PRESS RELEASE | Tellurian Reports Fourfold Increase in Natural Gas Production In 2022
Tellurian Inc. (Tellurian or the Company) (NYSE American: TELL) ended the fourth quarter of 2022 with the first phase of Driftwood LNG under construction, and $474.2 million of cash and cash equivalents. Tellurian also increased natural gas production fourfold to approximately 225 million cubic feet per day (MMcfd) in the fourth quarter of 2022 as compared to approximately 55 MMcfd in the fourth quarter of 2021. Tellurian also had the following significant accomplishments in 2022:
- Issued a limited notice to proceed to Bechtel Energy, Inc. and began construction of phase one of Driftwood LNG
- Completed the acquisition of natural gas assets of approximately 5,000 net acres and 44 producing wells
- Put in production 13 operated Haynesville wells
- Increased total proved reserves to 445 billion cubic feet (Bcf), as of year-end 2022, an increase of over 100 Bcf as compared to year-end 2021*
- Supported the planting of more than one million trees as part of a five-year pledge with the National Forest Foundation
President and CEO Octávio Simões said, “Tellurian is executing on our plans to progress Driftwood LNG and has invested approximately $1.0 billion in the project since inception. We have also significantly increased our natural gas production and reduced carbon impact through nature-based solutions. At the same time, we are diligent in our search to secure a financing package to support long-term returns for shareholders.”
Upstream segment results
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Three Months Ended December 31, 2022 |
Three Months Ended December 31, 2021 |
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Net production |
20.7 Bcf |
5.0 Bcf |
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Revenue |
$102.5 million |
$21.6 million |
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Operating profit (loss) |
$47.5 million |
$(1.1) million |
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Adjusted EBITDA** |
$80.2 million |
$13.3 million |
Operating activities
Tellurian produced 47.3 Bcf of natural gas for the year ended December 31, 2022. As of December 31, 2022, Tellurian’s natural gas assets include 27,689 net acres, interests in 143 producing wells, and estimated proved reserves of 445 Bcf with an associated Standardized Measure* value of $1,036 million.
Consolidated financial results
Tellurian generated approximately $391.9 million in total revenues from sales of LNG and natural gas, driven by increased realized natural gas prices and production volumes for the year ended December 31, 2022, compared to $71.3 million for 2021. Tellurian reported a net loss of approximately $49.8 million or $0.09 per share (basic and diluted), for the year ended December 31, 2022, compared to a net loss of $114.7 million, or $0.28 per share (basic and diluted), for 2021.
As of December 31, 2022, Tellurian had approximately $1.4 billion in total assets, including approximately $474.2 million of cash and cash equivalents.
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* Standardized Measure – Standardized measure of discounted future net cash flows. The proved reserve estimates and Standardized Measure were determined under U.S. Securities and Exchange Commission guidelines and were prepared by an independent petroleum consulting firm. |
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** Non-GAAP measure – see the end of this press release for a definition and a reconciliation to the most comparable GAAP measure. |