Tellurian Inc (TELL) Reports Q3 2023 Earnings: Revenue Drops Amid Increased Production
Tellurian Inc (TELL) reported a net loss of $65.4 million in Q3 2023, compared to a net loss of $14.2 million in the same period of 2022.
Revenue from natural gas sales decreased to $43.2 million in Q3 2023 from $81.1 million in Q3 2022, despite increased production volumes.
The company's upstream segment saw a significant increase in natural gas production, from 11.4 Bcf in Q3 2022 to 19.5 Bcf in Q3 2023.
Tellurian Inc (TELL) continues to progress with the Driftwood project, with first LNG production targeted for 2027.
On November 2, 2023, Tellurian Inc (TELL) released its third quarter 2023 earnings report. Despite a significant increase in natural gas production, the company reported a net loss and a decrease in revenue.
Performance and Challenges
Tellurian Inc (TELL) reported a net loss of $65.4 million, or $0.12 per share, for the quarter ended September 30, 2023. This is a significant increase from the net loss of $14.2 million, or $0.03 per share, reported for the same period in 2022. The company attributed the loss to decreased realized natural gas prices, which was partially offset by increased production volumes.
Financial Highlights
Despite the net loss, Tellurian Inc (TELL) saw a significant increase in natural gas production. The company's upstream segment produced 19.5 billion cubic feet (Bcf) of natural gas for the quarter ended September 30, 2023, compared to 11.4 Bcf for the same period in 2022. However, the average realized price per MCF dropped from $7.07/Mcf in Q3 2022 to $2.22/Mcf in Q3 2023.
Revenue from natural gas sales decreased to $43.2 million in Q3 2023 from $81.1 million in Q3 2022. As of September 30, 2023, Tellurian had approximately $1.3 billion in total assets, including approximately $59.3 million of cash and cash equivalents.
Company's Outlook
Despite the challenges, Tellurian Inc (TELL) remains optimistic about its future. The company continues to progress with the financing and construction of its Driftwood project. President and CEO Octavio Simoes stated,
Tellurians upstream segment continues to provide growing natural gas production, improving significantly over the third quarter of last year, and we see natural gas prices on the rise through year end. We are having a number of discussions with counterparties for both equity partnership and liquefied natural gas (LNG) offtake for the Driftwood project and investment in the Driftwood Line 200/300 pipeline. We have invested over one billion dollars to develop and advance construction of the fully permitted Driftwood project and remain on target to produce first LNG in 2027.
Investors and potential GuruFocus.com members interested in the natural gas sector should keep a close eye on Tellurian Inc (TELL) as it continues to navigate the challenges of the market and progresses with its Driftwood project.
Explore the complete 8-K earnings release (here) from Tellurian Inc for further details.
This article first appeared on GuruFocus.
