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1. Company Snapshot

1.a. Company Description

Tellurian Inc.engages in the natural gas business worldwide.The company is developing a portfolio of natural gas production, liquefied natural gas (LNG) marketing, and infrastructure assets that includes an approximately 27.6 million tons per annum LNG export facility and an associated pipeline.


It owns interests in 11,060 net acres of natural gas assets and 78 producing wells located in the Haynesville Shale trend of northern Louisiana.The company was founded in 2016 and is headquartered in Houston, Texas.

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1.b. Last Insights on TELL

Tellurian Inc.'s recent performance was driven by the successful completion of its $1.2 billion acquisition by Woodside Energy Group, as approved by shareholders on October 4, 2024. This strategic move positions the company for growth and increased competitiveness in the LNG market. The acquisition is expected to enhance Tellurian's ability to supply natural gas to customers worldwide, aligning with its goal of establishing a competitive LNG enterprise.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Woodside Energy (WDS) Shares Drop Following Tellurian Acquisition

Oct -09

Source: gurufocus.com

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Tellurian Inc. Announces Intention to Delist and Redeem 8.25% Senior Notes Due 2028

Oct -09

Source: businesswire.com

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Tellurian Shareholders Approves the $1.2 Billion Acquisition

Oct -09

Source:

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Woodside completes $1.2 bln Tellurian acquisition

Oct -08

Source: reuters.com

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Woodside Completes Acquisition of Tellurian

Oct -08

Source: businesswire.com

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Tortoise Capital Announces Tortoise Decarbonization Infrastructure Index Constituent Changes Due to Corporate Action

Oct -08

Source: accesswire.com

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Tellurian shareholders back proposed $1.2 bln Woodside deal

Oct -04

Source: reuters.com

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Tellurian Announces Approval of Merger Agreement Proposal

Oct -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.76%)

6. Segments

Marketing and Trading

Expected Growth: 10.8%

Tellurian Inc.'s 10.8% growth in Marketing and Trading is driven by increasing demand for LNG, strategic partnerships, and expansion into new markets. The company's ability to secure long-term contracts, optimize its supply chain, and invest in digital marketing initiatives have also contributed to its growth.

Upstream

Expected Growth: 10.4%

Tellurian Inc.'s upstream segment growth of 10.4% is driven by increasing global demand for LNG, strategic partnerships, and expansion into new markets. Additionally, the company's focus on reducing costs, improving operational efficiency, and investing in digital technologies have contributed to its growth momentum.

7. Detailed Products

Driftwood LNG

A proposed liquefied natural gas (LNG) export project located in Louisiana, USA

Permian Global Access Pipeline

A proposed 42-inch diameter pipeline that will transport natural gas from the Permian Basin to the Gulf Coast

Haynesville Global Access Pipeline

A proposed 42-inch diameter pipeline that will transport natural gas from the Haynesville Shale to the Gulf Coast

Pipeline Infrastructure

A network of pipelines that will transport natural gas from various basins to the Gulf Coast

LNG Marketing and Trading

A service that markets and trades LNG, providing customers with flexible and reliable supply options

8. Tellurian Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tellurian Inc. is medium, as the company operates in the liquefied natural gas (LNG) industry, where substitutes are limited. However, the increasing adoption of renewable energy sources could pose a threat to the company's operations.

Bargaining Power Of Customers

The bargaining power of customers for Tellurian Inc. is low, as the company's customers are primarily large industrial and utility companies that require a stable supply of LNG. This gives Tellurian Inc. a strong negotiating position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Tellurian Inc. is medium, as the company relies on a few large suppliers for its LNG feedstock. While this gives suppliers some negotiating power, Tellurian Inc.'s large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Tellurian Inc. is high, as the LNG industry is attractive to new entrants due to its high profit margins. However, the high barriers to entry, including the need for significant capital investment and regulatory approvals, help to mitigate this risk.

Intensity Of Rivalry

The intensity of rivalry for Tellurian Inc. is high, as the LNG industry is highly competitive, with several large players competing for market share. This competition can lead to downward pressure on prices and margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.83%
Debt Cost 3.95%
Equity Weight 56.17%
Equity Cost 16.13%
WACC 10.79%
Leverage 78.02%

11. Quality Control: Tellurian Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Tellurian

A-Score: 3.7/10

Value: 7.0

Growth: 6.1

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

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W&T Offshore

A-Score: 3.4/10

Value: 7.4

Growth: 1.1

Quality: 4.4

Yield: 2.0

Momentum: 3.0

Volatility: 2.3

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Vivakor

A-Score: 3.3/10

Value: 9.8

Growth: 6.4

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Empire Petroleum

A-Score: 3.3/10

Value: 7.4

Growth: 5.3

Quality: 2.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Battalion Oil

A-Score: 2.8/10

Value: 9.7

Growth: 3.1

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

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USE

A-Score: 2.6/10

Value: 7.8

Growth: 2.2

Quality: 2.3

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.0$

Current Price

1.0$

Potential

-0.00%

Expected Cash-Flows