coast. The project is ready for construction, having received necessary permits and with 30% of engineering with Bechtel completed.

Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today that CEO Meg Gentle will present at the J.P. Morgan 2020 Energy, Power & Renewables Conference at 3:40 p.m. (Eastern) on Tuesday, June 16, 2020. The virtual conference webcast is available on the J.P. Morgan website and via the direct link.

View the full press release.

See Tellurian’s new corporate presentation here.

A new corporate presentation is available for Tellurian Inc. (NASDAQ: TELL). The presentation will include forward-looking information.

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) continues to build its integrated global natural gas business. Notable Tellurian achievements during the first quarter of 2020 and thereafter:

• Reduced corporate overhead to approximately $6 million per month to begin in June.
• Raised $50 million in gross proceeds through issuance of $56 million zero coupon, unsecured notes in April 2020.
• Amended 2019 Term Loan, reducing the principal balance by $22.1 million and extending its maturity to November 2021.

President and CEO Meg Gentle said, “Tellurian has taken actions to strengthen our balance sheet in the midst of extreme energy and financial market conditions. We have streamlined the organization and arranged a $50 million financing. We are lean, resolved, and focused on delivering our first project, Driftwood LNG.”

Financial results

Tellurian ended its first quarter of 2020 with approximately $55.5 million in cash and cash equivalents and approximately $128.6 million in long-term debt. Tellurian’s balance sheet consisted of approximately $364.3 million in assets. Proforma for the financing transactions which were completed in April, Tellurian would have ended the quarter with approximately $100.7 million in cash and cash equivalents, approximately $167.5 million in long-term debt, and approximately $409.5 million in assets.

Tellurian reported a net loss of approximately $40.7 million, or $0.18 per share (basic and diluted), for the three months ended March 31, 2020.

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has executed an agreement to sell $56 million of zero coupon, unsecured notes for gross proceeds of $50 million and provide the lender with warrants to purchase up to 20 million shares of Tellurian common stock, subject to customary closing conditions.

In conjunction with this financing, Tellurian has also entered into an agreement to amend its 2019 Term Loan, including a reduction of the principal amount by $17.1 million. The agreement provides for a paydown of $2.1 million in cash, converts $15 million of principal value into equity through the issuance of approximately 9.3 million shares to the lender, and provides the lender with warrants to purchase up to approximately 4.7 million shares of Tellurian common stock, subject to customary closing conditions.

Tellurian’s unaudited cash and cash equivalents balance proforma for the financing transaction would have been approximately $100.7 million as of March 31, 2020.

President and CEO Meg Gentle said, “Tellurian is building cash reserves during this challenging time in global markets, positioning for a strong emergence from COVID-19 restrictions. We remain bullish on long-term natural gas demand growth, underscoring the acute need for Driftwood LNG.”

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has entered into an agreement to amend the terms of its 2019 Term Loan, including an 18-month extension of the maturity date to November 23, 2021.

President and CEO Meg Gentle said, “As announced in early March, we are making necessary changes amid challenging global conditions. We have restructured the organization and entered into an agreement to extend our Term Loan maturity to late 2021, which swiftly completes the second critical step toward resiliency in the current market. We are working remotely with potential equity partners for the Driftwood project and implementing measures to keep our team safe and productive to regain commercial momentum when the effects of COVID-19 subside.”

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) President and Chief Executive Officer Meg Gentle today announced two new executive leadership team members.

Kian Granmayeh, formerly Director of Investor Relations, is now Tellurian’s Chief Financial Officer, responsible for financial strategy and liquidity, replacing Antoine Lafargue who will join the marketing group as Senior Vice President of LNG Marketing to advance commercialization of the Driftwood project. Before joining Tellurian in January 2019, Mr. Granmayeh worked at Apache Corporation for four years in various roles in Project Execution, Strategic Planning and Investor Relations. Previous to that, he was a Vice President at Lazard Freres & Co.

Amos Hochstein, formerly Senior Vice President of LNG Marketing, is now Tellurian’s Executive Vice President of LNG Marketing, leading the marketing of liquefied natural gas (LNG) and partnership interests from Driftwood LNG. Before joining Tellurian in 2017, he served as the U.S. Special Envoy for International Energy Affairs and led the U.S. Department of State’s Bureau of Energy Resources, where he oversaw global energy foreign policy engagement and advised the U.S. Secretary of State and the Vice President on global energy markets.

Keith Teague as EVP and Chief Operating Officer, Daniel Belhumeur as EVP and General Counsel, Tarek Souki as EVP and President of Tellurian Trading UK, and John Howie as EVP of Upstream and President of Tellurian Production Company, will each continue as members of the executive leadership team.

President and CEO Meg Gentle said, “We are reducing our costs and reorganizing the company to make Tellurian resilient in the face of current challenges in financial and energy markets. We are redirecting resources to complete the marketing of the Driftwood LNG project, which is fully permitted and ready to begin construction. Amos’s experience in LNG markets and expertise in negotiations brings together key elements to complete our Driftwood partnership. With a broad background across the finance organization, Kian will be focused on capital discipline and refinancing our existing obligations to extend our liquidity.”

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it intends to reduce corporate spending and reorganize financing for its 2019 term loan as it prepares for uncertain market conditions.

President and CEO Meg Gentle said, “Given current global financial market conditions and increasing restrictions on travel caused by the onset of Coronavirus, we are taking the steps necessary to focus on preserving the value we have created at Tellurian and Driftwood LNG. To this end we will reduce our corporate overhead to approximately $6 million per month and have initiated discussions with our lender to extend the maturity of our 2019 term loan due in May 2020.”

The fundamental business opportunity of Tellurian continues to rely on low-cost U.S. natural gas and a premier location on the Gulf Coast that can be built by Bechtel for $560 / tonne, making it possible for Tellurian to load liquefied natural gas (LNG) on the water for $3 – 4 / mmBtu.

Gentle added, “We have just returned from a visit to India where we continued discussions with Petronet and agreed to extend our MOU to May 31, 2020. We continue to see very strong growth in LNG demand from Asia in general, and India in particular, in spite of world conditions. We are highly confident that when travel restrictions are eased, we will be able to finalize several negotiations to complement the Petronet agreement and allow us to reach final investment decision (FID). With the new corporate overhead structure, we have a long runway to execute on our business model.”

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has extended its Memorandum of Understanding (MOU) with Petronet LNG Limited (Petronet) pursuant to which Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per annum (5 mtpa) of liquefied natural gas (LNG) from the Driftwood project, concurrent with an equity investment in Driftwood Holdings. The MOU signed in September 2019 previously contemplated that transaction agreements would be finalized by March 31, 2020. The timing has been extended to May 31, 2020 to support Petronet’s consultative review process.

President and CEO Meg Gentle said “Tellurian was in India this week meeting with Petronet and affiliates to progress negotiations, and we are very supportive of Petronet’s process to ensure their robust project review. With India’s LNG demand increasing 27% year over year, and the H.E. Prime Minister Narendra Modi’s plans for $60 billion of investments in natural gas infrastructure, India is perfectly poised to benefit from strategic project agreements such as Petronet’s equity investment in Driftwood.”

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Tellurian Inc. (Tellurian) (NASDAQ: TELL) continued to build its integrated global natural gas business and concluded 2019 with momentum on commercialization and development of its first project, Driftwood LNG.

President and CEO Meg Gentle said, “In 2019, Tellurian secured equity partners for the Driftwood project, advanced engineering and site testing, and finalized critical permits, making Driftwood LNG shovel ready for 2020. We plan to complete our financing in the coming months and begin construction on the largest privately funded energy infrastructure project in the United States.”

Built commercial momentum

• Established the partnership terms for the Driftwood project by executing final documents with Total Delaware, Inc. (Total) and subsidiaries for a $500 million equity investment in Driftwood Holdings LP, a related purchase of one million tonnes of liquefied natural gas (LNG), and a purchase of an additional 1.5 mtpa of LNG from Tellurian’s LNG offtake volumes from Driftwood. Total also agreed to purchase approximately $200 million of Tellurian common stock, bringing its aggregate investment in the Tellurian portfolio to approximately $907 million upon a final investment decision for Driftwood.
• Advanced the commercialization of Driftwood LNG through a Memorandum of Understanding (MOU) with Petronet LNG Limited INDIA (Petronet) for Petronet and its affiliates to make an equity investment in Driftwood Holdings LP and to purchase up to 5 mtpa of LNG from Driftwood LNG.

Advanced Driftwood project development

• Received the United States Federal Energy Regulatory Commission (FERC) order granting authorization for the Driftwood terminal and Driftwood pipeline, and the United States Department of Energy order granting export authorization to non-free trade agreement countries, concluding the most significant permits required for construction and operation.
• Continued to progress engineering on the Driftwood terminal, completing 28% of engineering with approximately $150 million invested to date.
• Received FERC approval for Driftwood terminal implementation plans; the Driftwood terminal is in Louisiana and located on approximately 1,000 acres with ample laydown area for equipment and deep-water access for shipping.
• Began the FERC pre-filing process for the Permian Global Access Pipeline (PGAP) , a 625-mile, 42-inch interstate natural gas pipeline proposed from the Waha Hub in West Texas to near Lake Charles, Louisiana.

Operating activities
Drilled three new operated wells and increased average net production to approximately 38.1 million cubic feet per day. Tellurian holdings include 10,260 net acres, interests in 67 producing wells and estimated proven reserves of approximately 269 billion cubic feet equivalent of natural gas.

Financial results
Tellurian ended its 2019 fiscal year with approximately $64.6 million of cash and cash equivalents and approximately $136.6 million in debt. Tellurian has a strong balance sheet consisting of approximately $382.3 million in assets. Tellurian reported a net loss of approximately $151.8 million, or $0.69 per share (basic and diluted), for the year ended December 31, 2019.

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